[Congressional Record (Bound Edition), Volume 150 (2004), Part 2]
[Senate]
[Pages 2038-2129]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2558. Mrs. MURRAY (for herself, Ms. Collins, Mrs. Boxer, Ms. 
Cantwell, Mrs. Clinton, Mr. Corzine, Mr. Edwards, Mrs. Feinstein, Mr. 
Kennedy, Mr. Lautenberg, Ms. Mikulski, Ms. Murkowski, Mr. Schumer, Ms. 
Snowe, and Mr. Stevens) submitted an amendment intended to be proposed 
to amendment SA 2491 submitted by Mrs. Murray (for herself, Ms. 
Collins, Mrs. Boxer, Ms. Cantwell, Mrs. Clinton, Mr. Cochran, Mr. 
Corzine, Mr. Edwards, Mrs. Feinstein, Mr. Kennedy, Mr. Lautenberg, Ms. 
Mikulski, Ms. Murkowski, Mr. Schumer, Ms. Snowe, and Mr. Stevens) and 
intended to be proposed to the bill S. 1072, to authorize funds for 
Federal-aid highways,

[[Page 2039]]

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

       Beginning on page 38, strike line 22 and all that follows 
     through page 39, line 7, and insert the following:
       (13) Infrastructure performance and maintenance program.--
     For carrying out the infrastructure performance and 
     maintenance program under section 139 of that title 
     $1,328,000,000 for fiscal year 2004.
       (14) Construction of ferry boats and ferry terminal 
     facilities.--For construction of ferry boats and ferry 
     terminal facilities under section 147 of that title, 
     $150,000,001 for each of fiscal years 2004 through 2009.
                                 ______
                                 
  SA 2559. Mrs. MURRAY (for herself, Ms. Collins, Mrs. Boxer, Ms. 
Cantwell, Mrs. Clinton, Mr. Corzine, Mr. Edwards, Mrs. Feinstein, Mr. 
Kennedy, Mr. Lautenberg, Ms. Mikulski, Ms. Murkowski, Mr. Schumer, Ms. 
Snowe, and Mr. Stevens) submitted an amendment intended to be proposed 
to amendment SA 2492 submitted by Mrs. Murray (for herself, Ms. 
Collins, Mrs. Boxer, Ms. Cantwell, Mrs. Clinton, Mr. Cochran, Mr. 
Corzine, Mr. Edwards, Mrs. Feinstein, Mr. Kennedy, Mr. Lautenberg, Ms. 
Mikulski, Ms. Murkowski, Mr. Schumer, Ms. Snowe, and Mr. Stevens) and 
intended to be proposed to the bill S. 1072, to authorize funds for 
Federal-aid highways, highway safety programs, and transit programs, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Beginning on page 80, strike line 7 and all that follows 
     through page 81, line 3, and insert the following:

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

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

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

       ``(a) In General.--The Secretary shall carry out a program 
     for construction of ferry boats and ferry terminal and 
     maintenance facilities in accordance with section 129(c).
       ``(b) Federal Share.--The Federal share of the cost of 
     construction of ferry boats and ferry terminals and 
     maintenance facilities under this section shall be 80 
     percent.
       ``(c) Allocation of Funds.--The Secretary shall give 
     priority in the allocation of funds under this section to 
     those ferry systems, and public entities responsible for 
     developing ferries, that--
       ``(1) carry the greatest number of passengers and vehicles;
       ``(2) carry the greatest number of passengers in passenger-
     only service; or
       ``(3) provide critical access to areas that are not well-
     served by other modes of surface transportation.
       ``(d) Set-Aside.--Of the amounts made available under 
     section 1101(a)(14) of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2003, $112,000,000 for 
     each of fiscal years 2004 through 2009 shall be made 
     available to carry out this section.''.
       (b) Conforming Amendments.--
       (1) Section 129(c) of title 23, United States Code, is 
     amended--
       (A) in the matter preceding paragraph (1), by inserting 
     ``and maintenance'' after ``terminal''; and
       (B) in paragraph (3), by inserting ``or maintenance'' after 
     ``terminal'' each place it appears.
       (2) The analysis for subchapter I of chapter 1 of title 23, 
     United States Code, is amended by striking the item relating 
     to section 147 and inserting the following:

``147. Construction of ferry boats and ferry terminal and maintenance 
              facilities.''.
       (3) Section 1064 of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (105 Stat. 2005) is repealed.
                                 ______
                                 
  SA 2560. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end of the amendment add the following:
       (h) Highway Trust Fund Expenditures for Highway Use Tax 
     Evasion Projects.--Section 9503(c), as amended by this Act, 
     is amended to add at the end the following new paragraph:
       ``(5) Highway use tax evasion projects.--From amounts 
     available in the Highway Trust Fund, there is authorized to 
     be expended--
       ``(A) for each fiscal year after 2003 to the Internal 
     Revenue Service--
       ``(i) $30,000,000 for enforcement of fuel tax compliance, 
     including the per-certification of tax-exempt users,
       ``(ii) $10,000,000 for Xstars, and
       ``(iii) $10,000,000 for xfirs, and
       ``(B) for each fiscal year after 2003 to the Federal 
     Highway Administration, $50,000,000 to be allocated 
     $1,000,000 to each State to combat fuel tax evasion on the 
     State level.''.
                                 ______
                                 
  SA 2561. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 2, after line 14, insert the following new section:

     SEC. 4. CLARIFICATION OF RAIL TRANSPORTATION POLICY.

       Section 10101 is amended--
       (1) by inserting ``(a) In General.--'' before ``In 
     regulating''; and
       (2) by adding at the end the following:
       ``(b) Primary Objectives.--The primary objectives of the 
     rail transportation policy of the United States are as 
     follows:
       ``(1) To promote effective competition among rail carriers 
     at origins and destinations.
       ``(2) To maintain reasonable rates in the absence of 
     effective competition.
       ``(3) To maintain consistent and efficient rail 
     transportation service for shippers, including the timely 
     provision of rail cars requested by shippers.
       ``(4) To ensure that smaller carload and intermodal 
     shippers are not precluded from accessing rail systems due to 
     volume requirements.''.
                                 ______
                                 
  SA 2562. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 2, after line 14, insert the following new section:

     SEC. 4. RAIL CUSTOMER ADVOCATE IN THE DEPARTMENT OF 
                   TRANSPORTATION.

       (a) Participation of Rail Customer Advocate in STB 
     Proceedings.--
       (1) Authority and responsibilities.--Chapter 105 is amended 
     by adding at the end the following new section:

     ``Sec. 10503. Participation of Rail Customer Advocate in 
       Board proceedings

       ``(a) Authority.--The following persons are authorized to 
     petition the Board for an exercise of authority of the Board 
     regarding rail transportation of any agricultural or forestry 
     commodity or product, and to participate in any proceeding of 
     the Board regarding rail transportation of such a commodity 
     or product:
       ``(1) The Rail Customer Advocate of the Department of 
     Transportation.
       ``(2) Any official of the government of a State whose 
     functions are the same as or similar to the functions of the 
     Rail Customer Advocate of the Department of Transportation.
       ``(b) Consideration of Presentations by Advocate.--(1) The 
     Board shall accord significant persuasive weight to any 
     material evidence, proposal, or view that is presented by an 
     official referred to in subsection (a) with respect to rail 
     transportation of an agricultural or forestry commodity or 
     product.
       ``(2) In disposing of any matter before the Board in which 
     an official referred to in subsection (a) has participated 
     under the authority of such subsection, the Board shall 
     present in writing a detailed explanation of any disagreement 
     of the Board with matters presented to the Board by that 
     official.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``10503. Participation of Rail Customer Advocate in Board 
              proceedings.''.
       (b) Establishment and Duties.--
       (1) In general.--The Department of Transportation 
     Reorganization Act is amended by adding at the end the 
     following new section:

     ``SEC. 286. RAIL CUSTOMER ADVOCATE.

       ``(a) Establishment of Office.--There is established within 
     the Department an Office of Rail Customer Advocacy.
       ``(b) Rail Customer Advocate.--
       ``(1) Appointment.--The Secretary shall appoint the Rail 
     Customer Advocate.
       ``(2) Head of office.--The Rail Customer Advocate is the 
     head of the Office of Rail Customer Advocacy.
       ``(c) Functions.--The Rail Customer Advocate has the 
     following functions:
       ``(1) Participation in stb proceedings.--To participate as 
     a party in proceedings of the Surface Transportation Board on 
     petitions for action by the Board regarding the regulation of 
     rail transportation of agricultural or forestry commodities 
     or products, and to initiate any such action.
       ``(2) Compilation of information.--To collect, compile, and 
     maintain information regarding the cost and efficiency of 
     rail transportation of agricultural commodities and products 
     and forestry commodities and products.

[[Page 2040]]

       ``(3) Studies.--To perform studies regarding rail 
     transportation of agricultural commodities and products and 
     forestry commodities and products.
       ``(d) Access to STB Information.--To carry out the 
     functions under subsection (b), the Rail Customer Advocate 
     shall have access to information, including databases, of the 
     Surface Transportation Board.''.
       (B) in paragraph (5), by striking the period at the end and 
     inserting ``; or''; and
       (C) by adding at the end the following:
       ``(6) the establishment of the Office of Rail Consumer 
     Advocacy of the Department under section 286.''.
                                 ______
                                 
  SA 2563. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 2, after line 14, insert the following new section:

     SEC. 4. PERIODIC STUDY OF COMPETITION AMONG RAIL CARRIERS.

       (a) Requirement for Study.--
       (1) Triennial study.--Chapter 101 is amended by adding at 
     the end the following new section:

     ``Sec. 10103. Periodic study of rail carrier competition and 
       processes of the Board

       ``(a) Requirement for Study.--Every three years, the 
     Secretary of Transportation shall conduct a comprehensive 
     study of rail carrier competition and the processes of the 
     Board. The study shall include an assessment of the 
     following:
       ``(1) The availability of effective competitive options 
     among and between rail carriers.
       ``(2) The effectiveness of the processes of the Surface 
     Transportation Board, including the process used for 
     determining the reasonableness of rates of rail carriers.
       ``(3) The availability to rail users of effective 
     regulatory dispute resolution options.
       ``(b) Study To Include Assessment of Rail-to-Rail 
     Competition.--In carrying out the study, the Board shall 
     assess the overall level of rail-to-rail competition in the 
     rail carrier industry in the United States. In making the 
     assessment, the Board shall consider the views of users of 
     the services of rail carriers.
       ``(c) Report to Congress.--Not later than November 15 of 
     each year in which a study is conducted under subsection (a), 
     the Secretary shall submit a report on the results of the 
     study to Congress. The report shall include the following:
       ``(1) The Board's assessment of the overall level of rail-
     to-rail competition in the rail carrier industry in the 
     United States.
       ``(2) The markets that have limited rail-to-rail 
     competition.
       ``(3) Any recommendations for enhancing rail-to-rail 
     competition, particularly in markets identified as having 
     limited rail-to-rail competition.
       ``(4) An assessment of the Board's performance of its 
     purpose to promote and enhance competition among and between 
     railroads by--
       ``(A) addressing complaints regarding rates, charges, and 
     service; and
       ``(B) promulgating regulations of general applicability or 
     taking other actions.
       ``(5) Any recommendations for modification of any of the 
     decisions of the Board (or decisions of the former Interstate 
     Commerce Commission continuing in effect) or for modification 
     of the general authority or jurisdiction of the Board.
       ``(6) Any other findings, analyses, assessments, and 
     recommendations that result from the study.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following:

``10103. Periodic study of rail carrier competition and processes of 
              the Board.''.
       (b) Time for First Study.--The first study under section 
     10103 of title 49, United States Code (as added by subsection 
     (a)), shall be carried out not later than two years after the 
     date of the enactment of this Act.
                                 ______
                                 
  SA 2564. Mr. SHELBY submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       In lieu of the matter proposed, insert the following:

     ``SEC.  . DELTA REGION TRANSPORTATION DEVELOPMENT PROGRAM

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

     ``178. Delta Region Transportation Development Program

       ``(a) In General.--The Secretary shall carry out a program 
     to--
       ``(1) support and encourage multistate transportation 
     planning and corridor development;
       ``(2) provide for transportation project development;
       ``(3) facilitate transportation decisionmaking; and
       ``(4) support transportation construction.
       ``(b) Eligible Recipients.--A State transportation 
     department and metropolitan planning organization may receive 
     and administer funds provided under the program.
       ``(c) Eligible Activities.--The Secretary shall make 
     allocations under the program for multistate highway and 
     transit planning, development, and construction projects.
       ``(d) Other Provisions Regarding Eligibility.--All 
     activities funded under this program shall be consistent with 
     the continuing, cooperative, and comprehensive planning 
     processes required by section 134 and 135.
       ``(e) Selection Criteria.--The Secretary shall select 
     projects to be carried out under the program based on--
       ``(1) whether the project is located--
       ``(A) in an area that is part of the Delta Regional 
     Authority; and
       ``(B) on the Federal-aid system;
       ``(2) endorsement of the project by the State department of 
     transportation; and
       ``(3) evidence of the ability to complete the project.
       ``(f) Program Priorities.--In administering the program, 
     the Secretary shall--
       ``(1) encourage State and local officials to work together 
     to develop plans for multimodal and multijurisdictional 
     transportation decisionmaking; and
       ``(2) give priority to projects that emphasize multimodal 
     planning, including planning for operational improvements 
     that--
       ``(A) increase the mobility of people and goods;
       ``(B) improve the safety of the transportation system with 
     respect to catastrophic--
       ``(i) natural disasters; or
       ``(ii) disasters caused by human activity; and
       ``(C) contribute to the economic vitality of the area in 
     which the project is being carried out.
       ``(g) Federal Share.--Amounts provided by the Delta 
     Regional Authority to carry out a project under this section 
     shall be applied to the non-Federal share required by section 
     120.
       ``(h) Availability of Funds.--Amounts made available to 
     carry out this section shall remain available until 
     expended.''.
       (b) Conforming Amendment.--The analysis for chapter I of 
     title 23, United States Code (as amended by section 1841(b)), 
     is amended by adding at the end the following:

     ``178. Delta Region Transportation Development Program''.

       On page 677, line 11, strike ``$2,500,000,000'' and insert 
     ``$1,300,000,000''.
       On page 677, line 13, strike ``$2,000,000,000'' and insert 
     ``$1,200,000,000''.
       On page 677, line 15, strike ``$500,000,000'' and insert 
     ``$100,000,000''.
       On page 678, after line 5, insert the following:
       ``(16) Delta region transportation development program.--
     For the Delta Region transportation development program, 
     $400,000,000 for each of fiscal years 2004 through 2009.''
                                 ______
                                 
  SA 2565. Mr. SHELBY submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       In lieu of the matter proposed, insert the following:

     ``SEC.  . DELTA REGION TRANSPORTATION DEVELOPMENT PROGRAM

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

     ``178. Delta Region Transportation Development Program

       ``(a) In General.--The Secretary shall carry out a program 
     to--
       ``(1) support and encourage multistate transportation 
     planning and corridor development;
       ``(2) provide for transportation project development;
       ``(3) facilitate transportation decisionmaking; and
       ``(4) support transportation construction.
       ``(b) Eligible Recipients.--A State transportation 
     department and metropolitan planning organization may receive 
     and administer funds provided under the program.
       ``(c) Eligible Activities.--The Secretary shall make 
     allocations under the program for multistate highway and 
     transit planning, development, and construction projects.
       ``(d) Other Provisions Regarding Eligibility.--All 
     activities funded under this program shall be consistent with 
     the continuing, cooperative, and comprehensive planning 
     processes required by section 134 and 135.
       ``(e) Selection Criteria.--The Secretary shall select 
     projects to be carried out under the program based on--
       ``(1) whether the project is located--

[[Page 2041]]

       ``(A) in an area that is part of the Delta Regional 
     Authority; and
       ``(B) on the Federal-aid system;
       ``(2) endorsement of the project by the State department of 
     transportation; and
       ``(3) evidence of the ability to complete the project.
       ``(f) Program Priorities.--In administering the program, 
     the Secretary shall--
       ``(1) encourage State and local officials to work together 
     to develop plans for multimodal and multijurisdictional 
     transportation decisionmaking; and
       ``(2) give priority to projects that emphasize multimodal 
     planning, including planning for operational improvements 
     that--
       ``(A) increase the mobility of people and goods;
       ``(B) improve the safety of the transportation system with 
     respect to catastrophic--
       ``(i) natural disasters; or
       ``(ii) disasters caused by human activity; and
       ``(C) contribute to the economic vitality of the area in 
     which the project is being carried out.
       ``(g) Federal Share.--Amounts provided by the Delta 
     Regional Authority to carry out a project under this section 
     shall be applied to the non-Federal share required by section 
     120.
       ``(h) Availability of Funds.--Amounts made available to 
     carry out this section shall remain available until 
     expended.''.
       (b) Conforming Amendment.--The analysis for chapter I of 
     title 23, United States Code (as amended by section 1841 
     (b)), is amended by adding at the end the following:

     ``178. Delta Region Transportation Development Program.''.

       On page 678, after line 5, insert the following:
       ``(16) Delta region transportation development program.--
     For the Delta Region transportation development program, 
     $400,000,000 for each of fiscal years 2004 through 2009.''
                                 ______
                                 
  SA 2566. Mr. GRASSLEY (for himself, and Mr. Baucus) submitted an 
amendment intended to be proposed to amendment SA 2549 submitted by Mr. 
Grassley (for himself and Mr. Baucus) and intended to be proposed to 
the bill S. 1072, to authorize funds for Federal-aid highways, highway 
safety programs, and transit programs, and for other purposes; which 
was ordered to lie on the table; as follows:

       Strike all after ``(g)'' and insert:
           Prohibition on Use of Highway Account for Rail 
     Projects.--Section 9503(c) (relating to transfers from 
     Highway Trust Fund for certain repayments and credits) is 
     amended by adding at the end the following new paragraph:
       ``(6) Prohibition on use of highway account for certain 
     rail projects.--With respect to rail projects beginning after 
     the date of the enactment of this paragraph, no amount shall 
     be available from the Highway Account (as defined in 
     subsection (e)(5)(B)) for any rail project, except for any 
     rail project involving publicly owned rail facilities or any 
     rail project yielding a public benefit.''.
                                  ____

  SA 2567. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert:

     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

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

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State all counties of which 
     are located, as of the date of enactment of this section, 
     within the established 13-State Appalachian region, as 
     determined by the Appalachian Regional Commission.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $270,000,000 for 
     the period of fiscal year 2004.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.
       (c) Infrastructure Performance and Maintenance Program.--
     Notwithstanding section 1101(13), the amount authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) for the infrastructure performance and 
     maintenance program under section 139 of title 23, United 
     States Code, shall be reduced by $270,000,000 for fiscal year 
     2004.
                                 ______
                                 
  SA 2568. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

     SEC. ___. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

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

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State all counties of which 
     are located, as of the date of enactment of this section, 
     within the established 13-State Appalachian region, as 
     determined by the Appalachian Regional Commission.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $270,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $45,000,000 shall be for fiscal year 2004;
       ``(B) $45,000,000 shall be for fiscal year 2005;
       ``(C) $45,000,000 shall be for fiscal year 2006;
       ``(D) $45,000,000 shall be for fiscal year 2007;
       ``(E) $45,000,000 shall be for fiscal year 2008; and
       ``(F) $45,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.
       (c) Emergency Relief.--Notwithstanding any other provisions 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$255,000,000''.
                                 ______
                                 
  SA 2569. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which

[[Page 2042]]

was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert:

     SEC. __. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

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

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State all counties of which 
     are located, as of the date of enactment of this section, 
     within the established 13-State Appalachian region, as 
     determined by the Appalachian Regional Commission.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $270,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $45,000,000 shall be for fiscal year 2004;
       ``(B) $45,000,000 shall be for fiscal year 2005;
       ``(C) $45,000,000 shall be for fiscal year 2006;
       ``(D) $45,000,000 shall be for fiscal year 2007;
       ``(E) $45,000,000 shall be for fiscal year 2008; and
       ``(F) $45,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.
       (c) Transportation Research.--Notwithstanding any other 
     provision of this Act, each of the amounts authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) under section 2001, and each of the 
     amounts limiting obligations under section 2002, shall be 
     reduced by 10.1 percent.
                                 ______
                                 
  SA 2570. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert:

     SEC. __. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

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

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State all counties of which 
     are located, as of the date of enactment of this section, 
     within the established 13-State Appalachian region, as 
     determined by the Appalachian Regional Commission.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $270,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $45,000,000 shall be for fiscal year 2004;
       ``(B) $45,000,000 shall be for fiscal year 2005;
       ``(C) $45,000,000 shall be for fiscal year 2006;
       ``(D) $45,000,000 shall be for fiscal year 2007;
       ``(E) $45,000,000 shall be for fiscal year 2008; and
       ``(F) $45,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.
       (c) Emergency Relief.--Notwithstanding any other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$277,000,000''.
       (d) Transportation Research.--Notwithstanding any other 
     provision of this Act, each of the amounts authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) under section 2001, and each of the 
     amounts limiting obligations under section 2002, shall be 
     reduced by 5 percent.
                                 ______
                                 
  SA 2571. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert:

     SEC. __. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

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

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $900,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $150,000,000 shall be for fiscal year 2004;
       ``(B) $150,000,000 shall be for fiscal year 2005;
       ``(C) $150,000,000 shall be for fiscal year 2006;
       ``(D) $150,000,000 shall be for fiscal year 2007;
       ``(E) $150,000,000 shall be for fiscal year 2008; and
       ``(F) $150,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--

[[Page 2043]]

       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.
       (c) Emergency Relief.--Notwithstanding any other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$150,000,000''.
                                 ______
                                 
  SA 2572. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert:

     SEC. ___. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

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

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $780,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $130,000,000 shall be for fiscal year 2004;
       ``(B) $130,000,000 shall be for fiscal year 2005;
       ``(C) $130,000,000 shall be for fiscal year 2006;
       ``(D) $130,000,000 shall be for fiscal year 2007;
       ``(E) $130,000,000 shall be for fiscal year 2008; and
       ``(F) $130,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.
       (c) Emergency Relief.--Notwithstanding any other provision 
     of this Act, section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$170,000,000''.
                                 ______
                                 
  SA 2573. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert:

     SEC. ___. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

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

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $780,000,000 for 
     the period of fiscal year 2004.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Infrastructure Performance and Maintenance Program.--
     Notwithstanding section 1101(13), the amount authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) for the infrastructure performance and 
     maintenance program under section 139 of title 23, United 
     States Code, is hereby reduced by $780,000,000 for fiscal 
     year 2004.
                                 ______
                                 
  SA 2574. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert:

     SEC. ___. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

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

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in all States.

[[Page 2044]]

       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $780,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $130,000,000 shall be for fiscal year 2004;
       ``(B) $130,000,000 shall be for fiscal year 2005;
       ``(C) $130,000,000 shall be for fiscal year 2006;
       ``(D) $130,000,000 shall be for fiscal year 2007;
       ``(E) $130,000,000 shall be for fiscal year 2008; and
       ``(F) $130,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Infrastructure Performance and Maintenance Program.--
     Notwithstanding section 1101(13), the amount authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) for the infrastructure performance and 
     maintenance program under section 139 of title 23, United 
     States Code, is hereby reduced by $330,000,000 for fiscal 
     year 2004.
       (d) Emergency Relief.--Notwithstanding any other provision 
     of this Act, section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$225,000,000''.
                                 ______
                                 
  SA 2575. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert

     SEC. . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

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

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $780,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $130,000,000 shall be for fiscal year 2004;
       ``(B) $130,000,000 shall be for fiscal year 2005;
       ``(C) $130,000,000 shall be for fiscal year 2006;
       ``(D) $130,000,000 shall be for fiscal year 2007;
       ``(E) $130,000,000 shall be for fiscal year 2008; and
       ``(F) $130,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.
       (c) Transportation Infrastructure Finance and Innovation 
     Act.--Notwithstanding section 188(a) of title 23, United 
     States Code, the amount authorized to be appropriated out of 
     the Highway Trust Fund (other than the Mass Transit Account) 
     to carry out subchapter II of chapter I of that title shall 
     be $110,000,000 for each of fiscal years 2004 through 2009.
       (d) Emergency Relief.--Notwithstanding any other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$210,000,000''.
       (e) Transportation Research.--Notwithstanding any other 
     provision of this Act, each of the amounts authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) under section 2001, and each of the 
     amounts limiting obligations under section 2002, shall be 
     reduced by 4.5 percent.
                                 ______
                                 
  SA 2576. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert

     SEC. . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

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

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are in `final design status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $780,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $130,000,000 shall be for fiscal year 2004;
       ``(B) $130,000,000 shall be for fiscal year 2005;
       ``(C) $130,000,000 shall be for fiscal year 2006;
       ``(D) $130,000,000 shall be for fiscal year 2007;
       ``(E) $130,000,000 shall be for fiscal year 2008; and
       ``(F) $130,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.

[[Page 2045]]

       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.
       (c) Emergency Relief.--Notwithstanding any other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$190,000,000''.
       (d) Transportation Research.--Notwithstanding any other 
     provision of this Act, each of the amounts authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) under section 2001, and each of the 
     amounts limiting obligations under section 2002, shall be 
     reduced by 4.5 percent.
                                 ______
                                 
  SA 2577. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert

                     TITLE __--SOLID WASTE DISPOSAL

     SEC. __01. INCREASED USE OF RECOVERED MINERAL COMPONENT IN 
                   FEDERALLY FUNDED PROJECTS INVOLVING PROCUREMENT 
                   OF CEMENT OR CONCRETE.

       (a) Amendment.--Subtitle F of the Solid Waste Disposal Act 
     (42 U.S.C. 6961 et seq.) is amended by adding at the end the 
     following new section:


  ``increased use of recovered mineral component in federally funded 
          projects involving procurement of cement or concrete

       ``Sec. 6005. (a) Definitions.--In this section:
       ``(1) Agency head.--The term `agency head' means--
       ``(A) the Secretary of Transportation; and
       ``(B) the head of each other Federal agency that on a 
     regular basis procures, or provides Federal funds to pay or 
     assist in paying the cost of procuring, material for cement 
     or concrete projects.
       ``(2) Cement or concrete project.--The term `cement or 
     concrete project' means a project for the construction or 
     maintenance of a highway or other transportation facility or 
     a Federal, State, or local government building or other 
     public facility that--
       ``(A) involves the procurement of cement or concrete; and
       ``(B) is carried out in whole or in part using Federal 
     funds.
       ``(3) Recovered mineral component.--The term `recovered 
     mineral component' means--
       ``(A) ground granulated blast furnace slag;
       ``(B) coal combustion fly ash; and
       ``(C) any other waste material or byproduct recovered or 
     diverted from solid waste that the Administrator, in 
     consultation with an agency head, determines should be 
     treated as recovered mineral component under this section for 
     use in cement or concrete projects paid for, in whole or in 
     part, by the agency head.
       ``(b) Implementation of Requirements.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Administrator and each agency 
     head shall take such actions as are necessary to implement 
     fully all procurement requirements and incentives in effect 
     as of the date of enactment of this section (including 
     guidelines under section 6002) that provide for the use of 
     cement and concrete incorporating recovered mineral component 
     in cement or concrete projects.
       ``(2) Priority.--In carrying out paragraph (1) an agency 
     head shall give priority to achieving greater use of 
     recovered mineral component in cement or concrete projects 
     for which recovered mineral components historically have not 
     been used or have been used only minimally.
       ``(3) Conformance.--The Administrator and each agency head 
     shall carry out this subsection in accordance with section 
     6002.
       ``(c) Full Implementation Study.--
       ``(1) In general.--The Administrator, in cooperation with 
     the Secretary of Transportation and the Secretary of Energy, 
     shall conduct a study to determine the extent to which 
     current procurement requirements, when fully implemented in 
     accordance with subsection (b), may realize energy savings 
     and environmental benefits attainable with substitution of 
     recovered mineral component in cement used in cement or 
     concrete projects.
       ``(2) Matters to be addressed.--The study shall--
       ``(A) quantify the extent to which recovered mineral 
     components are being substituted for Portland cement, 
     particularly as a result of current procurement requirements, 
     and the energy savings and environmental benefits associated 
     with that substitution;
       ``(B) identify all barriers in procurement requirements to 
     greater realization of energy savings and environmental 
     benefits, including barriers resulting from exceptions from 
     current law; and
       ``(C)(i) identify potential mechanisms to achieve greater 
     substitution of recovered mineral component in types of 
     cement or concrete projects for which recovered mineral 
     components historically have not been used or have been used 
     only minimally;
       ``(ii) evaluate the feasibility of establishing guidelines 
     or standards for optimized substitution rates of recovered 
     mineral component in those cement or concrete projects; and
       ``(iii) identify any potential environmental or economic 
     effects that may result from greater substitution of 
     recovered mineral component in those cement or concrete 
     projects.
       ``(3) Report.--Not later than 30 months after the date of 
     enactment of this section, the Administrator shall submit to 
     Congress a report on the study.
       ``(d) Additional Procurement Requirements.--Unless the 
     study conducted under subsection (c) identifies any effects 
     or other problems described in subsection (c)(2)(C)(iii) that 
     warrant further review or delay, the Administrator and each 
     agency head shall, not later than 1 year after the release of 
     the report in accordance with subsection (c)(3), take 
     additional actions authorized under this Act to establish 
     procurement requirements and incentives that provide for the 
     use of cement and concrete with increased substitution of 
     recovered mineral component in the construction and 
     maintenance of cement or concrete projects, so as to--
       ``(1) realize more fully the energy savings and 
     environmental benefits associated with increased 
     substitution; and
       ``(2) eliminate barriers identified under subsection (c).
       ``(e) Effect of Section.--Nothing in this section affects 
     the requirements of section 6002 (including the guidelines 
     and specifications for implementing those requirements).''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Solid Waste Disposal Act is amended by adding after the 
     item relating to section 6004 the following new item:

``Sec. 6005. Increased use of recovered mineral component in federally 
              funded projects involving procurement of cement or 
              concrete.''.

     SEC. __02. USE OF GRANULAR MINE TAILINGS.

       (a) Amendment.--Subtitle F of the Solid Waste Disposal Act 
     (42 U.S.C. 6961 et seq.) (as amended by section __01(a)) is 
     amended by adding at the end the following:

     ``SEC. 6006. USE OF GRANULAR MINE TAILINGS.

       ``(a) Mine Tailings.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this section, the Administrator, in 
     consultation with the Secretary of Transportation and heads 
     of other Federal agencies, shall establish criteria 
     (including an evaluation of whether to establish a numerical 
     standard for concentration of lead and other hazardous 
     substances) for the safe and environmentally protective use 
     of granular mine tailings from the Tar Creek, Oklahoma Mining 
     District, known as `chat', for--
       ``(A) cement or concrete projects; and
       ``(B) transportation construction projects (including 
     transportation construction projects involving the use of 
     asphalt) that are carried out, in whole or in part, using 
     Federal funds.
       ``(2) Requirements.--In establishing criteria under 
     paragraph (1), the Administrator shall consider--
       ``(A) the current and previous uses of granular mine 
     tailings as an aggregate for asphalt; and
       ``(B) any environmental and public health risks and 
     benefits derived from the removal, transportation, and use in 
     transportation projects of granular mine tailings.
       ``(3) Public participation.--In establishing the criteria 
     under paragraph (1), the Administrator shall solicit and 
     consider comments from the public.
       ``(4) Applicability of criteria.--On the establishment of 
     the criteria under paragraph (1), any use of the granular 
     mine tailings described in paragraph (1) in a transportation 
     project that is carried out, in whole or in part, using 
     Federal funds, shall meet the criteria established under 
     paragraph (1).
       ``(b) Effect of Sections.--Nothing in this section or 
     section 6005 affects any requirement of any law (including a 
     regulation) in effect on the date of enactment of this 
     section.''.
       (b) Conforming Amendment.--The table of contents of the 
     Solid Waste Disposal Act (42 U.S.C. prec. 6901) (as amended 
     by section __01(b)) is amended by adding at the end of the 
     items relating to subtitle F the following:

``Sec. 6006. Use of granular mine tailings.''.
                                 ______
                                 
  SA 2578. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert:

[[Page 2046]]



     SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

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

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $900,000,000 for 
     the period of fiscal year 2004.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Infrastructure Performance and Maintenance Program.--
     Notwithstanding section 1101(13), the amount authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) for the infrastructure performance and 
     maintenance program under section 139 of title 23, United 
     States Code, is hereby reduced by $900,000,000 for fiscal 
     year 2004.
                                 ______
                                 
  SA 2579. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert:

     SEC. ___. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

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

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $900,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $300,000,000 shall be for fiscal year 2004;
       ``(B) $150,000,000 shall be for fiscal year 2005;
       ``(C) $150,000,000 shall be for fiscal year 2006;
       ``(D) $150,000,000 shall be for fiscal year 2007;
       ``(E) $150,000,000 shall be for fiscal year 2008; and
       ``(F) $150,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Infrastructure Performance and Maintenance Program.--
     Notwithstanding section 1101(13), the amount authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) for the infrastructure performance and 
     maintenance program under section 139 of title 23, United 
     States Code, is hereby reduced by $300,000,000 for fiscal 
     year 2004.
       (d) Emergency Relief.--Notwithstanding any other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$180,000,000'' for fiscal 
     years 2005 through 2009.
                                 ______
                                 
  SA 2580. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert:

     SEC. ___. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

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

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $900,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $150,000,000 shall be for fiscal year 2004;
       ``(B) $150,000,000 shall be for fiscal year 2005;
       ``(C) $150,000,000 shall be for fiscal year 2006;
       ``(D) $150,000,000 shall be for fiscal year 2007;

[[Page 2047]]

       ``(E) $150,000,000 shall be for fiscal year 2008; and
       ``(F) $150,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Transportation Infrastructure Finance and Innovation 
     Act.--Notwithstanding section 188(a) of title 23, United 
     States Code, the amount authorized to be appropriated out of 
     the Highway Trust Fund (other than the Mass Transit Account) 
     to carry out subchapter II of chapter I of that title shall 
     be $100,000,000 for each of fiscal years 2004 through 2009.
       (d) Emergency Relief.--Notwithstanding any other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$200,000,000''.
       (e) Transportation Research.--Notwithstanding any other 
     provision of this Act, each of the amounts authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) under section 2001, and each of the 
     amounts limiting obligations under section 2002, shall be 
     reduced by 4.5 percent.
                                 ______
                                 
  SA 2581. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert:

     SEC.   . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

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

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State based on the proportion 
     that, under the most recent published report of the 
     Appalachian Regional Commission under section 14501 of title 
     40--
       ``(1) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in the State; bears to
       ``(2) the cost of construction of highways and access roads 
     that are not in `location status' for the Appalachian 
     development highway system program in all States.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $900,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $150,000,000 shall be for fiscal year 2004;
       ``(B) $150,000,000 shall be for fiscal year 2005;
       ``(C) $150,000,000 shall be for fiscal year 2006;
       ``(D) $150,000,000 shall be for fiscal year 2007;
       ``(E) $150,000,000 shall be for fiscal year 2008; and
       ``(F) $150,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.

       (c) Emergency Relief.--Notwithstanding any other provision 
     of this Act, Section 125(c)(1) of title 23, United States 
     Code (as amended by section 1822), is amended by striking 
     ``$300,000,000'' and inserting ``$170,000,000''.
       (d) Transportation Research.--Notwithstanding any other 
     provision of this Act, each of the amounts authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) under section 2001, and each of the 
     amounts limiting obligations under section 2002, shall be 
     reduced by 4.5 percent.
                                 ______
                                 
  SA 2582. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:
       ``(ii) $4,821,335 shall be available to the personal rapid 
     transit system in Morgantown, West Virginia for improvements 
     to its passenger operations under section 5307;''
                                 ______
                                 
  SA 2583. Mr. BYRD submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place in the amendment, insert:

     SEC.  . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION 
                   PROGRAM.

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

     ``Sec. 178. Appalachian development highway system completion 
       program

       ``(a) In General.--The Secretary shall carry out a program, 
     to be known as the `Appalachian development highway system 
     completion program' (referred to in this section as the 
     `program'), to allocate capital funding to expedite the 
     completion of `ready-to-go' segments of the Appalachian 
     development highway system.
       ``(b) Eligible Activities.--A State that receives an 
     allocation of funds under this section shall use the funds to 
     construct highways and access roads in accordance with 
     chapter 145 of title 40.
       ``(c) Allocation of Funds.--The Secretary shall allocate 
     funds under the program to each State all counties of which 
     are located, as of the date of enactment of this section, 
     within the established 13-State Appalachian region, as 
     determined by the Appalachian Regional Commission.
       ``(d) Federal Share.--The Federal share of the cost of 
     carrying out any project or activity using funds allocated 
     under the program shall be 80 percent.
       ``(e) Funding.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from the Highway Trust 
     Fund (other than the Mass Transit Account), $270,000,000 for 
     the period of fiscal years 2004 through 2009, of which--
       ``(A) $45,000,000 shall be for fiscal year 2004;
       ``(B) $45,000,000 shall be for fiscal year 2005;
       ``(C) $45,000,000 shall be for fiscal year 2006;
       ``(D) $45,000,000 shall be for fiscal year 2007;
       ``(E) $45,000,000 shall be for fiscal year 2008; and
       ``(F) $45,000,000 shall be for fiscal year 2009.
       ``(2) Obligation, eligibility, and availability.--Funds 
     authorized to be appropriated under section 1101(16) of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 and made available under paragraph (1) to 
     carry out this section--
       ``(A) shall be available for obligation by the Secretary in 
     the same manner as if the funds were apportioned under this 
     chapter;
       ``(B) shall not be considered in determining the 
     eligibility of any State to receive funds under section 105; 
     and
       ``(C) shall remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1815(b)), is amended by adding at the end the 
     following:

``178. Appalachian development highway system completion program.''.
       (c) Transportation Infrastructure Finance and Innovation 
     Act.--Notwithstanding section 188(a) of title 23, United 
     States Code, the amount authorized to be appropriated out of 
     the Highway Trust Fund

[[Page 2048]]

     (other than the Mass Transit Account) to carry out subchapter 
     II of chapter I of that title shall be $85,000,000 for each 
     of fiscal years 2004 through 2009.
                                 ______
                                 
  SA 2584. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 2315 submitted by Mr. Kyl and intended to be proposed to 
the bill S. 1072, to authorize funds for Federal-aid highways, highway 
safety programs, and transit programs, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 60, line 9, strike ``October 1, 2004'' and insert 
     ``October 2, 2004''.
                                 ______
                                 
  SA 2585. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 2315 submitted by Mr. Kyl and intended to be proposed to 
the bill S. 1072, to authorize funds for Federal-aid highways, highway 
safety programs, and transit programs, and for other purposes; which 
was ordered to lie on the table; as follows:

       At end, insert the following:
       ``(i) Reservation of funds.--In addition to any other funds 
     made available for Indian reservation roads for each fiscal 
     year, there is authorized to be appropriated from the Highway 
     Trust Fund (other than the Mass Transit Account) $15,000,000 
     for each of fiscal years 2004 through 2009 to carry out 
     planning, design, engineering for bridges located on Native 
     American Lands''.
                                 ______
                                 
  SA 2586. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 2511 submitted by Mr. Daschle and intended to be proposed 
to the amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       On line 9 strike ``$15,000,000'' and insert 
     ``$14,000,000''.
                                 ______
                                 
  SA 2587. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 2382 submitted by Mr. McCain (for himself and Mr. 
Hollings) and intended to be proposed to the amendment SA 2285 proposed 
by Mr. Inhofe to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       Strike lines 1 and 2.
                                 ______
                                 
  SA 2588. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 2418 submitted by Mr. Carper and intended to be proposed 
to the amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Strike lines 1 and 2.
                                 ______
                                 
  SA 2589. Mr. CONRAD submitted an amendment intended to be proposed to 
amendment SA 2414 submitted by Mr. Nickles and intended to be proposed 
to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       Strike all after the first word and insert the following:

                        H--Additional Revenue Provisions

                   PART I--ADMINISTRATIVE PROVISIONS

     SEC. 5671. EXTENSION OF CUSTOMS USER FEES.

       Section 13031(j)(3) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended 
     by striking ``March 31, 2004'' and inserting ``September 30, 
     2009''.

     SEC. 5672. EXTENSION OF IRS USER FEES.

       (a) In General.--Section 7528(c) (relating to termination) 
     is amended by striking ``December 31, 2004'' and inserting 
     ``September 30, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to requests after the date of the enactment of 
     this Act.

                     PART II--FINANCIAL INSTRUMENTS

     SEC. 5673. TREATMENT OF STRIPPED INTERESTS IN BOND AND 
                   PREFERRED STOCK FUNDS, ETC.

       (a) In General.--Section 1286 (relating to tax treatment of 
     stripped bonds) is amended by redesignating subsection (f) as 
     subsection (g) and by inserting after subsection (e) the 
     following new subsection:
       ``(f) Treatment of Stripped Interests in Bond and Preferred 
     Stock Funds, Etc.--In the case of an account or entity 
     substantially all of the assets of which consist of bonds, 
     preferred stock, or a combination thereof, the Secretary may 
     by regulations provide that rules similar to the rules of 
     this section and 305(e), as appropriate, shall apply to 
     interests in such account or entity to which (but for this 
     subsection) this section or section 305(e), as the case may 
     be, would not apply.''.
       (b) Cross Reference.--Subsection (e) of section 305 is 
     amended by adding at the end the following new paragraph:
       ``(7) Cross reference.--

  ``For treatment of stripped interests in certain accounts or entities 
holding preferred stock, see section 1286(f).''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to purchases and dispositions after the date of 
     the enactment of this Act.

     SEC. 5674. APPLICATION OF EARNINGS STRIPPING RULES TO 
                   PARTNERSHIPS AND S CORPORATIONS.

       (a) In General.--Section 168(j) (relating to limitation on 
     deduction for interest on certain indebtedness) is amended by 
     redesignating paragraph (8) as paragraph (9) and by inserting 
     after paragraph (7) the following new paragraph:
       ``(8) Application to partnerships and s corporations.--
       ``(A) In general.--This subsection shall apply to 
     partnerships and S corporations in the same manner as it 
     applies to C corporations.
       ``(B) Allocations to certain corporate partners.--If a C 
     corporation is a partner in a partnership--
       ``(i) the corporation's allocable share of indebtedness and 
     interest income of the partnership shall be taken into 
     account in applying this subsection to the corporation, and
       ``(ii) if a deduction is not disallowed under this 
     subsection with respect to any interest expense of the 
     partnership, this subsection shall be applied separately in 
     determining whether a deduction is allowable to the 
     corporation with respect to the corporation's allocable share 
     of such interest expense.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 5675. RECOGNITION OF CANCELLATION OF INDEBTEDNESS INCOME 
                   REALIZED ON SATISFACTION OF DEBT WITH 
                   PARTNERSHIP INTEREST.

       (a) In General.--Paragraph (8) of section 108(e) (relating 
     to general rules for discharge of indebtedness (including 
     discharges not in title 11 cases or insolvency)) is amended 
     to read as follows:
       ``(8) Indebtedness satisfied by corporate stock or 
     partnership interest.--For purposes of determining income of 
     a debtor from discharge of indebtedness, if--
       ``(A) a debtor corporation transfers stock, or
       ``(B) a debtor partnership transfers a capital or profits 
     interest in such partnership,

     to a creditor in satisfaction of its recourse or nonrecourse 
     indebtedness, such corporation or partnership shall be 
     treated as having satisfied the indebtedness with an amount 
     of money equal to the fair market value of the stock or 
     interest. In the case of any partnership, any discharge of 
     indebtedness income recognized under this paragraph shall be 
     included in the distributive shares of taxpayers which were 
     the partners in the partnership immediately before such 
     discharge.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to cancellations of indebtedness 
     occurring on or after the date of the enactment of this Act.

     SEC. 5676. MODIFICATION OF STRADDLE RULES.

       (a) Rules Relating to Identified Straddles.--
       (1) In general.--Subparagraph (A) of section 1092(a)(2) 
     (relating to special rule for identified straddles) is 
     amended to read as follows:
       ``(A) In general.--In the case of any straddle which is an 
     identified straddle--
       ``(i) paragraph (1) shall not apply with respect to 
     identified positions comprising the identified straddle,
       ``(ii) if there is any loss with respect to any identified 
     position of the identified straddle, the basis of each of the 
     identified offsetting positions in the identified straddle 
     shall be increased by an amount which bears the same ratio to 
     the loss as the unrecognized gain with respect to such 
     offsetting position bears to the aggregate unrecognized gain 
     with respect to all such offsetting positions, and
       ``(iii) any loss described in clause (ii) shall not 
     otherwise be taken into account for purposes of this 
     title.''.
       (2) Identified straddle.--Section 1092(a)(2)(B) (defining 
     identified straddle) is amended--
       (A) by striking clause (ii) and inserting the following:
       ``(ii) to the extent provided by regulations, the value of 
     each position of which (in the hands of the taxpayer 
     immediately before the creation of the straddle) is not less 
     than the basis of such position in the hands of the taxpayer 
     at the time the straddle is created, and'', and
       (B) by adding at the end the following new flush sentence:

     ``The Secretary shall prescribe regulations which specify the 
     proper methods for clearly

[[Page 2049]]

     identifying a straddle as an identified straddle (and the 
     positions comprising such straddle), which specify the rules 
     for the application of this section for a taxpayer which 
     fails to properly identify the positions of an identified 
     straddle, and which specify the ordering rules in cases where 
     a taxpayer disposes of less than an entire position which is 
     part of an identified straddle.''.
       (3) Unrecognized gain.--Section 1092(a)(3) (defining 
     unrecognized gain) is amended by redesignating subparagraph 
     (B) as subparagraph (C) and by inserting after subparagraph 
     (A) the following new subparagraph:
       ``(B) Special rule for identified straddles.--For purposes 
     of paragraph (2)(A)(ii), the unrecognized gain with respect 
     to any identified offsetting position shall be the excess of 
     the fair market value of the position at the time of the 
     determination over the fair market value of the position at 
     the time the taxpayer identified the position as a position 
     in an identified straddle.''
       (4) Conforming amendment.--Section 1092(c)(2) is amended by 
     striking subparagraph (B) and by redesignating subparagraph 
     (C) as subparagraph (B).
       (b) Physically Settled Positions.--Section 1092(d) 
     (relating to definitions and special rules) is amended by 
     adding at the end the following new paragraph:
       ``(8) Special rules for physically settled positions.--For 
     purposes of subsection (a), if a taxpayer settles a position 
     which is part of a straddle by delivering property to which 
     the position relates (and such position, if terminated, would 
     result in a realization of a loss), then such taxpayer shall 
     be treated as if such taxpayer--
       ``(A) terminated the position for its fair market value 
     immediately before the settlement, and
       ``(B) sold the property so delivered by the taxpayer at its 
     fair market value.''.
       (c) Repeal of Stock Exception.--
       (1) In general.--Section 1092(d)(3) is repealed.
       (2) Conforming amendment.--Section 1258(d)(1) is amended by 
     striking ``; except that the term `personal property' shall 
     include stock''.
       (d) Repeal of Qualified Covered Call Exception.--Section 
     1092(c)(4) is amended by adding at the end the following new 
     subparagraph:
       ``(I) Termination.--This paragraph shall not apply to any 
     position established on or after the date of the enactment of 
     this subparagraph.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to positions established on or after the date of 
     the enactment of this Act.

     SEC. 5677. DENIAL OF INSTALLMENT SALE TREATMENT FOR ALL 
                   READILY TRADEABLE DEBT.

       (a) In General.--Section 453(f)(4)(B) (relating to 
     purchaser evidences of indebtedness payable on demand or 
     readily tradeable) is amended by striking ``is issued by a 
     corporation or a government or political subdivision thereof 
     and''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to sales occurring on or after the date of the 
     enactment of this Act.

                PART III--CORPORATIONS AND PARTNERSHIPS

     SEC. 5678. MODIFICATION OF TREATMENT OF TRANSFERS TO 
                   CREDITORS IN DIVISIVE REORGANIZATIONS.

       (a) In General.--Section 361(b)(3) (relating to treatment 
     of transfers to creditors) is amended by adding at the end 
     the following new sentence: ``In the case of a reorganization 
     described in section 368(a)(1)(D) with respect to which stock 
     or securities of the corporation to which the assets are 
     transferred are distributed in a transaction which qualifies 
     under section 355, this paragraph shall apply only to the 
     extent that the sum of the money and the fair market value of 
     other property transferred to such creditors does not exceed 
     the adjusted bases of such assets transferred.''.
       (b) Liabilities in Excess of Basis.--Section 357(c)(1)(B) 
     is amended by inserting ``with respect to which stock or 
     securities of the corporation to which the assets are 
     transferred are distributed in a transaction which qualifies 
     under section 355'' after ``section 368(a)(1)(D)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to transfers of money or other property, or 
     liabilities assumed, in connection with a reorganization 
     occurring on or after the date of the enactment of this Act.

     SEC. 5679. CLARIFICATION OF DEFINITION OF NONQUALIFIED 
                   PREFERRED STOCK.

       (a) In General.--Section 351(g)(3)(A) is amended by adding 
     at the end the following: ``Stock shall not be treated as 
     participating in corporate growth to any significant extent 
     unless there is a real and meaningful likelihood of the 
     shareholder actually participating in the earnings and growth 
     of the corporation.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to transactions after May 14, 2003.

     SEC. 5680. MODIFICATION OF DEFINITION OF CONTROLLED GROUP OF 
                   CORPORATIONS.

       (a) In General.--Section 1563(a)(2) (relating to brother-
     sister controlled group) is amended by striking 
     ``possessing--'' and all that follows through ``(B)'' and 
     inserting ``possessing''.
       (b) Application of Existing Rules to Other Code 
     Provisions.--Section 1563(f) (relating to other definitions 
     and rules) is amended by adding at the end the following new 
     paragraph:
       ``(5) Brother-sister controlled group definition for 
     provisions other than this part.--
       ``(A) In general.--Except as specifically provided in an 
     applicable provision, subsection (a)(2) shall be applied to 
     an applicable provision as if it read as follows:
       `(2) Brother-sister controlled group.--Two or more 
     corporations if 5 or fewer persons who are individuals, 
     estates, or trusts own (within the meaning of subsection 
     (d)(2) stock possessing--
       `(A) at least 80 percent of the total combined voting power 
     of all classes of stock entitled to vote, or at least 80 
     percent of the total value of shares of all classes of stock, 
     of each corporation, and
       `(B) more than 50 percent of the total combined voting 
     power of all classes of stock entitled to vote or more than 
     50 percent of the total value of shares of all classes of 
     stock of each corporation, taking into account the stock 
     ownership of each such person only to the extent such stock 
     ownership is identical with respect to each such 
     corporation.'
       ``(B) Applicable provision.--For purposes of this 
     paragraph, an applicable provision is any provision of law 
     (other than this part) which incorporates the definition of 
     controlled group of corporations under subsection (a).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 5681. MANDATORY BASIS ADJUSTMENTS IN CONNECTION WITH 
                   PARTNERSHIP DISTRIBUTIONS AND TRANSFERS OF 
                   PARTNERSHIP INTERESTS.

       (a) In General.--Section 754 is repealed.
       (b) Adjustment to Basis of Undistributed Partnership 
     Property.--Section 734 is amended--
       (1) by striking ``, with respect to which the election 
     provided in section 754 is in effect,'' in the matter 
     preceding paragraph (1) of subsection (b),
       (2) by striking ``(as adjusted by section 732(d))'' both 
     places it appears in subsection (b),
       (3) by striking the last sentence of subsection (b),
       (4) by striking subsection (a) and by redesignating 
     subsections (b) and (c) as subsections (a) and (b), 
     respectively, and
       (5) by striking ``optional'' in the heading.
       (c) Adjustment to Basis of Partnership Property.--Section 
     743 is amended--
       (1) by striking ``with respect to which the election 
     provided in section 754 is in effect'' in the matter 
     preceding paragraph (1) of subsection (b),
       (2) by striking subsection (a) and by redesignating 
     subsections (b) and (c) as subsections (a) and (b), 
     respectively,
       (3) by adding at the end the following new subsection:
       ``(c) Election to Adjust Basis for Transfers Upon Death of 
     Partner.--Subsection (a) shall not apply and no adjustments 
     shall be made in the case of any transfer of an interest in a 
     partnership upon the death of a partner unless an election to 
     do so is made by the partnership. Such an election shall 
     apply with respect to all such transfers of interests in the 
     partnership. Any election under section 754 in effect on the 
     date of the enactment of this subsection shall constitute an 
     election made under this subsection. Such election may be 
     revoked by the partnership, subject to such limitations as 
     may be provided by regulations prescribed by the 
     Secretary.'', and
       (4) by striking ``OPTIONAL'' in the heading.
       (d) Conforming Amendments.--
       (1) Subsection (d) of section 732 is repealed.
       (2) Section 755(a) is amended--
       (A) by striking ``section 734(b) (relating to the optional 
     adjustment'' and inserting ``section 734(a) (relating to the 
     adjustment'', and
       (B) by striking ``section 743(b) (relating to the optional 
     adjustment'' and inserting ``section 743(a) (relating to the 
     adjustment''.
       (3) Section 761(e)(2) is amended by striking ``optional''.
       (4) Section 774(a) is amended by striking ``743(b)'' both 
     places it appears and inserting ``743(a)''.
       (5) The item relating to section 734 in the table of 
     sections for subpart B of part II of subchapter K of chapter 
     1 is amended by striking ``Optional''.
       (6) The item relating to section 743 in the table of 
     sections for subpart C of part II of subchapter K of chapter 
     1 is amended by striking ``Optional''.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to transfers and 
     distributions made after the date of the enactment of this 
     Act.
       (2) Repeal of section 732(d).--The amendments made by 
     subsections (b)(2) and (d)(1) shall apply to--
       (A) except as provided in subparagraph (B), transfers made 
     after the date of the enactment of this Act, and

[[Page 2050]]

       (B) in the case of any transfer made on or before such date 
     to which section 732(d) applies, distributions made after the 
     date which is 2 years after such date of enactment.

                 PART IV--DEPRECIATION AND AMORTIZATION

     SEC. 5682. EXTENSION OF AMORTIZATION OF INTANGIBLES TO SPORTS 
                   FRANCHISES.

       (a) In General.--Section 197(e) (relating to exceptions to 
     definition of section 197 intangible) is amended by striking 
     paragraph (6) and by redesignating paragraphs (7) and (8) as 
     paragraphs (6) and (7), respectively.
       (b) Conforming Amendments.--
       (1)(A) Section 1056 (relating to basis limitation for 
     player contracts transferred in connection with the sale of a 
     franchise) is repealed.
       (B) The table of sections for part IV of subchapter O of 
     chapter 1 is amended by striking the item relating to section 
     1056.
       (2) Section 1245(a) (relating to gain from disposition of 
     certain depreciable property) is amended by striking 
     paragraph (4).
       (3) Section 1253 (relating to transfers of franchises, 
     trademarks, and trade names) is amended by striking 
     subsection (e).
       (c) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to property 
     acquired after the date of the enactment of this Act.
       (2) Section 1245.--The amendment made by subsection (b)(2) 
     shall apply to franchises acquired after the date of the 
     enactment of this Act.

     SEC. 5683. CLASS LIVES FOR UTILITY GRADING COSTS.

       (a) Gas Utility Property.--Section 168(e)(3)(E) (defining 
     15-year property) is amended by striking ``and'' at the end 
     of clause (ii), by striking the period at the end of clause 
     (iii) and inserting ``, and'', and by adding at the end the 
     following new clause:
       ``(iv) initial clearing and grading land improvements with 
     respect to gas utility property.''.
       (b) Electric Utility Property.--Section 168(e)(3) is 
     amended by adding at the end the following new subparagraph:
       ``(F) 20-year property.--The term `20-year property' means 
     initial clearing and grading land improvements with respect 
     to any electric utility transmission and distribution 
     plant.''.
       (c) Conforming Amendments.--The table contained in section 
     168(g)(3)(B) is amended--
       (1) by inserting ``or (E)(iv)'' after ``(E)(iii)'', and
       (2) by adding at the end the following new item:

  ``(F).......................................................25''.....

       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 5684. CONSISTENT AMORTIZATION OF PERIODS FOR 
                   INTANGIBLES.

       (a) Start-Up Expenditures.--
       (1) Allowance of deduction.--Paragraph (1) of section 
     195(b) (relating to start-up expenditures) is amended to read 
     as follows:
       ``(1) Allowance of deduction.--If a taxpayer elects the 
     application of this subsection with respect to any start-up 
     expenditures--
       ``(A) the taxpayer shall be allowed a deduction for the 
     taxable year in which the active trade or business begins in 
     an amount equal to the lesser of--
       ``(i) the amount of start-up expenditures with respect to 
     the active trade or business, or
       ``(ii) $5,000, reduced (but not below zero) by the amount 
     by which such start-up expenditures exceed $50,000, and
       ``(B) the remainder of such start-up expenditures shall be 
     allowed as a deduction ratably over the 180-month period 
     beginning with the month in which the active trade or 
     business begins.''.
       (2) Conforming amendment.--Subsection (b) of section 195 is 
     amended by striking ``Amortize'' and inserting ``Deduct'' in 
     the heading.
       (b) Organizational Expenditures.--Subsection (a) of section 
     248 (relating to organizational expenditures) is amended to 
     read as follows:
       ``(a) Election to Deduct.--If a corporation elects the 
     application of this subsection (in accordance with 
     regulations prescribed by the Secretary) with respect to any 
     organizational expenditures--
       ``(1) the corporation shall be allowed a deduction for the 
     taxable year in which the corporation begins business in an 
     amount equal to the lesser of--
       ``(A) the amount of organizational expenditures with 
     respect to the taxpayer, or
       ``(B) $5,000, reduced (but not below zero) by the amount by 
     which such organizational expenditures exceed $50,000, and
       ``(2) the remainder of such organizational expenditures 
     shall be allowed as a deduction ratably over the 180-month 
     period beginning with the month in which the corporation 
     begins business.''.
       (c) Treatment of Organizational and Syndication Fees or 
     Partnerships.--
       (1) In general.--Section 709(b) (relating to amortization 
     of organization fees) is amended by redesignating paragraph 
     (2) as paragraph (3) and by amending paragraph (1) to read as 
     follows:
       ``(1) Allowance of deduction.--If a taxpayer elects the 
     application of this subsection (in accordance with 
     regulations prescribed by the Secretary) with respect to any 
     organizational expenses--
       ``(A) the taxpayer shall be allowed a deduction for the 
     taxable year in which the partnership begins business in an 
     amount equal to the lesser of--
       ``(i) the amount of organizational expenses with respect to 
     the partnership, or
       ``(ii) $5,000, reduced (but not below zero) by the amount 
     by which such organizational expenses exceed $50,000, and
       ``(B) the remainder of such organizational expenses shall 
     be allowed as a deduction ratably over the 180-month period 
     beginning with the month in which the partnership begins 
     business.
       ``(2) Dispositions before close of amortization period.--In 
     any case in which a partnership is liquidated before the end 
     of the period to which paragraph (1)(B) applies, any deferred 
     expenses attributable to the partnership which were not 
     allowed as a deduction by reason of this section may be 
     deducted to the extent allowable under section 165.''.
       (2) Conforming amendment.--Subsection (b) of section 709 is 
     amended by striking ``Amortization'' and inserting 
     ``Deduction'' in the heading.
       (d) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 2590. Mr. ROCKEFELLER (for himself, Mr. Burns, and Mr. Dorgan) 
submitted an amendment intended to be proposed by him to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:
       ``Title 49 of the United States Code is amended by adding a 
     new Section 11101, and renumbering all successive sections 
     accordingly, as follows:

     SEC. 11101. DUTY TO PROVIDE A RATE TO SHIPPERS.

       Upon the request of a shipper, a rail carrier shall provide 
     both a rate, in writing, for, and the transportation service 
     requested by, the shipper between any two points on the 
     system of that carrier where traffic originates, terminates, 
     or may reasonably be interchanged.''
                                 ______
                                 
  SA 2591. Mr. INHOFE proposed an amendment SA 2388 proposed by Mrs. 
Hutchison (for herself, Mr. Kyl, Mr. Levin, Mr. Graham of Florida, Mr. 
McCain, Ms. Stabenow, and Mrs. Feinstein) to the amendment SA 2285 
proposed by Mr. Inhofe to the bill S. 1072, to authorize funds for 
Federal-aid highways, highway safety programs, and transit programs, 
and for other purposes; as follows:

       At the end, add the following:
       ``Sec.  . This section shall take effect one day after 
     enactment of this Act.''
                                 ______
                                 
  SA 2592. Mr. DAYTON submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

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

       ``(a) Ethanol-Blended Gasoline.--The head of each Federal 
     agency shall ensure that, in areas in which ethanol-blended 
     gasoline is readily available at a generally competitive 
     price, the Federal agency purchases ethanol-blended gasoline 
     containing at least 10 percent ethanol rather than 
     nonethanol-blended gasoline, for use in vehicles used by the 
     agency.
       ``(b) Biodiesel.--
       ``(1) Definition of biodiesel.--In this subsection, the 
     term `biodiesel' has the meaning given the term in section 
     312(f) of the Energy Policy Act of 1992.
       ``(2) Requirement.--The head of each Federal agency shall 
     ensure that the Federal agency purchases, for use in fueling 
     fleet vehicles that use diesel fuel used by the Federal 
     agency at the location at which fleet vehicles of the Federal 
     agency are centrally fueled, in areas in which the biodiesel-
     blended diesel fuel described in subparagraphs (A) and (B) is 
     available at a generally competitive price--
       ``(A) as of the date that is 5 years after the date of 
     enactment of this section, biodiesel-blended diesel fuel that 
     contains at least 2 percent biodiesel, rather than 
     nonbiodiesel-blended diesel fuel; and
       ``(B) as of the date that is 10 years after the date of 
     enactment of this section, biodiesel-

[[Page 2051]]

     blended diesel fuel that contains at least 20 percent 
     biodiesel, rather than nonbiodiesel-blended diesel fuel, for 
     use in vehicles used by the agency.
       ``(3) Requirement of federal law.--This subsection does not 
     constitute a requirement of Federal law for the purposes of 
     section 312 of the Energy Policy Act of 1992.
       ``(c) Exemption.--This section does not apply to fuel used 
     in vehicles described in subparagraphs (A) through (H) of 
     section 301(9) of the Energy Policy Act of 1992.''.
                                 ______
                                 
  SA 2593. Mr. HOLLINGS (for himself and Mr. Carper) submitted an 
amendment intended to be proposed by him to the bill S. 1072, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

       Strike all after the first word and insert the following:

                     Part   --Amtrak Authorizations

     SEC.  1. NATIONAL RAILROAD PASSENGER TRANSPORTATION SYSTEM 
                   DEFINED.

       (a) In General.--Section 24102 is amended--
       (1) by striking paragraph (2);
       (2) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (2), (3), and (4), respectively; and
       (3) by inserting after paragraph (4) as so redesignated the 
     following:
       ``(5) `national rail passenger transportation system' 
     means--
       ``(A) the segment of the Northeast Corridor between Boston, 
     Massachusetts and Washington, D.C.;
       ``(B) rail corridors that have been designated by the 
     Secretary of Transportation as highspeed corridors, but only 
     after they have been improved to permit operation of 
     highspeed service;
       ``(C) long-distance routes of more than 750 miles between 
     endpoints operated by Amtrak as of the date of enactment of 
     the Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004; and
       ``(D) short-distance corridors or routes operated by 
     Amtrak.''.
       (b) Amtrak Routes With State Funding.--
       (1) In general.--Chapter 247 is amended by inserting after 
     section 24701 the following:

     ``Sec. 24702. Transportation requested by States, 
       authorities, and other persons

       ``(a) Contracts for Transportation.--Amtrak and a State, a 
     regional or local authority, or another person may enter into 
     a contract for Amtrak to operate an intercity rail service or 
     route not included in the national rail passenger 
     transportation system upon such terms as the parties thereto 
     may agree.
       ``(b) Discontinuance.--Upon termination of a contract 
     entered into under this section, or the cessation of 
     financial support under such a contract by either party, 
     Amtrak may discontinue such service or route, notwithstanding 
     any other provision of law.''.
       (2) Conforming amendment.--The chapter analysis for chapter 
     247 is amended by inserting after the item relating to 
     section 24701 the following:
``24702. Transportation requested by States, authorities, and other 
              persons''.
       (c) Amtrak To Continue To Provide Non-High-Speed 
     Services.--Nothing in this subtitle is intended to preclude 
     Amtrak from restoring, improving, or developing non-high-
     speed intercity passenger rail service.

     SEC.  2. GENERAL AMTRAK AUTHORIZATIONS.

       (a) Repeal of Self-Sufficiency Requirements.
       (1) Title 49 amendments.--Chapter 241 is amended--
       (A) by striking the last sentence of section 24101(d); and
       (B) by striking the last sentence of section 24104(a).
       (2) Amtrak reform and accountability act amendments.--Title 
     II of the Amtrak Reform and Accountability Act of 1997 (49 
     U.S.C. 24101 nt) is amended by striking sections 204 and 205.
       (3) Common stock redemption date.--Section 415 of the 
     Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24304 
     nt) is amended by striking subsection (b).
       (b) Lease Arrangements.--Amtrak may obtain services from 
     the Administrator of General Services, and the Administrator 
     may provide services to Amtrak, under section 201(b) and 
     211(b) of the Federal Property and Administrative Service Act 
     of 1949 (40 U.S.C. 481(b) and 491(b)) for each of fiscal 
     years 2005 through 2009.
       (c) Financial Powers.--Section 415(d) of the Amtrak Reform 
     and Accountability Act of 1997 by adding at the end the 
     following:
       ``(3) This section does not affect the applicability of 
     section 3729 of title 31, United States Code, to claims made 
     against Amtrak.''.
       (d) Amtrak Reports.--Section 24315 is amended--
       (1) by striking ``February 15'' in subsection (a) and 
     inserting ``January 31st'';
       (2) by striking subparagraph (B) of subsection (a)(1) and 
     inserting the following:
       ``(B) the route profitability survey data, excluding 
     interest and depreciation costs, or any other route cost 
     allocation or profitability analysis that Amtrak develops;'';
       (3) by striking subparagraph (D) of subsection (a)(1) and 
     inserting the following:
       ``(D) the total revenue-to-total cost ratio;'';
       (4) by striking subparagraphs (C), (F), and (G) of 
     subsection (a) (1), and redesignating subparagraphs (D), (E), 
     and (H) as subparagraphs (C), (D), and (E), respectively; and
       (5) by striking ``February 15'' in subsection (b) and 
     inserting ``January 31st''.

     SEC.   3. REPAYMENT OF LOAN TO NATIONAL RAILROAD PASSENGER 
                   CORPORATION.

       (a) In General.--The Secretary of Transportation may not 
     collect any payments of principal or interest for the direct 
     loan made to the National Railroad Passenger Corporation 
     under section 502 of the Railroad Revitalization and 
     Regulatory Reform Act of 1976 (45 U.S.C. 822). There are 
     authorized to be appropriated to the Secretary for fiscal 
     year 2005 $100,000,000 for the purpose of repaying that loan 
     to the Secretary of the Treasury. The Secretary of 
     Transportation shall waive any conditions imposed under the 
     loan.
       (b) Certain Conditions Waived.--Section 151 of the 
     Transportation, Treasury, and Independent Agencies 
     Appropriations Act, 2004, is repealed.
       (c) Federal Railroad Administration.--
       (1) In general.--Section 11123 is amended--
       (A) by striking ``failure of existing commuter rail 
     passenger transportation operations caused by a cessation of 
     service by the National Railroad Passenger Corporation,'' in 
     subsection (a);
       (B) by inserting ``or'' after the semicolon in subsection 
     (a)(3);
       (C) by striking ``permits, or'' in subsection (a)(4) and 
     inserting ``permits.'';
       (D) by striking paragraph (5) of subsection (a);
       (E) by striking ``(A) Except as provided in subparagraph 
     (B), when'' in subsection (b)(3) and inserting ``When'';
       (F) by striking subparagraph (B) of subsection (b)(3);
       (G) by striking paragraph (4) of subsection (c); and
       (H) by striking subsections (e) and (f).
       (2) Section 24301(c) is amended by striking ``11123,''.

     SEC.   4. RESTRUCTURING OF LONG-TERM DEBT AND CAPITAL LEASES.

       (a) In General.--The Secretary of the Treasury shall work 
     with the Secretary of Transportation and Amtrak to 
     restructure Amtrak's indebtedness as of the date of enactment 
     of this Act.
       (b) New Debt Prohibition.--Except as approved by the 
     Secretary of Transportation, Amtrak may not enter into any 
     obligation secured by assets of the Corporation after the 
     date of enactment of this Act. This section does not prohibit 
     unsecured lines of credit used by Amtrak or any subsidiary 
     for working capital purposes.
       (c) Debt Redemption.--The Secretary of Transportation, in 
     consultation with the Secretary of the Treasury, shall enter 
     into negotiations with the holders of Amtrak debt, including 
     leases, that is outstanding on the date of enactment of this 
     Act for the purpose of redeeming or restructuring that debt. 
     The Secretary, in consultation with the Secretary of the 
     Treasury, shall secure agreements for repayment on such terms 
     as the Secretary deems favorable to the interests of the 
     Government. Payments for such redemption may be made after 
     October 1, 2005, in either a single payment or a series of 
     payments, but in no case shall the repayment period extend 
     beyond September 30, 2010.
       (d) Criteria.--In redeeming or restructuring Amtrak's 
     indebtedness, the Secretaries and Amtrak--
       (1) shall ensure that the restructuring imposes the least 
     practicable burden on taxpayers; and
       (2) take into consideration repayment costs, the term of 
     any loan or loans, and market conditions.
       (e) Authorization.--There are authorized to be appropriated 
     to the Secretary such sums as may be necessary for fiscal 
     years 2005 through 2010 to restructure or redeem Amtrak's 
     secured debt.
       (f) Amtrak Principal and Interest Payments.--
       (1) Principal on debt service.--Unless the Secretary of 
     Transportation and the Secretary of the Treasury redeem the 
     debt in its entirety, there are authorized to be appropriated 
     to the Secretary of Transportation for the use of Amtrak for 
     retirement of principal on loans for capital equipment, or 
     capital leases, the following amounts:
       (A) For fiscal year 2005, $109,500,000.
       (B) For fiscal year 2006, $114,700,000.
       (C) For fiscal year 2007, $202,900,000.
       (D) For fiscal year 2008, $164,300,000.
       (E) For fiscal year 2009, $155,800,000.
       (F) For fiscal year 2010, $203,500,000.
       (2) Interest on debt.--Unless the Secretary of 
     Transportation and the Secretary of the Treasury restructure 
     or redeem the debt, there are authorized to be appropriated 
     to the Secretary of Transportation for the use of Amtrak for 
     the payment of interest on loans for capital equipment, or 
     capital leases, the following amounts:
       (A) For fiscal year 2005, $151,300,000.
       (B) For fiscal year 2006, $146,300,000.
       (C) For fiscal year 2007, $137,500,000.
       (D) For fiscal year 2008, $125,300,000.

[[Page 2052]]

       (E) For fiscal year 2009, $117,100,000.
       (F) For fiscal year 2010, $107,800,000.
       (3) Reductions in authorization levels.--Whenever action 
     taken by the Secretary of the Treasury under subsection (c) 
     results in reductions in amounts of principle and interest 
     that, Amtrak must service on existing debt, Amtrak shall 
     submit to the Senate Committee on Commerce, Science and 
     Transportation, the House of Representatives Committee on 
     Transportation and Infrastructure, the Senate Committee on 
     Appropriations, and House of Representatives Committee on 
     Appropriations revised requests for amounts authorized by 
     paragraphs (1) and (2) that reflect the such reductions.

     SEC.   5. AUTHORIZATIONS FOR ENVIRONMENTAL COMPLIANCE AND 
                   STATION IMPROVEMENTS.

       (a) Environmental Compliance.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak in order to comply with environmental regulations 
     the following amounts:
       (A) For fiscal year 2005, $18,800,000.
       (B) For fiscal year 2006, $21,700,000.
       (C) For fiscal year 2007, $22,300,000.
       (D) For fiscal year 2005, $15,100,000.
       (E) For fiscal year 2009, $15,900,000.
       (F) For fiscal year 2010, $16,000,000.
       (b) Capital Improvements to Stations.--
       (1) In general.--There are authorized to be appropriated to 
     the Secretary of Transportation for the use of Amtrak for 
     capital improvements to stations, including an initial 
     assessment of the full set of accessibility needs across the 
     national rail passenger transportation system and improved 
     accessibility for the elderly and people with disabilities 
     and in Amtrak facilities and stations, the following amounts:
       (A) For fiscal year 2005, $17,100,000.
       (B) For fiscal year 2006, $19,800,000.
       (C) For fiscal year 2007, $19,800,000.
       (D) For fiscal year 2008, $19,000,000.
       (E) For fiscal year 2009, $19,000,000.
       (F) For fiscal year 2010, $19,000,000.
       (2) Study of compliance requirements at existing intercity 
     rail stations.--Amtrak shall evaluate the improvements 
     necessary to make all existing stations it serves readily 
     accessible to and usable by individuals with disabilities, as 
     required by section 242(e)(2) of the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12162(e)(2)). The 
     evaluation shall include the estimated cost of the 
     improvements necessary, the identification of the responsible 
     person (as defined in section 241(5) of that Act (42 U.S.C. 
     12161(5))), and the earliest practicable date when such 
     improvements can be made. Amtrak shall submit the survey to 
     the Senate Committee on Commerce, Science, and 
     Transportation, the House of Representatives Committee on 
     Transportation and Infrastructure, and the National Council 
     on Disability by September 30, 2005, along with 
     recommendations for funding the necessary improvements.

     SEC.  6. TUNNEL LIFE SAFETY.

       (a) Life Safety Needs.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for fiscal year 2005:
       (1) $677,000,000 for the 6 New York tunnels built in 1910 
     to provide ventilation, electrical, and fire safety 
     technology upgrades, emergency communication and lighting 
     systems, and emergency access and egress for passengers.
       (2) $57,000,000 for the Baltimore & Potomac tunnel built in 
     1872 to provide adequate drainage, ventilation, 
     communication, lighting, and passenger egress upgrades.
       (3) $40,000,000 for the Washington, D.C., Union Station 
     tunnels built in 1904 under the Supreme Court and House and 
     Senate Office Buildings to improve ventilation, 
     communication, lighting, and passenger egress upgrades.
       (b) Infrastructure Upgrades.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak in consultation with the State of Maryland 
     $3,000,000 for fiscal year 2005 for the preliminary design of 
     options for a new tunnel on a different alignment to augment 
     the capacity of the existing Baltimore tunnels.
       (d) Financial Contribution From Other Tunnel Users.--The 
     Secretary shall, taking into account the need for the timely 
     completion of all life safety portions of the tunnel projects 
     described in subsection (a)--
       (1) consider the extent to which rail carriers other than 
     Amtrak use the tunnels;
       (2) consider the feasibility of seeking a financial 
     contribution from those other rail carriers toward the costs 
     of the projects; and
       (3) obtain financial contributions or commitments from such 
     other rail carriers if feasible.
       (e) Availability of Funds.--Amounts appropriated pursuant 
     to this section shall remain available until expended.

     SEC.  7. AUTHORIZATION FOR CAPITAL AND OPERATING EXPENSES.

       (a) Operating Expenses.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for operating costs the following amounts:
       (1) For fiscal year 2005, $581,400,000.
       (2) For fiscal year 2006, $566,700,000.
       (3) For fiscal year 2007, $557,700,000.
       (4) For fiscal year 2008, $528,500,000.
       (5) For fiscal year 2009, $522,000,000.
       (6) For fiscal year 2010, $522,000,000.
       (b) Capital Backlog and Upgrades.--There are authorized to 
     be appropriated to the Secretary of Transportation for the 
     use of Amtrak for capital expenses, the following amounts:
       (1) For fiscal year 2005, $741,500,000.
       (2) For fiscal year 2006, $835,200,000.
       (3) For fiscal year 2007, $760,800,000.
       (4) For fiscal year 2008, $733,600,000.
       (5) For fiscal year 2009, $774,300,000.
       (6) For fiscal year 2010, $874,300,000.
       (c) Replacement Equipment.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for the purchase of replacement passenger rail 
     equipment the following amounts:
       (1) For fiscal year 2006, $250,000,000.
       (2) For fiscal year 2007, $250,000,000.
       (3) For fiscal year 2008, $350,000,000.
       (4) For fiscal year 2009, $350,000,000.
       (5) For fiscal year 2010, $350,000,000.

     SEC.   8. GRANTS NOT CONSIDERED TO REPLACE FEDERAL OPERATING 
                   OR CAPITAL SUPPORT.

       Grants or assistance provided directly to a State or group 
     of States by the Secretary under this title for rail 
     infrastructure investments shall not be considered to reduce 
     or replace the authorizations or the need for annual Federal 
     appropriations for the National Railroad Passenger 
     Corporation.

     SEC.   9. ESTABLISHMENT OF GRANT PROCESS.

       (a) Grant Requests.--Amtrak shall submit grant requests to 
     the Secretary of Transportation for funds authorized to be 
     appropriated to the Secretary for the use of Amtrak under 
     sections ___ 6, ___ 7, and ___ 8.
       (b) Procedures For Grant Requests.--The Secretary shall 
     establish substantive and procedural requirements, including 
     schedules, for grant requests under this section not later 
     than 30 days after the date of enactment of this Act and 
     shall transmit copies to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure.
       (c) Review and Approval.--
       (1) 30-day process.--The Secretary shall complete the 
     review of a grant request and approve or disapprove the 
     request within 30 days after the date on which Amtrak submits 
     the grant request.
       (2) Incomplete or deficient requests.--If the Secretary 
     disapproves the request or determines that the request is 
     incomplete or deficient, the Secretary shall immediately 
     notify Amtrak of the reason for disapproval or the incomplete 
     items or deficiencies. Within 15 days after receiving 
     notification from the Secretary under the preceding sentence, 
     Amtrak shall submit a modified request for the Secretary's 
     review.
       (3) Revised requests.--Within 15 days after receiving a 
     modified request from Amtrak, the Secretary shall either 
     approve the modified request, or, if the Secretary finds that 
     the request, is still incomplete or deficient, the Secretary 
     shall identify in writing to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Transportation and 
     Infrastructure the remaining deficiencies and recommend a 
     process for resolving the outstanding portions of the 
     request.

     SEC.   10. STATE-SUPPORTED ROUTES.

       The Board of Directors of Amtrak, in consultation with the 
     Secretary of Transportation and the chief executive officer 
     of each State and the District of Columbia, shall develop a 
     formula for funding the operating costs of trains operating 
     on routes not in excess of 750 miles in length that--
       (1) is equitable and fair; and
       (2) ensures, within 5 years after the date of enactment of 
     this Act, equal treatment of all States (and the District of 
     Columbia) and groups of States (including the District of 
     Columbia).

     SEC.   11. REESTABLISHMENT OF NORTHEAST CORRIDOR SAFETY 
                   COMMITTEE.

       (a) Re-establishment of Northeast Corridor Safety 
     Committee.--The Secretary of Transportation shall reestablish 
     the Northeast Corridor Safety Committee authorized by section 
     24905(b) of title 49, United States Code.
       (b) Termination Date.--Section 24905(b)(4) is amended by 
     striking ``January 1, 1999,'' and inserting ``January 1, 
     2009,''.

     SEC.   12. AMTRAK BOARD OF DIRECTORS.

        Section 24302 is amended to read as follows: ``24302. 
     Board of directors
       ``(a) Composition and Terms.--
       ``(1) The board of directors of Amtrak is composed of the 
     following 9 directors, each of whom must be a citizen of the 
     United States:
       ``(A) The President of Amtrak.
       ``(B) The Secretary of Transportation.
       ``(C) 7 individuals appointed by the President of the 
     United States, by and with the advice and consent of the 
     Senate, with experience and qualifications in or directly 
     related to rail transportation, including representatives of 
     freight and passenger rail transportation, travel, 
     hospitality, cruise line, and passenger air, transportation 
     businesses, consumers of passenger rail transportation, and 
     State government.
       ``(2) In selecting individuals described in paragraph (1) 
     for nominations for appointments to the Board, the President 
     shall consult with the Speaker of the House of 
     Representatives, the Minority Leader of the House of 
     Representatives, the Majority

[[Page 2053]]

     Leader of the Senate, and the Minority Leader of the Senate 
     and should ensure adequate and balanced representation of the 
     major geographic regions of the United States.
       ``(3) Each member shall be appointed for a term of 5 years 
     and until the individual's successor is appointed and 
     qualified. Not more than 4 individuals appointed under 
     paragraph (1)(C) may be members of the same political party.
       ``(4) The board shall elect a chairman and a vice chairman 
     from among its membership. The vice chairman shall serve as 
     chairman in the absence of the chairman.
       ``(5) The Secretary may be represented at board meetings by 
     the Secretary's designee.
       ``(b) Pay and Expenses.--Each director not employed by the 
     United States Government is entitled to $300 a day when 
     performing board duties and powers. Each director is entitled 
     to reimbursement for necessary travel, reasonable secretarial 
     and professional staff support, and subsistence expenses 
     incurred in attending board meetings.
       ``(c) Vacancies.--A vacancy on the board is filled in the 
     same way as the original selection, except that an individual 
     appointed by the President of the United States under 
     subsection (a)(1)(C) of this section to fill a vacancy 
     occurring before the end of the term for which the 
     predecessor of that individual was appointed is appointed for 
     the remainder of that term. A vacancy required to be filled 
     by appointment under subsection (a)(1)(C) must be filled not 
     later than 120 days after the vacancy occurs.
       ``(d) Bylaws.--The board may adopt and amend bylaws 
     governing the operation of Amtrak. The bylaws shall be 
     consistent with this part and the articles of 
     incorporation.''.

     SEC.   13. ESTABLISHMENT OF FINANCIAL ACCOUNTING SYSTEM FOR 
                   AMTRAK OPERATIONS BY INDEPENDENT AUDITOR.

       (a) In General.--The Inspector General of the Department of 
     Transportation shall employ an independent financial 
     consultant with experience in railroad accounting--
       (1) to assess Amtrak's financial accounting and reporting 
     system and practices;
       (2) to design and assist Amtrak in implementing a modern 
     financial accounting and reporting system, on the basis of 
     the assessment, that will produce accurate and timely 
     financial information in sufficient detail--
       (A) to enable Amtrak to assign revenues and expenses 
     appropriately to each of its lines of business and to each 
     major activity within each line of business activity, 
     including train operations, equipment maintenance, ticketing, 
     and reservations;
       (B) to aggregate expenses and revenues related to 
     infrastructure and distinguish them from expenses and 
     revenues related to rail operations; and
       (C) to provide ticketing and reservation information on a 
     real-time basis.
       (b) Verification of System; Report.--The Inspector General 
     of the Department of Transportation shall review the 
     accounting system designed and implemented under subsection 
     (a) to ensure that it accomplishes the purposes for which it 
     is intended. The Inspector General shall report his findings 
     and conclusions, together with any recommendations, to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation 
     $2,500,000 for fiscal year 2005 to carry out subsection (a), 
     such sums to remain available until expended.

     SEC.  14. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN.

       (a) Development of 5-Year Financial Plan.--The Amtrak board 
     of directors shall submit an annual budget for Amtrak, and a 
     5-year financial plan for the fiscal year to which that 
     budget relates and the subsequent 4 years, prepared in 
     accordance with this section, to the Secretary of 
     Transportation and the Inspector General of the Department of 
     Transportation no later than--
       (1) the first day of each fiscal year beginning after the 
     date of enactment of this Act; or
       (2) the date that is 60 days after the date of enactment of 
     an appropriation Act for the fiscal year, if later.
       (b) Contents of 5-Year Financial Plan.--The 5-year 
     financial plan for Amtrak shall include, at a minimum--
       (1) all projected revenues and expenditures for Amtrak, 
     including governmental funding sources;
       (2) projected ridership levels for all Amtrak passenger 
     operations;
       (3) revenue and expenditure forecasts for non-passenger 
     operations;
       (4) capital funding requirements and expenditures necessary 
     to maintain passenger service which will accommodate 
     predicted ridership levels and predicted sources of capital 
     funding;
       (5) operational funding needs, if any, to maintain current 
     and projected levels of passenger service, including state-
     supported routes and predicted funding sources;
       (6) projected capital and operating requirements, 
     ridership, and revenue for any new passenger service 
     operations or service expansions;
       (7) an assessment of the continuing financial stability of 
     Amtrak, as indicated by factors such as: the ability of the 
     federal government to adequately meet capital and operating 
     requirements, Amtrak's access to long-term and short-term 
     capital markets, Amtrak's ability to efficiently manage its 
     workforce, and Amtrak's ability to effectively provide 
     passenger train service;
       (8) lump sum expenditures of $10,000,000 or more and 
     sources of funding;
       (9) estimates of long-term and short-term debt and 
     associated principle and interest payments (both current and 
     anticipated);
       (10) annual cash flow forecasts; and
       (11) a statement describing methods of estimation and 
     significant assumptions.
       (c) Standards To Promote Financial Stability.--In meeting 
     the requirements of subsection (b) with respect to a 5-year 
     financial plan, Amtrak shall--
       (1) apply sound budgetary practices, including reducing 
     costs and other expenditures, improving productivity, 
     increasing revenues, or combinations of such practices; and
       (2) use the categories specified in the financial 
     accounting and reporting system developed under section 4652 
     when preparing its 5-year financial plan.
       (d) Assessment by DOT Inspector General.--
       (1) In General.--The Inspector General of the Department of 
     Transportation shall assess the 5-year financial plans 
     prepared by Amtrak under this section to determine whether 
     they meet the requirements of subsection (b), and may suggest 
     revisions to any components thereof that do not meet those 
     requirements.
       (2) Assessment to be furnished to the congress.--The 
     Inspector General shall furnish to the House of 
     Representatives Committee on Appropriations, the Senate 
     Committee on Appropriations, the House of Representatives 
     Committee on Transportation and Infrastructure, and the 
     Senate Committee on Commerce, Science, and Transportation--
       (A) an assessment of the annual budget within 90 days after 
     receiving it from Amtrak; and
       (B) an assessment of the remaining 4 years of the 5-year 
     financial plan within 180 days after receiving it from 
     Amtrak.

     SEC.  15. INDEPENDENT AUDITOR TO ESTABLISH METHODOLOGIES FOR 
                   AMTRAK ROUTE AND SERVICE PLANNING DECISIONS.

       (a) Review.--The Secretary of Transportation shall, in 
     consultation with the Federal Railroad Administration, 
     execute a contract to obtain the services of an independent 
     auditor or consultant to research and define Amtrak's past 
     and current methodologies for determining intercity passenger 
     rail routes and services.
       (b) Recommendations.--The independent auditor or consultant 
     shall recommend objective methodologies for determining such 
     routes and services, including the establishment of new 
     routes, the elimination of existing routes, and the 
     contraction or expansion of services or frequencies over such 
     routes.
       (e) Submittal to Congress.--The Secretary shall submit 
     recommendations received under subsection (b) to Amtrak, the 
     House of Representatives Committee on Transportation and 
     Infrastructure, and the Senate Committee on Commerce, 
     Science, and Transportation
       (d) Authorization of Appropriations.--There are authorized 
     to be made available to the Secretary of Transportation, out 
     of any amounts authorized by this title to be appropriated 
     for the benefit of Amtrak and not otherwise obligated or 
     expended, such sums as may be necessary to carry out this 
     section.

     SEC.  16. METRICS AND STANDARDS.

       The Administrator of the Federal Railroad Administration 
     shall, in consultation with Amtrak and host railroads, 
     develop new or improve existing metrics and minimum standards 
     for measuring the service quality of intercity train 
     operations, including on-time performance, onboard services, 
     stations, facilities, equipment, and other services.

     SEC.  17. ON-TIME PERFORMANCE.

       Section 24308 is amended by adding at the end the 
     following:
       ``(f) On-Time Performance and Other Standards.--If the on-
     time performance of any intercity passenger train averages 
     less than 80 percent for any consecutive 6-month period, or 
     the service quality of intercity train operations for which 
     minimum standards are established under section ___17 of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 Act fails to meet those standards, Amtrak 
     may petition the Surface Transportation Board to investigate 
     whether, and to what extent, delays or failure to achieve 
     minimum standards are due to causes that could reasonably be 
     addressed by a rail carrier over the tracks of which the 
     intercity passenger train operates, or by a regional 
     authority providing commuter service, if any. In carrying out 
     such an investigation, the Surface Transportation Board shall 
     obtain information from all parties involved and make 
     recommendations regarding reasonable measures to improve the 
     service, quality, and on-time performance of the train.''.
                                 ______
                                 
  SA 2594. Mr. HOLLINGS (for himself and Mr. Carper) submitted an 
amendment intended to be proposed by him

[[Page 2054]]

to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                     Part   --Amtrak Authorizations

     SEC.  1. NATIONAL RAILROAD PASSENGER TRANSPORTATION SYSTEM 
                   DEFINED.

       (a) In General.--Section 24102 is amended--
       (1) by striking paragraph (2);
       (2) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (2), (3), and (4), respectively; and
       (3) by inserting after paragraph (4) as so redesignated the 
     following:
       ``(5) `national rail passenger transportation system' 
     means--
       ``(A) the segment of the Northeast Corridor between Boston, 
     Massachusetts and Washington, D.C.;
       ``(B) rail corridors that have been designated by the 
     Secretary of Transportation as high-speed corridors, but only 
     after they have been improved to permit operation of 
     highspeed service;
       ``(C) long-distance routes of more than 750 miles between 
     endpoints operated by Amtrak as of the elate of enactment of 
     the Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004; and
       ``(D) short-distance corridors or routes operated by 
     Amtrak.''.
       (b) Amtrak Routes with State Funding.--
       (1) In general.--Chapter 247 is amended by inserting after 
     section 24701 the following:

     ``Sec. 24702. Transportation requested by States, 
       authorities, and other persons

       ``(a) Contracts for Transportation.--Amtrak and a State, a 
     regional or local authority, or another person may enter into 
     a contract for Amtrak to operate an intercity rail service or 
     route not included in the national rail passenger 
     transportation system upon such terms as the parties thereto 
     may agree.
       ``(b) Discontinuance.---Upon termination of a contract 
     entered into under this section, or the cessation of 
     financial support under such a contract by either party, 
     Amtrak may discontinue such service or route, notwithstanding 
     any other provision of law.''.
       (2) Conforming amendment.--The chapter analysis for chapter 
     247 is amended by inserting after the item relating to 
     section 24701 the following:

``24702. Transportation requested by States, authorities, and other 
              persons''.

       (c) Amtrak To Continue To Provide Non-Highspeed Services.--
     Nothing in this subtitle is intended to preclude Amtrak from 
     restoring, improving, or developing non-high-speed intercity 
     passenger rail service.

     SEC.   2. GENERAL AMTRAK AUTHORIZATIONS.

       (a) Repeal of Self-sufficient Requirements.--
       (1) Title 49 amendments.--Chapter 241 is amended--
       (A) by striking the last sentence of section 24101(4); and
       (B) by striking the last sentence of section 24104(a).
       (2) Amtrak reform and accountability act amendments.--Title 
     II of the Amtrak Reform and Accountability Act of 1997 (49 
     U.S.C. 24101 nt) is amended by striking sections 204 and 205.
       (3) Common stock redemption date.---Section 415 of the 
     Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24304 
     nt) is amended by striking subsection (b).
       (b) Lease Arrangements.--Amtrak may obtain services from 
     the Administrator of General Services, and the Administrator 
     may provide services to Amtrak, under section 201(b) and 
     211(b) of the Federal Property and Administrative Service Act 
     of 1949 (40 U.S.C. 481(b) and 491(b)) for each of fiscal 
     years 2005 through 2009.
       (c) Financiasl Powers.--Section 415(4) of the Amtrak Reform 
     and Accountability Act of 1997 by adding at the end the 
     following:
       ``(3) This section does not affect the applicability of 
     section 3729 of title 31, United States Code, to claims made 
     against Amtrak.''.
       (d) Amtrak Reports.--Section 24315 is amended--
       (1) by striking ``February 15'' in subsection (a) and 
     inserting ``January 31st'';
       (2) by striking subparagraph (B) of subsection (a)(1) and 
     inserting the following:
       ``(B) the route profitability survey data, excluding 
     interest and depreciation costs, or any other route cost 
     allocation or profitability analysis that Amtrak develops;'';
       (3) by striking subparagraph (D) of subsection (a)(1) and 
     inserting the following:
       ``(D) the total revenue-to-total cost ratio;'';
       (4) by striking subparagraphs (C), (F), and (G) of 
     subsection (a)(1), and redesignating subparagraphs (D), (E), 
     and (H) as subparagraphs (C), (D), and (E), respectively; and
       (5) by striking ``February 15'' in subsection (b) and 
     inserting ``January 31st''.

     SEC.   3. REPAYMENT OF LOAN TO NATIONAL RAILROAD PASSENGER 
                   CORPORATION.

       (a) In General.--The Secretary of Transportation may not 
     collect any payments of principal or interest for the direct 
     loan made to the National Railroad Passenger Corporation 
     under section 502 of the Railroad Revitalization and 
     Regulatory Reform Act of 1976 (45 U.S.C. 822). There are 
     authorized to be appropriated to the Secretary for fiscal 
     year 2005 $100,000,000 for the purpose of repaying that loan 
     to the Secretary of the Treasury. The Secretary of 
     Transportation shall waive any conditions imposed under the 
     loan.
       (b) Certain Conditions Waived.--Section 151 of the 
     Transportation, Treasury, and Independent Agencies 
     Appropriations Act, 2004, is repealed.
       (c) Federal Railroad Administration.--
       (1) In general.--Section 11123 is amended--
       (A) by striking ``failure of existing commuter rail 
     passenger transportation operations caused by a cessation of 
     service by the National Railroad Passenger Corporation,'' in 
     subsection (a);
       (B) by inserting ``or'' after the semicolon in subsection 
     (a)(3);
       (C) by striking ``permits; or'' in subsection (a)(4) and 
     inserting ``permits.'';
       (D) by striking paragraph (5) of subsection (a);
       (E) by striking ``(A) Except as provided in subparagraph 
     (B), when'' in sub-section (b)(3) and inserting ``When'';
       (F) by striking subparagraph (B) of subsection (b)(3);
       (G) by striking paragraph (4) of subsection (c); and
       (H) by striking subsections (e) and (f).
       (2) Section 24301(c) is amended by striking ``11123,''.

     SEC.   4. RESTRUCTURING OF LONG-TERM DEBT AND CAPITAL LEASES.

       (a) In General.---The Secretary of the Treasury shall work 
     with the Secretary of Transportation and Amtrak to 
     restructure Amtrak's indebtedness as of the date of enactment 
     of this Act.
       (b) New Debt Prohibition.--Except as approved by the 
     Secretary of Transportation, Amtrak may not enter into any 
     obligation secured by assets of the Corporation after the 
     date of enactment of this Act. This section does not prohibit 
     unsecured lines of credit used by Amtrak or any subsidiary 
     for working capital purposes.
       (c) Debt Redemption.--The Secretary of Transportation, in 
     consultation with the Secretary of the Treasury, shall enter 
     into negotiations with the holders of Amtrak debt, including 
     leases, that is outstanding on the (date of enactment of this 
     Act for the purpose of redeeming or restructuring that debt. 
     The Secretary, in consultation with the Secretary of the 
     Treasury, shall secure agreements for repayment on such terms 
     as the Secretary deems favorable to the interests of the 
     Government. Payments for such redemption may be made after 
     October 1, 2005, in either a single payment or a series of 
     payments, but in no case shall the repayment period extend 
     beyond September 30, 2010.
       (d) Criteria.--In redeeming or restructuring Amtrak's 
     indebtedness, the Secretaries and Amtrak--
       (1) shall ensure that the restructuring imposes the least 
     practicable burden on taxpayers; and
       (2) take into consideration repayment costs, the term of 
     any loan or loans, and market conditions.
       (e) Authorization.--There are authorized to be appropriated 
     to the Secretary such sums as may be necessary for fiscal 
     years 2005 through 2010 to restructure or redeem Amtrak's 
     secured debt.
       (f) Amtrak Principal and Interest Payments.--
       (1) Principal on debt service.--Unless the Secretary of 
     Transportation and the Secretary of the Treasury redeem the 
     debt in its entirety, there are authorized to be appropriated 
     to the Secretary of Transportation for the use of Amtrak for 
     retirement of principal on loans for capital equipment, or 
     capital leases, the following amounts:
       (A) For fiscal year 2005, $109,500,000.
       (B) For fiscal year 2006, $114,700,000.
       (C) For fiscal year 2007, $202,900,000,
       (D) For fiscal year 2008, $164,300,000.
       (E) For fiscal year 2009, $155,800,000.
       (F) For fiscal year 2010, $203,500,000.
       (2) Interest on debt.--Unless the Secretary of 
     Transportation and the Secretary of the Treasury restructure 
     or redeem the debt, there are authorized to be appropriated 
     to the Secretary of Transportation for the use of Amtrak for 
     the payment of interest on loans for capital equipment, or 
     capital leases, the following amounts:
       (A) For fiscal year 2005, $151,300,000.
       (B) For fiscal year 2006, $146,300,000.
       (C) For fiscal year 2007, $137,500,000.
       (D) For fiscal year 2008, $125,300,000.
       (E) For fiscal year 2009, $117,100,000.
       (F) For fiscal year 2010, $107,800,000.
       (3) Reductions in authorization levels.--Whenever action 
     taken by the Secretary of the Treasury under subsection (c) 
     results in reductions in amounts of principal and interest 
     that Amtrak must service on existing debt, Amtrak shall 
     submit to the Senate Committee on Commerce, Science, and 
     Transportation, the House of Representatives Committee on 
     Transportation and Infrastructure, the Senate Committee on 
     Appropriations, and House of Representatives Committee on 
     Appropriations revised requests for amounts authorized by 
     paragraphs (1) and (2) that reflect the such reductions.

[[Page 2055]]



     SEC.  5. AUTHORIZATIONS FOR ENVIRONMENTAL COMPLIANCE AND 
                   STATION IMPROVEMENTS.

       (a) Environmental Compliance.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak in order to comply with environmental regulations 
     the following amounts:
       (A) For fiscal year 2005, $18,800,000.
       (B) For fiscal year 2006, $21,700,000.
       (C) For fiscal year 2007, $22,300,000.
       (D) For fiscal year 2008, $15,100,000.
       (E) For fiscal year 2009, $15,900,000.
       (F) h or fiscal year 2010, $16,000,000.
       (b) Capital Improvements to Stations.--
       (1) In general.--There are authorized to be appropriated to 
     the Secretary of Transportation for the use of Amtrak for 
     capital improvements to stations, including an initial 
     assessment of the full set of accessibility needs across the 
     national rail passenger transportation system and improved 
     accessibility for the elderly and people with disabilities 
     and in Amtrak facilities and stations, the following amounts:
       (A) For fiscal year 2005, $17,100,000.
       (B) For fiscal year 2006, $19,800,000.
       (C) For fiscal year 2007, $19,800,000.
       (D) For fiscal year 2008, $19,000,000.
       (E) For fiscal year 2009, $19,000,000.
       (F) For fiscal year 2010, $19,000,000.
       (2) Study of compliance requirements at existing intercity 
     rail stations.--Amtrak shall evaluate the improvements 
     necessary to make all existing stations it serves readily 
     accessible to and usable by individuals with disabilities, as 
     required by section 242(e)(2) of the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12162(e)(2)). The 
     evaluation shall include the estimated cost of the 
     improvements necessary, the identification of the responsible 
     person (as defined in section 241(5) of that Act (42 U.S.C. 
     12161(5))), and the earliest practicable date when such 
     improvements can be made. Amtrak shall submit the survey to 
     the Senate Committee on Commerce, Science, and 
     Transportation, the House of Representatives Committee on 
     Transportation and Infrastructure, and the, National Council 
     on Disability by September 30, 2005, along with 
     recommendations for funding the necessary improvements.

     SEC.  6. TUNNEL LIFE SAFETY.

       (a) Life Safety Needs.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for fiscal year 2005:
       (1) $677,000,000 for the 6 New York tunnels built in 1910 
     to provide ventilation, electrical, and fire safety 
     technology upgrades, emergency communication and lighting 
     systems, and emergency access and egress for passengers.
       (2) $57,000,000 for the Baltimore & Potomac tunnel built in 
     1872 to provide adequate drainage, ventilation, 
     communication, lighting, and passenger egress upgrades.
       (3) $40,000,000 for the Washington, DC, Union Station 
     tunnels built in 1904 under the Supreme Court and House and 
     Senate Office Buildings to improve ventilation, 
     communication, lighting, and passenger egress upgrades.
       (b) Infrastructure Upgrades.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak in consultation with the State of Maryland 
     $3,000,000 for fiscal year 2005 for the preliminary design of 
     options for a new tunnel on a different alignment to augment 
     the capacity of the existing Baltimore tunnels.
       (d) Financial Contribution From Other Tunnel Users.--The 
     Secretary shall, taking into account the need for the timely 
     completion of all life safety portions of the tunnel projects 
     described in subsection (a)--
       (1) consider the extent to which rail carriers other than 
     Amtrak use the tunnels;
       (2) consider the feasibility of seeking a financial 
     contribution from those other rail carriers toward the costs 
     of the projects, and
       (3) obtain financial contributions or commitments from such 
     other rail carriers if feasible.
       (e) Availability of Funds.--Amounts appropriated pursuant 
     to this section shall remain available until expended.

     SEC.  7. AUTHORIZATION FOR CAPITAL AND OPERATING EXPENSES.

       (a) Operating Expenses.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for operating costs the following amounts:
       (1) For fiscal year 2005, $581,400,000.
       (2) For fiscal year 2006, $566,700,000.
       (3) For fiscal year 2007, $557,700,000.
       (4) For fiscal year 2008, $528,500,000.
       (5) For fiscal year 2009, $522,000,000.
       (6) For fiscal year 2010, $522,000,000.
       (b) Capital Backlog and Upgrades.--There are authorized to 
     be appropriated to the Secretary, of Transportation for the 
     use of Amtrak for capital expenses, the following amounts:
       (1) For fiscal year 2005, $741,500,000.
       (2) For fiscal year 2006, $835,200,000.
       (3) For fiscal year 2007, $760,800,000.
       (4) For fiscal year 2008, $733,600,000.
       (5) For fiscal year 2009, $774,300,000.
       (6) For fiscal year 2010, $874,300,000.
       (c) Replacement Equipment.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of Amtrak for the purchase of replacement passenger rail 
     equipment the following amounts:
       (1) For fiscal year 2006, $250,000,000.
       (2) For fiscal year 2007, $250,000,000.
       (3) For fiscal year 2008, $350,000,000.
       (4) For fiscal year 2009, $350,000,000.
       (5) For fiscal year 2010, $350,000,000.

     SEC.  8. GRANTS NOT CONSIDERED TO REPLACE FEDERAL OPERATING 
                   OR CAPITAL SUPPORT.

       Grants or assistance provided directly to a State or group 
     of States by the Secretary under this title for rail 
     infrastructure investments shall not be considered to reduce 
     or replace the authorizations or the need for annual Federal 
     appropriations for the National Railroad Passenger 
     Corporation.

     SEC.  9. ESTABLISHMENT OF GRANT PROCESS.

       (a) Grant Requests.--Amtrak shall submit grant requests to 
     the Secretary of Transportation for funds authorized to be 
     appropriated to the Secretary for the use of Amtrak under 
     sections ___6, ___7, and ___8.
       (b) Procedures for Grant Request.--The Secretary shall 
     establish substantive and procedural requirements, including 
     schedules, for grant requests under this section not late 
     than 30 days after the date of enactment of this Act and 
     shall transmit copies to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure.
       (c) Review and Approval.--
       (1) 30-day process.--The Secretary shall complete the 
     review of a grant request and approve or disapprove the 
     request within 30 days after the date on which Amtrak submits 
     the grant request.
       (2) Incomplete or deficient requests.--If the Secretary 
     disapproves the request or determines that the request is 
     incomplete or deficient, the Secretary shall immediately 
     notify Amtrak of the reason for disapproval or the incomplete 
     items or deficiencies. Within 15 days after receiving 
     notification from the Secretary under the preceding sentence, 
     Amtrak shall submit a modified request for the Secretary's 
     review.
       (3) Revised requests.--Within 15 days after receiving a 
     modified request from Amtrak, the Secretary shall either 
     approve the modified request, or, if the Secretary finds that 
     the request is still incomplete or deficient, the Secretary 
     shall identify in writing to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Transportation and 
     Infrastructure the remaining deficiencies and recommend a 
     process for resolving the outstanding portions of the 
     request.

     SEC.  10. STATE-SUPPORTED ROUTES.

       The Board of Directors of Amtrak, in consultation with the 
     Secretary of Transportation and the chief executive officer 
     of each State and the District of Columbia, shall develop a 
     formula for funding the operating costs of trains operating 
     on routes not in excess of 750 miles in length that--
       (1) is equitable and fair; and
       (2) ensures, within 5 years after the date of enactment of 
     this Act, equal treatment of all States (and the District of 
     Columbia) and groups of States (including the District of 
     Columbia).

     SEC.  11. RE-ESTABLISHMENT OF NORTHEAST CORRIDOR SAFETY 
                   COMMITTEE.

       (a) Re-establishment of Northeast Corridor Safety 
     Committee.--The Secretary of Transportation shall re-
     establish the Northeast Corridor Safety Committee authorized 
     by section 24905(b) of title 49, United States Code.
       (b) Termination Date.--Section 24905(b)(4) is amended by 
     striking ``January 1, 1999,'' and inserting ``January 1, 
     2009,''.

     SEC.  12. AMTRAK BOARD OF DIRECTORS.

       Section 24302 is amended to read as follows:

     ``Sec. 24302. Board of directors

       ``(a) Composition and Terms.--
       ``(1) The board of directors of Amtrak is composed of the 
     following 9 directors, each of whom must be a citizen of the 
     United States:
       ``(A) The President of Amtrak.
       ``(B) The Secretary of Transportation.
       ``(C) 7 individuals appointed by the President of the 
     United States, by and with the advice and consent of the 
     Senate, with experience and qualifications in or directly 
     related to rail transportation, including representatives of 
     freight and passenger rail transportation, travel, 
     hospitality, cruise line, and passenger air transportation 
     businesses, consumers of passenger rail transportation, and 
     State government.
       ``(2) In selecting individuals described in paragraph (1) 
     for nominations for appointments to the Board, the President 
     shall consult with the Speaker of the House of 
     Representatives, the Minority Leader of the House of 
     Representatives, the Majority Leader of the Senate, and the 
     Minority Leader of the Senate and should ensure adequate and 
     balanced representation of the major geographic regions of 
     the United States.
       ``(3) Each member shall be appointed for a term of 5 years 
     and until the individual's successor is appointed and 
     qualified. Not more than 4 individuals appointed under 
     paragraph (1)(C) may be members of the same political party.
       ``(4) The board shall elect a chairman and a vice chairman 
     from among its membership. The vice chairman shall serve as 
     chairman in the absence of the chairman.

[[Page 2056]]

       ``(5) The Secretary may be represented at board meetings by 
     the Secretary's designee.
       ``(b) Pay and Expenses.--Each director not employed by the 
     United States Government is entitled to $300 a day when 
     performing board duties and powers. Each director is entitled 
     to reimbursement for necessary travel, reasonable secretarial 
     and professional staff support, and subsistence expenses 
     incurred in attending board meetings.
       ``(e) Vacancies.--A vacancy on the board is filled in the 
     same way as the original selection, except that an individual 
     appointed by the President of the United States under 
     subsection (a)(1)(C) of this section to fill a vacancy 
     occurring before the end of the terror for which the 
     predecessor of that individual was appointed is appointed for 
     the remainder of that term. A vacancy required to be filled 
     by appointment under subsection (a)(1)(C) must be filled not 
     later than 120 days after the vacancy occurs.
       ``(d) Bylaws.--The board may adopt and amend bylaws 
     governing the operation of Amtrak. The bylaws shall be 
     consistent with this part and the articles of 
     incorporation.''.

     SEC. 13. ESTABLISHMENT OF FINANCIAL ACCOUNTING SYSTEM FOR 
                   AMTRAK OPERATIONS BY INDEPENDENT AUDITOR.

       (a) In General.--The Inspector General of the Department of 
     Transportation shall employ an independent financial 
     consultant with experience in railroad accounting--
       (1) to assess Amtrak's financial accounting and reporting 
     system and practices;
       (2) to design and assist Amtrak in implementing a modern 
     financial accounting and reporting system, on the basis of 
     the assessment, that will produce accurate and timely 
     financial information in sufficient detail--
       (A) to enable Amtrak to assign revenues and expenses 
     appropriately to each of its lines of business and to each 
     major activity within each line of business activity, 
     including train operations, equipment maintenance, ticketing, 
     and reservations;
       (B) to aggregate expenses and revenues related to 
     infrastructure and distinguish them from expenses and 
     revenues related to rail operations; and
       (C) to provide ticketing and reservation information on a 
     real-time basis.
       (b) Verification of System; Report.--The Inspector General 
     of the Department of Transportation shall review the 
     accounting system designed and implemented under subsection 
     (a) to ensure that it accomplishes the purposes for which it 
     is intended. The Inspector General shall report his findings 
     and conclusions, together with any recommendations, to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation 
     $2,500,000 for fiscal year 2005 to carry out subsection (a), 
     such sums to remain available until expended.

     SEC. 14. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN.

       (a) Development of 5-year Financial Plan.--The Amtrak board 
     of directors shall submit an annual budget for Amtrak, and a 
     5-year financial plan for the fiscal year to which that 
     budget relates and the subsequent 4 years, prepared in 
     accordance with this section, to the Secretary of 
     Transportation and the Inspector General of the Department of 
     Transportation no later than--
       (1) the first day of each fiscal year beginning after the 
     date of enactment of this Act; or
       (2) the date that is 60 days after the date of enactment of 
     an appropriation Act for the fiscal year, if later.
       (b) Contents of 5-year Financial Plan.--The 5-year 
     financial plan for Amtrak shall include, at a minimum--
       (1) all projected revenues and expenditures for Amtrak, 
     including governmental funding sources;
       (2) projected ridership levels for all Amtrak passenger 
     operations;
       (3) revenue and expenditure forecasts for nonpassenger 
     operations,
       (4) capital funding requirements and expenditures necessary 
     to maintain passenger service which will accommodate 
     predicted ridership levels and predicted sources of capital 
     funding;
       (5) operational funding needs, if any, to maintain current 
     and projected levels of passenger service, including state-
     supported routes and predicted funding sources;
       (6) projected capital and operating requirements, 
     ridership, and revenue for any new passenger service 
     operations or service expansions;
       (7) an assessment of the continuing financial stability of 
     Amtrak, as indicated by factors such as: the ability of the 
     federal government to adequately meet capital and operating 
     requirements, Amtrak's access to long-term and short-term 
     capital markets, Amtrak's ability to efficiently manage its 
     workforce, and Amtrak's ability to effectively provide 
     passenger train service.
       (8) lump sum expenditures of $10,000,000 or more and 
     sources of funding.
       (9) estimates of long-term and short-term debt and 
     associated principle and interest payments (both current and 
     anticipated);
       (10) annual cash flow forecasts; and
       (11) a statement describing methods of estimation and 
     significant assumptions.
       (c) Standards To Promote Financial Stability.--In meeting 
     the requirements of subsection (b) with respect to a 5-year 
     financial plan, Amtrak shall--
       (1) apply sound budgetary practices, including reducing 
     costs and other expenditures, improving productivity, 
     increasing revenues, or combinations of such practices; and
       (2) use the categories specified in the financial 
     accounting and reporting system developed under section 4652 
     when preparing its 5-year financial plan.
       (d) Assessment by DOT Inspector General.--
       (1) In General.--The Inspector General of the Department of 
     Transportation shall assess the 5-year financial plans 
     prepared by Amtrak under this section to determine whether 
     they meet the requirements of subsection (b), and may suggest 
     revisions to any components thereof that do not meet those 
     requirements.
       (2) Assessment to be furnished to the congress.--Tbe 
     Inspector General shall furnish to the House of 
     Representatives Committee on Appropriations, the Senate 
     Committee on Appropriations, the House of Representatives 
     Committee on Transportation and Infrastructure, and the 
     Senate Committee on Commerce, Science, and Transportation--
       (A) an assessment of the annual budget within 90 days after 
     receiving it from Amtrak; and
       (B) an assessment of the remaining 4 years of the 5-year 
     financial plan within 180 days after receiving it from 
     Amtrak.

     SEC.   15. INDEPENDENT AUDITOR TO ESTABLISH METHODOLOGIES FOR 
                   AMTRAK ROUTE AND SERVICE PLANNING DECISIONS.

       (a) Review.--The Secretary of Transportation shall, in 
     consultation with the Federal Railroad Administration, 
     execute a contract to obtain the services of an independent 
     auditor or consultant to research and define Amtrak's past 
     and current methodologies for determining intercity passenger 
     rail routes and services.
       (b) Recommendations.--The independent auditor or consultant 
     shall recommend objective methodologies for determining such 
     routes and services, including the establishment of new 
     routes, the elimination of existing routes, and the 
     contraction or expansion of services or frequencies over such 
     routes.
       (c) Submittal to Congress.--The Secretary shall submit 
     recommendations received under subsection (b) to Amtrak, the 
     House of Representatives Committee on Transportation and 
     Infrastructure, and the Senate Committee on Commerce, 
     Science, and Transportation.
       (d) Authorization of Appropriations.--There are authorized 
     to be made available to the Secretary of Transportation, out 
     of any amounts authorized by this title to be appropriated 
     for the benefit of Amtrak and not otherwise obligated or 
     expended, such sums as may be necessary to carry out this 
     section.

     SEC.   16. METRICS AND STANDARDS.

       The Administrator of the Federal Railroad Administration 
     shall, in consultation with Amtrak and host railroads, 
     develop new or improve existing metrics and minimum standards 
     for measuring the service quality of intercity train 
     operations, including on-time performance, onboard services, 
     stations, facilities, equipment, and other services.

     SEC.   17. ON-TIME PERFORMANCE.

       Section 24308 is amended by adding at the end the 
     following:
       (f) On-time Performance and Other Standards.--If the on-
     time performance of any intercity passenger train averages 
     less than 80 percent for any consecutive 6-month period, or 
     the service quality of intercity train operations for which 
     minimum standards are established under section ___ 17 of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2004 Act fails to meet those standards, Amtrak 
     may petition the Surface Transportation Board to investigate 
     whether, and to what extent, delays or failure to achieve 
     minimum standards are due to causes that could reasonably be 
     addressed by a rail carrier over the tracks of which the 
     intercity passenger train operates, or by a regional 
     authority providing commuter service, if any. In carrying out 
     such an investigation, the Surface Transportation Board shall 
     obtain information from all parties involved and make 
     recommendations regarding reasonable measures to improve the 
     service, quality, and on-time performance of the train.''.
                                 ______
                                 
  SA 2595. Mr. HOLLINGS submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                  Part  --Railroad Track Modernization

     SEC. __1. SHORT TITLE.

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

[[Page 2057]]



     SEC. __ 2. CAPITAL GRANTS FOR RAILROAD TRACK.

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


            ``chapter 223--capital grants for railroad track

``Sec.
``22301. Capital grants for railroad track
``22302. State rail plans
``22303. Purposes
``22304. Content
``22305. Approval
``22306. Standards and conditions
``22307. Definitions

     ``Sec. 22301. Capital grants for railroad track

       ``(a) Establishment of Program.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish a program of capital grants for the rehabilitation, 
     preservation, or improvement of railroads. Such grants shall 
     be for rail transportation and ensuring that track can be 
     operated safely and efficiently, including grants for 
     rehabilitating, preserving, or improving track. Grants may be 
     provided under this chapter to a State or a group of States 
     for, or in connection with, 1 or more rail capital projects 
     that--
       ``(A) are listed in a State rail plan approved for such 
     State under chapter 225 of this title; and
       ``(B) as determined by the Secretary, would primarily 
     benefit intercity passenger rail infrastructure or services 
     or freight rail transportation infrastructure or services and 
     provide significant public benefits.
       ``(2) Regulations.--
       ``(A) In general.--The Secretary shall prescribe 
     regulations to carry out the program under this section.
       ``(B) Criteria.--In developing the regulations, the 
     Secretary shall establish criteria that--
       ``(i) condition the award of a grant on reasonable 
     assurances that the facilities to be rehabilitated and 
     improved will be economically and efficiently utilized;
       ``(ii) ensure that the award of a grant is justified by 
     present and probable future demand for rail services; and
       ``(iii) ensure that projects are part of a State rail plan.
       ``(C) Grant allocations.--Of the total amount made 
     available for the program, 50 percent shall be awarded on a 
     discretionary basis for passenger rail projects, and the 
     remaining 50 percent shall be apportioned to States to fund 
     freight rail projects in accordance with a formula prescribed 
     by the Secretary to weigh equally for each State--
       ``(i) the number of rail miles in active use in the State;
       ``(ii) the number of rail cars loaded in the States;
       ``(iii) the number of rail cars unloaded in the State; and
       ``(iv) the number of railroad and public road grade 
     crossings in the State.
       ``(b) Federal Share.--The Federal share for carrying out a 
     project under this section shall be 80 percent of the project 
     cost. The non-Federal share may be provided by any non-
     Federal source in cash, equipment, or supplies. Other in-kind 
     contributions may be approved by the Secretary on a case by 
     case basis consistent with this chapter.
       ``(c) Authorization of Appropriations.--Notwithstanding 
     section 4635 of the Railroad Track Modernization Act of 2004, 
     there are authorized to be appropriated to the Secretary of 
     Transportation $2,000,000,000 for each of the fiscal years 
     2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

     ``Sec. 22302. State rail plans

       ``(a) In General.--Each State may prepare and maintain a 
     State rail plan in accordance with the provisions of this 
     chapter.
       ``(b) Requirements.--For the preparation and periodic 
     revision of a State rail plan, a State shall--
       ``(1) establish or designate a State rail transportation 
     authority to prepare, maintain, coordinate, and administer 
     the plan;
       ``(2) establish or designate a State rail plan approval 
     authority to approve the plan;
       ``(3) submit the State's approved plan to the Secretary of 
     Transportation for review; and
       ``(4) revise and resubmit a State-approved plan no less 
     frequently than once every 5 years for reapproval by the 
     Secretary.

     ``Sec. 22303. Purposes

       ``(a) Purposes.--The purposes of a State rail plan are as 
     follows:
       ``(1) To set forth State policy involving freight and 
     passenger rail transportation, including commuter rail 
     operations, in the State.
       ``(2) To establish the period covered by the State rail 
     plan.
       ``(3) To present priorities and strategies to enhance rail 
     service in the State that benefits the public.
       ``(4) To serve as the basis for Federal and State rail 
     investments within the State.
       ``(b) Coordination.--A State rail plan shall be coordinated 
     with other State transportation planning goals and programs 
     and set forth rail transportation's role within the State 
     transportation system. A State shall provide adequate and 
     reasonable notice and opportunity for comment and other input 
     to the public, rail carriers, commuter and transit 
     authorities operating in, or affected by rail operations 
     within the State, units of local government, and other 
     interested parties in the preparation and review of its State 
     rail plan.

     ``Sec. 22304. Content

       ``(a) In General.--Each State rail plan shall contain the 
     following:
       ``(1) An inventory of the existing overall rail 
     transportation system and rail services and facilities within 
     the State and an analysis of the role of rail transportation 
     within the State's surface transportation system.
       ``(2) A comprehensive review of all rail lines within the 
     State, including proposed high speed rail corridors and 
     significant rail line segments not currently in service.
       ``(3) A general analysis of rail's transportation, 
     economic, and environmental impacts in the State, including 
     congestion mitigation, trade and economic development, air 
     quality, land-use, energy-use, and community impacts.
       ``(4) A long-range rail investment program for current and 
     future freight and passenger infrastructure in the State that 
     meets the requirements of subsection (b).
       ``(5) A statement of public financing issues for rail 
     projects in the State.
       ``(6) An identification of rail infrastructure issues 
     within the State that reflects consultation with all relevant 
     sake holders.
       ``(7) A review of major passenger and freight intermodal 
     rail connections and facilities within the State, including 
     seaports.
       ``(8) A statement that the State is in compliance with the 
     requirements of section 22102.
       ``(b) Long-range Service and Investment Program.--
       ``(1) Program content.--A long-range rail investment 
     program included in a State rail plan under subsection (a)(4) 
     shall include the following matters:
       ``(A) Two lists for rail capital projects, 1 for freight 
     rail capital projects and 1 for inter-city passenger rail 
     capital projects.
       ``(B) A detailed funding plan for the projects.
       ``(2) Project list content.--The list of freight and 
     intercity passenger rail capital projects shall contain--
       ``(A) a description of the anticipated public and private 
     benefits of each such project; and
       ``(B) a statement of the correlation between--
       ``(i) public funding contributions for the projects; and
       ``(ii) the public benefits.
       ``(3) Considerations for project list.--In preparing the 
     list of freight and intercity passenger rail capital 
     projects, a State rail transportation authority shall take 
     into consideration the following matters:
       ``(A) Contributions made by non-Federal and non-State 
     sources through user fees, matching funds, or other private 
     capital involvement.
       ``(B) Rail capacity and congestion effects.
       ``(C) Effects to highway, aviation, and maritime capacity, 
     congestion, or safety.
       ``(D) Regional balance.
       ``(E) Environmental impact.
       ``(F) Economic and employment impacts.
       ``(G) Projected ridership and other service measures for 
     passenger rail projects.
       ``(c) Waiver.--The Secretary may waive any requirement of 
     subsection (a) upon application under circumstances that the 
     Secretary determines appropriate.

     ``Sec. 22305. Approval

       ``(a) Criteria.--The Secretary may approve a State rail 
     plan for the purposes of this chapter if--
       ``(1) the plan meets all of the requirements applicable to 
     State plans under this chapter;
       ``(2) for each ready-to-commence project listed on the 
     ranked list of freight and intercity passenger rail capital 
     projects under the plan-
       ``(A) the project meets all safety and environmental 
     requirements including those prescribed under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) 
     that are applicable to the project under law; and
       ``(B) the State has entered into an agreement with any 
     owner of rail infrastructure or right of way directly 
     affected by the project that provides for the State to 
     proceed with the project; and
       ``(3) the content of the plan is coordinated with State 
     transportation plans developed pursuant to the requirements 
     of section 135 of title 23.

     ``Sec. 22306. Standards and conditions

       ``A person that conducts rail operations over rail 
     infrastructure constructed or improved with funding provided 
     in whole or in part in a grant made under section 22301--
       (1) shall be considered an employer for purposes of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
       (2) shall be considered a carrier for purposes of the 
     Railway Labor Act (43 U.S.C. 151 et seq.).

     ``Sec. 22307. Definitions

       In this chapter:
       ``(1) Private benefit.--The term `private benefit'--
       ``(A) means a benefit accrued to a person or private 
     entity, other than the National Railroad Passenger 
     Corporation, that directly improves the economic and 
     competitive condition of that person or entity through 
     improved assets, cost reductions, service improvements, or 
     any other means as defined by the Secretary; and

[[Page 2058]]

       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.
       ``(2) Public benefit.--The term `public benefit'--
       ``(A) means a benefit accrued to the public in the form of 
     enhanced mobility of people or goods, environmental 
     protection or enhancement, congestion mitigation, enhanced 
     trade and economic development, improved air quality or land 
     use, more efficient energy use, enhanced public safety or 
     security, reduction of public expenditures due to improved 
     transportation efficiency or infrastructure preservation, and 
     any other positive community effects as defined by the 
     Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.''.
       (b) Conforming Amendment.--The item relating to chapter 223 
     in the table of chapters of subtitle V of title 49, United 
     States Code, is amended to read as follows:

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

     SEC. __ 3. GRANT PROGRAM FUNDING.

       (a) In General.--Section 250(c)(4) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 (2 U.S.C. 
     900(c)(4)) is amended by adding at the end the following:
       ``(D) Rail infrastructure category.--The term `rail 
     infrastructure category' means discretionary appropriations 
     to the Secretary of Transportation for the provision of 
     grants to States for railroad infrastructure investment 
     activities subject to the obligation limitations on contract 
     authority provided under chapter 223 of title 49, United 
     States Code, or for which appropriations are provided in 
     accordance with authorizations contained in that division.''.
       (b) Budget Authority Outlays.--For purposes of section 
     251(c) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 (2 U.S.C. 901(b)):
       (1) Budget authority.--The budget authority for the rail 
     infrastructure category shall be--
       (A) $300,000,000 for fiscal year 2005;
       (B) $600,000,000 for fiscal year 2006;
       (C) $900,000,000 for fiscal year 2007;
       (D) $1,200,000,000 for fiscal year 2008;
       (E) $1,500,000,000 for fiscal year 2009; and
       (F) $1,500,000,000 for fiscal year 2010.
       (2) Outlays.--The level of outlays for the rail 
     infrastructure category is--
       (A) $60,000,000 for fiscal year 2005;
       (B) $180,000,000 for fiscal year 2006;
       (C) $360,000,000 for fiscal year 2007;
       (D) $480,000,000 for fiscal year 2008;
       (E) $900,000,000 for fiscal year 2009; and
       (F) $1,140,000,000 for fiscal year 2010.

     SEC.  171. EXTENSION OF CUSTOMS USER FEES.

       Section 13031(j)(3) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended 
     by striking ``March 31, 2004,'' and inserting ``March 31, 
     2014''.
                                 ______
                                 
  SA 2596. Mr. HOLLINGS submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       Strike all after the first word and insert the following:

                       Part  --Rail Modernization

     SEC.  1. SHORT TITLE.

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

     SEC.  2. CAPITAL GRANTS FOR RAILROAD TRACK.

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

             chapter 223--capital grants for railroad track

``Sec.
``22301. Capital grants for railroad track
``22302. State rail plans
``22303. Purposes
``22304. Content
``22305. Approval
``22306. Standards and conditions
``22307. Definitions

     ``22301. Capital grants for railroad track

       ``(a) Establishment of Program.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish a program of capital grants for the rehabilitation, 
     preservation, or improvement of railroads. Such grants shall 
     be for rail transportation and ensuring that track can be 
     operated safely and efficiently, including grants for 
     rehabilitating, preserving, or improving track. Grants may be 
     provided under this chapter to a State or a group of States 
     for, or in connection with, 1 or more rail capital projects 
     that--
       ``(A) are listed in a State rail plan approved for such 
     State under chapter 225 of this title; and
       ``(B) as determined by the Secretary, would primarily 
     benefit intercity passenger rail infrastructure or services 
     or freight rail transportation infrastructure or services and 
     provide significant public benefits.
       ``(2) Regulations.--
       ``(A) In general.--The Secretary shall prescribe 
     regulations to carry out the program under this section.
       ``(B) Criteria.--In developing the regulations, the 
     Secretary shall establish criteria that--
       ``(1) condition the award of a grant on reasonable 
     assurances that the facilities to be rehabilitated and 
     improved will be economically and efficiently utilized;
       ``(ii) ensure that the award of a grant is justified by 
     present and probable future demand for rail services; and
       ``(iii) ensure that projects are part of a State rail plan.
       ``(C) Grant Allocations.--Of the total amount made 
     available for the program, 50 percent shall be awarded on a 
     discretionary basis for passenger rail projects, and the 
     remaining 50 percent shall be apportioned to States to fund 
     freight rail projects in accordance with a formula prescribed 
     by the Secretary to weigh equally for each State--
       ``(i) the number of rail miles in active use in the State;
       ``(ii) the number of rail cars loaded in the State;
       ``(iii) the number of rail cars unloaded in the State; and
       ``(iv) the number of railroad and public road grade 
     crossings in the. State.
       ``(b) Federal Share.--The Federal share for carrying out a 
     project under this section shall be 80 percent of the project 
     cost. The non-Federal share may be provided by any non-
     Federal source in cash, equipment, or supplies. Other in-kind 
     contributions may be approved by the Secretary on a case by 
     case basis consistent with this chapter.
       ``(c) Authorization of Appropriations.--Notwithstanding 
     section 4635 of the Railroad Track Modernization Act of 2004, 
     there are authorized to be appropriated to the Secretary of 
     Transportation 2,000,000,000 for each of the fiscal years 
     2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

     ``Sec. 22302. State rail plans

       ``(a) In General.--Each State may prepare and maintain a 
     State rail plan in accordance with the provisions of this 
     chapter.
       ``(b) Requirements.--For the preparation and periodic 
     revision of a State rail plan, a State shall--
       ``(1) establish or designate a State rail transportation 
     authority to prepare, maintain, coordinate, and administer 
     the plan;
       ``(2) establish or designate a State rail plan approval 
     authority to approve the plan;
       ``(3) submit the State's approved plan to the Secretary of 
     Transportation for review; and
       ``(4) revise and resubmit a State-approved plan no less 
     frequently than once every 5 years for reapproval by the 
     Secretary.

     ``Sec. 22303. Purposes

       ``(a) Purpose.--The purposes of a State rail plan are as 
     follows:
       ``(1) To set forth State policy involving freight and 
     passenger rail transportation, including commuter rail 
     operations, in the State.
       ``(2) To establish the period covered by the State rail 
     plan.
       ``(3) To present priorities and strategies to enhance rail 
     service in the State that benefits the public.
       ``(4) To serve as the basis for Federal and State rail 
     investments within the State.
       ``(b) Coordination.--A State rail plan shall be coordinated 
     with other State transportation planning goals and programs 
     and set forth rail transportation's role within the State 
     transportation system. A State shall provide adequate and 
     reasonable notice and opportunity for comment and other input 
     to the public, rail carriers, commuter and transit 
     authorities operating in, or affected by rail operations 
     within the State, units of local government, and other 
     interested parties in the preparation and review of its State 
     rail plan.

     ``Sec. 22304. Content

       ``(a) In General.--Each State rail plan shall contain the 
     following:
       ``(1) An inventory of the existing overall rail 
     transportation system and rail services and facilities within 
     the State and an analysis of the role of rail transportation 
     within the State's surface transportation system.
       ``(2) A comprehensive review of all rail lines within the 
     State, including proposed high speed rail corridors and 
     significant rail line segments not currently in service,
       ``(3) A general analysis of rail's transportation, 
     economic, and environmental impacts in the State, including 
     congestion mitigation, trade and economic development, air 
     quality, land-use, energy-use, and community impacts.
       ``(4) A long-range rail investment program for current and 
     future freight and passenger infrastructure in the State that 
     meets the requirements of subsection (b).
       ``(5) A statement of public financing issues for rail 
     projects in the State.
       ``(6) An identification of rail infrastructure issues 
     within the State that reflects consultation with all relevant 
     stake holders.
       ``(7) A review of major passenger and freight intermodal 
     rail connections and facilities within the State, including 
     seaports.
       ``(8) A statement that the State is in compliance with the 
     requirements of section 22102.''
       ``(b) Long-Range Service and Investment Program.--
       ``(1) Program Content.--A long-range rail investment 
     program included in a State rail plan under subsection (a)(4) 
     shall include the following matters:

[[Page 2059]]

       ``(A) Two lists for rail capital projects, 1 for freight 
     rail capital projects and 1 for intercity passenger rail 
     capital projects.
       ``(B) A detailed funding plan for the projects.
       ``(2) Project list content.--The list of freight and 
     intercity passenger rail capital projects shall contain--
       ``(A) a description of the anticipated public and private 
     benefits of each such project; and
       ``(B) a statement of the correlation between--
       ``(i) public funding contributions for the projects; and
       ``(ii) the public benefits.
       ``(3) Considerations for project list.--In preparing the 
     list of freight and intercity passenger rail capital 
     projects, a State rail transportation authority shall take 
     into consideration the following matters:
       ``(A) Contributions made bar non-Federal and non-State 
     sources through user fees, matching funds, or other private 
     capital involvement.
       ``(B) Rail capacity and congestion effects.
       ``(C) Effects to highway, aviation; and maritime capacity, 
     congestion, or safety.
       ``(D) Regional balance.
       ``(E) Environmental impact.
       ``(F) Economic and employment impacts.
       ``(G) Projected ridership and other service measures for 
     passenger rail projects.
       ``(c) Waiver.--The Secretary may waive any requirement of 
     subsection (a) upon application under circumstances that the 
     Secretary determines appropriate.

     ``Sec. 22305. Approval

       ``(a) Criteria.--The Secretary may approve a State rail 
     plan for the purposes of this chapter if--
       ``(1) the plan meets all of the requirements applicable to 
     State plans under this chapter;
       ``(2) for each ready-to-commence project listed on the 
     ranked list of freight and intercity passenger rail capital 
     projects under the plan--
       ``(A) the project meets all safety and environmental 
     requirements including those prescribed under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) 
     that are applicable to the project under law; and
       ``(B) the State has entered into an agreement with any 
     owner of rail infrastructure or right of way directly 
     affected by the project that provides for the State to 
     proceed with the project; and
       ``(3) the content of the plan is coordinated with State 
     transportation plans developed pursuant to the requirements 
     of section 135 of title 23.

     ``Sec. 22306. Standards and conditions

       ``A person that conducts rail operations over rail 
     infrastructure constructed or unproved with funding provided 
     in whole or in part in a grant made under section 22301--
       (1) shall be considered an employer for purposes of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
       (2) shall he considered a carrier for purposes of the 
     Railway Labor Act (43 U.S.C. 151 et seq.).

     ``Sec. 22307. Definitions

       In this chapter:
       ``(1) Private benefit.--The terra `private benefit'--
       ``(A) means a benefit accrued to a person or private 
     entity, other than the National Railroad Passenger 
     Corporation, that directly improves the economic and 
     competitive condition of that person or entity through 
     improved assets, cost reductions, service improvements, or 
     any other means as defined by the Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.
       ``(2) Public benefit.--The term `public benefit'--
       ``(A) means a benefit accrued to the public in the form of 
     enhanced mobility of people or goods, environmental 
     protection or enhancement, congestion mitigation, enhanced 
     trade and economic development, improved air quality or land 
     use, more efficient energy use, enhanced public safety or 
     security, reduction of public expenditures due to improved 
     transportation efficiency or infrastructure preservation, and 
     any other positive community effects as defined by the 
     Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.''.
       (b) Conforming Amendment.--The item relating to chapter 223 
     in the table of chapters of subtitle V of title 49, United 
     States Code, is amended to read as follows:

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

     SEC.  3. GRANT PROGRAM FUNDING.

       (a) In General.--Section 250(c)(4) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 (2 U.S.C. 
     900(c)(4)) is amended by adding at the end the following:
       ``(D) Rail infrastructure category.--The term `rail 
     infrastructure category' means discretionary appropriations 
     to the Secretary of Transportation for the provision of 
     grants to States for railroad infrastructure investment 
     activities subject to the obligation limitations on contract 
     authority provided under chapter 223 of title 49, United 
     States Code, or for which appropriations are provided in 
     accordance with authorizations contained in that division.''.
       (b) Budget Authority; Outlays;--For purposes of section 
     251(c) of the Balanced budget and emergency Deficit Control 
     Act of 1985 (2 U.S.C. 901(b)):
       (1) Budget authority.--The budget authority for the rail 
     infrastructure category shall be--
       (A) $300,000,000 for fiscal year 2005;
       (B) $600,000,000 for fiscal year 2006;
       (C) $900,000,000 for fiscal year 2007;
       (D) $1,200,000,000 for fiscal year 2008;
       (E) $1,500,000,000 for fiscal year 2009; and
       (F) $1,500,000,000 for fiscal year 2010.
       (2) Outlays.--The level of outlays for the rail 
     infrastructure category is--
       (A) $60,000,000 for fiscal year 2005;
       (B) $180,000,000 for fiscal year 2006;
       (C) $360,000,000 for fiscal year 2007;
       (D) $480,000,000 for fiscal year 2008;
       (E) $900,000,000 for fiscal year 2009; and
       (F) $1,140,000,000 for fiscal year 2010.

     SEC.  171. EXTENSION OF CUSTOMS USER FEES.

       Section 130310)(3) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended 
     by striking ``March 31, 2004,'' and inserting ``March 31, 
     2014''.
                                 ______
                                 
  SA 2597. Mr. HOLLINGS submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       Strike all after the first word and insert the following:

                       Part  --Rail Modernization

     SEC.  --1. SHORT TITLE.

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

     SEC.  --2. CAPITAL GRANTS FOR RAILROAD TRACK.

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

            ``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

``Sec.
``22301.  Capital grants for railroad track
``22302.  State rail plans
``22303.  Purposes
``22304.  Content
``22305.  Approval
``22306.  Standards and conditions
``22307.  Definitions

     ``22301. Capital grants for railroad track

       ``(a) Establishment of Program.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish a, program of capital grants for the 
     rehabilitation, preservation, or improvement of railroads. 
     Such grants shall be for rail transportation and ensuring 
     that track can be operated safely and efficiently, including 
     grants for rehabilitating, preserving, or improving track. 
     Grants may be provided under this chapter to a State or a 
     group of States for, or in connection with, 1 or more rail 
     capital projects that--
       ``(A) are listed in a State rail plan approved for such 
     State under chapter 225 of this title; and
       ``(B) as determined by the Secretary, would primarily 
     benefit intercity passenger rail infrastructure or services 
     or freight rail transportation infrastructure or services and 
     provide significant public benefits.
       ``(2) Regulations.--
       A) In general.--The Secretary shall prescribe regulations 
     to carry out the program under this section.
       ``(B) Criteria.--In developing the regulations, the 
     Secretary shall establish criteria that--
       `` (i) condition the award of a grant on reasonable 
     assurances that the facilities to be rehabilitated and 
     improved will be economically and efficiently utilized;
       ``(ii) ensure that the award of a grant is justified by 
     present and probable future demand for rail services; and
       ``(iii) ensure that projects are part of a State rail plan.
       ``(C) Grant allocations.--Of the total amount made 
     available for-the program, 50 percent shall be awarded on a 
     discretionary basis for passenger rail projects, and the 
     remaining 50 percent shall be apportioned to States to fund 
     freight rail projects in accordance with a formula. 
     prescribed by the Secretary to weigh equally for each State--
       ``(i) the number of rail miles in active use in the State;
       ``(ii) the number of rail cars loaded in the State;
       ``(iii) the number of rail cars unloaded in the State; and
       ``(iv) the number of railroad and public road grade 
     crossings in the State.
       ``(b) Federal Share.--The Federal share for carrying out a 
     project under this section shall be 80 percent of the project 
     cost. The non-Federal share may be provided by any non-
     Federal source in cash, equipment, or supplies. Other in-kind 
     contributions may be approved by the Secretary on a case by 
     case basis consistent with this chapter.
       ``(c) Authorization of Appropriations.--Not-withstanding 
     section 4635 of the Railroad Track Modernization Act of 2004, 
     there are authorized to be appropriated to the Secretary of 
     Transportation $2,000,000,000 for each of the fiscal years 
     2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

[[Page 2060]]



     ``Sec. 22302. State rail plans

       ``(a) In General.--Each State may prepare and maintain a 
     State rail plan in accordance with the provisions of this 
     chapter.
       ``(b) Requirements.--For the preparation and periodic 
     revision of a State rail plan, a State shall--
       ``(1) establish or designate a State rail transportation 
     authority to prepare, maintain, coordinate, and administer 
     the plan;
       ``(2) establish or designate a State rail plan approval 
     authority to approve the plan;
       ``(3) submit the State's approved plan to the Secretary of 
     Transportation for review; and
       ``(4) revise and resubmit a State-approved plan no less 
     frequently than once every 5 years for reapproval by the 
     Secretary.

     ``Sec. 22303. Purposes

       ``(a) Purposes.--The purposes of a State rail plan are as 
     follows:
       ``(1) To set forth State policy involving freight and 
     passenger rail transportation, including commuter rail 
     operations, in the State.
       ``(2) To establish the period covered by the State rail 
     plan.
       ``(3) To present priorities and strategies to enhance rail 
     service in the State that benefits the public.
       ``(4) To serve as the basis for Federal and State rail 
     investments within the State.
       ``(b) Coordination.--A State rail plan shall be coordinated 
     with other State transportation planning goals and programs 
     and set forth rail transportation's role within the State 
     transportation system. A State shall provide adequate and 
     reasonable notice and opportunity for comment and other input 
     to the public, rail carriers, commuter and transit 
     authorities operating in, or affected by rail operations 
     within the State, units of local government, and other 
     interested parties in the preparation and review of its State 
     rail plan.

     ``Sec. 22304. Content

       ``(a) In General.--Each State rail plan shall contain the 
     following:
       ``(1) An inventory of the existing overall rail 
     transportation system and rail services and facilities within 
     the State and an analysis of the role of rail transportation 
     within the State's surface transportation system.
       ``(2) A comprehensive review of all rail lines within the 
     State, including proposed high speed rail corridors and 
     significant rail line segments not currently in service.
       ``(3) A general analysis of rail's transportation, 
     economic, and environmental impacts in the State, including 
     congestion mitigation, trade and economic development, air 
     quality, land-use, energy-use, and community impacts.
       ``(4) A long-range rail investment program for current and 
     future freight and passenger infrastructure in the State that 
     meets the requirements of subsection (b).
       ``(5) A statement of public financing issues for rail 
     projects in the State.
       ``(6) An identification of rail infrastructure issues 
     within the State that reflects consultation with all relevant 
     stake holders.
       ``(7) A review of major passenger and freight intermodal 
     rail connections and facilities within the State, including 
     seaports.
       ``(8) A statement that the State is in compliance with the 
     requirements of section 22102.
       ``(b) Long-Range Service and Investment Program.--
       ``(1) Program content.--A long-range rail investment 
     program included in a State rail plan under subsection (a)(4) 
     shall include the following matters:
       ``(A) Two lists for rail capital projects, 1 for freight 
     rail capital projects and 1 for intercity passenger rail 
     capital projects.
       ``(B) A detailed funding plan for the projects.
       ``(2) Project list content.--The list of freight and 
     intercity passenger rail capital projects shall contain--
       ``(A) a description of the anticipated public and private 
     benefits of each such project; and
       ``(B) a statement of the correlation between--
       ``(i) public funding contributions for the projects, and
       ``(ii) the public benefits.
       ``(3) Considerations for project list.--In preparing the 
     list of freight and intercity passenger rail capital 
     projects, a State rail transportation authority shall take 
     into consideration the following matters:
       ``(A) Contributions made by non-Federal and non-State 
     sources through user fees, matching funds, or other private 
     capital involvement.
       ``(B) Rail capacity and congestion effects.
       ``(C) Effects to highway, aviation, and maritime capacity, 
     congestion, or safety.
       ``(D) Regional balance.
       ``(E) Environmental impact.
       ``(F) Economic and employment impacts.
       ``(G) Projected ridership and other service measures for 
     passenger rail projects.
       ``(c) Waiver.--The Secretary may waive any requirement of 
     subsection (a) upon application under circumstances that the 
     Secretary determines appropriate.

     ``Sec. 22305. Approval

       ``(a) Criteria.--The Secretary may approve a State rail 
     plan for the purposes of this chapter if--
       ``(1) the plan meets all of the requirements applicable to 
     State plans under this chapter;
       ``(2) for each ready-to-commence project listed on the 
     ranked list of freight and intercity passenger rail capital 
     projects under the plan--
       ``(A) the project meets all safety and environmental 
     requirements including those prescribed under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) 
     that are applicable to the project under law; and
       ``(B) the State has entered into an agreement with any 
     owner of rail infrastructure or right of way directly 
     affected by the project that provides for the State to 
     proceed with the project; and
       ``(3) the content of the plan is coordinated with State 
     transportation plans developed pursuant to the requirements 
     of section 135 of title 23.

     ``Sec. 22306. Standards and conditions

       ``A person that conducts rail operations over rail 
     infrastructure constructed or improved with funding provided 
     in whole or in part in a grant made under section 22301--
       (1) shall be considered an employer for purposes of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and

       (2) shall he considered a carrier for purposes of the 
     Railway Labor Act (43 U.S.C. 151 et seq.).

     require as a condition of any grant made under this section 
     that the recipient railroad provide a fair arrangement at 
     least as protective of the interests of employees who are 
     affected by the project to be funded with the grant as the 
     terms imposed under section 11326(a), as in effect on the 
     date of the enactment of the Railroad Track Modernization Act 
     of 2001.
       ``(g) Labor Standards.--
       ``(1) Prevailing wages.--The Secretary shall ensure that 
     laborers and mechanics employed by contractors and 
     subcontractors in construction work financed by a grant made 
     under this section will be paid wages not less than those 
     prevailing on similar construction in the locality, as 
     determined by the Secretary of Labor under the Act of March 
     3, 1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et 
     seq.). The Secretary shall make a grant under this section 
     only after being assured that required labor standards will 
     be maintained on the construction work.
       ``(2) Wage rates.--Wage rates in a collective bargaining 
     agreement negotiated under the Railway Labor Act (45 U.S.C. 
     151 et seq.) are deemed for purposes of this subsection to 
     comply with the Act of March 3, 1931 (known as the Davis-
     Bacon Act; 40 U.S.C. 276a et seq.).

     ``Sec. 22307. Definitions

       In this chapter:
       ``(1) Private benefit.--The term `private benefit'--
       ``(A) means a benefit accrued to a person or private 
     entity, other than the National Railroad Passenger 
     Corporation, that directly improves the economic and 
     competitive condition of that person or entity through 
     improved assets, cost reductions, service improvements, or 
     any other means as defined by the Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.
       ``(2) Public benefit.--The term `public benefit'--
       ``(A) means a benefit accrued to the public in the form of 
     enhanced mobility of people or goods, environmental 
     protection or enhancement, congestion mitigation, enhanced 
     trade and economic development, improved air quality or land 
     use, more efficient energy use, enhanced public safety or 
     security, reduction of public expenditures due to improved 
     transportation efficiency or infrastructure preservation, and 
     any other positive community effects as defined by the 
     Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.''.
       (b) Conforming Amendment.--The item relating to chapter 223 
     in the table of chapters of subtitle V of title 49, United 
     States Code, is amended to read as follows:

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

     SEC.  3. GRANT PROGRAM FUNDING.

       (a) In General.--Section 250(c)(4) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 (2 U.S.C. 
     900(c)(4)) is amended by adding at the end the following:
       ``(D) Rail Infrastructure Category.--The term `rail 
     infrastructure category' means discretionary appropriations 
     to the Secretary of Transportation for the provision of 
     grants to States for railroad infrastructure investment 
     activities subject to the obligation limitations on contract 
     authority provided under chapter 223 of title 49, United 
     States Code, or for which appropriations are provided in 
     accordance with authorizations contained in that division.''.
       (b) Budget Authority; Outlays;--For purposes of section 
     251(c) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 (2 U.S.C. 901(b)):
       (1) Budget Authority.--The budget authority for the rail 
     infrastructure category shall be--
       (A) $300,000,000 for fiscal year 2005;
       (B) $600,000,000 for fiscal year 2006;
       (C) $900,000,000 for fiscal year 2007;
       (D) $1,200,000,000 for fiscal year 2008;

[[Page 2061]]

       (E) $1,500,000,000 for fiscal year 2009; and
       (F) $1,500,000,000 for fiscal year 2010.
       (2) Outlays.--Thc level of outlays for the rail 
     infrastructure category is--
       (A) $60,000,000 for fiscal year 2005;
       (B) $180,000,000 for fiscal year 2006;
       (C) $360,000,000 for fiscal year 2007;
       (D) $480,000,000 for fiscal year 2008,
       (E) $900,000,000 for fiscal year 2009; and
       (F) $1,140,000,000 for fiscal year 2010.
                                 ______
                                 
  SA 2598. Mr. HOLLINGS submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                Part   --. Railroad Track Modernization

     SEC.  1. SHORT TITLE.

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

     SEC.  2. CAPITAL GRANTS FOR RAILROAD TRACK.

       (a) Authority.--Chapter 223 of title 49, United States 
     Code, is amended to read as follows:
``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK
``Sec.
``22301. Capital grants for railroad track
``22302. State rail plans
``22303. Purposes
``22304. Content
``22305. Approval
``22306. Standards and conditions
``22307. Definitions

     ``Sec. 22301. Capital grants for railroad track

       ``(a) Establishment of Program.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish a program of capital grants for the rehabilitation, 
     preservation, or improvement of railroads. Such grants shall 
     be for rail transportation and ensuring that track can be 
     operated safely and efficiently, including grants for 
     rehabilitating, preserving, or improving track. Grants may be 
     provided under this chapter to a State or a group of States 
     for, or in connection with, 1 or more rail capital projects 
     that--
       ``(A) are listed in a State rail plan approved for such 
     State under chapter 225 of this title; and
       ``(B) as determined by the Secretary, would primarily 
     benefit intercity passenger rail infrastructure or services 
     or freight rail transportation infrastructure or services and 
     provide significant public benefits.
       (2) Regulations.--
       ``(A) In general.--The Secretary shall prescribe 
     regulations to carry out the program under this section.
       ``(B) Criteria.--In developing the regulations, the 
     Secretary shall establish criteria that--
       ``(i) condition the award of a grant on reasonable 
     assurances that the facilities to be rehabilitated and 
     improved will be economically and efficiently utilized;
       ``(ii) ensure that the award of a grant is justified by 
     present and probable future demand for rail services; and
       ``(iii) ensure that projects are part of a State rail plan.
       ``(C) Grant allocations.--Of the total amount made 
     available for the program, 50 percent shall be awarded on a 
     discretionary basis for passenger rail projects, and the 
     remaining 50 percent shall be apportioned to States to fund 
     freight rail projects in accordance with a formula prescribed 
     by the Secretary to weigh equally for each State--
       ``(i) the number of rail miles in active use in the State;
       ``(ii) the number of rail cars loaded in the State;
       ``(iii) the number of rail cars unloaded in the State; and
       ``(iv) the number of railroad and public road grade 
     crossings in the State.
       ``(b) Federal Share.--The Federal share for carrying out a 
     project under this section shall be 80 percent of the project 
     cost. The non-Federal share may be provided by any non-
     Federal source in cash, equipment, or supplies. Other in-kind 
     contributions may be approved by the Secretary on a case by 
     case basis consistent with this chapter.
       ``(c) Authorization of Appropriations.--Notwithstanding 
     section 4635 of the Railroad Track Modernization Act of 2004, 
     there are authorized to be appropriated to the Secretary of 
     Transportation $2,000,000,000 for each of the fiscal years 
     2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

     ``Sec. 22302. State rail plans

       ``(a) In General.--Each State may prepare and maintain a 
     State rail plan in accordance with the provisions of this 
     chapter.
       ``(b) Requirements.--For the preparation and periodic 
     revision of a State rail plan, a State shall--
       ``(1) establish or designate a State rail transportation 
     authority to prepare, maintain, coordinate, and administer 
     the plan;
       ``(2) establish or designate a State rail plan approval 
     authority to approve the plan;
       ``(3) submit the State's approved plan to the Secretary of 
     Transportation for review; and
       ``(4) revise and resubmit a State-approved plan no less 
     frequently than once every 5 years for reapproval by the 
     Secretary.

     ``Sec. 22303. Purposes

       ``(a) Purposes.--The purposes of a State rail plan are as 
     follows:
       ``(1) To set forth State policy involving freight and 
     passenger rail transportation, including commuter rail 
     operations, in the State.
       ``(2) To establish the period covered by the State rail 
     plan.
       ``(3) To present priorities and strategies to enhance rail 
     service in the State that benefits the public.
       ``(4) To serve as the basis for Federal and State rail 
     investments within the State.
       ``(b) Coordination.--A State rail plan shall be coordinated 
     with other State transportation planning goals and programs 
     and set forth rail transportation's role within the State 
     transportation system. A State shall provide adequate and 
     reasonable notice and opportunity for comment and other input 
     to the public, rail carriers, commuter and transit 
     authorities operating in, or affected by rail operations 
     within the State, units of local government, and other 
     interested parties in the preparation and review of its State 
     rail plan.

     ``Sec. 22304. Content

       ``(a) In General.--Each State rail plan shall contain the 
     following:
       ``(1) An inventory of the existing overall rail 
     transportation system and rail services and facilities within 
     the State and an analysis of the role of rail transportation 
     within the State's surface transportation system.
       ``(2) A comprehensive review of all rail lines within the 
     State, including proposed high speed rail corridors and 
     significant rail line segments not currently in service.
       ``(3) A general analysis of rail's transportation, 
     economic, and environmental impacts in the State, including 
     congestion mitigation, trade and economic development, air 
     quality, land-use, energy-use, and commnunity impacts.
       ``(4) A long-range rail investment program for current and 
     future freight and passenger infrastructure in the State that 
     meets the requirements of subsection (b).
       ``(5) A statement of public financing issues for rail 
     projects in the State.
       ``(6) An identification of rail infrastructure issues 
     within the State that reflects consultation with all relevant 
     stake holders.
       ``(7) A review of major passenger and freight intermodal 
     rail connections and facilities within the State, including 
     seaports.
       ``(8) A statement that the State is in compliance, with the 
     requirements of section 22102.
       ``(b) Long-range Service and Investment program.--
       ''(1) ``Program content.--A long-range rail investment 
     program included in a State rail plan under subsection (a)(4) 
     shall include the following matters:
       ``(A) Two lists for rail capital projects, 1 for freight 
     rail capital projects and 1 for intercity passenger rail 
     capital projects.
       ``(B) A detailed funding plan for the projects.
       ``(2) Project list content.--The list of freight and 
     intercity passenger rail capital projects shall contain--
       ``(A) a description of the anticipated public and private 
     benefits of each such project; and
       ``(B) a statement of the correlation between--
       ``(i) public funding contributions for the projects; and
       ``(ii) the public benefits.
       ``(3) Considerations for project list.--In preparing the 
     list of freight and intercity passenger rail capital 
     projects, a State rail transportation authority shall take 
     into consideration the following matters:
       ``(A) Contributions made by non-Federal and non-State 
     sources through user fees, matching funds, or other private 
     capital involvement.
       ``(B) Rail capacity and congestion effects.
       ``(C) Effects to highway, aviation, and maritime capacity, 
     congestion, or safety.
       ``(D) Regional balance.
       ``(E) Environmental impact.
       ``(F) Economic and employment impacts.
       ``(G) Projected ridership and other service measures for 
     passenger rail projects.
       ``(c) Waiver.--The Secretary may waive any requirement of 
     subsection (a) upon application under circumstances that, the 
     Secretary determines appropriate.

     ``Sec. 22305. Approval

       ``(a) Criteria.--The Secretary may approve a State rail 
     plan for the purposes of this chapter if--
       ``(1) the plan meets all of the requirements applicable to 
     State plans under this chapter;
       ``(2) for each ready-to-commence project listed on the 
     ranked list of freight and intercity passenger rail capital 
     projects under the plan--
       ``(A) the project meets all safety and environmental 
     requirements including those prescribed under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) 
     that are applicable to the project under law; and
       ``(B) the State has entered into an agreement with any 
     owner of rail infrastructure or right of way directly 
     affected by the project that provides for the State to 
     proceed with the project; and
       ``(3) the content of the plan is coordinated with State 
     transportation plans developed

[[Page 2062]]

     pursuant to the requirements of section 135 of title 23.

     ``Sec. 22306. Standards and conditions

       ``A person that conducts rail operations over rail 
     infrastructure constructed or improved with funding provided 
     in whole or in part in a grant made under section 22301--
       ``(1) shall be considered an employer for purposes of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
       ``(2) shall be considered a carrier for purposes of the 
     Railway Labor Act (43 U.S.C. 151 et seq.).

     require as a condition of any grant made under this section 
     that the recipient railroad provide a fair arrangement at 
     least as protective of the interests of employees who are 
     affected by the project to be funded with the grant as the 
     terms imposed under section 11326(a), as in effect on the 
     date of the enactment of the Railroad Track Modernization Act 
     of 2001.
       ``(g) Labor Standards.--
       ``(1) Prevailing wages--The Secretary shall ensure that 
     laborers and mechanics employed by contractors and 
     subcontractors in construction work financed by a grant made 
     under this section will be paid wages not less than those 
     prevailing on similar construction in the locality, as 
     determined by the Secretary of Labor under the Act of March 
     3, 1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et 
     seq.). The Secretary shall make a grant under this section 
     only after being assured that required labor standards will 
     be maintained on the construction work.
       ``(2) Wage rates.--Wage rates in a collective bargaining 
     agreement negotiated under the Railway Labor Act (45 U.S.C. 
     151 et seq.) are deemed for purposes of this subsection to 
     comply with the Act of March 3, 1931 (known as the Davis-
     Bacon Act; 40 U.S.C. 276a et seq.).

     ``Sec. 22307. Definitions

       In this chapter:
       ``(1) Private benefit.--The term `private benefit'--
        ``(A) means a benefit accrued to a person or private 
     entity, other than the National Railroad Passenger 
     Corporation, that directly improves the economic and 
     competitive condition of that person or entity through 
     improved assets, cost reductions, service improvements, or 
     any other means as defined by the Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.
       ``(2) Public benefit.--The term `public benefit'--
       ``(A) means a benefit accrued to the public in the form of 
     enhanced mobility of people or goods, environmental 
     protection or enhancement, congestion mitigation, enhanced 
     trade and economic development, improved air quality or land 
     use, more efficient energy use, enhanced public safety or 
     security, reduction of public expenditures due to improved 
     transportation efficiency or infrastructure preservation, and 
     any other positive community effects as defined by the 
     Secretary, and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.''.
       (b) Conforming Amendment.--The item relating to chapter 223 
     in the table of chapters of subtitle V of title 49, United 
     States Code, is amended to read as follows:

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

     SEC. __3. GRANT PROGRAM FUNDING.

       (a) In General.--Section 250(c)(4) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 (2 U.S.C. 
     900(c)(4)) is amended by adding at the end the following:
       ``(D) Rail infrastructure category.--The term `rail 
     infrastructure category' means discretionary appropriations 
     to the Secretary of Transportation for the provision of 
     grants to States for railroad infrastructure investment 
     activities subject to the obligation limitations on contract 
     authority provided under chapter: 223 of title 49, United 
     States Code, or for which appropriations are provided in 
     accordance with authorizations contained in that division.''.
       (b) Budget Authority; Outlays.--For purposes of section 
     251(c) of the Balanced budget and emergency Deficit Control 
     Act of 1985 (2 U.S.C. 901(b)):
       (1) Budget authority.--The budget authority for the rail 
     infrastructure category shall be--
       (A) $300,000,000 for fiscal year 2005;
       (B) $600,000,000 for fiscal year 2006;
       (C) $900,000,000 for fiscal year 2007;
       (D) $1,200,000,000 for fiscal year 2008;
       (E) $1,500,000,000 for fiscal year 2009; and
       (F) $1,500,000,000 for fiscal year 2010.
       (2) Outlays.--The level of outlays for the rail 
     infrastructure category is--
       (A) $60,000,000 for fiscal year 2005;
       (B) $180,000,000 for fiscal year 2006;
       (C) $360,000,000 for fiscal year 2007;
       (D) $480,000,000 for fiscal year 2008;
       (E) $900,000,000 for fiscal year 2009; and
       (F) $1,140,000,000 for fiscal year 2010.

     SEC. __171. EXTENSION OF CUSTOMS USER FEES.

       Section 13031(j)(3) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 5Fc(j)(3)) is amended 
     by striking ``March 31, 2004,'' and inserting ``March 31, 
     2014''.
                                 ______
                                 
  SA 2599. Mr. HOLLINGS submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       Strike all after the first word and insert the following:

                      Part   --Rail Modernization

     SEC.  1. SHORT TITLE.

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

     SEC.  2. CAPITAL GRANTS FOR RAILROAD TRACK.

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

           ``CHAPTER 223--CAPITAL, GRANTS FOR RAILROAD TRACK

``Sec.
``22301. Capital grants for railroad track
``32303. State rail plans
``22303. Purposes
``22304. Content
``22305. Approval
``22306. Standards and conditions
``22307. Definitions

     ``Sec. 22301. Capital grants for railroad track

       ``(a) Establishment of Program.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish a program of capital grants for the rehabilitation, 
     preservation, or improvement of railroads. Such grants shall 
     be for rail transportation and ensuring that track can be 
     operated safely and efficiently, including grants for 
     rehabilitating, preserving, or improving track. Grants may be 
     provided under this chapter to a State or a group of States 
     for, or in connection with, 1 or more rail capital projects 
     that--
       ``(A) are listed in a State rail plan approved for such 
     State under chapter 225 of this title; and
       ``(B) as determined by the Secretary, would primarily 
     benefit intercity passenger rail infrastructure or services 
     or freight rail transportation infrastructure or services and 
     provide significant public benefits.
       ``(2) Regulations.--
       ``(A) In general.--The Secretary shall prescribe 
     regulations to carry out the program under this section.
       ``(B) Criteria.--In developing the regulations, the 
     Secretary shall establish criteria that--
       ``(i) condition the award of a grant on reasonable 
     assurances that the facilities to be rehabilitated and 
     improved will be economically and efficiently utilized;
       ``(ii) ensure that the award of a grant is justified by 
     present and probable future demand for rail services; and
       ``(iii) ensure that projects are part of a State rail plan.
       ``(C) Grant Allocations.--Of the total amount made 
     available for the program, 50 percent shall be awarded on a 
     discretionary basis for passenger rail projects, and the 
     remaining 50 percent shall be apportioned to States to fund 
     freight rail projects in accordance with a formula prescribed 
     by the Secretary to weigh equally for each State--
       ``(1) the number of rail miles in active use in the State;
       ``(ii) the number of rail cars loaded in the State;
       ``(iii) the number of rail cars unloaded in the State; and
       ``(iv) the number of railroad and public road grade 
     crossings in the State.
       ``(b) Federal Share.--The Federal share for carrying out a 
     project under this section shall be 80 percent of the project 
     cost. The non-Federal share may be provided by any non-
     Federal source in cash, equipment, or supplies. Other in-kind 
     contributions may be approved by the Secretary on a case by 
     case basis consistent with this chapter.
       ``(c) Authorization of Appropriations.--Notwithstanding 
     section 4635 of the Railroad Track Modernization Act of 2004, 
     there are authorized to be appropriated to the Secretary of 
     Transportation $2,000,000,000 for each of the fiscal years 
     2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

     ``Sec. 22302. State rail plans

       ``(a) In General.--Each State may prepare and maintain a 
     State rail plan in accordance with the provisions of this 
     chapter.
       ``(b) Requirements.--For the preparation and periodic 
     revision of a State rail plan, a State shall--
       ``(1) establish or designate a State rail transportation 
     authority to prepare, maintain, coordinate, and administer 
     the plan;
       ``(2) establish or designate a State rail plan approval 
     authority to approve the plan;
       ``(3) submit the State's approved plan to the Secretary of 
     Transportation for review; and
       ``(4) revise and resubmit a State-approved plan no less 
     frequently than once every 5 years for reapproval by the 
     Secretary.

     ``Sec. 22303. Purposes

       ``(a) Purposes.--The purposes of a State rail plan are as 
     follows:
       ``(1) To set forth State policy involving freight and 
     passenger rail transportation, including commuter rail 
     operations, in the State.

[[Page 2063]]

       ``(2) To establish the period covered by the State rail 
     plan.
       ``(3) To present priorities and strategies to enhance rail 
     service in the State that benefits the public.
       ``(4) To serve as the basis for Federal and State rail 
     investments within the State.
       ``(b) Coordination.--A State rail plan shall be coordinated 
     with other State transportation planning goals and programs 
     and set forth rail transportation's role within the State 
     transportation system. A State shall provide adequate and 
     reasonable notice and opportunity for comment and other input 
     to the public, rail carriers, commuter and transit 
     authorities operating in, or affected by rail operations 
     within the State, units of local government, and other 
     interested parties in the preparation and review of its State 
     rail plan.

     ``Sec. 22304. Content

       ``(a) In General.--Each State rail plan shall contain the 
     following:
       ``(1) An inventory of the existing overall rail 
     transportation system and rail services and facilities within 
     the State and an analysis of the role of rail transportation 
     within the State's surface transportation system.
       ``(2) A comprehensive review of all rail lines within the 
     State, including proposed high speed rail corridors and 
     significant rail line segments not currently in service.
       ``(3) A general analysis of rail's transportation, 
     economic, and environmental impacts in the State, including 
     congestion mitigation, trade and economic development, air 
     quality, land-use, energy-use, and community impacts.
       ``(4) A long-range rail investment program for current and 
     future freight and passenger infrastructure in the State that 
     meets the requirements of subsection (b).
       ``(5) A statement of public financing issues for rail 
     projects in the State.
       ``(6) An identification of rail infrastructure issues 
     within the State that reflects consultation with all relevant 
     stake holders.
       ``(7) A review of major passenger and freight intermodal 
     rail connections and facilities within the State, including 
     seaports.
       ``(g) A statement that the State is in compliance with the 
     requirements of section 22102.
       ``(b) Long-Range Service and Investment Program.--
       ``(1) Program content.--A long-range rail investment 
     program included in a State rail plan under subsection (a)(4) 
     shall include the following matters:
       ``(A) Two lists for rail capital projects, 1 for freight 
     rail capital projects and 1 for intercity passenger rail 
     capital projects.
       ``(B) A detailed funding plan for the projects.
       ``(2) Project list content.--The list of freight and 
     intercity passenger rail capital projects shall contain--
       ``(A) a description of the anticipated public and private 
     benefits of each such project; and
       ``(B) a statement of the correlation between--
       ``(i) public funding contributions for the projects; and
       ``(ii) the public benefits.
       ``(3) Considerations for project list.--In preparing the 
     list of freight and intercity passenger rail capital 
     projects, a State rail transportation authority shall take 
     into consideration the following matters:
       ``(A) Contributions made, by non-Federal and non-State 
     sources through user fees, matching funds, or other private 
     capital involvement.
       ``(B) Rail capacity and congestion effects.
       ``(C) Effects to highway, aviation, and maritime capacity, 
     congestion, or safety.
       ``(D) Regional balance.
       ``(E) Environmental impact.
       ``(F) Economic and employment impacts.
       ``(G) Projected ridership and other service measures for 
     passenger rail projects.
       ``(c) Waiver.--The Secretary may waive any requirement of 
     subsection (a) upon application under circumstances that the 
     Secretary determines appropriate.

     ``22305. Approval

       ``(a) Criteria.--The Secretary may approve a State rail 
     plan for the purposes of this chapter if--
       ``(1) the plan meets all of the requirements applicable to 
     State plans under this chapter;
       ``(2) for each ready-to-commence project listed on the 
     ranked list of freight and intercity passenger rail capital 
     projects under the plan--
       ``(A) the project meets all safety and environmental 
     requirements including those prescribed under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) 
     that are applicable to the project under law; and
       ``(B) the State has entered into an agreement with any 
     owner of rail infrastructure or right of way directly 
     affected by the project that provides for the State to 
     proceed with the project; and
       ``(3) the content of the plan is coordinated with State 
     transportation plans developed pursuant to the requirements 
     of section 135 of title 23.

     ``22306. Standards and conditions

       ``A person that conducts rail operations over rail 
     infrastructure constructed or improved with funding provided 
     in whole or in part in a grant made under section 22301--
       (1) shall be considered an employer for purposes of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
       (2) shall be considered a carrier for purposes of the 
     Railway Labor Act (43 U.S.C. 151 et seq.).

     require as a condition of any grant made under this section 
     that the recipient railroad provide a fair arrangement at 
     least as protective of the interests of employees who are 
     affected by the project to be funded with the grant as the 
     terms imposed under section 11326(a), as in effect on the 
     date of the enactment of the Railroad Track Modernization Act 
     of 2001.
       ``(g) Labor Standards.--
       ``(1) Prevailing wages.--The Secretary shall ensure that 
     laborers and mechanics employed by contractors and 
     subcontractors in construction work financed by a grant made 
     under this section will be paid wages not less than those 
     prevailing on similar construction in the locality, as 
     determined by the Secretary of Labor under the Act of March 
     3, 1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et 
     seq.). The Secretary shall make a grant under this section 
     only after being assured that required labor standards will 
     be maintained on the construction work.
       ``(2) Wage rates.--Wage rates in a collective bargaining 
     agreement negotiated under the Railway Labor Act (45 U.S.C. 
     151 et seq.) are deemed for purposes of this subsection to 
     comply with the Act of March 3, 1931 (known as the Davis-
     Bacon Act; 40 U.S.C. 276a et seq.).

     ``22307. Definitions

       In this chapter:
       ``(1) Private benefit.--The term `private benefit'--
       ``(A) means a benefit accrued to a person or private 
     entity, other than the National Railroad Passenger 
     Corporation, that directly improves the economic and 
     competitive condition of that person or entity through 
     improved assets, cost reductions, service improvements, or 
     any other means as defined by the Secretary; and
       ``(B) shall he determined on a project-by-project basis, 
     based upon an agreement between the parties.
       ``(2) Public benefit.--The term `public benefit'--
       ``(A) means a benefit accrued to the public in the form of 
     enhanced mobility of people or goods, environmental 
     protection or enhancement, congestion mitigation, enhanced 
     trade and economic development, improved air quality or land 
     use, more efficient energy use, enhanced public safety or 
     security, reduction of public expenditures due to improved 
     transportation efficiency or infrastructure preservation, and 
     any other positive community effects as defined by the 
     Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.''.
       (b) Conforming Amendment.--The item relating to chapter 223 
     in the table of chapters of subtitle V of title 49, United 
     States Code, is amended to read as follows:

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

                                 ______
                                 
  SA 2600. Mr. HOLLINGS submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                  Part  --Railroad Track Modernization

     SEC.  1. SHORT TITLE.

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

     SEC.  2. CAPITAL GRANTS FOR RAILROAD TRACK.

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

            ``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

``Sec.
``22301.  Capital grants for railroad track
``22302.  State rail plans
``22303.  Purposes
``22304.  Content
``22305.  Approval
``22306.  Standards and conditions
``22307.  Definitions

     ``Sec. 122301. Capital grants for railroad track

       ``(a) Establishment of Program.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish a program of capital grants for the rehabilitation, 
     preservation, or improvement of railroads. Such grants shall 
     be for rail transportation and ensuring that track can be 
     operated safely and efficiently, including grants for 
     rehabilitating, preserving, or improving track. Grants may be 
     provided under this chapter to a State or a group of States 
     for, or in connection with, 1 or more rail capital projects 
     that--
       ``(A) are listed in a State rail plan approved for such 
     State under chapter 225 of this title; and
       ``(B) as determined by the Secretary, would primarily 
     benefit intercity passenger rail infrastructure or services 
     or freight rail transportation infrastructure or services and 
     provide significant public benefits.

[[Page 2064]]

       ``(2) Regulations.--
       ``(A) In general.--The Secretary shall prescribe 
     regulations to carry out the program under this section.
       ``(B) Criteria.--In developing the regulations, the 
     Secretary shall establish criteria, that--
       ``(i) condition the award of a grant on reasonable 
     assurances that the facilities to be rehabilitated and 
     improved will be economically and efficiently utilized;
       ``(ii) ensure that the award of a grant is justified by 
     present and probable future demand for rail services; and
       ``(iii) ensure that projects are part of a State rail plan.
       ``(C) Grant allocations.--Of the total amount made 
     available for the program, 50 percent shall be awarded on a 
     discretionary basis for passenger rail projects, and the 
     remaining 50 percent shall be apportioned to States to fund 
     freight rail projects in accordance with a formula prescribed 
     by the Secretary to weigh equally for each State--
       ``(i) the number of rail miles in active use in the State;
       ``(ii) the number of rail cars loaded in the State;
       ``(iii) the number of rail cars unloaded in the State; and
       ``(iv) the number of railroad and public road grade 
     crossings in the State.
       ``(b) Federal Share.--The Federal share for carrying out a 
     project under this section shall be 80 percent of the project 
     cost. The non-Federal share may be provided by any non-
     Federal source in cash, equipment, or supplies. Other in-kind 
     contributions may be approved by the Secretary on a case by 
     case basis consistent with this chapter.
       ``(c) Authorization of Appropriations.--Notwithstanding 
     section 4635 of the Railroad Track Modernization Act of 2004, 
     there are authorized to be appropriated to the Secretary of 
     Transportation $2,000,000,000 for each of the fiscal years 
     2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

     ``Sec. 22302. State rail plans

       ``(a) In General.--Each State may prepare and maintain a 
     State rail plan in accordance with the provisions of this 
     chapter.
       ``(b) Requirements.--For the preparation and periodic 
     revision of a State rail plan, a State shall--
       ``(1) establish or designate a State rail transportation 
     authority to prepare, maintain, coordinate, and administer 
     the plan;
       ``(2) establish or designate a State rail plan approval 
     authority to approve the plan;
       ``(3) submit the State's approved plan to the Secretary of 
     Transportation for review; and
       ``(4) revise and resubmit a State-approved plan no less 
     frequently than once every 5 years for re-approval by the 
     Secretary.

     ``Sec. 22303. Purposes

       ``(a) Purposes.--The purposes of a State rail plan are as 
     follows:
       ``(1) To set forth State policy involving freight and 
     passenger rail transportation, including commuter rail 
     operations, in the State.
       ``(2) To establish the period covered by the State rail 
     plan.
       ``(3) To present priorities and strategies to enhance rail 
     service in the State that benefits the public.
       ``(4) To serve as the basis for Federal and State rail 
     investments within the State.
       ``(b) Coordination.--A State rail plan shall be coordinated 
     with other State transportation planning goals and programs 
     and set forth rail transportation's role within the State 
     transportation system. A State shall provide adequate and 
     reasonable notice, and opportunity for commitment and other 
     input to the public, rail carriers, commuter and transit 
     authorities operating in, or affected by rail operations 
     within the State, units of local government, and other 
     interested parties in the preparation and review of its State 
     rail plan.

     ``Sec. 22304. Content

       ``(a) In General.--Each State rail plan shall contain the 
     following:
       ``(1) An inventory of the existing overall rail 
     transportation system and rail services and facilities within 
     the State and an analysis of the role of rail transportation 
     within the State's surface transportation system.
       ``(2) A comprehensive review of all rail lines within the 
     State, including proposed high speed rail corridors and 
     significant rail line segments not currently in service.
       ``(3) A general analysis of rail's transportation, 
     economic, and environmental impacts in the State, including 
     congestion mitigation, trade and economic development, air 
     quality, land-use, energy-use, and community impacts.
       ``(4) A long-range rail investment program for current and 
     future freight, and passenger infrastructure in the State 
     that meets the requirements of subsection (b).
       ``(5) A statement of public financing issues for rail 
     projects in the State.
       ``(6) An identification of rail infrastructure issues 
     within the State that reflects consultation with all relevant 
     stake holders.
       ``(7) A review of major passenger and freight intermodal 
     rail connections and facilities within the State, including 
     seaports.
       ``(8) A statement that the State is in compliance with the 
     requirements of section 22102.
       ``(b) Long-Range Service and Investment Program.--
       `` (1) Program content.--A long-range rail investment 
     program included in a State rail plan under subsection (a)(4) 
     shall include the following matters:
       ``(A) Two lists for rail capital projects, 1 for freight 
     rail capital projects and 1 for intercity passenger rail 
     capital projects.
       ``(B) A detailed funding plan for the projects.
       ``(2) Project list content.--The list of freight and 
     intercity passenger rail capital projects shall contain--
       ``(A) a description of the anticipated public and private 
     benefits of each such in project; and
       ``(B) a statement of the correlation between--
       ``(1) public funding contributions for the projects; and
       ``(ii) the public benefits.
       ``(3) Considerations for project list.--In preparing the 
     list of freight and intercity passenger rail capital 
     projects, a State rail transportation authority shall take 
     into consideration the following matters:
       ``(A) Contributions made by non-Federal and non-State 
     sources through user fees, matching funds, or other private 
     capital involvement.
       ``(B) Rail capacity and congestion effects.
       ``(C) Effects to highway, aviation, and maritime capacity, 
     congestion, or safety.
       ``(D) Regional balance.
       ``(E) Environmental impact.
       ``(F) Economic and employment impacts.
       ``(G) Projected ridership and other service measures for 
     passenger rail projects.
       ``(c) Waiver.--The Secretary may waive any requirement of 
     subsection (a) upon application under circumstances that the 
     Secretary determines appropriate.

     ``Sec. 22305. Approval

       ``(a) Criteria.--The Secretary may approve a State rail 
     plan for the purposes of this chapter if--
       ``(1) the plan meets all of the requirements applicable to 
     State plans under this chapter;
       ``(2) for each ready-to-commence project listed on the 
     ranked list of freight and intercity passenger rail capital 
     projects under the plan--
       ``(A) the project meets all safety and environmental 
     requirements including those prescribed under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) 
     that are applicable to the project under law; and
       ``(B) the State has entered into an agreement with any 
     owner of rail infrastructure or right of way directly 
     affected by the project that provides for the State to 
     proceed with the project; and
       ``(3) the content of the plan is coordinated with State 
     transportation plans developed pursuant to the requirements 
     of section 135 of title 23.

     ``Sec. 22306. Standards and conditions

       ``A person that conducts rail operations over rail 
     infrastructure constructed or improved with funding provided 
     in whole or in part in a grant made under section 22301--
       (1) shall be considered an employer for purposes of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
       (2) shall be considered a carrier for purposes of the 
     Railway Labor Act (43 U.S.C. 151 et seq.).

     require as a condition of any grant made under this section 
     that the recipient railroad provide a fair arrangement at 
     least as protective of the interests of employees who are 
     affected by the project to be funded with the grant as the 
     terms imposed under section 11326(a), as in effect on the 
     date of the enactment of the Railroad Track Modernization Act 
     of 2001.
       ``(g) Labor Standards.--
       ``(1) Prevailing wages.--The Secretary shall ensure that 
     laborers and mechanics employed by contractors and 
     subcontractors in construction work financed by a grant made 
     under this section will be paid wages not less than those 
     prevailing on similar construction in the locality, as 
     determined by the Secretary of Labor under the Act of March 
     3, 1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et 
     seq.). The Secretary shall make a grant under this section 
     only after being assured that required labor standards will 
     be maintained on the construction work.
       ``(2) Wage rates.--Wage rates in a collective bargaining 
     agreement negotiated under the Railway Labor Act (45 U.S.C. 
     151 et seq.) are deemed for purposes of this subsection to 
     comply with the Act of March 3, 1931 (known as the Davis-
     Bacon Act; 40 U.S.C. 276a et seq.).

     ``Sec. 22307. Definitions

       In this chapter:
       ``(1) Private benefit.--The term `private benefit'--
       ``(A) means a benefit accrued to a person or private 
     entity, other than the National Railroad Passenger 
     Corporation, that directly improves the economic and 
     competitive condition of that person or entity through 
     improved assets, cost reductions, service improvements, or 
     any other means as defined by the Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.
       ``(2) Public benefit.--The term `public benefit'--
       ``(A) means a benefit accrued to the public in the form of 
     enhanced mobility of people or

[[Page 2065]]

     goods, environmental protection or enhancement, congestion 
     mitigation, enhanced trade and economic development, improved 
     air quality or land use, more efficient energy use, enhanced 
     public safety or security, reduction of public expenditures 
     due to improved transportation efficiency or infrastructure 
     preservation, and any other positive community effects as 
     defined by the Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.''.
       (b) Conforming Amendment.--The item relating to chapter 223 
     in the table of chapters of subtitle V of title 49, United 
     States Code, is amended to read as follows:

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

                                 ______
                                 
  SA 2601. Mr. HOLLINGS submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                 Part   --Railroad Track Modernization

     SEC. __1. SHORT TITLE.

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

     SEC. __2. CAPITAL GRANTS FOR RAILROAD TRACK.

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


            ``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

``Sec.
``22301. Capital grants for railroad track
``22302. State rail plans
``22303. Purposes
``22304. Content
``22305. Approval
``22306. Standards and conditions
``22307. Definitions

     ``Sec. 22301. Capital grants for railroad track

       ``(a) Establishment of Program.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish a program of capital grants for the rehabilitation, 
     preservation, or improvement of railroads. Such grants shall 
     be for rail transportation and ensuring that track can be 
     operated safely and efficiently, including grants for 
     rehabilitating, preserving, or improving track. Grants may be 
     provided under this chapter to a State or a group of States 
     for, or in connection with, 1 or more rail capital projects 
     that--
       ``(A) are listed in a State rail plan approved for such 
     State under chapter 225 of this title; and
       ``(B) as determined by the Secretary, would primarily 
     benefit intercity passenger rail infrastructure or services 
     or freight rail transportation infrastructure or services and 
     provide significant public benefits.
       ``(2) Regulations.--
       ``(A) In general.--The Secretary shall prescribe 
     regulations to carry out the program under this section.
       ``(B) Criteria.--In developing the regulations, the 
     Secretary shall establish criteria that--
       ``(i) condition the award of a grant on reasonable 
     assurances that the facilities to be rehabilitated and 
     improved will be economically and efficiently utilized;
       ``(ii) ensure that the award of a grant is justified by 
     present and probable fixture demand for rail services; and
       ``(iii) ensure that projects are part of a State rail plan.
       ``(C) Grant allocations.--Of the total amount made 
     available for the program, 50 percent shall be awarded on a 
     discretionary basis for passenger rail projects, and the 
     remaining 50 percent shall be apportioned to States to fund 
     freight rail projects in accordance with a formula prescribed 
     by the Secretary to weigh equally for each State--
       ``(i) the number of rail miles in active use in the State;
       ``(ii) the number of rail cars loaded in the State;
       ``(iii) the number of rail cars unloaded in the State; and
       ``(iv) the number of railroad and public road grade 
     crossings in the State.
       ``(b) Federal Share.--The Federal share for carrying out a 
     project under this section shall be 80 percent of the project 
     cost. The non-Federal share may be provided by any non-
     Federal source in cash, equipment, or supplies. Other in-kind 
     contributions may be approved by the Secretary on a case by 
     case basis consistent with this chapter.
       ``(c) Authorization of Appropriations.--Notwithstanding 
     section 4635 of the Railroad Track Modernization Act of 2004, 
     there are authorized to be appropriated to the Secretary of 
     Transportation $2,000,000,000 for each of the fiscal years 
     2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

     ``Sec. 22302. State rail plans

       ``(a) In General.--Each State may prepare and maintain a 
     State rail plan in accordance with the provisions of this 
     chapter.
       ``(b) Requirements.--For the preparation and periodic 
     revision of a State rail plan, a State shall--
       ``(1) establish or designate a State rail transportation 
     authority to prepare, maintain, coordinate, and administer 
     the plan;
       ``(2) establish or designate a State rail plan approval 
     authority to approve the plan;
       ``(3) submit the State's approved plan to the Secretary of 
     Transportation for review; and
       ``(4) revise and resubmit a State-approved plan no less 
     frequently than once every 5 years for reapproval by the 
     Secretary.

     ``22303. Purposes

       ``(a) Purposes.--The purposes of a State rail plan are as 
     follows:
       ``(1) To set forth State policy involving freight and 
     passenger rail transportation, including commuter rail 
     operations, in the State.
       ``(2) To establish the period covered by the State rail 
     plan.
       ``(3) To present priorities and strategies to enhance rail 
     service in the State that benefits the public.
       ``(4) To serve as the basis for Federal and State rail 
     investments within the State.
       ``(b) Coordination.--A State rail plan shall be coordinated 
     with other State transportation planning goals and programs 
     and set forth rail transportation's role within the State 
     transportation system. A State shall provide adequate and 
     reasonable notice and opportunity for comment and other input 
     to the public, rail carriers, commuter and transit 
     authorities operating in, or affected by rail operations 
     within the State, units of local government, and other 
     interested parties in the preparation and review of its State 
     rail plan.

     ``22304. Content

       ``(a) In General.--Each State rail plan shall contain the 
     following:
       ``(1) An inventory of the existing overall rail 
     transportation system and rail services and facilities within 
     the State and an analysis of the role of rail transportation 
     within the State's surface transportation system.
       ``(2) A comprehensive review of all rail lines within the 
     State, including proposed high speed rail corridors and 
     significant rail line segments not currently in service.
       ``(3) A general analysis of rail's transportation, 
     economic, and environmental impacts in the State, including 
     congestion mitigation, trade and economic development, air 
     quality, land-use, energy-use, and community impacts.
       ``(4) A long-range rail investment program for current and 
     future freight and passenger infrastructure in the State that 
     meets the requirements of subsection (b).
       ``(5) A statement of public financing issues for rail 
     projects in the State.
       ``(6) An identification of rail infrastructure issues 
     within the State that reflects consultation with all relevant 
     stake holders.
       ``(7) A review of major passenger and freight intermodal 
     rail connections and facilities within the State, including 
     seaports.
       ``(8) A statement that the State is in compliance with the 
     requirements of section 22102.
       ``(b) Long-range Service and Investment Program.--
       `` (1) Program content.--A long-range rail investment 
     program included in a State rail plan under subsection (a)(4) 
     shall include the following matters:
       ``(A) Two lists for rail capital projects, 1 for freight 
     rail capital projects and 1 for intercity passenger rail 
     capital projects.
       ``(B) A detailed funding plan for the projects.
       ``(2) Project list content.--The list of freight and 
     intercity passenger rail capital projects shall contain--
       ``(A) a description of the anticipated public and private 
     benefits of each such project; and
       ``(B) a statement of the correlation between--
       ``(i) public funding contributions for the projects; and
       ``(ii) the public benefits.
       ``(3) Considerations for project list.--In preparing the 
     list of freight and intercity passenger rail capital 
     projects, a State rail transportation authority shall take 
     into consideration the following matters:
       ``(A) Contributions made by non-Federal and non-State 
     sources through user fees, matching funds, or other private 
     capital involvement.
       ``(B) Rail capacity and congestion effects.
       ``(C) Effects to highway, aviation, and maritime capacity, 
     congestion, or safety.
       ``(D) Regional balance.
       ``(E) Environmental impact.
       ``(F) Economic and employment impacts.
       ``(G) Projected ridership and other service measures for 
     passenger rail projects.
       ``(c) Waiver.--The Secretary may waive any requirement of 
     subsection (a) upon application under circumstances that the 
     Secretary determines appropriate.

     ``Sec. 22305. Approval

       ``(a) Criteria.--The Secretary may approve a State rail 
     plan for the purposes of this chapter if--
       ``(1) the plan meets all of the requirements applicable to 
     State plans under this chapter;
       ``(2) for each ready-to-commence project listed on the 
     ranked list of freight and intercity passenger rail capital 
     projects under the plan--
       ``(A) the project meets all safety and environmental 
     requirements including those prescribed under the National 
     Environmental

[[Page 2066]]

     Policy Act of 1969 (42 U.S.C. 4331 et seq.) that are 
     applicable to the project under law; and
       ``(B) the State has entered into an agreement with any 
     owner of rail infrastructure or right of way directly 
     affected by the project that provides for the State to 
     proceed with the project; and
       ``(3) the content of the plan is coordinated with State 
     transportation plans developed pursuant to the requirements 
     of section 135 of title 23.

     ``Sec. 22306. Standards and conditions

       ``A person that conducts rail operations over rail 
     infrastructure constructed or improved with funding provided 
     in whole or in part in a grant made under section 22301--
       (1) shall be considered an employer for purposes of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
       (2) shall be considered a carrier for purposes of the 
     Railway Labor Act. (43 U.S.C. 151 et seq.).

     require as a condition of any grant made under this section 
     that the recipient railroad provide a fair arrangement at 
     least as protective of the interests of employees who are 
     affected by the project to be funded with the grant as the 
     terms imposed under section 11326(a), as in effect on the 
     date of the enactment of the Railroad Track Modernization Act 
     of 2001.
       ``(g) Labor Standards.--
       ``(1) Prevailing wages.--The Secretary shall ensure that 
     laborers and mechanics employed by contractors and 
     subcontractors in construction work financed by a grant made 
     under this section will be paid wages not less than those 
     prevailing on similar construction in the locality, as 
     determined by the Secretary of Labor under the Act of March 
     3, 1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et 
     seq.). The Secretary shall make a grant under this section 
     only after being assured that required labor standards will 
     be maintained on the construction work.
       ``(2) Wage rates.--Wage rates in a collective bargaining 
     agreement negotiated under the Railway Labor Act (45 U.S.C. 
     151 et seq.) are deemed for purposes of this subsection to 
     comply with the Act of March 3, 1931 (known as the Davis-
     Bacon Act; 40 U.S.C. 276a et seq.).

     ``Sec. 22307. Definitions

       In this chapter:
       ``(1) Private benefit.--The term `private benefit'--
       ``(A) means a benefit accrued to a person or private 
     entity, other than the National Railroad Passenger 
     Corporation, that directly improves the economic and 
     competitive condition of that person or entity through 
     improved assets, cost reductions, service improvements, or 
     any other means as defined by the Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.
       ``(2) Public benefit.--The term `public benefit'--
       ``(A) means a, benefit accrued to the public in the form of 
     enhanced mobility of people or goods, environmental 
     protection or enhancement, congestion mitigation, enhanced 
     trade and economic development, improved air quality or land 
     use, more efficient energy use, enhanced public safety or 
     security, reduction of public expenditures due to improved 
     transportation efficiency or infrastructure preservation, and 
     any other positive community effects as defined by the 
     Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.''.
       (b) Conforming Amendment.--The item relating to chapter 223 
     in the table of chapters of subtitle V of title 49, United 
     States Code, is amended to read as follows:

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

                                 ______
                                 
  SA 2602. Mr. HOLLINGS submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

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

                   SUBTITLE F--AMTRAK REAUTHORIZATION

     SEC. 4601. AUTHORIZATION OF APPROPRIATIONS.

       The text of section 24104 of title 49, United States Code, 
     is amended to read as follows:
       ``There are authorized to be appropriated to the Secretary 
     of Transportation $2,000,000,000 for each of fiscal years 
     2004, 2005, 2006, 2007, 2008, and 2009 for the benefit of 
     Amtrak for operating and capital expenses.''.
                                 ______
                                 
  SA 2603. Mr. HOLLINGS submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

                       Part  --Rail Modernization

     SEC.  I. SHORT TITLE.

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

     SEC.  2. CAPITAL GRANTS FOR RAILROAD TRACK.

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

            ``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

``Sec.  
``22301  Capital grants for railroad track
``22302  State rail plans
``22303  Purposes
``22304  Content
``22305  Approval
``22306  Standards and conditions
``22307  Definitions

     ``Sec. 22301. Capital grants for railroad track

       ``(a) Establishment of Program.--
       `` (1) Establishment.--The Secretary of Transportation 
     shall establish a program of capital grants for the 
     rehabilitation, preservation, or improvement of railroads. 
     Such grants shall be for rail transportation and ensuring 
     that track can be operated safely and efficiently, including 
     grants for rehabilitating, preserving, or improving track. 
     Grants may be provided under this chapter to a State or a 
     group of States for, or in connection with, 1 or more rail 
     capital projects that--
       ``(A) are listed in a State rail plan approved for such 
     State under chapter 225 of this title; and
       ``(B) as determined by the Secretary, would primarily 
     benefit intercity passenger rail infrastructure or services 
     or freight rail transportation infrastructure or services and 
     provide significant public benefits.
       ``(2) Regulations.--
       ``(A) In General.--The Secretary shall prescribe 
     regulations to carry out the program under this section.
       ``(B) Criteria.--In developing the regulations, the 
     Secretary shall establish criteria that--
       ``(i) condition the award of a grant on reasonable 
     assurances that the facilities to be rehabilitated and 
     improved will be economically and efficiently utilized;
       ``(ii) ensure that the award of a grant is justified by 
     present and probable future demand for rail services; and
       ``(iii) ensure that projects are part of a State rail plan.
       ``(C) Grant Allocations.--Of the total amount made 
     available for the program, 50 percent shall be awarded on a 
     discretionary basis for passenger rail projects, and the 
     remaining 50 percent shall be apportioned to States to fund 
     freight rail projects in accordance with a formula prescribed 
     by the Secretary to weigh equally for each State--
       ``(i) the number of rail miles in active use in the State;
       ``(ii) the number of rail cars loaded in the State;
       ``(iii) the number of rail cars unloaded in the State; and
       ``(iv) the number of railroad and public road grade 
     crossings in the State.
       ``(b) Federal Share.--The Federal share for carrying out a 
     project under this section shall be 80 percent of the project 
     cost. The non-Federal share may be provided by any non-
     Federal source in cash, equipment, or supplies. Other in-kind 
     contributions may be approved by the Secretary on a case by 
     case basis consistent with this chapter.
       ``(c) Authorization of Appropriations.--Notwithstanding 
     section 4635 of the Railroad Track Modernization Act of 2004, 
     there are authorized to be appropriated to the Secretary of 
     Transportation $2,000,000,000 for each of the fiscal years 
     2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

     ``Sec. 22302. State rail plans

       ``(a) In General.--Each State may prepare and maintain a 
     State rail plan in accordance with the provisions of this 
     chapter.
       ``(b) Requirements.--For the preparation and periodic 
     revision of a State rail plan, a State shall--
       ``(1) establish or designate a State rail transportation 
     authority to prepare, maintain, coordinate, and administer 
     the plan;
       ``(2) establish or designate a State rail plan approval 
     authority to approve the plan;
       ``(3) submit the State's approved plan to the Secretary of 
     Transportation for review; and
       ``(4) revise and resubmit a State-approved plan no less 
     frequently than once every 5 years for reapproval by the 
     Secretary.

     ``Sec. 22303. Purposes

       ``(a) Purposes.--The purposes of a State rail plan are as 
     follows:
       ``(1) To set forth State policy involving freight and 
     passenger rail transportation, including commuter rail 
     operations, in the State.
       ``(2) To establish the period covered by the State rail 
     plan.
       ``(3) To present priorities and strategies to enhance rail 
     service in the State that benefits the public.
       ``(4) To serve as the basis for Federal and State rail 
     investments within the State.
       ``(b) Coordination.--A State rail plan shall be coordinated 
     with other State transportation planning goals and programs 
     and set forth rail transportation's role within the State 
     transportation system. A State shall

[[Page 2067]]

     provide adequate and reasonable notice and opportunity for 
     comment and other input to the public, rail carriers, 
     commuter and transit authorities operating in, or affected by 
     rail operations within the State, units of local government, 
     and other interested parties in the preparation and review of 
     its State rail plan.

     ``Sec. 22304. Content

       ``(a) In General.--Each State rail plan shall contain the 
     following:
       ``(1) An inventory of the existing overall rail 
     transportation system and rail services and facilities within 
     the State and an analysis of the role of rail transportation 
     within the State's surface transportation system.
       ``(2) A comprehensive review of all rail lines within the 
     State, including proposed high speed rail corridors and 
     significant rail line segments not currently in service.
       ``(3) A general analysis of rail's transportation, 
     economic, and environmental impacts in the State, including 
     congestion mitigation, trade and economic development, air 
     quality, land-use, energy-use, and community impacts.
       ``(4) A long-range rail investment program for current and 
     future freight and passenger infrastructure in the State that 
     meets the requirements of subsection (b).
       ``(5) A statement of public financing issues for rail 
     projects in the State.
       ``(6) An identification of rail infrastructure issues 
     within the State that reflects consultation with all relevant 
     stake holders.
       ``(7) A review of major passenger and freight intermodal 
     rail connections and facilities within the State, including 
     seaports.
       ``(8) A statement that the State is in compliance with the 
     requirements of section 22102.
       ``(b) Long-Range Service and Investment Program.--
       ``(1) Program content.--A long-range rail investment 
     program included in a State rail plan under subsection (a)(4) 
     shall include the following matters:
       ``(A) Two lists for rail capital projects, 1 for freight 
     rail capital projects and 1 for intercity passenger rail 
     capital projects.
       ``(B) A detailed funding plan for the projects.
       ``(2) Project list content.--The list of freight and 
     intercity passenger rail capital projects shall contain--
       ``(A) a description of the anticipated public and private 
     benefits of each such project; and
       ``(B) a statement of the correlation between--
       ``(i) public funding contributions for the projects; and
       ``(ii) the public benefits.
       ``(3) Considerations for project list.--In preparing the 
     list of freight and intercity passenger rail capital 
     projects, a State rail transportation authority shall take 
     into consideration the following matters:
       ``(A) Contributions made by non-Federal and non-State 
     sources through user fees, matching funds, or other private 
     capital involvement.
       ``(B) Rail capacity and congestion effects.
       ``(C) Effects to highway, aviation, and maritime capacity, 
     congestion, or safety.
       ``(D) Regional balance.
       ``(E) Environmental impact.
       ``(F) Economic and employment impacts.
       ``(G) Projected ridership and other service measures for 
     passenger rail projects.
       ``(c) Waiver.--The Secretary may waive any requirement of 
     subsection (a) upon application under circumstances that the 
     Secretary determines appropriate.

     ``Sec. 22305. Approval

       ``(a) Criteria.--The Secretary may approve a State rail 
     plan for the purposes of this chapter if--
       ``(1) the plan meets all of the requirements applicable to 
     State plans under this chapter;
       ``(2) for each ready-to-commence project listed on the 
     ranked list of freight and intercity passenger rail capital 
     projects under the plan--
       ``(A) the project meets all safety and environmental 
     requirements including those prescribed under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) 
     that are applicable to the project under law; and
       ``(B) the State has entered into an agreement with any 
     owner of rail infrastructure or right of way directly 
     affected by the project that provides for the State to 
     proceed with the project; and
       ``(3) the content of the plan is coordinated with State 
     transportation plans developed pursuant to the requirements 
     of section 135 of title 23.

     ``Sec. 22306. Standards and conditions

       ``A person that conducts rail operations over rail 
     infrastructure constructed or improved with funding provided 
     in whole or in part in a grant made under section 22301--
       (1) shall be considered an employer for purposes of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
       (2) shall be considered a carrier for purposes of the 
     Railway Labor Act (43 U.S.C. 151 et seq.).

     ``Sec. 22307. Definitions

       In this chapter:
       ``(1) Private benefit.--The term `private benefit'--
       ``(A) means a benefit accrued to a person or private 
     entity, other than the National Railroad Passenger 
     Corporation, that directly improves the economic and 
     competitive condition of that person or entity through 
     improved assets, cost reductions, service improvements, or 
     any other means as defined by the Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.
       ``(2) Public benefit.--The term `public benefit'--
       ``(A) means a benefit accrued to the public in the form of 
     enhanced mobility of people or goods, environmental 
     protection or enhancement, congestion mitigation, enhanced 
     trade and economic development, improved air quality or land 
     use, more efficient energy use, enhanced public safety or 
     security, reduction of public expenditures due to improved 
     transportation efficiency or infrastructure preservation, and 
     any other positive community effects as defined by the 
     Secretary; and
       ``(B) shall be determined on a project-by-project basis, 
     based upon an agreement between the parties.''.
       (b) Conforming Amendment.--The item relating to chapter 223 
     in the table of chapters of subtitle V of title 49, United 
     States Code, is amended to read as follows:
``223. CAPITAL GRANTS FOR RAILROAD TRACK...................22301''.....

                                 ______
                                 
  SA 2604. Mr. FEINGOLD submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. 1106. FUNDING FORMULA.

       Notwithstanding any other provision of this Act, all 
     transportation funding shall be determined using the formula 
     under the Transportation Equity Act for the 21st Century 
     (Public Law 105-178) as in effect before the date of 
     enactment of this Act.
                                 ______
                                 
  SA 2605. Mr. McCAIN submitted an amendment intended to be proposed to 
amendment SA 2388 proposed by Mrs. Hutchison (for herself, Mr. Kyl, Mr. 
Levin, Mr. Graham of Florida, Mr. McCain, Ms. Stabenow, and Mrs. 
Feinstein) to the amendment SA 2285 proposed by Mr. Inhofe to the bill 
S. 1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of the amendment add the following:
       ``(e) Funding Cap From Highway Trust Fund.--Prior to making 
     any apportionments or allocations under Chapter 1 of U.S.C. 
     23 for fiscal year 2009, the Secretary shall compare the sum 
     of all apportionments and allocations for fiscal years 2004 
     through 2008 plus the projected apportionments and 
     allocations for fiscal year 2009 to the funding cap of 
     $255,000,000,000. If the total sum of such apportionments and 
     allocations exceeds the funding cap of $255,000,000,000, the 
     Secretary shall proportionally reduce all apportionments and 
     allocations for fiscal year 2009 so the total sum equals 
     $255,000,000,000.
                                 ______
                                 
  SA 2606. Mr. BURNS submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end of the amendment, add the following:

     SEC. __. CLARIFICATION OF RAIL TRANSPORTATION POLICY.

       Section 10101 of title 49, United States Code, is amended--
       (1) by inserting ``(a) In General.--'' before ``In 
     regulating''; and
       (2) by adding at the end the following:
       ``(b) Primary Objectives.--The primary objectives of the 
     rail transportation policy of the United States are as 
     follows:
       ``(1) To promote effective competition among rail carriers 
     at origins and destinations.
       ``(2) To maintain reasonable rates in the absence of 
     effective competition.
       ``(3) To maintain consistent and efficient rail 
     transportation service for shippers, including the timely 
     provision of rail cars requested by shippers.
       ``(4) To ensure that smaller carload and intermodal 
     shippers are not precluded from accessing rail systems due to 
     volume requirements.''.
                                 ______
                                 
  SA 2607. Mr. BURNS submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end of the amendment, add the following:

     SEC. __. ARBITRATION OF CERTAIN RAIL RATE, SERVICE, AND OTHER 
                   DISPUTES.

       (a) In General.--

[[Page 2068]]

       (1) Authority.--Chapter 117 of title 49, United States 
     Code, is amended by adding after section 11707 the following 
     new section:

     ``Sec. 11708. Arbitration of certain rail rate, service, and 
       other disputes

       ``(a) Election of Arbitration.--A dispute described in 
     subsection (b) shall be submitted for resolution by 
     arbitration upon the election of any party to the dispute 
     that is not a rail carrier.
       ``(b) Covered Disputes.--(1) Except as provided in 
     paragraph (2), subsection (a) applies to any dispute between 
     a party described in subsection (a) and a rail carrier that--
       ``(A) arises under section 10701(c), 10701(d), 10702, 
     10704(a)(1), 10707, 10741, 10745, 10746, 11101(a), 11102, 
     11121, 11122, or 11706 of this title; and
       ``(B) involves--
       ``(i) the payment of money;
       ``(ii) a rate or charge imposed by the rail carrier; or
       ``(iii) transportation or other service by the rail 
     carrier.
       ``(2) Subsection (a) does not apply to a dispute if the 
     resolution of the dispute would necessarily involve the 
     promulgation of regulations generally applicable to all rail 
     carriers.
       ``(c) Arbitration Procedures.--The Secretary of 
     Transportation shall prescribe in regulations the procedures 
     for the resolution of disputes submitted for arbitration 
     under subsection (a). The regulations shall include the 
     following:
       ``(1) Procedures, including time limits, for the selection 
     of an arbitrator or panel of arbitrators for a dispute from 
     among arbitrators listed on the roster of arbitrators 
     established and maintained by the Secretary under subsection 
     (d)(1).
       ``(2) Policies, requirements, and procedures for the 
     compensation of each arbitrator for a dispute to be paid by 
     the parties to the dispute.
       ``(3) Procedures for expedited arbitration of a dispute, 
     including procedures for discovery authorized in the exercise 
     of discretion by the arbitrator or panel of arbitrators.
       ``(d) Selection of Arbitrators.--(1) The Secretary of 
     Transportation shall establish, maintain, and revise as 
     necessary a roster of arbitrators who--
       ``(A) are experienced in transportation or economic issues 
     within the jurisdiction of the Board or issues similar to 
     those issues;
       ``(B) satisfy requirements for neutrality and other 
     qualification requirements prescribed by the Secretary;
       ``(C) consent to serve as arbitrators under this section; 
     and
       ``(D) are not officers or employees of the United States.
       ``(2) For a dispute involving an amount not in excess of 
     $1,000,000, the regulations under subsection (c) shall 
     provide for arbitration by a single arbitrator who--
       ``(A) is selected by the parties to the dispute; or
       ``(B) if the parties cannot agree, is selected by the 
     Secretary from among the arbitrators listed on the roster of 
     arbitrators under paragraph (1).
       ``(3)(A) For a dispute involving an amount in excess of 
     $1,000,000, the regulations under subsection (c) shall 
     provide for arbitration by a panel of three arbitrators 
     selected as follows:
       ``(i) One arbitrator selected by the party electing the 
     arbitration.
       ``(ii) One arbitrator selected by the rail carrier or all 
     of the rail carriers who are parties to the dispute, as the 
     case may be.
       ``(iii) One arbitrator selected by the two arbitrators 
     selected under clauses (i) and (ii).
       ``(B) If a selection of an arbitrator is not made under 
     clause (ii) or (iii) of subparagraph (A) within the time 
     limits prescribed in the regulations, then the Secretary 
     shall select the arbitrator from among the arbitrators listed 
     on the roster of arbitrators under paragraph (1).
       ``(e) Disputes Over Rates or Charges.--(1) The requirements 
     of this subsection apply to a dispute submitted under this 
     section concerning a rate or charge imposed by a rail 
     carrier.
       ``(2)(A) Subject to subparagraph (B), the decision of an 
     arbitrator or panel of arbitrators in a dispute on an issue 
     described in paragraph (1) shall be the final offer of one of 
     the parties to the dispute.
       ``(B) A decision under subparagraph (A) may not provide for 
     a rate for transportation by a rail carrier that would result 
     in a revenue-variable cost percentage for such transportation 
     that is less than 180 percent, as determined under standards 
     applied in the administration of section 10707(d) of this 
     title.
       ``(3) If the party electing arbitration of a dispute 
     described in paragraph (1) seeks compensation for damages 
     incurred by the party as a result of a specific rate or 
     charge imposed by a rail carrier for the transportation of 
     items for the party and the party alleges an amount of 
     damages that does not exceed $500,000 for any year as a 
     result of the imposition of the specific rate or charge, the 
     arbitrator, in making a decision on the dispute, shall 
     consider the rates or charges, respectively, that are imposed 
     by rail carriers for the transportation of similar items 
     under similar circumstances in rail transportation markets 
     where there is effective competition, as determined under 
     standards applied by the Board in the administration of 
     section 10707 of this title.
       ``(f) Time for Issuance of Arbitration Decision.--
     Notwithstanding any other provision of this subtitle limiting 
     the time for the taking of an action under this subtitle, the 
     arbitrator or panel of arbitrators for a dispute submitted 
     for resolution under this section shall issue a final 
     decision on the dispute within the maximum period after the 
     date on which the arbitrator or panel is selected to resolve 
     the dispute under this section, as follows:
       ``(1) In the case of a dispute involving $1,000,000 or 
     less, 120 days.
       ``(2) In the case of a dispute involving more than 
     $1,000,000, 180 days.
       ``(g) Authorized Relief.--A decision of an arbitrator or 
     panel of arbitrators under this section shall grant relief in 
     either or both of the following forms:
       ``(1) Monetary damages, to the extent authorized to be 
     provided by the Board in such a dispute under this subtitle.
       ``(2) An order that requires specific performance under any 
     applicable law, including any law limiting rates to 
     reasonable rates, for any period not in excess of two years 
     beginning on the date of the decision.
       ``(h) Judicial Confirmation and Review.--The following 
     provisions of title 9 shall apply to an arbitration decision 
     issued in a dispute under this section:
       ``(1) Section 9 (relating to confirmation of an award in an 
     arbitration decision), which shall be applied as if the 
     parties had entered into an agreement under title 9 to submit 
     the dispute to the arbitration and had provided in that 
     agreement for a judgment of an unspecified court to be 
     entered on the award made pursuant to the arbitration.
       ``(2) Section 10 (relating to judicial vacation of an award 
     in an arbitration decision).''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 11707 the following:

``11708. Arbitration of certain rail rate, service, and other 
              disputes.''.
       (b) Time for Implementing Certain Requirements.--Not later 
     than 180 days after the date of the enactment of this Act, 
     the Secretary shall promulgate regulations, prescribe a 
     roster of arbitrators, and complete any other action that is 
     necessary for the implementation of section 11708 of title 
     49, United States Code (as added by subsection (a)).
                                 ______
                                 
  SA 2608. Mr. BURNS (for himself, Mr. Dorgan, and Mr. Rockefeller) 
submitted an amendment intended to be proposed by him to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of the amendment, add the following:

     SEC. __. AREAS OF INADEQUATE RAIL COMPETITION.

       (a) Designation and Remedies.--
       (1) In general.--Chapter 105 of title 49, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 10503. Areas of inadequate rail competition

       ``(a) Designation.--The Board shall designate any State or 
     part of a State as an area of inadequate rail competition 
     after finding either of the grounds set forth in subsection 
     (b). An area of inadequate rail competition may be limited to 
     be composed of the facilities of a group of shippers or 
     receivers of one or more specific commodities within a 
     geographic area.
       ``(b) Grounds for Designation.--The grounds for designating 
     a State or part of a State as an area of inadequate rail 
     competition are as follows:
       ``(1) The State or part of a State encompasses a 
     significant number of rail shipping origins and destinations 
     that are served exclusively by only one Class I railroad.
       ``(2) A significant number of the persons that ship by rail 
     or receive rail shipments in the State or part of a State--
       ``(A) usually find it necessary to pay rates for the rail 
     shipments that exceed the rates necessary to yield recovery 
     by the rail carrier of 180 percent of revenue-variable costs, 
     as determined under standards applied in the administration 
     of section 10707(d) of this title; or
       ``(B) have experienced competitive disadvantage in the 
     marketplace or other economic adversity because of high cost 
     or poor quality of rail service in the State or part of a 
     State, as the case may be.
       ``(c) Authorized Petitioners.--The following persons are 
     authorized to petition the Board for a designation of a State 
     or part of a State as an area of inadequate rail competition:
       ``(1) The chief executive of the State or another official 
     of the State who is designated to do so by the chief 
     executive or is authorized to do so under the laws of that 
     State.
       ``(2) A Member of Congress from the State.
       ``(3) As provided in section 10504 of this title, the Rail 
     Customer Advocate of the Department of Agriculture and any 
     State official referred to in subsection (a)(2) of such 
     section.
       ``(4) A person that ships by rail or receives rail 
     shipments in that State or part of a State.

[[Page 2069]]

       ``(d) Actions.--Upon designating a State or a part of a 
     State as an area of inadequate rail competition, the Board 
     shall attempt to resolve, within 60 days after the date of 
     the designation, the conditions described in subsection (b) 
     that justify the designation. In addition to providing other 
     remedies authorized by law, the Board may, when requested in 
     a petition, order any of the following actions:
       ``(1) Provision of reciprocal switching and access to 
     tracks of another rail carrier beyond the limits specified in 
     section 11102(a) of this title.
       ``(2) Haulage transportation of railroad cars by a rail 
     carrier to or from facilities that such carrier alone 
     physically serves on behalf of another rail carrier, for a 
     fee prescribed by the Board.
       ``(3) Regarding rates on any rail segments within or 
     connected to the area of inadequate rail competition on which 
     rail service is susceptible to delay or interruption due to 
     traffic congestion--
       ``(A) expedited review of the reasonableness of the rates 
     under section 10701(d)(3) of this title; or
       ``(B) expedited final offer arbitration of the 
     reasonableness of the rates under section 11708(e) of this 
     title.
       ``(4) Expedited review, under section 10701(d)(3) of this 
     title, of the reasonableness of--
       ``(A) increases in rates or other charges; and
       ``(B) new transportation service tariffs.
       ``(5) Expedited review of whether a rate violates the 
     prohibition against discriminatory rates contained in section 
     10741 of this title, without regard to subsection (b)(2) of 
     such section.
       ``(e) Limitations and Conditions Applicable to Specific 
     Remedies.--(1) In the case of a petition for an order for 
     reciprocal switching or access to tracks of another rail 
     carrier under subsection (d)(1), the Board may not require 
     that there be evidence of anticompetitive conduct by a rail 
     carrier as a prerequisite for ordering such action.
       ``(2) In the case of a petition for expedited review of 
     rates or final offer arbitration of rates under subsection 
     (d)(3)--
       ``(A) the Board or arbitrator or panel of arbitrators, as 
     the case may be, shall accord, with respect to rail 
     transportation of a specific commodity, significant 
     persuasive weight to evidence comparing--
       ``(i) rates charged for rail transportation of various 
     quantities of that commodity within the area of inadequate 
     rail competition; and
       ``(ii) rates charged for rail transportation of similar 
     quantities of that commodity or any similar commodity or 
     commodities in areas where there is competition among rail 
     carriers for shipments of such commodity or commodities; and
       ``(B) the Board or arbitrator or panel of arbitrators, as 
     the case may be, shall not apply the stand-alone cost test or 
     any other test that the Board applies in determining the 
     reasonableness of rates reviewed in cases not involving rail 
     service in an area of inadequate rail competition.
       ``(3) In the case of a petition for expedited review, under 
     subsection (d)(4), of an increase of a rate or other charge 
     or the imposition of a new service tariff by a rail carrier--
       ``(A) the rail carrier shall have the burden of proving the 
     reasonableness of the increase or tariff charge; and
       ``(B) the Board shall consider any evidence comparing--
       ``(i) the increased rate or other charge, or the tariff 
     charge, as the case may be; and
       ``(ii) corresponding rates, other charges, or new service 
     tariff charges, respectively, imposed for rail transportation 
     in areas where there is a significant level of competition 
     among the rail carriers.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

10503. Areas of inadequate rail competition.''.
       (b) Study and Report on Areas of Inadequate Rail 
     Competition.--
       (1) Study required.--The Rail Customer Advocate of the 
     Department of Agriculture shall carry out a study of the 
     process provided under section 10503 of title 49, United 
     States Code (as added by subsection (a)), for challenging and 
     remedying conditions described in subsection (b) of such 
     section in States and parts of States designated under such 
     section as areas of inadequate rail competition insofar as 
     such conditions adversely affect rail shippers of 
     agricultural or forestry commodities and products.
       (2) Findings on effectiveness of process.--The Rail 
     Customer Advocate shall make findings, on the basis of the 
     study under paragraph (1), regarding the effectiveness of the 
     process for remedying the conditions studied, particularly in 
     the case of customers that ship agricultural or forestry 
     commodities and products by rail in annual volumes of 1,500 
     rail cars or less.
       (3) Report.--Not later than 3 years after the date of the 
     enactment of this Act, the Rail Customer Advocate shall 
     submit to Congress a report on the results of the study under 
     paragraph (1), including the findings required under 
     paragraph (2).
                                 ______
                                 
  SA 2609. Mr. BURNS (for himself, Mr. Dorgan, and Mr. Rockefeller) 
submitted an amendment intended to be proposed by him to the bill S. 
1072, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of the amendment, add the following:

     SEC. ____. PERIODIC STUDY OF COMPETITION AMONG RAIL CARRIERS.

       (a) Requirement for Study.--
       (1) Triennial study.--Chapter 101 of title 49, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 10103. Periodic study of rail carrier competition and 
       processes of the Board

       ``(a) Requirement for Study.--Every three years, the 
     Secretary of Transportation shall conduct a comprehensive 
     study of rail carrier competition and the processes of the 
     Board. The study shall include an assessment of the 
     following:
       ``(1) The availability of effective competitive options 
     among and between rail carriers.
       ``(2) The effectiveness of the processes of the Surface 
     Transportation Board, including the process used for 
     determining the reasonableness of rates of rail carriers.
       ``(3) The availability to rail users of effective 
     regulatory dispute resolution options.
       ``(b) Study To Include Assessment of Rail-to-Rail 
     Competition.--In carrying out the study, the Board shall 
     assess the overall level of rail-to-rail competition in the 
     rail carrier industry in the United States. In making the 
     assessment, the Board shall consider the views of users of 
     the services of rail carriers.
       ``(c) Report to Congress.--Not later than November 15 of 
     each year in which a study is conducted under subsection (a), 
     the Secretary shall submit a report on the results of the 
     study to Congress. The report shall include the following:
       ``(1) The Board's assessment of the overall level of rail-
     to-rail competition in the rail carrier industry in the 
     United States.
       ``(2) The markets that have limited rail-to-rail 
     competition.
       ``(3) Any recommendations for enhancing rail-to-rail 
     competition, particularly in markets identified as having 
     limited rail-to-rail competition.
       ``(4) An assessment of the Board's performance of its 
     purpose to promote and enhance competition among and between 
     railroads by--
       ``(A) addressing complaints regarding rates, charges, and 
     service; and
       ``(B) promulgating regulations of general applicability or 
     taking other actions.
       ``(5) Any recommendations for modification of any of the 
     decisions of the Board (or decisions of the former Interstate 
     Commerce Commission continuing in effect) or for modification 
     of the general authority or jurisdiction of the Board.
       ``(6) Any other findings, analyses, assessments, and 
     recommendations that result from the study.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following:

``10103. Periodic study of rail carrier competition and processes of 
              the Board.''.
       (b) Time for First Study.--The first study under section 
     10103 of title 49, United States Code (as added by subsection 
     (a)), shall be carried out not later than two years after the 
     date of the enactment of this Act.
                                 ______
                                 
  SA 2610. Mr. SHELBY submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     ``SEC. __. DELTA REGION TRANSPORTATION DEVELOPMENT PROGRAM

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

     ``Sec. 178. Delta Region Transportation Development Program

       ``(a) In General.--The Secretary shall carry out a program 
     to--
       ``(1) support and encourage multistate transportation 
     planning and corridor development;
       ``(2) provide for transportation project development;
       ``(3) facilitate transportation decisionmaking; and
       ``(4) support transportation construction.
       ``(b) Eligible Recipients.--A State transportation 
     department and metropolitan planning organization may receive 
     and administer funds provided under the program.
       ``(c) Eligible Activities.--The Secretary shall make 
     allocations under the program for multistate highway and 
     transit planning, development, and construction projects.
       ``(d) Other Provisions Regarding Eligibility.--All 
     activities funded under this program shall be consistent with 
     the continuing, cooperative, and comprehensive

[[Page 2070]]

     planning processes required by section 134 and 135.
       ``(e) Selection Criteria.--The Secretary shall select 
     projects to be carried out under the program based on--
       ``(1) whether the project is located--
       ``(A) in an area that is part of the Delta Regional 
     Authority; and
       ``(B) on the Federal-aid system;
       ``(2) endorsement of the project by the State department of 
     transportation; and
       ``(3) evidence of the ability to complete the project.
       ``(f) Program Priorities.--In administering the program, 
     the Secretary shall--
       ``(1) encourage State and local officials to work together 
     to develop plans for multimodal and multijurisdictional 
     transportation decisionmaking; and
       ``(2) give priority to projects that emphasize multimodal 
     planning, including planning for operational improvements 
     that--
       ``(A) increase the mobility of people and goods;
       ``(B) improve the safety of the transportation system with 
     respect to catastrophic--
       ``(i) natural disasters; or
       ``(ii) disasters caused by human activity; and
       ``(C) contribute to the economic vitality of the area in 
     which the project is being carried out.
       ``(g) Federal Share.--Amounts provided by the Delta 
     Regional Authority to carry out a project under this section 
     shall be applied to the non-Federal share required by section 
     120.
       ``(h) Availability of Funds.--Amounts made available to 
     carry out this section shall remain available until 
     expended.''.
       (b) Conforming Amendment.--The analysis for chapter I of 
     title 23, United States Code (as amended by section 1841(b)), 
     is amended by adding at the end the following:

``178. Delta Regional Transportation Development Program.''.''

       On page 678, after line 5, insert the following:
       ``(16) Delta Regional Transportation Development Program.--
     For the Delta Region transportation development program, 
     $400,000,000 for each of fiscal years 2004 through 2009.''
                                 ______
                                 
  SA 2611. Mr. SHELBY submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     ``SEC.   . DELTA REGION TRANSPORTATION DEVELOPMENT PROGRAM

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

     ``Sec. 178. Delta Region Transportation Development Program

       ``(a) In General.--The Secretary shall carry out a program 
     to--
       ``(1) support and encourage multistate transportation 
     planning and corridor development;
       ``(2) provide for transportation project development;
       ``(3) facilitate transportation decisionmaking; and
       ``(4) support transportation construction.
       ``(b) Eligible Recipients.--A State transportation 
     department and metropolitan planning organization may receive 
     and administer funds provided under the program.
       ``(c) Eligible Activities.--The Secretary shall make 
     allocations under the program for multistate highway and 
     transit planning, development, and construction projects.
       ``(d) Other Provisions Regarding Eligibility.--All 
     activities funded under this program shall be consistent with 
     the continuing, cooperative, and comprehensive planning 
     processes required by section 134 and 135.
       ``(e) Selection Criteria.--The Secretary shall select 
     projects to be carried out under the program based on--
       ``(1) whether the project is located--
       ``(A) in an area that is part of the Delta Regional 
     Authority; and
       ``(B) on the Federal-aid system;
       ``(2) endorsement of the project by the State department of 
     transportation; and
       ``(3) evidence of the ability to complete the project.
       ``(f) Program Priorities.--In administering the program, 
     the Secretary shall--
       ``(1) encourage State and local officials to work together 
     to develop plans for multimodal and multijurisdictional 
     transportation decisionmaking; and
       ``(2) give priority to projects that emphasize multimodal 
     planning, including planning for operational improvements 
     that--
       ``(A) increase the mobility of people and goods;
       ``(B) improve the safety of the transportation system with 
     respect to catastrophic--
       ``(i) natural disasters; or
       ``(ii) disasters caused by human activity; and
       ``(C) contribute to the economic vitality of the area in 
     which the project is being carried out.
       ``(g) Federal Share.--Amounts provided by the Delta 
     Regional Authority to carry out a project under this section 
     shall be applied to the non-Federal share required by section 
     120.
       ``(h) Availability of Funds.--Amounts made available to 
     carry out this section shall remain available until 
     expended.''.
       (b) Conforming Amendment.--The analysis for chapter I of 
     title 23, United States Code (as amended by section 1841 
     (b)), is amended by adding at the end the following:

``178. Delta Region Transportation Development Program.''.''

       On page 677, line 11, strike ``$2,500,000,000'' and insert 
     ``$1,300,000,000''.
       On page 677, line 13, strike ``$2,000,000,000'' and insert 
     ``$1,200,000,000''.
       On page 677, line 15, strike ``$500,000,000'' and insert 
     ``100,000,000''.
       On page 678, after line 5, insert the following:
       ``(16) Delta Region Transportation Development Program.--
     For the Delta Region transportation development program, 
     $400,000,000 for each of fiscal years 2004 through 2009.''
                                 ______
                                 
  SA 2612. Mr. SHELBY submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:
       ``(3) Cost To Complete Study.--The Appalachian Regional 
     Commission shall prepare an estimate of the cost to construct 
     highways and access roads for the Appalachian development 
     highway system every 24 months.''
                                 ______
                                 
  SA 2613. Mr. SHELBY submitted an amendment intended to be proposed by 
him to the bill S. 1072, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:
       On page 521, strike line 18 and all that follows through 
     the matter following line 18 on page 720, and insert the 
     following:

                    TITLE III--PUBLIC TRANSPORTATION

     SEC. 3001. SHORT TITLE.

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

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

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

     SEC. 3003. POLICIES, FINDINGS, AND PURPOSES.

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

[[Page 2071]]

       (3) in paragraph (3)--
       (A) by striking ``urban mass'' and inserting ``public''; 
     and
       (B) by striking ``public or private mass transportation 
     companies'' and inserting ``public transportation companies 
     or private companies engaged in public transportation''; and
       (4) in paragraph (5), by striking ``urban mass'' and 
     inserting ``public''.

     SEC. 3004. DEFINITIONS.

       Section 5302(a) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (G)(i), by inserting ``including the 
     intercity bus and intercity rail portions of such facility or 
     mall,'' after ``transportation mall,'';
       (B) in subparagraph (G)(ii), by inserting ``, except for 
     the intercity bus portion of intermodal facilities or 
     malls,'' after ``commercial revenue-producing facility'';
       (C) in subparagraph (H)--
       (i) by striking ``and'' after ``innovative'' and inserting 
     ``or''; and
       (ii) by striking ``or'' after the semicolon at the end;
       (D) in subparagraph (I), by striking the period at the end 
     and inserting a semicolon; and
       (E) by adding at the end the following:
       ``(J) crime prevention and security, including--
       ``(i) projects to refine and develop security and emergency 
     response plans; or
       ``(ii) projects to detect chemical or biological agents in 
     public transportation;
       ``(K) conducting emergency response drills with public 
     transportation agencies and local first response agencies or 
     security training for public transportation employees, except 
     for expenses relating to operations; or
       ``(L) establishing a debt service reserve, made up of 
     deposits with a bondholder's trustee, to ensure the timely 
     payment of principal and interest on bonds issued by a grant 
     recipient to finance an eligible project under this 
     chapter.'';
       (2) by striking paragraph (16);
       (3) by redesignating paragraphs (8) through (15) as 
     paragraphs (9) through (16), respectively;
       (4) by striking paragraph (7) and inserting the following:
       ``(7) Mass transportation.--The term `mass transportation' 
     means public transportation.
       ``(8) Mobility management.--The term `mobility management' 
     means a short-range planning or management activity or 
     project that does not include operating public transportation 
     services and--
       ``(A) improves coordination among public transportation 
     providers, including private companies engaged in public 
     transportation;
       ``(B) addresses customer needs by tailoring public 
     transportation services to specific market niches; or
       ``(C) manages public transportation demand.'';
       (5) by amending paragraph (11), as redesignated, to read as 
     follows:
       ``(11) Public transportation.--The term `public 
     transportation' means transportation by a conveyance that 
     provides local regular and continuing general or special 
     transportation to the public, but does not include school 
     bus, charter bus, intercity bus or passenger rail, or 
     sightseeing transportation.'';
       (6) in subparagraphs (A) and (E) of paragraph (16), as 
     redesignated, by striking ``and'' each place it appears and 
     inserting ``or''; and
       (7) by amending paragraph (17) to read as follows:
       ``(17) Urbanized area.--The term `urbanized area' means an 
     area encompassing a population of not less than 50,000 people 
     that has been defined and designated in the most recent 
     decennial census as an `urbanized area' by the Secretary of 
     Commerce.''.

     SEC. 3005. METROPOLITAN TRANSPORTATION PLANNING.

       Section 5303 is amended to read as follows:

     ``Sec. 5303. Metropolitan transportation planning

       ``(a) Definitions.--As used in this section and in section 
     5304, the following definitions shall apply:
       ``(1) Consultation.--A `consultation' occurs when 1 party--
       ``(A) confers with another identified party in accordance 
     with an established process;
       ``(B) prior to taking action, considers the views of the 
     other identified party; and
       ``(C) periodically informs that party about action taken.
       ``(2) Metropolitan planning area.--The term `metropolitan 
     planning area' means the geographic area determined by 
     agreement between the metropolitan planning organization and 
     the Governor under subsection (d).
       ``(3) Metropolitan planning organization.--The term 
     `metropolitan planning organization' means the Policy Board 
     of the organization designated under subsection (c).
       ``(4) Nonmetropolitan area.--The term `nonmetropolitan 
     area' means any geographic area outside all designated 
     metropolitan planning areas.
       ``(5) Nonmetropolitan local official.--The term 
     `nonmetropolitan local official' means any elected or 
     appointed official of general purpose local government 
     located in a nonmetropolitan area who is responsible for 
     transportation services for such local government.
       ``(b) General Requirements.--
       ``(1) Development of plans and programs.--To accomplish the 
     objectives described in section 5301(a), each metropolitan 
     planning organization, in cooperation with the State and 
     public transportation operators, shall develop transportation 
     plans and programs for metropolitan planning areas of the 
     State in which it is located.
       ``(2) Contents.--The plans and programs developed under 
     paragraph (1) for each metropolitan planning area shall 
     provide for the development and integrated management and 
     operation of transportation systems and facilities (including 
     pedestrian walkways and bicycle transportation facilities) 
     that will function as an intermodal transportation system for 
     the metropolitan planning area and as an integral part of an 
     intermodal transportation system for the State and the United 
     States.
       ``(3) Process of development.--The process for developing 
     the plans and programs shall provide for consideration of all 
     modes of transportation and shall be continuing, cooperative, 
     and comprehensive to the degree appropriate, based on the 
     complexity of the transportation problems to be addressed.
       ``(4) Planning and project development.--The metropolitan 
     planning organization, the State Department of 
     Transportation, and the appropriate public transportation 
     provider shall agree upon the approaches that will be used to 
     evaluate alternatives and identify transportation 
     improvements that address the most complex problems and 
     pressing transportation needs in the metropolitan area.
       ``(c) Designation of Metropolitan Planning Organizations.--
       ``(1) In general.--To carry out the transportation planning 
     process under this section, a metropolitan planning 
     organization shall be designated for each urbanized area--
       ``(A) by agreement between the Governor and units of 
     general purpose local government that combined represent not 
     less than 75 percent of the affected population (including 
     the incorporated city or cities named by the Bureau of the 
     Census in designating the urbanized area); or
       ``(B) in accordance with procedures established by 
     applicable State or local law.
       ``(2) Structure.--Each metropolitan planning organization 
     designated under paragraph (1) that serves an area identified 
     as a transportation management area shall consist of--
       ``(A) local elected officials;
       ``(B) officials of public agencies that administer or 
     operate major modes of transportation in the metropolitan 
     area; and
       ``(C) appropriate State officials.
       ``(3) Limitation on statutory construction.--Nothing in 
     this subsection shall be construed to interfere with the 
     authority, under any State law in effect on December 18, 
     1991, of a public agency with multimodal transportation 
     responsibilities--
       ``(A) to develop plans and programs for adoption by a 
     metropolitan planning organization; and
       ``(B) to develop long-range capital plans, coordinate 
     transit services and projects, and carry out other activities 
     pursuant to State law.
       ``(4) Continuing designation.--The designation of a 
     metropolitan planning organization under this subsection or 
     any other provision of law shall remain in effect until the 
     metropolitan planning organization is redesignated under 
     paragraph (5).
       ``(5) Redesignation procedures.--A metropolitan planning 
     organization may be redesignated by agreement between the 
     Governor and units of general purpose local government that 
     combined represent not less than 75 percent of the existing 
     planning area population (including the incorporated city or 
     cities named by the Bureau of the Census in designating the 
     urbanized area) as appropriate to carry out this section.
       ``(6) Designation of more than 1 metropolitan planning 
     organization.--More than 1 metropolitan planning organization 
     may be designated within an existing metropolitan planning 
     area only if the Governor and the existing metropolitan 
     planning organization determine that the size and complexity 
     of the existing metropolitan planning area make designation 
     of more than 1 metropolitan planning organization for the 
     area appropriate.
       ``(d) Metropolitan Planning Area Boundaries.--
       ``(1) In general.--For the purposes of this section, the 
     boundaries of a metropolitan planning area shall be 
     determined by agreement between the metropolitan planning 
     organization and the Governor.
       ``(2) Included area.--Each metropolitan planning area--
       ``(A) shall encompass at least the existing urbanized area 
     and the contiguous area expected to become urbanized within a 
     20-year forecast period for the transportation plan; and
       ``(B) may encompass the entire metropolitan statistical 
     area or consolidated metropolitan statistical area, as 
     defined by the Office of Management and Budget.
       ``(3) Identification of new urbanized areas within existing 
     planning area boundaries.--The designation by the Bureau

[[Page 2072]]

     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 the Federal 
     Public Transportation Act of 2004 shall be retained, except 
     that the boundaries may be adjusted by agreement of the 
     Governor and affected metropolitan planning organizations in 
     accordance with paragraph (5).
       ``(5) New metropolitan planning areas in nonattainment.--If 
     an urbanized area is designated after the date of enactment 
     of this paragraph in a nonattainment area for ozone or carbon 
     monoxide, the boundaries of the metropolitan planning area--
       ``(A) shall be established in accordance with subsection 
     (c)(1);
       ``(B) shall encompass the areas described in paragraph 
     (2)(A);
       ``(C) may encompass the areas described in paragraph 
     (2)(B); and
       ``(D) may address any nonattainment identified under the 
     Clean Air Act (42 U.S.C. 7401 et seq.) for ozone or carbon 
     monoxide.
       ``(e) Coordination in Multistate Areas.--
       ``(1) In general.--The Secretary shall encourage each 
     Governor with responsibility for a portion of a multistate 
     metropolitan area and the appropriate metropolitan planning 
     organizations to provide coordinated transportation planning 
     for the entire metropolitan area.
       ``(2) Interstate compacts.--States are authorized--
       ``(A) to enter into agreements or compacts with other 
     States, which agreements or compacts are not in conflict with 
     any law of the United States, for cooperative efforts and 
     mutual assistance in support of activities authorized under 
     this section as the activities pertain to interstate areas 
     and localities within the States; and
       ``(B) to establish such agencies, joint or otherwise, as 
     the States may determine desirable for making the agreements 
     and compacts effective.
       ``(3) Lake tahoe region.--
       ``(A) Definition.--In this paragraph, the term `Lake Tahoe 
     region' has the meaning given the term `region' in 
     subdivision (a) of article II of the Tahoe Regional Planning 
     Compact, as set forth in the first section of Public Law 96-
     551 (94 Stat. 3234).
       ``(B) Transportation planning process.--The Secretary 
     shall--
       ``(i) establish with the Federal land management agencies 
     that have jurisdiction over land in the Lake Tahoe region a 
     transportation planning process for the region; and
       ``(ii) coordinate the transportation planning process with 
     the planning process required of State and local governments 
     under this section and section 5304.
       ``(C) Interstate compact.--
       ``(i) In general.--Subject to clause (ii) and 
     notwithstanding subsection (c), to carry out the 
     transportation planning process required by this section, 
     California and Nevada may designate a metropolitan planning 
     organization for the Lake Tahoe region, by agreement between 
     the Governor of the State of California, the Governor of the 
     State of Nevada, and units of general purpose local 
     government that combined represent not less than 75 percent 
     of the affected population (including the incorporated city 
     or cities named by the Bureau of the Census in designating 
     the urbanized area), or in accordance with procedures 
     established by applicable State or local law.
       ``(ii) Involvement of federal land management agencies.--

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

       ``(D) Activities.--Highway projects included in 
     transportation plans developed under this paragraph--
       ``(i) shall be selected for funding in a manner that 
     facilitates the participation of the Federal land management 
     agencies that have jurisdiction over land in the Lake Tahoe 
     region; and
       ``(ii) may, in accordance with chapter 2 of title 23, be 
     funded using funds allocated under section 202 of title 23.
       ``(f) Coordination of Metropolitan Planning 
     Organizations.--
       ``(1) Nonattainment areas.--If more than 1 metropolitan 
     planning organization has authority within a metropolitan 
     area or an area which is designated as a nonattainment area 
     for ozone or carbon monoxide under the Clean Air Act (42 
     U.S.C. 7401 et seq.), each metropolitan planning organization 
     shall consult with the other metropolitan planning 
     organizations designated for such area and the State in the 
     coordination of plans required by this section.
       ``(2) Transportation improvements located in multiple 
     metropolitan planning areas.--If a transportation improvement 
     funded from the highway trust fund is located within the 
     boundaries of more than 1 metropolitan planning area, the 
     metropolitan planning organizations shall coordinate plans 
     regarding the transportation improvement.
       ``(3) Interregional and interstate project impacts.--
     Planning for National Highway System, commuter rail projects, 
     or other projects with substantial impacts outside a single 
     metropolitan planning area or State shall be coordinated 
     directly with the affected, contiguous, metropolitan planning 
     organizations and States.
       ``(4) Coordination with other planning processes.--
       ``(A) In general.--The Secretary shall encourage each 
     metropolitan planning organization to coordinate its planning 
     process, to the maximum extent practicable, with those 
     officials responsible for other types of planning activities 
     that are affected by transportation, including State and 
     local land use planning, economic development, environmental 
     protection, airport operations, housing, and freight.
       ``(B) Other considerations.--The metropolitan planning 
     process shall develop transportation plans with due 
     consideration of, and in coordination with, other related 
     planning activities within the metropolitan area. This should 
     include the design and delivery of transportation services 
     within the metropolitan area that are provided by--
       ``(i) recipients of assistance under this chapter;
       ``(ii) governmental agencies and nonprofit organizations 
     (including representatives of the agencies and organizations) 
     that receive Federal assistance from a source other than the 
     Department of Transportation to provide nonemergency 
     transportation services; and
       ``(iii) recipients of assistance under section 204 of title 
     23.
       ``(g) Scope of Planning Process.--
       ``(1) In general.--The goals and objectives developed 
     through the metropolitan planning process for a metropolitan 
     planning area under this section shall address, in relation 
     to the performance of the metropolitan area transportation 
     systems--
       ``(A) supporting the economic vitality of the metropolitan 
     area, especially by enabling global competitiveness, 
     productivity, and efficiency, including through services 
     provided by public and private operators;
       ``(B) increasing the safety of the transportation system 
     for motorized and nonmotorized users;
       ``(C) increasing the security of the transportation system 
     for motorized and nonmotorized users;
       ``(D) increasing the accessibility and mobility of people 
     and for freight, including through services provided by 
     public and private operators;
       ``(E) protecting and enhancing the environment (including 
     the protection of habitat, water quality, and agricultural 
     and forest land, while minimizing invasive species), 
     promoting energy conservation, and promoting consistency 
     between transportation improvements and State and local land 
     use planning and economic development patterns (including 
     minimizing adverse health effects from mobile source air 
     pollution and promoting the linkage of the transportation and 
     development goals of the metropolitan area);
       ``(F) enhancing the integration and connectivity of the 
     transportation system, across and between modes, for people 
     and freight, including through services provided by public 
     and private operators;
       ``(G) promoting efficient system management and operation; 
     and
       ``(H) emphasizing the preservation and efficient use of the 
     existing transportation system, including services provided 
     by public and private operators.
       ``(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 to consider.
       ``(3) Failure to consider factors.--The failure to consider 
     any factor specified in paragraph (1) shall not be reviewable 
     by any court under title 23, this title, subchapter II of 
     chapter 5 of title 5, or chapter 7 of title 5 in any matter 
     affecting a transportation plan, a transportation improvement 
     plan, a project or strategy, or the certification of a 
     planning process.
       ``(h) Development of Transportation Plan.--
       ``(1) In general.--
       ``(A) Requirement.--Each metropolitan planning organization 
     shall develop a transportation plan for its metropolitan 
     planning area in accordance with this subsection, and update 
     such plan--
       ``(i) not less frequently than once 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 as attainment, in 
     accordance with paragraph (3) of such section, with a 
     maintenance plan

[[Page 2073]]

     under section 175A of the Clean Air Act (42 U.S.C. 7505a); or
       ``(ii) not less frequently than once every 5 years in areas 
     designated as attainment, as defined in section 107(d) of the 
     Clean Air Act.
       ``(B) Coordination factors.--In developing the 
     transportation plan under this section, each metropolitan 
     planning organization shall consider the factors described in 
     subsection (f) over a 20-year forecast period.
       ``(C) Financial estimates.--For the purpose of developing 
     the transportation plan, the metropolitan planning 
     organization, transit operator, and State shall cooperatively 
     develop estimates of funds that will be available to support 
     plan implementation.
       ``(2) Mitigation activities.--
       ``(A) In general.--A transportation plan under this 
     subsection 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.
       ``(B) Consultation.--The discussion described in 
     subparagraph (A) shall be developed in consultation with 
     Federal and State tribal wildlife, land management, and 
     regulatory agencies.
       ``(3) Contents.--A transportation plan under this 
     subsection shall be in a form that the Secretary determines 
     to be appropriate and shall contain--
       ``(A) an identification of transportation facilities, 
     including major roadways, transit, multimodal and intermodal 
     facilities, intermodal connectors, and other relevant 
     facilities identified by the metropolitan planning 
     organization, which should function as an integrated 
     metropolitan transportation system, emphasizing those 
     facilities that serve important national and regional 
     transportation functions;
       ``(B) a financial plan that--
       ``(i) demonstrates how the adopted transportation plan can 
     be implemented;
       ``(ii) indicates resources from public and private sources 
     that are reasonably expected to be made available to carry 
     out the plan;
       ``(iii) recommends any additional financing strategies for 
     needed projects and programs; and
       ``(iv) may include, for illustrative purposes, additional 
     projects that would be included in the adopted transportation 
     plan if approved by the Secretary and reasonable additional 
     resources beyond those identified in the financial plan were 
     available;
       ``(C) operational and management strategies to improve the 
     performance of existing transportation facilities to relieve 
     vehicular congestion and maximize the safety and mobility of 
     people and goods;
       ``(D) capital investment and other strategies to preserve 
     the existing metropolitan transportation infrastructure and 
     provide for multimodal capacity increases based on regional 
     priorities and needs; and
       ``(E) proposed transportation and transit enhancement 
     activities.
       ``(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.
       ``(5) Coordination with clean air act agencies.--In 
     metropolitan areas in nonattainment for ozone or carbon 
     monoxide under the Clean Air Act (42 U.S.C. 7401 et seq.), 
     the metropolitan planning organization shall coordinate the 
     development of a transportation plan with the process for 
     development of the transportation control measures of the 
     State implementation plan required by the Clean Air Act.
       ``(6) Approval of the transportation plan.--Each 
     transportation plan prepared by a metropolitan planning 
     organization shall be--
       ``(A) approved by the metropolitan planning organization; 
     and
       ``(B) submitted to the Governor for information purposes at 
     such time and in such manner as the Secretary may reasonably 
     require.
       ``(i) Participation by Interested Parties.--
       ``(1) Development of participation plan.--Not less 
     frequently than every 4 years, each metropolitan planning 
     organization shall develop and adopt a plan for participation 
     in the process for developing the metropolitan transportation 
     plan and programs by--
       ``(A) citizens;
       ``(B) affected public agencies;
       ``(C) representatives of public transportation employees;
       ``(D) freight shippers;
       ``(E) providers of freight transportation services;
       ``(F) private providers of transportation;
       ``(G) representatives of users of public transit;
       ``(H) representatives of users of pedestrian walkways and 
     bicycle transportation facilities; and
       ``(I) other interested parties.
       ``(2) Contents of participation plan.--The participation 
     plan--
       ``(A) shall be developed in a manner the Secretary 
     determines to be appropriate;
       ``(B) shall be developed in consultation with all 
     interested parties; and
       ``(C) shall provide that all interested parties have 
     reasonable opportunities to comment on--
       ``(i) the process for developing the transportation plan; 
     and
       ``(ii) the contents of the transportation plan.
       ``(3) Methods.--The participation plan shall provide that 
     the metropolitan planning organization shall, to the maximum 
     extent practicable--
       ``(A) hold any public meetings at convenient and accessible 
     locations and times;
       ``(B) employ visualization techniques to describe plans; 
     and
       ``(C) make public information available in electronically 
     accessible format and means, such as the World Wide Web.
       ``(4) Certification.--Before the metropolitan planning 
     organizations approve a transportation plan or program, each 
     metropolitan planning organization shall certify that it has 
     complied with the requirements of the participation plan it 
     has adopted.
       ``(j) Transportation Improvement Program.--
       ``(1) Development and update.--
       ``(A) In general.--In cooperation with the State and 
     affected operators of public transportation, a metropolitan 
     planning organization designated for a metropolitan planning 
     area shall develop a transportation improvement program for 
     the area.
       ``(B) Participation.--In developing the transportation 
     improvement program, the metropolitan planning organization, 
     in cooperation with the Governor and any affected operator of 
     public transportation, shall provide an opportunity for 
     participation by interested parties in the development of the 
     program, in accordance with subsection (i).
       ``(C) Updates.--The transportation improvement program 
     shall be updated not less than once every 4 years and shall 
     be approved by the metropolitan planning organization and the 
     Governor.
       ``(D) Funding estimate.--In developing the transportation 
     improvement program, the metropolitan planning organization, 
     operators of public transportation, and the State shall 
     cooperatively develop estimates of funds that are reasonably 
     expected to be available to support program implementation.
       ``(E) Project advancement.--Projects listed in the 
     transportation improvement program may be selected for 
     advancement consistent with the project selection 
     requirements.
       ``(F) Major amendments.--Major amendments to the list 
     described in subparagraph (E), including the addition, 
     deletion, or concept and scope change of a regionally 
     significant project, may not be advanced without--
       ``(i) appropriate public involvement;
       ``(ii) financial planning;
       ``(iii) transportation conformity analyses; and
       ``(iv) a finding by the Federal Highway Administration and 
     Federal Transit Administration that the amended plan was 
     produced in a manner consistent with this section.
       ``(2) Included projects.--
       ``(A) Projects under chapter 1 of title 23 and this 
     chapter.--A transportation improvement program developed 
     under this section for a metropolitan area shall include the 
     projects and strategies within the metropolitan area that are 
     proposed for funding under chapter 1 of title 23 and this 
     chapter.
       ``(B) Projects under chapter 2 of title 23.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 of 
     title 23 shall be identified individually in the metropolitan 
     transportation improvement program.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 of title 23 that are not regionally significant 
     shall be grouped in 1 line item or identified individually in 
     the metropolitan transportation improvement program.
       ``(3) Selection of projects.--
       ``(A) In general.--Except as otherwise provided under 
     subsection (k)(4), the selection of federally funded projects 
     in metropolitan planning areas shall be carried out, from the 
     approved transportation plan--
       ``(i) by the State, in the case of projects under chapter 1 
     of title 23 or section 5308, 5310, 5311, or 5317 of this 
     title;
       ``(ii) by the designated recipient, in the case of projects 
     under section 5307; and

[[Page 2074]]

       ``(iii) in cooperation with the metropolitan planning 
     organization.
       ``(B) Modifications to project priority.--Notwithstanding 
     any other provision of law, a project may be advanced from 
     the transportation improvement program in place of another 
     project in the same transportation improvement program 
     without the approval of the Secretary.
       ``(4) Publication requirements.--
       ``(A) Publication of transportation improvement program.--A 
     transportation improvement program involving Federal 
     participation shall be published or otherwise made readily 
     available by the metropolitan planning organization for 
     public review, including, to the maximum extent practicable, 
     in electronically accessible formats and means, such as the 
     World Wide Web.
       ``(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 
     4 years shall be published or otherwise made available for 
     public review by the cooperative effort of the State, transit 
     operator, and the metropolitan planning organization. This 
     listing shall be consistent with the funding categories 
     identified in the transportation improvement program.
       ``(C) Rulemaking.--Not later than 120 days after the date 
     of enactment of the Federal Public Transportation Act of 
     2004, the Secretary shall issue regulations specifying--
       ``(i) the types of data to be included in the list 
     described in subparagraph (B), including--

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

       ``(ii) the media through which the list described in 
     subparagraph (B) will be made available to the public, 
     including written and visual components for each of the 
     projects listed.
       ``(k) Transportation Management Areas.--
       ``(1) Required identification.--The Secretary shall 
     identify each urbanized area with a population of more than 
     200,000 individuals as a transportation management area.
       ``(2) Transportation plans and programs.--Transportation 
     plans and programs for a metropolitan planning area serving a 
     transportation management area shall be based on a continuing 
     and comprehensive transportation planning process carried out 
     by the metropolitan planning organization in cooperation with 
     the State and transit operators.
       ``(3) Congestion management system.--
       ``(A) In general.--The transportation planning process 
     under this section shall address congestion management 
     through a process that provides for effective management and 
     operation, based on a cooperatively developed and implemented 
     metropolitan-wide strategy, of new and existing 
     transportation facilities eligible for funding under title 23 
     and this chapter through the use of travel demand reduction 
     and operational management strategies.
       ``(B) Phase-in schedule.--The Secretary shall establish a 
     phase-in schedule that provides for full compliance with the 
     requirements of this section not later than 1 year after the 
     identification of transportation management areas under 
     paragraph (1).
       ``(4) Selection of projects.--
       ``(A) In general.--All federally funded projects carried 
     out within the boundaries of a metropolitan planning area 
     serving a transportation management area under title 23 
     (except for projects carried out on the National Highway 
     System and projects carried out under the bridge program or 
     the interstate maintenance program) or under this chapter 
     shall be selected for implementation from the approved 
     transportation improvement program by the metropolitan 
     planning organization designated for the area in consultation 
     with the State and any affected public transit operator.
       ``(B) National highway system projects.--Projects on the 
     National Highway System carried out within the boundaries of 
     a metropolitan planning area serving a transportation 
     management area and projects carried out within such 
     boundaries under the bridge program or the interstate 
     maintenance program under title 23 shall be selected for 
     implementation from the approved transportation improvement 
     program by the State in cooperation with the metropolitan 
     planning organization designated for the area.
       ``(5) Certification.--
       ``(A) In general.--The Secretary shall--
       ``(i) ensure that the metropolitan planning process of a 
     metropolitan planning organization serving a transportation 
     management area is being carried out in accordance with 
     Federal law; and
       ``(ii) subject to subparagraph (B), certify, not less 
     frequently than once every 4 years in nonattainment and 
     maintenance areas (as defined under the Clean Air Act) and 
     not less frequently than once every 5 years in attainment 
     areas (as defined under such Act), 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 all other applicable Federal 
     law; and
       ``(ii) a transportation plan and a transportation 
     improvement program for the metropolitan planning area have 
     been approved by the metropolitan planning organization and 
     the Governor.
       ``(C) Penalty for failing to certify.--
       ``(i) Withholding project funds.--If the metropolitan 
     planning process of a metropolitan planning organization 
     serving a transportation management area is not certified, 
     the Secretary may withhold any funds otherwise available to 
     the metropolitan planning area for projects funded under 
     title 23 and this chapter.
       ``(ii) Restoration of withheld funds.--Any funds withheld 
     under clause (i) shall be restored to the metropolitan 
     planning area when the metropolitan planning process is 
     certified by the Secretary.
       ``(D) Review of certification.--In making a certification 
     under this paragraph, the Secretary shall provide for public 
     involvement appropriate to the metropolitan area under 
     review.
       ``(l) Abbreviated Plans for Certain Areas.--
       ``(1) In general.--Subject to paragraph (2), in the case of 
     a metropolitan area not designated as a transportation 
     management area under this section, the Secretary may provide 
     for the development of an abbreviated transportation plan and 
     transportation improvement program for the metropolitan 
     planning area that the Secretary determines is appropriate to 
     achieve the purposes of this section, after considering the 
     complexity of transportation problems in the area.
       ``(2) Nonattainment areas.--The Secretary may not permit 
     abbreviated plans for a metropolitan area that is in 
     nonattainment for ozone or carbon monoxide under the Clean 
     Air Act (42 U.S.C. 7401 et seq.).
       ``(m) Additional Requirements for Certain Nonattainment 
     Areas.--
       ``(1) In general.--Notwithstanding any other provisions of 
     title 23 or this chapter, Federal funds may not be advanced 
     for transportation management areas classified as 
     nonattainment for ozone or carbon monoxide pursuant to the 
     Clean Air Act (42 U.S.C. 7401 et seq.) for any highway 
     project that will result in a significant increase in 
     carrying capacity for single-occupant vehicles unless the 
     project is addressed through a congestion management process.
       ``(2) Applicability.--This subsection applies to any 
     nonattainment area within the metropolitan planning area 
     boundaries determined under subsection (d).
       ``(n) Limitation on Statutory Construction.--Nothing in 
     this section shall be construed to confer on a metropolitan 
     planning organization the authority to impose legal 
     requirements on any transportation facility, provider, or 
     project that is not eligible under title 23 or this chapter.
       ``(o) Availability of Funds.--Funds set aside under section 
     104(f) of title 23 or section 5308 of this title shall be 
     available to carry out this section.
       ``(p) Continuation of Current Review Practice.--Any 
     decision by the Secretary concerning a plan or program 
     described in this section shall not be considered to be a 
     Federal action subject to review under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).''.

     SEC. 3006. STATEWIDE TRANSPORTATION PLANNING.

       Section 5304 is amended to read as follows:

     ``Sec. 5304. Statewide transportation planning

       ``(a) General Requirements.--
       ``(1) Development of plans and programs.--To support the 
     policies described in section 5301(a), each State shall 
     develop a statewide transportation plan (referred to in this 
     section as a ``Plan'') and a statewide transportation 
     improvement program (referred to in this section as a 
     ``Program'') for all areas of the State subject to section 
     5303.
       ``(2) Contents.--The Plan and the Program developed for 
     each State shall provide for the development and integrated 
     management and operation of transportation systems and 
     facilities (including pedestrian walkways and bicycle 
     transportation facilities) that will function as an 
     intermodal transportation system for the State and an 
     integral part of an intermodal transportation system for the 
     United States.
       ``(3) Process of development.--The process for developing 
     the Plan and the Program shall--
       ``(A) provide for the consideration of all modes of 
     transportation and the policies described in section 5301(a); 
     and
       ``(B) be continuing, cooperative, and comprehensive to the 
     degree appropriate, based on the complexity of the 
     transportation problems to be addressed.
       ``(b) Coordination With Metropolitan Planning; State 
     Implementation Plan.--Each State shall--
       ``(1) coordinate planning under this section with--

[[Page 2075]]

       ``(A) the transportation planning activities under section 
     5303 for metropolitan areas of the State; and
       ``(B) other related statewide planning activities, 
     including trade and economic development and related 
     multistate planning efforts; and
       ``(2) develop the transportation portion of the State 
     implementation plan, as required by the Clean Air Act (42 
     U.S.C. 7401 et seq.).
       ``(c) Interstate Agreements.--States may enter into 
     agreements or compacts with other States for cooperative 
     efforts and mutual assistance in support of activities 
     authorized under this section related to interstate areas and 
     localities in the States and establishing authorities the 
     States consider desirable for making the agreements and 
     compacts effective.
       ``(d) Scope of Planning Process.--
       ``(1) In general.--Each State shall carry out a statewide 
     transportation planning process that provides for the 
     consideration of projects, strategies, and implementing 
     projects and services that will--
       ``(A) support the economic vitality of the United States, 
     the States, nonmetropolitan areas, and metropolitan areas, 
     especially by enabling global competitiveness, productivity, 
     and efficiency;
       ``(B) increase the safety of the transportation system for 
     motorized and nonmotorized users;
       ``(C) increase the security of the transportation system 
     for motorized and nonmotorized users;
       ``(D) increase the accessibility and mobility of people and 
     freight;
       ``(E) protect and enhance the environment (including the 
     protection of habitat, water quality, and agricultural and 
     forest land, while minimizing invasive species), promote 
     energy conservation, promote consistency between 
     transportation improvements and State and local land use 
     planning and economic development patterns, and improve the 
     quality of life (including minimizing adverse health effects 
     from mobile source air pollution and promoting the linkage of 
     the transportation and development goals of the State);
       ``(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 and efficient use of the 
     existing transportation system.
       ``(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.
       ``(3) Mitigation activities.--
       ``(A) In general.--A transportation plan under this 
     subsection 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.
       ``(B) Consultation.--The discussion described in 
     subparagraph (A) shall be developed in consultation with 
     Federal and State tribal wildlife, land management, and 
     regulatory agencies.
       ``(4) Failure to consider factors.--The failure to consider 
     any factor described in paragraph (1) shall not be reviewable 
     by any court under title 23, this title, subchapter II of 
     chapter 5 of title 5, or chapter 7 of title 5 in any matter 
     affecting a Plan, a Program, a project or strategy, or the 
     certification of a planning process.
       ``(e) Additional Requirements.--In carrying out planning 
     under this section, each State shall consider--
       ``(1) with respect to nonmetropolitan areas, the concerns 
     of affected local officials with responsibility for 
     transportation;
       ``(2) the concerns of Indian tribal governments and Federal 
     land management agencies that have jurisdiction over land 
     within the boundaries of the State; and
       ``(3) coordination of Plans, Programs, and planning 
     activities with related planning activities being carried out 
     outside of metropolitan planning areas and between States.
       ``(f) Statewide Transportation Plan.--
       ``(1) Development.--Each State shall develop a Plan, with a 
     minimum 20-year forecast period for all areas of the State, 
     that provides for the development and implementation of the 
     intermodal transportation system of the State.
       ``(2) Consultation with governments.--
       ``(A) Metropolitan planning areas.--The Plan shall be 
     developed for each metropolitan planning area in the State in 
     cooperation with the metropolitan planning organization 
     designated for the metropolitan planning area under section 
     5303.
       ``(B) Nonmetropolitan areas.--With respect to 
     nonmetropolitan areas, the statewide transportation plan 
     shall be developed in consultation with affected 
     nonmetropolitan officials with responsibility for 
     transportation. The consultation process shall not require 
     the review or approval of the Secretary.
       ``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the Plan shall be developed in consultation with 
     the tribal government and the Secretary of the Interior.
       ``(D) Consultation, comparison, and consideration.--
       ``(i) In general.--The 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.

       ``(3) Participation by interested parties.--In developing 
     the Plan, the State shall--
       ``(A) provide citizens, affected public agencies, 
     representatives of public transportation employees, freight 
     shippers, private providers of transportation, 
     representatives of users of public transportation, 
     representatives of users of pedestrian walkways and bicycle 
     transportation facilities, providers of freight 
     transportation services, and other interested parties with a 
     reasonable opportunity to comment on the proposed Plan; and
       ``(B) 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.
       ``(4) Mitigation activities.--
       ``(A) In general.--A 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 described in 
     subparagraph (A) shall be developed in consultation with 
     Federal and State tribal wildlife, land management, and 
     regulatory agencies.
       ``(5) Transportation strategies.--A Plan shall identify 
     transportation strategies necessary to efficiently serve the 
     mobility needs of people.
       ``(6) Financial plan.--The Plan may include a financial 
     plan that--
       ``(A) demonstrates how the adopted Plan can be implemented;
       ``(B) indicates resources from public and private sources 
     that are reasonably expected to be made available to carry 
     out the Plan;
       ``(C) recommends any additional financing strategies for 
     needed projects and programs; and
       ``(D) may include, for illustrative purposes, additional 
     projects that would be included in the adopted Plan if 
     reasonable additional resources beyond those identified in 
     the financial plan were available.
       ``(7) Selection of projects from illustrative list.--A 
     State shall not be required to select any project from the 
     illustrative list of additional projects described in 
     paragraph (6)(D).
       ``(8) Existing system.--The Plan should include capital, 
     operations and management strategies, investments, 
     procedures, and other measures to ensure the preservation and 
     most efficient use of the existing transportation system.
       ``(9) Publication of long-range transportation plans.--Each 
     Plan prepared by a State shall be published or otherwise made 
     available, including, to the maximum extent practicable, in 
     electronically accessible formats and means, such as the 
     World Wide Web.
       ``(g) Statewide Transportation Improvement Program.--
       ``(1) Development.--Each State shall develop a Program for 
     all areas of the State.
       ``(2) Consultation with governments.--
       ``(A) Metropolitan planning areas.--With respect to each 
     metropolitan planning area in the State, the Program shall be 
     developed in cooperation with the metropolitan planning 
     organization designated for the metropolitan planning area 
     under section 5303.
       ``(B) Nonmetropolitan areas.--With respect to each 
     nonmetropolitan area in the State, the Program shall be 
     developed in consultation with affected nonmetropolitan

[[Page 2076]]

     local officials with responsibility for transportation. The 
     consultation process shall not require the review or approval 
     of the Secretary.
       ``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the Program shall be developed in consultation 
     with the tribal government and the Secretary of the Interior.
       ``(3) Participation by interested parties.--In developing 
     the Program, the State shall provide citizens, affected 
     public agencies, representatives of public transportation 
     employees, freight shippers, private providers of 
     transportation, providers of freight transportation services, 
     representatives of users of public transit, representatives 
     of users of pedestrian walkways and bicycle transportation 
     facilities, and other interested parties with a reasonable 
     opportunity to comment on the proposed Program.
       ``(4) Included projects.--
       ``(A) In general.--A Program developed under this 
     subsection for a State shall include federally supported 
     surface transportation expenditures within the boundaries of 
     the State.
       ``(B) Listing of projects.--
       ``(i) In general.--The Program shall cover a minimum of 4 
     years, identify projects by year, be fiscally constrained by 
     year, and be updated not less than once every 4 years.
       ``(ii) Publication.--An annual listing of projects for 
     which funds have been obligated in the preceding 4 years in 
     each metropolitan planning area shall be published or 
     otherwise made available by the cooperative effort of the 
     State, transit operator, and the metropolitan planning 
     organization for public review. The listing shall be 
     consistent with the funding categories identified in each 
     metropolitan transportation improvement program.
       ``(C) Individual identification.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 of 
     title 23 shall be identified individually in the 
     transportation improvement program.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 of title 23 that are not determined to be 
     regionally significant shall be grouped in 1 line item or 
     identified individually.
       ``(D) Consistency with statewide transportation plan.--Each 
     project included in the list described in subparagraph (B) 
     shall be--
       ``(i) consistent with the Plan developed under this section 
     for the State;
       ``(ii) identical to the project or phase of the project as 
     described in each year of the approved metropolitan 
     transportation improvement program; and
       ``(iii) in conformance with the applicable State air 
     quality implementation plan developed under the Clean Air Act 
     (42 U.S.C. 7401 et seq.), if the project is carried out in an 
     area designated as nonattainment for ozone or carbon monoxide 
     under that Act.
       ``(E) Requirement of anticipated full funding.--The Program 
     shall not include a project, or an identified phase of a 
     project, unless full funding can reasonably be anticipated to 
     be available for the project within the time period 
     contemplated for completion of the project.
       ``(F) Financial plan.--The Program may include a financial 
     plan that--
       ``(i) demonstrates how the approved Program can be 
     implemented;
       ``(ii) indicates resources from public and private sources 
     that are reasonably expected to be made available to carry 
     out the Program;
       ``(iii) recommends any additional financing strategies for 
     needed projects and programs; and
       ``(iv) may include, for illustrative purposes, additional 
     projects that would be included in the adopted transportation 
     plan if reasonable additional resources beyond those 
     identified in the financial plan were available.
       ``(G) Selection of projects from illustrative list.--
       ``(i) No required selection.--Notwithstanding subparagraph 
     (F), a State shall not be required to select any project from 
     the illustrative list of additional projects described in 
     subparagraph (F)(iv).
       ``(ii) Required approval by the secretary.--A State shall 
     not include any project from the illustrative list of 
     additional projects described in subparagraph (F)(iv) in an 
     approved Program without the approval of the Secretary.
       ``(H) Priorities.--The Program shall reflect the priorities 
     for programming and expenditures of funds, including 
     transportation and transit enhancement activities, required 
     by title 23 and this chapter, and transportation control 
     measures included in the State's air quality implementation 
     plan.
       ``(5) Project selection for areas with fewer than 50,000 
     individuals.--
       ``(A) In general.--Each State, in cooperation with the 
     affected nonmetropolitan local officials with responsibility 
     for transportation, shall select projects to be carried out 
     in areas with fewer than 50,000 individuals from the approved 
     Program (excluding projects carried out under the National 
     Highway System, the bridge program, or the interstate 
     maintenance program under title 23 or sections 5310 and 5311 
     of this title).
       ``(B) Certain programs.--Each State, in consultation with 
     the affected nonmetropolitan local officials with 
     responsibility for transportation, shall select, from the 
     approved Program, projects to be carried out in areas with 
     fewer than 50,000 individuals under the National Highway 
     System, the bridge program, or the Interstate maintenance 
     program under title 23 or under sections 5310 and 5311 of 
     this title.
       ``(6) Statewide transportation improvement program 
     approval.--A Program developed under this subsection shall be 
     reviewed and based on a current planning finding approved by 
     the Secretary not less frequently than once every 4 years.
       ``(7) Planning finding.--Not less frequently than once 
     every 4 years, the Secretary shall determine whether the 
     transportation planning process through which Plans and 
     Programs are developed are consistent with this section and 
     section 5303.
       ``(8) Modifications to project priority.--Notwithstanding 
     any other provision of law, a project included in the 
     approved Program may be advanced in place of another project 
     in the program without the approval of the Secretary.
       ``(h) Funding.--Funds set aside pursuant to section 104(i) 
     of title 23 and 5308 of this title shall be available to 
     carry out this section.
       ``(i) Treatment of Certain State Laws as Congestion 
     Management Systems.--For purposes of this section and section 
     5303, State laws, rules, or regulations pertaining to 
     congestion management systems or programs may constitute the 
     congestion management system under section 5303(i)(3) if the 
     Secretary determines that the State laws, rules, or 
     regulations are consistent with, and fulfill the intent of, 
     the purposes of section 5303.
       ``(j) Continuation of Current Review Practice.--Any 
     decision by the Secretary under this section, regarding a 
     metropolitan or statewide transportation plan or the Program, 
     shall not be considered to be a Federal action subject to 
     review under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.).''.

     SEC. 3007. TRANSPORTATION MANAGEMENT AREAS.

       Section 5305 is repealed.

     SEC. 3008. PRIVATE ENTERPRISE PARTICIPATION.

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

     SEC. 3009. URBANIZED AREA FORMULA GRANTS.

       (a) Technical Amendments.--Section 5307 is amended--
       (1) by striking subsections (h), (j) and (k); and
       (2) by redesignating subsections (i), (l), (m), and (n) as 
     subsections (h), (i), (j), and (k), respectively.
       (b) Definitions.--Section 5307(a) is amended--
       (1) by amending paragraph (2)(A) to read as follows:
       ``(A) an entity designated, in accordance with the planning 
     process under sections 5303, 5304, and 5306, by the chief 
     executive officer of a State, responsible local officials, 
     and publicly owned operators of public transportation, to 
     receive and apportion amounts under sections 5336 and 5337 
     that are attributable to transportation management areas 
     designated under section 5303; or''; and
       (2) by adding at the end the following:
       ``(3) Subrecipient.--The term `subrecipient' means a State 
     or local governmental authority, a nonprofit organization, or 
     a private operator of public transportation service that may 
     receive a Federal transit program grant indirectly through a 
     recipient, rather than directly from the Federal 
     Government.''.
       (c) General Authority.--Section 5307(b) is amended--
       (1) by amending paragraph (1) to read as follows:
       ``(1) In general.--The Secretary of Transportation may 
     award grants under this section for--
       ``(A) capital projects, including associated capital 
     maintenance items;
       ``(B) planning, including mobility management;
       ``(C) transit enhancements;
       ``(D) operating costs of equipment and facilities for use 
     in public transportation in an urbanized area with a 
     population of less than 200,000; and
       ``(E) operating costs of equipment and facilities for use 
     in public transportation in a portion or portions of an 
     urbanized area with a population of at least 200,000, but not 
     more than 225,000, if--
       ``(i) the urbanized area includes parts of more than 1 
     State;
       ``(ii) the portion of the urbanized area includes only 1 
     State;

[[Page 2077]]

       ``(iii) the population of the portion of the urbanized area 
     is less than 30,000; and
       ``(iv) the grants will not be used to provide public 
     transportation outside of the portion of the urbanized 
     area.'';
       (2) by amending paragraph (2) to read as follows:
       ``(2) Special rule for fiscal years 2004 through 2006--
       ``(A) Increased flexibility.--The Secretary may award 
     grants under this section, from funds made available to carry 
     out this section for each of the fiscal years 2004 through 
     2006, to finance the operating cost of equipment and 
     facilities for use in mass transportation in an urbanized 
     area with a population of at least 200,000, as determined by 
     the 2000 decennial census of population if--
       ``(i) the urbanized area had a population of less than 
     200,000, as determined by the 1990 decennial census of 
     population;
       ``(ii) a portion of the urbanized area was a separate 
     urbanized area with a population of less than 200,000, as 
     determined by the 1990 decennial census of population;
       ``(iii) the area was not designated as an urbanized area, 
     as determined by the 1990 decennial census of population; or
       ``(iv) a portion of the area was not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and received assistance under section 5311 in fiscal year 
     2002.
       ``(B) Maximum amounts in fiscal year 2004.--In fiscal year 
     2004--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     the amount apportioned in fiscal year 2002 to the urbanized 
     area with a population of less than 200,000, as determined in 
     the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than the amount 
     apportioned to the urbanized area under this section for 
     fiscal year 2003; and
       ``(iii) each portion of any area not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and eligible to receive funds under subparagraph (A)(iv), 
     shall receive an amount of funds to carry out this section 
     that is not less than the amount the portion of the area 
     received under section 5311 for fiscal year 2002.
       ``(C) Maximum amounts in fiscal year 2005.--In fiscal year 
     2005--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     50 percent of the amount apportioned in fiscal year 2002 to 
     the urbanized area with a population of less than 200,000, as 
     determined in the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than 50 percent of 
     the amount apportioned to the urbanized area under this 
     section for fiscal year 2003; and
       ``(iii) each portion of any area not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and eligible to receive funds under subparagraph (A)(iv), 
     shall receive an amount of funds to carry out this section 
     that is not less 50 percent of the amount the portion of the 
     area received under section 5311 for fiscal year 2002.
       ``(D) Maximum amounts in fiscal year 2006.--In fiscal year 
     2006--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     25 percent of the amount apportioned in fiscal year 2002 to 
     the urbanized area with a population of less than 200,000, as 
     determined in the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than 25 percent of 
     the amount apportioned to the urbanized area under this 
     section for fiscal year 2003; and
       ``(iii) each portion of any area not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and eligible to receive funds under subparagraph (A)(iv), 
     shall receive an amount of funds to carry out this section 
     that is not less than 25 percent of the amount the portion of 
     the area received under section 5311 in fiscal year 2002.''; 
     and
       (3) by striking paragraph (4).
       (d) Public Participation Requirements.--Section 5307(c)(5) 
     is amended by striking ``section 5336'' and inserting 
     ``sections 5336 and 5337''.
       (e) Grant Recipient Requirements.--Section 5307(d)(1) is 
     amended--
       (1) in subparagraph (A), by inserting ``, including safety 
     and security aspects of the program'' after ``program'';
       (2) in subparagraph (E), by striking ``section'' and all 
     that follows and inserting ``section, the recipient will 
     comply with sections 5323 and 5325;'';
       (3) in subparagraph (H), by striking ``sections 5301(a) and 
     (d), 5303-5306, and 5310(a)-(d) of this title'' and inserting 
     ``subsections (a) and (d) of section 5301 and sections 5303 
     through 5306'';
       (4) in subparagraph (I) by striking ``and'' at the end;
       (5) in subparagraph (J), by striking the period at the end 
     and inserting ``; and''; and
       (6) by adding at the end the following:
       ``(K) if located in an urbanized area with a population of 
     at least 200,000, will expend not less than 1 percent of the 
     amount the recipient receives each fiscal year under this 
     section for transit enhancement activities described in 
     section 5302(a)(15).''.
       (f) Government's Share of Costs.--Section 5307(e) is 
     amended--
       (1) by striking the first sentence and inserting the 
     following:
       ``(1) Capital projects.--A grant for a capital project 
     under this section shall cover 80 percent of the net project 
     cost.'';
       (2) by striking ``A grant for operating expenses'' and 
     inserting the following:
       ``(2) Operating expenses.--A grant for operating 
     expenses'';
       (3) by striking the fourth sentence and inserting the 
     following:
       ``(3) Remaining costs.--The remainder of the net project 
     cost shall be provided in cash from non-Federal sources or 
     revenues derived from the sale of advertising and concessions 
     and amounts received under a service agreement with a State 
     or local social service agency or a private social service 
     organization.''; and
       (4) by adding at the end the following: ``The prohibitions 
     on the use of funds for matching requirements under section 
     403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 
     603(a)(5)(C)(vii)) shall not apply to the remainder.''.
       (g) Undertaking Projects in Advance.--Section 5307(g) is 
     amended by striking paragraph (4).
       (h) Relationship to Other Laws.--Section 5307(k), as 
     redesignated, is amended to read as follows:
       ``(k) Relationship to Other Laws.--
       ``(1) Applicable provisions.--Sections 5301, 5302, 5303, 
     5304, 5306, 5315(c), 5318, 5319, 5323, 5325, 5327, 5329, 
     5330, 5331, 5332, 5333 and 5335 apply to this section and to 
     any grant made under this section.
       ``(2) Inapplicable provisions.--
       ``(A) In general.--Except as provided under this section, 
     no other provision of this chapter applies to this section or 
     to a grant made under this section.
       ``(B) Title 5.--The provision of assistance under this 
     chapter shall not be construed as bringing within the 
     application of chapter 15 of title 5, any nonsupervisory 
     employee of a public transportation system (or any other 
     agency or entity performing related functions) to which such 
     chapter is otherwise inapplicable.''.

     SEC. 3010. PLANNING PROGRAMS.

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

     ``Sec. 5308. Planning programs

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

[[Page 2078]]

       ``(D) that provides an appropriate distribution for 
     urbanized areas to carry out the cooperative processes 
     described in this section.
       ``(3) Supplemental allocations.--
       ``(A) In general.--The Secretary shall allocate 20 percent 
     of the amount made available under subsection (g)(3)(A) to 
     States to supplement allocations made under paragraph (1) for 
     metropolitan planning organizations.
       ``(B) Allocation formula.--Amounts under this paragraph 
     shall be allocated under a formula that reflects the 
     additional cost of carrying out planning, programming, and 
     project selection responsibilities in complex metropolitan 
     planning areas under sections 5303, 5304, and 5306.
       ``(d) State Planning and Research Program.--
       ``(1) In general.--The Secretary shall allocate amounts 
     made available pursuant to subsection (g)(3)(B) to States for 
     grants and contracts to carry out sections 5304, 5306, 5315, 
     and 5322 so that each State receives an amount equal to the 
     ratio of the population in urbanized areas in that State, 
     divided by the total population in urbanized areas in all 
     States, as shown by the latest available decennial census.
       ``(2) Minimum allocation.--Each State shall receive not 
     less than 0.5 percent of the amount allocated under this 
     subsection.
       ``(3) Reallocation.--A State may authorize part of the 
     amount made available under this subsection to be used to 
     supplement amounts available under subsection (c).
       ``(e) Planning Capacity Building Program.--
       ``(1) Establishment.--The Secretary shall establish a 
     Planning Capacity Building Program (referred to in this 
     subsection as the ``Program'') to support and fund innovative 
     practices and enhancements in transportation planning.
       ``(2) Purpose.--The purpose of the Program shall be to 
     promote activities that support and strengthen the planning 
     processes required under this section and sections 5303 and 
     5304.
       ``(3) Administration.--The Program shall be administered by 
     the Federal Transit Administration in cooperation with the 
     Federal Highway Administration.
       ``(4) Use of funds.--
       ``(A) In general.--Appropriations authorized under 
     subsection (g)(1) to carry out this subsection may be used--
       ``(i) to provide incentive grants to States, metropolitan 
     planning organizations, and public transportation operators; 
     and
       ``(ii) to conduct research, disseminate information, and 
     provide technical assistance.
       ``(B) Grants, contracts, cooperative agreements.--In 
     carrying out the activities described in subparagraph (A), 
     the Secretary may--
       ``(i) expend appropriated funds directly; or
       ``(ii) award grants to, or enter into contracts, 
     cooperative agreements, and other transactions with, a 
     Federal agency, State agency, local governmental authority, 
     association, nonprofit or for-profit entity, or institution 
     of higher education.
       ``(f) Government's Share of Costs.--Amounts made available 
     to carry out subsections (c), (d), and (e) may not exceed 80 
     percent of the costs of the activity unless the Secretary of 
     Transportation determines that it is in the interest of the 
     Government not to require State or local matching funds.
       ``(g) Allocation of Funds.--Of the amounts made available 
     under section 5338(b)(2)(B) for fiscal year 2005 and each 
     fiscal year thereafter to carry out this section--
       ``(1) $5,000,000 shall be allocated for the Planning 
     Capacity Building Program established under subsection (e);
       ``(2) $20,000,000 shall be allocated for grants under 
     subsection (a)(2) for alternatives analyses required by 
     section 5309(e)(2)(A); and
       ``(3) of the remaining amount--
       ``(A) 82.72 percent shall be allocated for the metropolitan 
     planning program described in subsection (d); and
       ``(B) 17.28 percent shall be allocated to carry out 
     subsection (b).
       ``(h) Reallocations.--Any amount allocated under this 
     section that has not been used 3 years after the end of the 
     fiscal year in which the amount was allocated shall be 
     reallocated among the States.''.
       (b) Conforming Amendment.--The item relating to section 
     5308 in the table of sections for chapter 53 is amended to 
     read as follows:

``5308. Planning programs.''.

     SEC. 3011. CAPITAL INVESTMENT PROGRAM.

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

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

       (b) General Authority.--Section 5309(a) is amended--
       (1) in paragraph (1)--
       (A) by striking ``(1) The Secretary of Transportation may 
     make grants and loans'' and inserting the following:
       ``(1) Grants authorized.--The Secretary may award grants'';
       (B) in subparagraph (A), by striking ``alternatives 
     analysis related to the development of systems,'';
       (C) by striking subparagraphs (B), (C), (D), and (G);
       (D) by redesignating subparagraphs (E), (F), and (H) as 
     subparagraphs (B), (C), and (D), respectively;
       (E) in subparagraph (C), as redesignated, by striking the 
     semicolon at the end and inserting ``, including programs of 
     bus and bus-related projects for assistance to subrecipients 
     which are public agencies, private companies engaged in 
     public transportation, or private nonprofit organizations; 
     and''; and
       (F) in subparagraph (D), as redesignated--
       (i) by striking ``to support fixed guideway systems''; and
       (ii) by striking ``dedicated bus and high occupancy 
     vehicle'';
       (2) by amending paragraph (2) to read as follows:
       ``(2) Grantee requirements.--
       ``(A) Grantee in urbanized area.--The Secretary shall 
     require that any grants awarded under this section to a 
     recipient or subrecipient located in an urbanized area shall 
     be subject to all terms, conditions, requirements, and 
     provisions that the Secretary determines to be necessary or 
     appropriate for the purposes of this section, including 
     requirements for the disposition of net increases in the 
     value of real property resulting from the project assisted 
     under this section.
       ``(B) Grantee not in urbanized area.--The Secretary shall 
     require that any grants awarded under this section to a 
     recipient or subrecipient not located in an urbanized area 
     shall be subject to the same terms, conditions, requirements, 
     and provisions as a recipient or subrecipient of assistance 
     under section 5311.
       ``(C) Subrecipient.--The Secretary shall require that any 
     private, nonprofit organization that is a subrecipient of a 
     grant awarded under this section shall be subject to the same 
     terms, conditions, requirements, and provisions as a 
     subrecipient of assistance under section 5310.
       ``(D) Statewide transit provider grantees.--A statewide 
     transit provider that receives a grant under this section 
     shall be subject to the terms, conditions, requirements, and 
     provisions of this section or section 5311, consistent with 
     the scope and purpose of the grant and the location of the 
     project.''; and
       (3) by adding at the end the following:
       ``(3) Certification.--An applicant that has submitted the 
     certifications required under subparagraphs (A), (B), (C), 
     and (H) of section 5307(d)(1) shall be deemed to have 
     provided sufficient information upon which the Secretary may 
     make the findings required under this subsection.''.
       (c) Defined Term.--Section 5309(b) is amended to read as 
     follows:
       ``(b) Defined Term.--As used in this section, the term 
     `alternatives analysis' means a study conducted as part of 
     the transportation planning process required under sections 
     5303 and 5304, which includes--
       ``(1) an assessment of a wide range of public 
     transportation alternatives designed to address a 
     transportation problem in a corridor or subarea;
       ``(2) sufficient information to enable the Secretary to 
     make the findings of project justification and local 
     financial commitment required under this section;
       ``(3) the selection of a locally preferred alternative; and
       ``(4) the adoption of the locally preferred alternative as 
     part of the long-range transportation plan required under 
     section 5303.''.
       (d) Grant Requirements.--Section 5309(d) is amended to read 
     as follows:
       ``(d) Grant Requirements.--The Secretary may not approve a 
     grant for a project under this section unless the Secretary 
     determines that--
       ``(1) the project is part of an approved transportation 
     plan and program of projects required under sections 5303, 
     5304, and 5306; and
       ``(2) the applicant has, or will have--
       ``(A) the legal, financial, and technical capacity to carry 
     out the project, including safety and security aspects of the 
     project;
       ``(B) satisfactory continuing control over the use of the 
     equipment or facilities; and
       ``(C) the capability and willingness to maintain the 
     equipment or facilities.''.
       (e) Major Capital Investment Projects of $75,000,000 or 
     More.--Section 5309(e) is amended to read as follows:
       ``(e) Major Capital Investment Projects of $75,000,000 or 
     More.--
       ``(1) Full funding grant agreement.--The Secretary shall 
     enter into a full funding grant agreement, based on the 
     evaluations and ratings required under this subsection, with 
     each grantee receiving not less than $75,000,000 under this 
     subsection for a new fixed guideway capital project that--
       ``(A) is authorized for final design and construction; and
       ``(B) has been rated as medium, medium-high, or high, in 
     accordance with paragraph (5)(B).
       ``(2) Determinations.--The Secretary may not award a grant 
     under this subsection for a new fixed guideway capital 
     project unless the Secretary determines that the proposed 
     project is--
       ``(A) based on the results of an alternatives analysis and 
     preliminary engineering;
       ``(B) justified based on a comprehensive review of its 
     mobility improvements, environmental benefits, cost-
     effectiveness, operating efficiencies, economic development 
     effects, and public transportation supportive land use 
     patterns and policies; and

[[Page 2079]]

       ``(C) supported by an acceptable degree of local financial 
     commitment, including evidence of stable and dependable 
     financing sources to construct the project, and maintain and 
     operate the entire public transportation system, while 
     ensuring that the extent and quality of existing public 
     transportation services are not degraded.
       ``(3) Evaluation of project justification.--In making the 
     determinations under paragraph (2)(B) for a major capital 
     investment grant, the Secretary shall analyze, evaluate, and 
     consider--
       ``(A) the results of the alternatives analysis and 
     preliminary engineering for the proposed project;
       ``(B) the reliability of the forecasts of costs and 
     utilization made by the recipient and the contractors to the 
     recipient;
       ``(C) the direct and indirect costs of relevant 
     alternatives;
       ``(D) factors such as--
       ``(i) congestion relief;
       ``(ii) improved mobility;
       ``(iii) air pollution;
       ``(iv) noise pollution;
       ``(v) energy consumption; and
       ``(vi) all associated ancillary and mitigation costs 
     necessary to carry out each alternative analyzed;
       ``(E) reductions in local infrastructure costs achieved 
     through compact land use development and positive impacts on 
     the capacity, utilization, or longevity of other surface 
     transportation assets and facilities;
       ``(F) the cost of suburban sprawl;
       ``(G) the degree to which the project increases the 
     mobility of the public transportation dependent population or 
     promotes economic development;
       ``(H) population density and current transit ridership in 
     the transportation corridor;
       ``(I) the technical capability of the grant recipient to 
     construct the project;
       ``(J) any adjustment to the project justification necessary 
     to reflect differences in local land, construction, and 
     operating costs; and
       ``(K) other factors that the Secretary determines to be 
     appropriate to carry out this chapter.
       ``(4) Evaluation of local financial commitment.--
       ``(A) In general.--In evaluating a project under paragraph 
     (2)(C), the Secretary shall require that--
       ``(i) the proposed project plan provides for the 
     availability of contingency amounts that the Secretary 
     determines to be reasonable to cover unanticipated cost 
     increases;
       ``(ii) each proposed local source of capital and operating 
     financing is stable, reliable, and available within the 
     proposed project timetable; and
       ``(iii) local resources are available to recapitalize and 
     operate the overall proposed public transportation system, 
     including essential feeder bus and other services necessary 
     to achieve the projected ridership levels, while ensuring 
     that the extent and quality of existing public transportation 
     services are not degraded.
       ``(B) Evaluation criteria.--In assessing the stability, 
     reliability, and availability of proposed sources of local 
     financing under paragraph (2)(C), the Secretary shall 
     consider--
       ``(i) the reliability of the forecasts of costs and 
     utilization made by the recipient and the contractors to the 
     recipient;
       ``(ii) existing grant commitments;
       ``(iii) the degree to which financing sources are dedicated 
     to the proposed purposes;
       ``(iv) any debt obligation that exists, or is proposed by 
     the recipient, for the proposed project or other public 
     transportation purpose; and
       ``(v) the extent to which the project has a local financial 
     commitment that exceeds the required non-Federal share of the 
     cost of the project, provided that if the Secretary gives 
     priority to financing projects that include more than the 
     non-Federal share required under subsection (h), the 
     Secretary shall give equal consideration to differences in 
     the fiscal capacity of State and local governments.
       ``(5) Project advancement and ratings.--
       ``(A) Project advancement.--A proposed project under this 
     subsection shall not advance from alternatives analysis to 
     preliminary engineering or from preliminary engineering to 
     final design and construction unless the Secretary determines 
     that the project meets the requirements of this section and 
     there is a reasonable likelihood that the project will 
     continue to meet such requirements.
       ``(B) Ratings.--In making a determination under 
     subparagraph (A), the Secretary shall evaluate and rate the 
     project on a 5-point scale (high, medium-high, medium, 
     medium-low, or low) based on the results of the alternatives 
     analysis, the project justification criteria, and the degree 
     of local financial commitment, as required under this 
     subsection. In rating the projects, the Secretary shall 
     provide, in addition to the overall project rating, 
     individual ratings for each of the criteria established by 
     regulation.
       ``(6) Applicability.--This subsection shall not apply to 
     projects for which the Secretary has issued a letter of 
     intent or entered into a full funding grant agreement before 
     the date of enactment of the Federal Public Transportation 
     Act of 2004.
       ``(7) Rulemaking.--Not later than 240 days after the date 
     of enactment of the Federal Public Transportation Act of 
     2004, the Secretary shall issue regulations on the manner by 
     which the Secretary shall evaluate and rate projects based on 
     the results of alternatives analysis, project justification, 
     and local financial commitment, in accordance with this 
     subsection.
       ``(8) Policy guidance.--
       ``(A) Publication.--The Secretary shall publish policy 
     guidance regarding the new starts project review and 
     evaluation process--
       ``(i) not later than 120 days after the date of enactment 
     of the Federal Public Transportation Act of 2004; and
       ``(ii) each time significant changes are made by the 
     Secretary to the new starts project review and evaluation 
     process and criteria, but not less frequently than once every 
     2 years.
       ``(B) Public comment and response.--The Secretary shall--
       ``(i) invite public comment to the policy guidance 
     published under subparagraph (A); and
       ``(ii) publish a response to the comments received under 
     clause (i).''.
       (f) Major Capital Investment Projects of Less Than 
     $75,000,000.-- Section 5309(f) is amended to read as follows:
       ``(f) Major Capital Investment Projects of Less Than 
     $75,000,000.--
       ``(1) Project construction grant agreement.--
       ``(A) In general.--The Secretary shall enter into a project 
     construction grant agreement, based on evaluations and 
     ratings required under this subsection, with each grantee 
     receiving less than $75,000,000 under this subsection for a 
     new fixed guideway or corridor improvement capital project 
     that--
       ``(i) is authorized by law; and
       ``(ii) has been rated as medium, medium-high, or high, in 
     accordance with paragraph (3)(B).
       ``(B) Contents.--
       ``(i) In general.--An agreement under this paragraph shall 
     specify--

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

       ``(ii) Additional funding.--The agreement may include a 
     commitment on the part of the Secretary to provide funding 
     for the project in future fiscal years.
       ``(C) Full funding grant agreement.--An agreement under 
     this paragraph shall be considered a full funding grant 
     agreement for the purposes of subsection (g).
       ``(2) Selection process.--
       ``(A) Selection criteria.--The Secretary may not award a 
     grant under this subsection for a proposed project unless the 
     Secretary determines that the project is--
       ``(i) based on the results of planning and alternatives 
     analysis;
       ``(ii) justified based on a review of its public 
     transportation supportive land use policies, cost 
     effectiveness, and effect on local economic development; and
       ``(iii) supported by an acceptable degree of local 
     financial commitment.
       ``(B) Planning and alternatives.--In evaluating a project 
     under subparagraph (A)(i), the Secretary shall analyze and 
     consider the results of planning and alternatives analysis 
     for the project.
       ``(C) Project justification.--In making the determinations 
     under subparagraph (A)(ii), the Secretary shall--
       ``(i) determine the degree to which local land use policies 
     are supportive of the public transportation project and the 
     degree to which the project is likely to achieve local 
     developmental goals;
       ``(ii) determine the cost effectiveness of the project at 
     the time of the initiation of revenue service;
       ``(iii) determine the degree to which the project will have 
     a positive effect on local economic development;
       ``(iv) consider the reliability of the forecasts of costs 
     and ridership associated with the project; and
       ``(v) consider other factors that the Secretary determines 
     to be appropriate to carry out this subsection.
       ``(D) Local financial commitment.--For purposes of 
     subparagraph (A)(iii), the Secretary shall require that each 
     proposed local source of capital and operating financing is 
     stable, reliable, and available within the proposed project 
     timetable.
       ``(3) Advancement of project to development and 
     construction.--
       ``(A) In general.--A proposed project under this subsection 
     may not advance from the planning and alternatives analysis 
     stage to project development and construction unless--
       ``(i) the Secretary finds that the project meets the 
     requirements of this subsection and there is a reasonable 
     likelihood that the project will continue to meet such 
     requirements; and
       ``(ii) the metropolitan planning organization has adopted 
     the locally preferred alternative for the project into the 
     long-range transportation plan.

[[Page 2080]]

       ``(B) Evaluation.--In making the findings under 
     subparagraph (A), the Secretary shall evaluate and rate the 
     project as high, medium-high, medium, medium-low, or low, 
     based on the results of the analysis of the project 
     justification criteria and the degree of local financial 
     commitment, as required under this subsection.
       ``(4) Impact report.--
       ``(A) In general.--Not later than 240 days after the date 
     of enactment of the Federal Public Transportation Act of 
     2004, the Federal Transit Administration shall submit a 
     report on the methodology to be used in evaluating the land 
     use and economic development impacts of non-fixed guideway or 
     partial fixed guideway projects to--
       ``(i) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate; and
       ``(ii) the Committee on Transportation and Infrastructure 
     of the House of Representatives.
       ``(B) Contents.--The report submitted under subparagraph 
     (A) shall address any qualitative and quantitative 
     differences between fixed guideway and non-fixed guideway 
     projects with respect to land use and economic development 
     impacts.
       ``(5) Regulations.--Not later than 120 days after the date 
     of enactment of the Federal Public Transportation Act of 
     2004, the Secretary shall issue regulations establishing an 
     evaluation and rating process for proposed projects under 
     this subsection that is based on the results of project 
     justification and local financial commitment, as required 
     under this subsection.''.
       (g) Full Funding Grant Agreements.--Section 5309(g)(2) is 
     amended by adding at the end the following:
       ``(C) Before and after study.--
       ``(i) In general.--Each full funding grant agreement shall 
     require the applicant to conduct a study that--
       ``(I) describes and analyzes the impacts of the new start 
     project on transit services and transit ridership;
       ``(II) evaluates the consistency of predicted and actual 
     project characteristics and performance; and
       ``(III) identifies sources of differences between predicted 
     and actual outcomes.
       ``(ii) Information collection and analysis plan.--
       ``(I) Submission of plan.--Applicants seeking a full 
     funding grant agreement shall submit a complete plan for the 
     collection and analysis of information to identify the 
     impacts of the new start project and the accuracy of the 
     forecasts prepared during the development of the project. 
     Preparation of this plan shall be included in the full 
     funding grant agreement as an eligible activity.
       ``(II) Contents of plan.--The plan submitted under 
     subclause (I) shall provide for--
       ``(aa) the collection of data on the current transit system 
     regarding transit service levels and ridership patterns, 
     including origins and destinations, access modes, trip 
     purposes, and rider characteristics;
       ``(bb) documentation of the predicted scope, service 
     levels, capital costs, operating costs, and ridership of the 
     project;
       ``(cc) collection of data on the transit system 2 years 
     after the opening of the new start project, including 
     analogous information on transit service levels and ridership 
     patterns and information on the as-built scope and capital 
     costs of the new start project; and
       ``(dd) analysis of the consistency of predicted project 
     characteristics with the after data.
       ``(D) Collection of data on current system.--To be eligible 
     for a full funding grant agreement, recipients shall have 
     collected data on the current system, according to the plan 
     required, before the beginning of construction of the 
     proposed new start project. Collection of this data shall be 
     included in the full funding grant agreement as an eligible 
     activity.
       ``(E) Public private partnership pilot program.--
       ``(i) Authorization.--The Secretary may establish a pilot 
     program to demonstrate the advantages of public-private 
     partnerships for certain fixed guideway systems development 
     projects.
       ``(ii) Identification of qualified projects.--The Secretary 
     shall identify qualified public-private partnership projects 
     as permitted by applicable State and local enabling laws and 
     work with project sponsors to enhance project delivery and 
     reduce overall costs.''.
       (h) Federal Share of Net Project Cost.--Section 5309(h) is 
     amended to read as follows:
       ``(h) Federal Share of Adjusted Net Project Cost.--
       ``(1) In general.--The Secretary shall estimate the net 
     project cost based on engineering studies, studies of 
     economic feasibility, and information on the expected use of 
     equipment or facilities.
       ``(2) Adjustment for completion under budget.--The 
     Secretary may adjust the final net project cost of a major 
     capital investment project evaluated under subsections (e) 
     and (f) to include the cost of eligible activities not 
     included in the originally defined project if the Secretary 
     determines that the originally defined project has been 
     completed at a cost that is significantly below the original 
     estimate.
       ``(3) Maximum federal share.--
       ``(A) In general.--A grant for the project shall be for 80 
     percent of the net project cost, or the net project cost as 
     adjusted under paragraph (2), unless the grant recipient 
     requests a lower grant percentage.
       ``(B) Exceptions.--The Secretary may provide a higher grant 
     percentage than requested by the grant recipient if--
       ``(i) the Secretary determines that the net project cost of 
     the project is not more than 10 percent higher than the net 
     project cost estimated at the time the project was approved 
     for advancement into preliminary engineering; and
       ``(ii) the ridership estimated for the project is not less 
     than 90 percent of the ridership estimated for the project at 
     the time the project was approved for advancement into 
     preliminary engineering.
       ``(4) Other sources.--The costs not funded by a grant under 
     this section may be funded from--
       ``(A) an undistributed cash surplus;
       ``(B) a replacement or depreciation cash fund or reserve; 
     or
       ``(C) new capital, including any Federal funds that are 
     eligible to be expended for transportation.
       ``(5) Planned extension to fixed guideway system.--In 
     addition to amounts allowed under paragraph (1), a planned 
     extension to a fixed guideway system may include the cost of 
     rolling stock previously purchased if the Secretary 
     determines that only non-Federal funds were used and that the 
     purchase was made for use on the extension. A refund or 
     reduction of the costs not funded by a grant under this 
     section may be made only if a refund of a proportional amount 
     of the grant is made at the same time.
       ``(6) Exception.--The prohibitions on the use of funds for 
     matching requirements under section 403(a)(5)(C)(vii) of the 
     Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not 
     apply to amounts allowed under paragraph (4).''.
       (i) Loan Provisions and Fiscal Capacity Considerations.--
     Section 5309 is amended--
       (1) by striking subsections (i), (j), (k), and (l);
       (2) by redesignating subsections (m) and (n) as subsections 
     (i) and (j), respectively;
       (3) by striking subsection (o) (as added by section 3009(i) 
     of the Federal Transit Act of 1998); and
       (4) by redesignating subsections (o) and (p) as subsections 
     (k) and (l), respectively.
       (j) Allocating Amounts.--Section 5309(i), as redesignated, 
     is amended to read as follows:
       ``(i) Allocating Amounts.--
       ``(1) Fiscal year 2004.--Of the amounts made available or 
     appropriated for fiscal year 2004 under section 5338(a)(3)--
       ``(A) $1,315,983,615 shall be allocated for projects of not 
     less than $75,000,000 for major capital projects for new 
     fixed guideway systems and extensions of such systems under 
     subsection (e) and projects for new fixed guideway or 
     corridor improvement capital projects under subsection (f);
       ``(B) $1,199,387,615 shall be allocated for capital 
     projects for fixed guideway modernization; and
       ``(C) $603,617,520 shall be allocated for capital projects 
     for buses and bus-related equipment and facilities.
       ``(2) In general.--Of the amounts made available or 
     appropriated for fiscal year 2005 and each fiscal year 
     thereafter for grants under this section pursuant to 
     subsections (b)(4) and (c) of section 5338--
       ``(A) the amounts appropriated under section 5338(c) shall 
     be allocated for major capital projects for--
       ``(i) new fixed guideway systems and extensions of not less 
     than $75,000,000, in accordance with subsection (e); and
       ``(ii) projects for new fixed guideway or corridor 
     improvement capital projects, in accordance with subsection 
     (f); and
       ``(B) the amounts made available under section 5338(b)(4) 
     shall be allocated for capital projects for buses and bus-
     related equipment and facilities.
       ``(3) Fixed guideway modernization.--The amounts made 
     available for fixed guideway modernization under section 
     5338(b)(2)(K) for fiscal year 2005 and each fiscal year 
     thereafter shall be allocated in accordance with section 
     5337.
       ``(4) Preliminary engineering.--Not more that 8 percent of 
     the allocation described in paragraphs (1)(A) and (2)(A) may 
     be expended on preliminary engineering.
       ``(5) Funding for ferry boats.--Of the amounts described in 
     paragraphs (1)(A) and (2)(A), $10,400,000 shall be available 
     in each of the fiscal years 2004 through 2009 for capital 
     projects in Alaska and Hawaii for new fixed guideway systems 
     and extension projects utilizing ferry boats, ferry boat 
     terminals, or approaches to ferry boat terminals.
       ``(6) Bus and bus facility grants.--
       ``(A) Considerations.--In making grants under paragraphs 
     (1)(C) and (2)(B), the Secretary shall consider the age and 
     condition of buses, bus fleets, related equipment, and bus-
     related facilities.
       ``(B) Projects not in urbanized areas.--Of the amounts made 
     available under paragraphs (1)(C) and (2)(B), not less than 
     5.5 percent shall be available in each fiscal year for 
     projects that are not in urbanized areas.
       ``(C) Intermodal terminals.--Of the amounts made available 
     under paragraphs

[[Page 2081]]

     (1)(C) and (2)(B), not less than $75,000,000 shall be 
     available in each fiscal year for intermodal terminal 
     projects, including the intercity bus portion of such 
     projects.''.
       (k) Reports.--Section 5309 is amended by inserting at the 
     end the following:
       ``(m) Reports.--
       ``(1) Annual report on funding recommendations.--
       ``(A) In general.--Not later than the first Monday of 
     February of each year, the Secretary shall submit a report on 
     funding recommendations to--
       ``(i) the Committee on Transportation and Infrastructure of 
     the House of Representatives;
       ``(ii) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate;
       ``(iii) the Subcommittee on Transportation of the Committee 
     on Appropriations of the House of Representatives; and
       ``(iv) the Subcommittee on Transportation of the Committee 
     on Appropriations of the Senate.
       ``(B) Contents.--The report submitted under subparagraph 
     (A) shall contain--
       ``(i) a proposal on the allocation of amounts to finance 
     grants for capital investment projects among grant 
     applicants;
       ``(ii) a recommendation of projects to be funded based on--

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

       ``(iii) detailed ratings and evaluations on each project 
     recommended for funding.
       ``(2) Triennial reports on project ratings.--
       ``(A) In general.--Not later than the first Monday of 
     February, the first Monday of June, and the first Monday of 
     October of each year, the Secretary shall submit a report on 
     project ratings to--
       ``(i) the Committee on Transportation and Infrastructure of 
     the House of Representatives;
       ``(ii) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate;
       ``(iii) the Subcommittee on Transportation of the Committee 
     on Appropriations of the House of Representatives; and
       ``(iv) the Subcommittee on Transportation of the Committee 
     on Appropriations of the Senate.
       ``(B) Contents.--Each report submitted under subparagraph 
     (A) shall contain--
       ``(i) a summary of the ratings of all capital investment 
     projects for which funding was requested under this section;
       ``(ii) detailed ratings and evaluations on the project of 
     each applicant that had significant changes to the finance or 
     project proposal or has completed alternatives analysis or 
     preliminary engineering since the date of the latest report; 
     and
       ``(iii) all relevant information supporting the evaluation 
     and rating of each updated project, including a summary of 
     the financial plan of each updated project.
       ``(3) Before and after study reports.--Not later than the 
     first Monday of August of each year, the Secretary shall 
     submit a report containing a summary of the results of the 
     studies conducted under subsection (g)(2) to--
       ``(A) the Committee on Transportation and Infrastructure of 
     the House of Representatives;
       ``(B) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate;
       ``(C) the Subcommittee on Transportation of the Committee 
     on Appropriations of the House of Representatives; and
       ``(D) the Subcommittee on Transportation of the Committee 
     on Appropriations of the Senate.
       ``(4) Contractor performance assessment report.--
       ``(A) In general.--Not later than 180 days after the 
     enactment of the Federal Public Transportation Act of 2004, 
     and each year thereafter, the Secretary shall submit a report 
     analyzing the consistency and accuracy of cost and ridership 
     estimates made by each contractor to public transportation 
     agencies developing major investment projects to the 
     committees and subcommittees listed under paragraph (3).
       ``(B) Contents.--The report submitted under subparagraph 
     (A) shall compare the cost and ridership estimates made at 
     the time projects are approved for entrance into preliminary 
     engineering with--
       ``(i) estimates made at the time projects are approved for 
     entrance into final design;
       ``(ii) costs and ridership when the project commences 
     revenue operation; and
       ``(iii) costs and ridership when the project has been in 
     operation for 2 years.
       ``(5) Annual general accounting office review.--
       ``(A) Review.--The Comptroller General of the United States 
     shall conduct an annual review of the processes and 
     procedures for evaluating and rating projects and 
     recommending projects and the Secretary's implementation of 
     such processes and procedures.
       ``(B) Report.--Not later than 90 days after the submission 
     of each report required under paragraph (1), the Comptroller 
     General shall submit a report to Congress that summarizes the 
     results of the review conducted under subparagraph (A).
       ``(6) Contractor performance incentive report.--Not later 
     than 180 days after the enactment of the Federal Public 
     Transportation Act of 2004, the Secretary shall submit a 
     report to the committees and subcommittees listed under 
     paragraph (3) on the suitability of allowing contractors to 
     public transportation agencies that undertake major capital 
     investments under this section to receive performance 
     incentive awards if a project is completed for less than the 
     original estimated cost.''.
       (l) Restrictions on Use of Bus Category Funds for Fixed 
     Guideway Projects.--
       (1) In general.--Funds provided to grantees under the bus 
     and bus facility category for fixed guideway ferry and 
     gondola projects in the Department of Transportation and 
     Related Agencies Appropriations Acts for any of fiscal years 
     1998 through 2004, or accompanying committee reports, that 
     remain available and unobligated may be used for fixed 
     guideway projects under section 5309 of title 49, United 
     States Code.
       (2) New funds.--Grantees who received funds under paragraph 
     (1) may use new Federal transit assistance provided under the 
     bus and bus facility category for fixed guideway projects 
     under such section 5309.

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

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

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

       ``(a) General Authority.--
       ``(1) Authorization.--The Secretary may award grants to a 
     State for capital public transportation projects that are 
     planned, designed, and carried out to meet the needs of 
     elderly individuals and individuals with disabilities, with 
     priority given to the needs of these individuals to access 
     necessary health care.
       ``(2) Acquisition of public transportation services.--A 
     capital public transportation project under this section may 
     include acquiring public transportation services as an 
     eligible capital expense.
       ``(3) Administrative costs.--A State may use not more than 
     15 percent of the amounts received under this section to 
     administer, plan, and provide technical assistance for a 
     project funded under this section.
       ``(b) Allotments Among States.--
       ``(1) In general.--From amounts made available or 
     appropriated in each fiscal year under subsections 
     (a)(1)(C)(iv) and (b)(2)(D) of section 5338 for grants under 
     this section, the Secretary shall allot amounts to each State 
     under a formula based on the number of elderly individuals 
     and individuals with disabilities in each State.
       ``(2) Transfer of funds.--Any funds allotted to a State 
     under paragraph (1) may be transferred by the State to the 
     apportionments made under sections 5311(c) and 5336 if such 
     funds are only used for eligible projects selected under this 
     section.
       ``(3) Reallocation of funds.--A State receiving a grant 
     under this section may reallocate such grant funds to--
       ``(A) a private nonprofit organization;
       ``(B) a public transportation agency or authority; or
       ``(C) a governmental authority that--
       ``(i) has been approved by the State to coordinate services 
     for elderly individuals and individuals with disabilities;
       ``(ii) certifies that nonprofit organizations are not 
     readily available in the area that can provide the services 
     described under this subsection; or
       ``(iii) will provide services to persons with disabilities 
     that exceed those services required by the Americans with 
     Disabilities Act.
       ``(c) Federal Share.--
       ``(1) Maximum.--
       ``(A) In general.--A grant for a capital project under this 
     section may not exceed 80 percent of the net capital costs of 
     the project, as determined by the Secretary.
       ``(B) Exception.--A State described in section 120(d) of 
     title 23 shall receive an increased Federal share in 
     accordance with the formula under that section.
       ``(2) Remaining costs.--The costs of a capital project 
     under this section that are not funded through a grant under 
     this section--
       ``(A) may be funded from an undistributed cash surplus, a 
     replacement or depreciation cash fund or reserve, a service 
     agreement with a State or local social service agency or a 
     private social service organization, or new capital; and
       ``(B) may be derived from amounts appropriated to or made 
     available to any Federal agency (other than the Department of 
     Transportation, except for Federal Lands Highway funds) that 
     are eligible to be expended for transportation.
       ``(3) Exception.--For purposes of paragraph (2), the 
     prohibitions on the use of funds for matching requirements 
     under section 403(a)(5)(C)(vii) of the Social Security Act 
     (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal or 
     State funds to be used for transportation purposes.
       ``(d) Grant Requirements.--
       ``(1) In general.--A grant recipient under this section 
     shall be subject to the requirements of a grant recipient 
     under section 5307 to the extent the Secretary determines to 
     be appropriate.
       ``(2) Certification requirements.--
       ``(A) Fund transfers.--A grant recipient under this section 
     that transfers funds to a

[[Page 2082]]

     project funded under section 5336 in accordance with 
     subsection (b)(2) shall certify that the project for which 
     the funds are requested has been coordinated with private 
     nonprofit providers of services under this section.
       ``(B) Project selection and plan development.--Each grant 
     recipient under this section shall certify that--
       ``(i) the projects selected were derived from a locally 
     developed, coordinated public transit-human services 
     transportation plan; and
       ``(ii) the plan was developed through a process that 
     included representatives of public, private, and nonprofit 
     transportation and human services providers and participation 
     by the public.
       ``(C) Allocations to subrecipients.--Each grant recipient 
     under this section shall certify that allocations of the 
     grant to subrecipients, if any, are distributed on a fair and 
     equitable basis.
       ``(e) State Program of Projects.--
       ``(1) Submission to secretary.--Each State shall annually 
     submit a program of transportation projects to the Secretary 
     for approval with an assurance that the program provides for 
     maximum feasible coordination between transportation services 
     funded under this section and transportation services 
     assisted by other Federal sources.
       ``(2) Use of funds.--Each State may use amounts made 
     available to carry out this section to provide transportation 
     services for elderly individuals and individuals with 
     disabilities if such services are included in an approved 
     State program of projects.
       ``(f) Leasing Vehicles.--Vehicles acquired under this 
     section may be leased to local governmental authorities to 
     improve transportation services designed to meet the needs of 
     elderly individuals and individuals with disabilities.
       ``(g) Meal Delivery for Homebound Individuals.--Public 
     transportation service providers receiving assistance under 
     this section or section 5311(c) may coordinate and assist in 
     regularly providing meal delivery service for homebound 
     individuals if the delivery service does not conflict with 
     providing public transportation service or reduce service to 
     public transportation passengers.
       ``(h) Transfers of Facilities and Equipment.--With the 
     consent of the recipient in possession of a facility or 
     equipment acquired with a grant under this section, a State 
     may transfer the facility or equipment to any recipient 
     eligible to receive assistance under this chapter if the 
     facility or equipment will continue to be used as required 
     under this section.
       ``(i) Fares Not Required.--This section does not require 
     that elderly individuals and individuals with disabilities be 
     charged a fare.''.
       (b) Conforming Amendment.--The item relating to section 
     5310 in the table of sections for chapter 53 is amended to 
     read as follows:

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

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

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

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

       (5) by adding after paragraph (3) the following:
       ``(4) Of the amount made available to carry out paragraph 
     (3)--
       ``(A) not more than 15 percent may be used to carry out 
     projects of a national scope; and
       ``(B) any amounts not used under subparagraph (A) shall be 
     allocated to the States.''.
       (c) Apportionments.--Section 5311(c) is amended to read as 
     follows:
       ``(c) Apportionments.--
       ``(1) Public transportation on indian reservations.--Of the 
     amounts made available or appropriated for each fiscal year 
     pursuant to subsections (a)(1)(C)(v) and (b)(2)(F) of section 
     5338, the following amounts shall be apportioned for grants 
     to Indian tribes for any purpose eligible under this section, 
     under such terms and conditions as may be established by the 
     Secretary:
       ``(A) $6,000,000 for fiscal year 2005.
       ``(B) $8,000,000 for fiscal year 2006.
       ``(C) $10,000,000 for fiscal year 2007.
       ``(D) $12,000,000 for fiscal year 2008.
       ``(E) $15,000,000 for fiscal year 2009.
       ``(2) Remaining amounts.--Of the amounts made available or 
     appropriated for each fiscal year pursuant to subsections 
     (a)(1)(C)(v) and (b)(2)(F) of section 5338 that are not 
     apportioned under paragraph (1)--
       ``(A) 20 percent shall be apportioned to the States in 
     accordance with paragraph (3); and
       ``(B) 80 percent shall be apportioned to the States in 
     accordance with paragraph (4).
       ``(3) Apportionments based on land area in nonurbanized 
     areas.--
       ``(A) In general.--Subject to subparagraph (B), each State 
     shall receive an amount that is equal to the amount 
     apportioned under paragraph (2)(A) multiplied by the ratio of 
     the land area in areas other than urbanized areas in that 
     State and divided by the land area in all areas other than 
     urbanized areas in the United States, as shown by the most 
     recent decennial census of population.
       ``(B) Maximum apportionment.--No State shall receive more 
     than 5 percent of the amount apportioned under this 
     paragraph.
       ``(4) Apportionments based on population in nonurbanized 
     areas.--Each State shall receive an amount equal to the 
     amount apportioned under paragraph (2)(B) multiplied by the 
     ratio of the population of areas other than urbanized areas 
     in that State divided by the population of all areas other 
     than urbanized areas in the United States, as shown by the 
     most recent decennial census of population.''.
       (d) Use for Administrative, Planning, and Technical 
     Assistance.--Section 5311(e) is amended--
       (1) by striking ``and Technical Assistance.--(1) The 
     Secretary of Transportation'' and inserting ``, Planning, and 
     Technical Assistance.--The Secretary'';
       (2) by striking ``to a recipient''; and
       (3) by striking paragraph (2).
       (e) Intercity Bus Transportation.--Section 5311(f) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``(1)'' and inserting the following:
       ``(1) In general.--''; and
       (B) by striking ``after September 30, 1993,''; and
       (2) in paragraph (2)--
       (A) by striking ``A State'' and inserting ``After 
     consultation with affected intercity bus service providers, a 
     State''; and
       (B) by striking ``of Transportation''.
       (f) Federal Share of Costs.--Section 5311(g) is amended to 
     read as follows:
       ``(g) Federal Share of Costs.--
       ``(1) Maximum federal share.--
       ``(A) Capital projects.--
       ``(i) In general.--Except as provided under clause (ii), a 
     grant awarded under this section for any purpose other than 
     operating assistance may not exceed 80 percent of the net 
     capital costs of the project, as determined by the Secretary.
       ``(ii) Exception.--A State described in section 120(d) of 
     title 23 shall receive a Federal share of the net capital 
     costs in accordance with the formula under that section.
       ``(B) Operating assistance.--
       ``(i) In general.--Except as provided under clause (ii), a 
     grant made under this section for operating assistance may 
     not exceed 50 percent of the net operating costs of the 
     project, as determined by the Secretary.

[[Page 2083]]

       ``(ii) Exception.--A State described in section 120(d) of 
     title 23 shall receive a Federal share of the net operating 
     costs equal to 62.5 percent of the Federal share provided for 
     under subparagraph (A)(ii).
       ``(2) Other funding sources.--Funds for a project under 
     this section that are not provided for by a grant under this 
     section--
       ``(A) may be provided from--
       ``(i) an undistributed cash surplus;
       ``(ii) a replacement or depreciation cash fund or reserve;
       ``(iii) a service agreement with a State or local social 
     service agency or a private social service organization; or
       ``(iv) new capital; and
       ``(B) may be derived from amounts appropriated to or made 
     available to a Federal agency (other than the Department of 
     Transportation, except for Federal Land Highway funds) that 
     are eligible to be expended for transportation.
       ``(3) Use of federal grant.--A State carrying out a program 
     of operating assistance under this section may not limit the 
     level or extent of use of the Federal grant for the payment 
     of operating expenses.
       ``(4) Exception.--For purposes of paragraph (2)(B), the 
     prohibitions on the use of funds for matching requirements 
     under section 403(a)(5)(c)(vii) of the Social Security Act 
     (42 U.S.C. 603(a)(5)(c)(vii)) shall not apply to Federal or 
     State funds to be used for transportation purposes.''.
       (g) Waiver Condition.--Section 5311(j)(1) is amended by 
     striking ``but the Secretary of Labor may waive the 
     application of section 5333(b)'' and inserting ``if the 
     Secretary of Labor utilizes a Special Warranty that provides 
     a fair and equitable arrangement to protect the interests of 
     employees''.

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

       (a) In General.--Section 5312 is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) Research, Development, and Demonstration Projects.--
       ``(1) In general.--The Secretary may make grants, 
     contracts, cooperative agreements, or other transactions 
     (including agreements with departments, agencies, and 
     instrumentalities of the United States Government) for 
     research, development, demonstration or deployment projects, 
     or evaluation of technology of national significance to 
     public transportation that the Secretary determines will 
     improve public transportation service or help public 
     transportation service meet the total transportation needs at 
     a minimum cost.
       ``(2) Information.--The Secretary may request and receive 
     appropriate information from any source.
       ``(3) Savings provision.--This subsection does not limit 
     the authority of the Secretary under any other law.'';
       (2) by striking subsections (b) and (c);
       (3) by redesignating subsections (d) and (e) as (b) and 
     (c), respectively.
       (4) in subsection (b), as redesignated--
       (A) in paragraph (2), by striking ``other agreements'' and 
     inserting ``other transactions''; and
       (B) in paragraph (5), by striking ``within the Mass Transit 
     Account of the Highway Trust Fund''; and
       (5) in subsection (c), as redesignated--
       (A) in paragraph (2), by striking ``public and private'' 
     and inserting ``public or private''; and
       (B) in paragraph (3), by striking ``within the Mass Transit 
     Account of the Highway Trust Fund'' .
       (b) Conforming Amendments.--
       (1) Section heading.--The heading of section 5312 is 
     amended to read as follows:

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

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

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

     SEC. 3015. TRANSIT COOPERATIVE RESEARCH PROGRAM.

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

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

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

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

     SEC. 3016. NATIONAL RESEARCH PROGRAMS.

       (a) In General.--Section 5314 is amended--
       (1) in subsection (a)--
       (A) by amending paragraph (1) to read as follows:
       ``(1) Availability of funds.--The Secretary may use amounts 
     made available under subsections (a)(5)(C)(iv) and 
     (b)(2)(G)(iv) of section 5338 for grants, contracts, 
     cooperative agreements, or other transactions for the 
     purposes described in sections 5312, 5315, and 5322.'';
       (B) in paragraph (2), by striking ``(2) Of'' and inserting 
     the following:
       ``(2) ADA compliance.--From'';
       (C) by amending paragraph (3) to read as follows:
       ``(3) Special demonstration initiatives.--The Secretary may 
     use not more than 25 percent of the amounts made available 
     under paragraph (1) for special demonstration initiatives, 
     subject to terms that the Secretary determines to be 
     consistent with this chapter. For a nonrenewable grant of not 
     more than $100,000, the Secretary shall provide expedited 
     procedures for complying with the requirements of this 
     chapter.'';
       (D) in paragraph (4)--
       (i) by striking subparagraph (B); and
       (ii) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (E) by adding at the end the following:
       ``(6) Medical transportation demonstration grants.--
       ``(A) Grants authorized.--The Secretary may award 
     demonstration grants, from funds made available under 
     paragraph (1), to eligible entities to provide transportation 
     services to individuals to access dialysis treatments and 
     other medical treatments for renal disease.
       ``(B) Eligible entities.--An entity shall be eligible to 
     receive a grant under this paragraph if the entity--
       ``(i) meets the conditions described in section 501(c)(3) 
     of the Internal Revenue Code of 1986; or
       ``(ii) is an agency of a State or unit of local government.
       ``(C) Use of funds.--Grant funds received under this 
     paragraph may be used to provide transportation services to 
     individuals to access dialysis treatments and other medical 
     treatments for renal disease.
       ``(D) Application.--
       ``(i) In general.--Each eligible entity desiring a grant 
     under this paragraph shall submit an application to the 
     Secretary at such time, at such place, and containing such 
     information as the Secretary may reasonably require.
       ``(ii) Selection of grantees.--In awarding grants under 
     this paragraph, the Secretary shall give preference to 
     eligible entities from communities with--

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

       ``(E) Rulemaking.--The Secretary shall issue regulations to 
     implement and administer the grant program established under 
     this paragraph.
       ``(F) Report.--The Secretary shall submit a report on the 
     results of the demonstration projects funded under this 
     paragraph to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives.''; and
       (2) by amending subsection (b) to read as follows:
       ``(b) Federal Share.--If there would be a clear and direct 
     financial benefit to an entity under a grant, contract, 
     cooperative agreement, or other transaction financed under 
     subsection (a) or section 5312, 5313, 5315, or 5322, the 
     Secretary shall establish a Federal share consistent with 
     such benefit.''.
       (c) National Technical Assistance Center for Senior 
     Transportation; Alternative Fuels Study.--Section 5314 is 
     amended by adding at the end the following:
       ``(c) National Technical Assistance Center for Senior 
     Transportation.--
       ``(1) Establishment.--The Secretary shall award grants to a 
     national not-for-profit organization for the establishment 
     and maintenance of a national technical assistance center.
       ``(2) Eligibility.--An organization shall be eligible to 
     receive the grant under paragraph (1) if the organization--
       ``(A) focuses significantly on serving the needs of the 
     elderly;
       ``(B) has demonstrated knowledge and expertise in senior 
     transportation policy and planning issues;
       ``(C) has affiliates in a majority of the States;
       ``(D) has the capacity to convene local groups to consult 
     on operation and development of senior transportation 
     programs; and
       ``(E) has established close working relationships with the 
     Federal Transit Administration and the Administration on 
     Aging.
       ``(3) Use of funds.--The national technical assistance 
     center established under this section shall--
       ``(A) gather best practices from throughout the country and 
     provide such practices to local communities that are 
     implementing senior transportation programs;
       ``(B) work with teams from local communities to identify 
     how they are successfully meeting the transportation needs of 
     senior and any gaps in services in order to create a

[[Page 2084]]

     plan for an integrated senior transportation program;
       ``(C) provide resources on ways to pay for senior 
     transportation services;
       ``(D) create a web site to publicize and circulate 
     information on senior transportation programs;
       ``(E) establish a clearinghouse for print, video, and audio 
     resources on senior mobility; and
       ``(F) administer the demonstration grant program 
     established under paragraph (4).
       ``(4) Grants authorized.--
       ``(A) In general.--The national technical assistance center 
     established under this section, in consultation with the 
     Federal Transit Administration, shall award senior 
     transportation demonstration grants to--
       ``(i) local transportation organizations;
       ``(ii) State agencies;
       ``(iii) units of local government; and
       ``(iv) nonprofit organizations.
       ``(B) Use of funds.--Grant funds received under this 
     paragraph may be used to--
       ``(i) evaluate the state of transportation services for 
     senior citizens;
       ``(ii) recognize barriers to mobility that senior citizens 
     encounter in their communities;
       ``(iii) establish partnerships and promote coordination 
     among community stakeholders, including public, not-for-
     profit, and for-profit providers of transportation services 
     for senior citizens;
       ``(iv) identify future transportation needs of senior 
     citizens within local communities; and
       ``(v) establish strategies to meet the unique needs of 
     healthy and frail senior citizens.
       ``(C) Selection of grantees.--The Secretary shall select 
     grantees under this subsection based on a fair representation 
     of various geographical locations throughout the United 
     States.
       ``(5) Allocations.--From the funds made available for each 
     fiscal year under subsections (a)(5)(C)(iv) and (b)(2)(G)(iv) 
     of section 5338, $3,000,000 shall be allocated to carry out 
     this subsection.
       ``(d) Alternative Fuels Study.--
       ``(1) Study.--The Secretary shall conduct a study of the 
     actions necessary to facilitate the purchase of increased 
     volumes of alternative fuels (as defined in section 301 of 
     the Energy Policy Act of 1992 (42 U.S.C. 13211)) for use in 
     public transit vehicles
       ``(2) Scope of study.--The study conducted under this 
     subsection shall focus on the incentives necessary to 
     increase the use of alternative fuels in public transit 
     vehicles, including buses, fixed guideway vehicles, and 
     ferries.
       ``(3) Contents.--The study shall consider--
       ``(A) the environmental benefits of increased use of 
     alternative fuels in transit vehicles;
       ``(B) existing opportunities available to transit system 
     operators that encourage the purchase of alternative fuels 
     for transit vehicle operation;
       ``(C) existing barriers to transit system operators that 
     discourage the purchase of alternative fuels for transit 
     vehicle operation, including situations where alternative 
     fuels that do not require capital improvements to transit 
     vehicles are disadvantaged over fuels that do require such 
     improvements; and
       ``(D) the necessary levels and type of support necessary to 
     encourage additional use of alternative fuels for transit 
     vehicle operation.
       ``(4) Recommendations.--The study shall recommend 
     regulatory and legislative alternatives that will result in 
     the increased use of alternative fuels in transit vehicles.
       ``(5) Report.--Not later than 1 year after the date of 
     enactment of the Federal Public Transportation Act of 2004, 
     the Secretary shall submit the study completed under this 
     subsection to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives''.
       (c) Conforming Amendments.--
       (1) Section heading.--The heading for section 5314 is 
     amended to read as follows:

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

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

  ``5314. National research programs.''.

     SEC. 3017. NATIONAL TRANSIT INSTITUTE.

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

     SEC. 3018. BUS TESTING FACILITY.

       Section 5318 is amended--
       (1) in subsection (a)--
       (A) by striking ``Establishment.--The Secretary of 
     Transportation shall establish one facility'' and inserting 
     ``In General.--The Secretary shall maintain 1 facility''; and
       (B) by striking ``established by renovating'' and inserting 
     ``maintained at''; and
       (2) in subsection (d), by striking ``section 5309(m)(1)(C) 
     of this title'' and inserting ``paragraphs (1)(C) and (2)(B) 
     of section 5309(i)''.

     SEC. 3019. BICYCLE FACILITIES.

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

     SEC. 3020. SUSPENDED LIGHT RAIL TECHNOLOGY PILOT PROJECT.

       Section 5320 is repealed.

     SEC. 3021. CRIME PREVENTION AND SECURITY.

       Section 5321 is repealed.

     SEC. 3022. GENERAL PROVISIONS ON ASSISTANCE.

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

[[Page 2085]]

       ``(A) In general.--Except as provided under subparagraph 
     (B), a recipient may provide incidental charter bus service 
     only within its lawful service area if--
       ``(i) the recipient annually publishes, by electronic and 
     other appropriate means, a notice--

       ``(I) indicating its intent to offer incidental charter bus 
     service within its lawful service area; and
       ``(II) soliciting notices from private bus operators that 
     wish to appear on a list of carriers offering charter bus 
     service in that service area;

       ``(ii) the recipient provides private bus operators with an 
     annual opportunity to notify the recipient of its desire to 
     appear on a list of carriers offering charter bus service in 
     such service area;
       ``(iii) upon receiving a request for charter bus service, 
     the recipient electronically notifies the private bus 
     operators listed as offering charter service in that service 
     area with the name and contact information of the requestor 
     and the nature of the charter service request; and
       ``(iv) the recipient does not offer to provide charter bus 
     service unless no private bus operator indicates that it is 
     willing and able to provide the service within a 72-hour 
     period after the receipt of such notice.
       ``(B) Exception.--A recipient that operates 2,000 or fewer 
     vehicles in fixed-route peak hour service may provide 
     incidental charter bus transportation directly to --
       ``(i) local governments; and
       ``(ii) social service entities with limited resources.
       ``(C) Irregularly scheduled events.--Service, other than 
     commuter service, by a recipient to irregularly scheduled 
     events, where the service is conducted in whole or in part 
     outside the service area of the recipient, regardless of 
     whether the service is contracted for individually with 
     passengers, is subject to a rebuttable presumption that such 
     service is charter service.
       ``(2) Violation of agreements.--
       ``(A) Complaints.--A complaint regarding the violation of a 
     charter bus service agreement shall be submitted to the 
     Regional Administrator of the Federal Transit Administration, 
     who shall--
       ``(i) provide a reasonable opportunity for the recipient to 
     respond to the complaint;
       ``(ii) provide the recipient with an opportunity for an 
     informal hearing; and
       ``(iii) issue a written decision not later than 60 days 
     after the parties have completed their submissions.
       ``(B) Appeals.--
       ``(i) In general.--A decision by the Regional Administrator 
     may be appealed to a panel comprised of the Federal Transit 
     Administrator, personnel in the Office of the Secretary of 
     Transportation, and other persons with expertise in surface 
     passenger transportation issues.
       ``(ii) Standard of review.--The panel described in clause 
     (i) shall consider the complaint de novo on all issues of 
     fact and law.
       ``(iii) Written decision.--The appeals panel shall issue a 
     written decision on an appeal not later than 60 days after 
     the completion of submissions. This decision shall be the 
     final order of the agency and subject to judicial review in 
     district court.
       ``(C) Correction.--If the Secretary determines that a 
     violation of an agreement relating to the provision of 
     charter service has occurred, the Secretary shall correct the 
     violation under terms of the agreement.
       ``(D) Remedies.--The Secretary may issue orders to 
     recipients to cease and desist in actions that violate the 
     agreement, and such orders shall be binding upon the parties. 
     In addition to any remedy spelled out in the agreement, if a 
     recipient has failed to correct a violation within 60 days 
     after the receipt of a notice of violation from the 
     Secretary, the Secretary shall withhold from the recipient 
     the lesser of--
       ``(i) 5 percent of the financial assistance available to 
     the recipient under this chapter for the next fiscal year; or
       ``(ii) $200,000.
       ``(3) Regulations.--Not later than 1 year after the date of 
     enactment of the Federal Public Transportation Act of 2004, 
     the Secretary shall issue amended regulations that--
       ``(A) implement this subsection, as revised by such Act; 
     and
       ``(B) impose restrictions, procedures, and remedies in 
     connection with sightseeing service by a recipient.
       ``(4) Public notice.--The Secretary shall make all written 
     decisions, guidance, and other pertinent materials relating 
     to the procedures in this subsection available to the public 
     in electronic and other appropriate formats in a timely 
     manner.'';
       (5) by striking subsection (e);
       (6) by redesignating subsection (f) as subsection (e);
       (7) in subsection (e), as redesignated--
       (A) by striking ``(1)'' and inserting the following:
       ``(1) In general.--'';
       (B) by striking paragraph (2);
       (C) by striking ``This subsection'' and inserting the 
     following:
       ``(2) Exceptions.--This subsection; and
       (D) by adding at the end the following:
       ``(3) Penalty.--If the Secretary determines that an 
     applicant, governmental authority, or publicly owned operator 
     has violated the agreement required under paragraph (1), the 
     Secretary shall bar the applicant, authority, or operator 
     from receiving Federal transit assistance in an amount the 
     Secretary determines to be appropriate.'';
       (8) by inserting after subsection (e) the following:
       ``(f) Bond Proceeds Eligible for Local Share.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, a recipient of assistance under section 5307 or 5309, 
     may use the proceeds from the issuance of revenue bonds as 
     part of the local matching funds for a capital project.
       ``(2) Reimbursement by secretary.--The Secretary may 
     reimburse an eligible recipient for deposits of bond proceeds 
     in a debt service reserve that the recipient established 
     pursuant to section 5302(a)(1)(K) from amounts made available 
     to the recipient under section 5307 or 5309.'';
       (9) in subsection (g)--
       (A) by striking ``(f)'' each place it appears and inserting 
     ``(e)''; and
       (B) by striking ``103(e)(4) and 142 (a) or (c)'' each place 
     it appears and inserting ``133 and 142'';
       (10) by amending subsection (h) to read as follows:
       ``(h) Transfer of Lands or Interests in Lands Owned by the 
     United States.--
       (1) Request by secretary.--If the Secretary determines that 
     any part of the lands or interests in lands owned by the 
     United States and made available as a result of a military 
     base closure is necessary for transit purposes eligible under 
     this chapter, including corridor preservation, the Secretary 
     shall submit a request to the head of the Federal agency 
     supervising the administration of such lands or interests in 
     lands. Such request shall include a map showing the portion 
     of such lands or interests in lands, which is desired to be 
     transferred for public transportation purposes.
       ``(2) Transfer of land.--If 4 months after submitting a 
     request under paragraph (1), the Secretary does not receive a 
     response from the Federal agency described in paragraph (1) 
     that certifies that the proposed appropriation of land is 
     contrary to the public interest or inconsistent with the 
     purposes for which such land has been reserved, or if the 
     head of such agency agrees to the utilization or transfer 
     under conditions necessary for the adequate protection and 
     utilization of the reserve, such land or interests in land 
     may be utilized or transferred to a State, local governmental 
     authority, or public transportation operator for such 
     purposes and subject to the conditions specified by such 
     agency.
       ``(3) Reversion.--If at any time the lands or interests in 
     land utilized or transferred under paragraph (2) are no 
     longer needed for public transportation purposes, the State, 
     local governmental authority, or public transportation 
     operator that received the land shall notify to the 
     Secretary, and such lands shall immediately revert to the 
     control of the head of the Federal agency from which the land 
     was originally transferred.'';
       (11) in subsection (j)(5), by striking ``Intermodal Surface 
     Transportation Efficiency Act of 1991 (Public Law 102-240, 
     105 Stat. 1914)'' and inserting ``Federal Public 
     Transportation Act of 2004'';
       (12) by amending subsection (l) to read as follows:
       ``(l) Relationship to Other Laws.--Section 1001 of title 18 
     applies to a certificate, submission, or statement provided 
     under this chapter. The Secretary may terminate financial 
     assistance under this chapter and seek reimbursement 
     directly, or by offsetting amounts, available under this 
     chapter, if the Secretary determines that a recipient of such 
     financial assistance has made a false or fraudulent statement 
     or related act in connection with a Federal transit 
     program.'';
       (13) in subsection (m), by inserting at the end the 
     following: ``Requirements to perform preaward and 
     postdelivery reviews of rolling stock purchases to ensure 
     compliance with subsection (j) shall not apply to private 
     nonprofit organizations or to grantees serving urbanized 
     areas with a population of fewer than 1,000,000.'';
       (14) in subsection (o), by striking ``the Transportation 
     Infrastructure Finance and Innovation Act of 1998'' and 
     inserting ``sections 181 through 188 of title 23''; and
       (15) by adding at the end the following:
       ``(p) Prohibited Use of Funds.--Grant funds received under 
     this chapter may not be used to pay ordinary governmental or 
     nonproject operating expenses.''.

     SEC. 3023. SPECIAL PROVISIONS FOR CAPITAL PROJECTS.

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

     ``Sec. 5324. Special provisions for capital projects

       ``(a) Real Property and Relocation Services.--Whenever real 
     property is acquired or furnished as a required contribution 
     incident to a project, the Secretary shall not approve the 
     application for financial assistance unless the applicant has 
     made all payments and provided all assistance and assurances 
     that are required of a State agency under sections 210 and 
     305 of the Uniform Relocation Assistance and Real Property 
     Acquisition Policies Act of 1970 (42 U.S.C. 4630 and 4655). 
     The Secretary must be advised of

[[Page 2086]]

     specific references to any State law that are believed to be 
     an exception to section 301 or 302 of such Act (42 U.S.C. 
     4651 and 4652).
       ``(b) Advance Real Property Acquisitions.--
       (1) In general.--The Secretary may participate in the 
     acquisition of real property 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 and if--
       ``(A) there are offers on the open real estate market to 
     convey that property for a use that is incompatible with the 
     project under study;
       ``(B) there is an imminent threat of development or 
     redevelopment of the property for a use that is incompatible 
     with the project under study;
       ``(C) recent appraisals reflect a rapid increase in the 
     fair market value of the property;
       ``(D) the property, because it is located near an existing 
     transportation facility, is likely to be developed and to be 
     needed for a future transportation improvement; or
       ``(E) the property owner can demonstrate that, for health, 
     safety, or financial reasons, retaining ownership of the 
     property poses an undue hardship on the owner in comparison 
     to other affected property owners and requests the 
     acquisition to alleviate that hardship.
       ``(2) Environmental reviews.--Property acquired in 
     accordance with this subsection may not be developed in 
     anticipation of the project until all required environmental 
     reviews for the project have been completed.
       ``(3) Limitation.--The Secretary shall limit the size and 
     number of properties acquired under this subsection as 
     necessary to avoid any prejudice to the Secretary's objective 
     evaluation of project alternatives.
       ``(4) Exemption.--An acquisition under this section shall 
     be considered an exempt project under section 176 of the 
     Clean Air Act (42 U.S.C. 7506).
       ``(c) Railroad Corridor Preservation.--
       ``(1) In general.--The Secretary may assist an applicant to 
     acquire railroad right-of-way before the completion of the 
     environmental reviews for any project that may use the right-
     of-way if the acquisition is otherwise permitted under 
     Federal law. The Secretary may establish restrictions on such 
     an acquisition as the Secretary determines to be necessary 
     and appropriate.
       ``(2) Environmental reviews.--Railroad right-of-way 
     acquired under this subsection may not be developed in 
     anticipation of the project until all required environmental 
     reviews for the project have been completed.
       ``(d) Consideration of Economic, Social, and Environmental 
     Interests.--
       ``(1) In general.--The Secretary may not approve an 
     application for financial assistance for a capital project 
     under this chapter unless the Secretary determines that the 
     project has been developed in accordance with the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
     The Secretary's findings under this paragraph shall be made a 
     matter of public record.
       ``(2) Cooperation and consultation.--In carrying out 
     section 5301(e), the Secretary shall cooperate and consult 
     with the Secretary of the Interior and the Administrator of 
     the Environmental Protection Agency on each project that may 
     have a substantial impact on the environment.''.
       (b) Conforming Amendment.--The item relating to section 
     5324 in the table of sections for chapter 53 is amended to 
     read as follows:

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

     SEC. 3024. CONTRACT REQUIREMENTS.

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

     ``Sec. 5325. Contract requirements

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

     SEC. 3025. PROJECT MANAGEMENT OVERSIGHT AND REVIEW.

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

[[Page 2087]]

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

     SEC. 3026. PROJECT REVIEW.

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

     SEC. 3027. INVESTIGATIONS OF SAFETY AND SECURITY RISK.

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

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

       ``(a) In General.--The Secretary may conduct investigations 
     into safety hazards and security risks associated with a 
     condition in equipment, a facility, or an operation financed 
     under this chapter to establish the nature and extent of the 
     condition and how to eliminate, mitigate, or correct it.
       ``(b) Submission of Corrective Plan.--If the Secretary 
     establishes that a safety hazard or security risk warrants 
     further protective measures, the Secretary shall require the 
     local governmental authority receiving amounts under this 
     chapter to submit a plan for eliminating, mitigating, or 
     correcting it.
       ``(c) Withholding of Funds.--Financial assistance under 
     this chapter, in an amount to be determined by the Secretary, 
     may be withheld until a plan is approved and carried out.
       ``(d) Public Transportation Security.--
       ``(1) In general.--Not later than 90 days after the date of 
     enactment of the Federal Public Transportation Act of 2004, 
     the Secretary shall enter into a memorandum of understanding 
     with the Secretary of Homeland Security to define and clarify 
     the respective roles and responsibilities of the Department 
     of Transportation and the Department of Homeland Security 
     relating to public transportation security.
       ``(2) Contents.--The memorandum of understanding described 
     in paragraph (1) shall--
       ``(A) establish national security standards for public 
     transportation agencies;
       ``(B) establish funding priorities for grants from the 
     Department of Homeland Security to public transportation 
     agencies;
       ``(C) create a method of coordination with public 
     transportation agencies on security matters; and
       ``(D) address any other issues determined to be appropriate 
     by the Secretary and the Secretary of Homeland Security.''.
       (b) Conforming Amendment.--The item relating to section 
     5329 in the table of sections for chapter 53 is amended to 
     read as follows:

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

     SEC. 3028. STATE SAFETY OVERSIGHT.

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

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

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

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

     SEC. 3029. SENSITIVE SECURITY INFORMATION.

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

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

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

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

     SEC. 3031. CONTROLLED SUBSTANCES AND ALCOHOL MISUSE TESTING.

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

     SEC. 3032. EMPLOYEE PROTECTIVE ARRANGEMENTS.

       Section 5333(b) is amended--
       (1) in paragraph (3), by striking the period at the end and 
     inserting ``, provided that--
       ``(A) the protective period shall not exceed 4 years; and
       ``(B) the separation allowance shall not exceed 12 
     months.''; and
       (2) by adding at the end the following:
       ``(4) An arrangement under this subsection shall not 
     guarantee continuation of employment as a result of a change 
     in private contractors through competitive bidding unless 
     such continuation is otherwise required under subparagraph 
     (A), (B), or (D) of paragraph (2).
       ``(5) Fair and equitable arrangements to protect the 
     interests of employees utilized by the Secretary of Labor for 
     assistance to purchase like-kind equipment or facilities, and 
     amendments to existing assistance agreements, shall be 
     certified without referral.
       ``(6) Nothing in this subsection shall affect the level of 
     protection provided to freight railroad employees.''.

     SEC. 3033. ADMINISTRATIVE PROCEDURES.

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

[[Page 2088]]

     of this title'' and inserting ``advise and assist the 
     Secretary in carrying out section 5312(a)''.

     SEC. 3034. REPORTS AND AUDITS.

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

     SEC. 3035. APPORTIONMENTS OF APPROPRIATIONS FOR FORMULA 
                   GRANTS.

       Section 5336 is amended--
       (1) by striking subsection (d);
       (2) by striking subsection (h);
       (3) by striking subsection (k);
       (4) by redesignating subsections (a) through (c) as 
     subsections (b) through (d), respectively;
       (5) by adding before subsection (b), as redesignated, the 
     following:
       ``(a) Apportionments.--Of the amounts made available for 
     each fiscal year under subsections (a)(1)(C)(vi) and 
     (b)(2)(L) of section 5338--
       ``(1) there shall be apportioned, in fiscal year 2005 and 
     each fiscal year thereafter, $35,000,000 to certain urbanized 
     areas with populations of less than 200,000 in accordance 
     with subsection (k); and
       ``(2) any amount not apportioned under paragraph (1) shall 
     be apportioned to urbanized areas in accordance with 
     subsections (b) through (d).'';
       (6) in subsection (b), as redesignated--
       (A) by striking ``Of the amount made available or 
     appropriated under section 5338(a) of this title'' and 
     inserting ``Of the amount apportioned under subsection 
     (a)(3)''; and
       (B) in paragraph (2), by striking ``subsections (b) and (c) 
     of this section'' and inserting ``subsections (c) and (d)'';
       (7) in subsection (c)(2), as redesignated, by striking 
     ``subsection (a)(2) of this section'' and inserting 
     ``subsection (b)(2)'';
       (8) in subsection (d), as redesignated, by striking 
     ``subsection (a)(2) of this section'' and inserting 
     ``subsection (b)(2)'';
       (9) in subsection (e)(1), by striking ``subsections (a) and 
     (h)(2) of section 5338 of this title'' and inserting 
     ``subsections (a) and (b) of section 5338'';
       (10) in subsection (g), by striking ``subsection (a)(1) of 
     this section'' each place it appears and inserting 
     ``subsection (b)(1)''; and
       (11) by adding at the end the following:
       ``(k) Small Transit Intensive Cities Factors.--The amount 
     apportioned under subsection (a)(1) shall be apportioned to 
     urbanized areas as follows:
       ``(1) The Secretary shall calculate a factor equal to the 
     sum of revenue vehicle hours operated within urbanized areas 
     with a population of between 200,000 and 1,000,000 divided by 
     the sum of the population of all such urbanized areas.
       ``(2) The Secretary shall designate as eligible for an 
     apportionment under this subsection all urbanized areas with 
     a population of under 200,000 for which the number of revenue 
     vehicle hours operated within the urbanized area divided by 
     the population of the urbanized area exceeds the factor 
     calculated under paragraph (1).
       ``(3) For each urbanized area qualifying for an 
     apportionment under paragraph (2), the Secretary shall 
     calculate an amount equal to the product of the population of 
     that urbanized area and the factor calculated under paragraph 
     (1).
       ``(4) For each urbanized area qualifying for an 
     apportionment under paragraph (2), the Secretary shall 
     calculate an amount equal to the difference between the 
     number of revenue vehicle hours within that urbanized area 
     less the amount calculated in paragraph (3).
       ``(5) Each urbanized area qualifying for an apportionment 
     under paragraph (2) shall receive an amount equal to the 
     amount to be apportioned under this subsection multiplied by 
     the amount calculated for that urbanized area under paragraph 
     (4) divided by the sum of the amounts calculated under 
     paragraph (4) for all urbanized areas qualifying for an 
     apportionment under paragraph (2).
       ``(l) Study on Incentives in Formula Programs.--
       ``(1) Study.--The Secretary shall conduct a study to assess 
     the feasibility and appropriateness of developing and 
     implementing an incentive funding system under sections 5307 
     and 5311 for operators of public transportation.
       ``(2) Report.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of the Federal Public Transportation Act of 2004, 
     the Secretary shall submit a report on the results of the 
     study conducted under paragraph (1) to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives.
       ``(B) Contents.--The report submitted under subparagraph 
     (A) shall include--
       ``(i) an analysis of the availability of appropriate 
     measures to be used as a basis for the distribution of 
     incentive payments;
       ``(ii) the optimal number and size of any incentive 
     programs;
       ``(iii) what types of systems should compete for various 
     incentives;
       ``(iv) how incentives should be distributed; and
       ``(v) the likely effects of the incentive funding 
     system.''.

     SEC. 3036. APPORTIONMENTS FOR FIXED GUIDEWAY MODERNIZATION.

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

     SEC. 3037. AUTHORIZATIONS.

       Section 5338 is amended to read as follows:

     ``Sec. 5338. Authorizations

       ``(a) Fiscal Year 2004.--
       ``(1) Formula grants.--
       ``(A) Trust fund.--For fiscal year 2004, $3,053,079,920 
     shall be available from the Mass Transit Account of the 
     Highway Trust Fund to carry out sections 5307, 5309, 5310, 
     and 5311 of this chapter and section 3038 of the 
     Transportation Equity Act for the 21st Century (49 U.S.C. 
     5310 note).
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there are authorized to be 
     appropriated $763,269,980 for fiscal year 2004 to carry out 
     sections 5307, 5309, 5310, and 5311 of this chapter and 
     section 3038 of the Transportation Equity Act for the 21st 
     Century (49 U.S.C. 5310 note).
       ``(C) Allocation of funds.--Of the amounts made available 
     or appropriated under this paragraph--
       ``(i) $4,821,335 shall be available to the Alaska Railroad 
     for improvements to its passenger operations under section 
     5307;
       ``(ii) $6,908,995 shall be available to provide over-the-
     road bus accessibility grants under section 3038 of the 
     Transportation Equity Act for the 21st Century (49 U.S.C. 
     5310 note);
       ``(iii) $90,117,950 shall be available to provide 
     transportation services to elderly individuals and 
     individuals with disabilities under section 5310;
       ``(iv) $239,188,058 shall be available to provide financial 
     assistance for other than urbanized areas under section 5311;
       ``(v) $3,425,608,562 shall be available to provide 
     financial assistance for urbanized areas under section 5307; 
     and
       ``(vi) $49,705,000 shall be available to provide financial 
     assistance for buses and bus facilities under section 5309.
       ``(2) Job access and reverse commute.--
       ``(A) Trust fund.--For fiscal year 2004, $99,410,000 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out section 3037 of the Transportation 
     Equity Act for the 21st Century (49 U.S.C. 5309 note).
       ``(B) General fund.--In addition to the amounts made 
     available under paragraph (A), there are authorized to be 
     appropriated $24,852,500 for fiscal year 2004 to carry out 
     section 3037 of the Transportation Equity Act of the 21st 
     Century (49 U.S.C. 5309 note).
       ``(3) Capital program grants.--
       ``(A) Trust fund.--For fiscal year 2004, $2,495,191,000 
     shall be available from the Mass Transit Account of the 
     Highway Trust Fund to carry out section 5309.
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there are authorized to be 
     appropriated $623,797,750 for fiscal year 2004 to carry out 
     section 5309.
       ``(4) Planning.--
       ``(A) Trust fund.--For fiscal year 2004, $58,254,260 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out section 5308.
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there are authorized to be 
     appropriated $14,315,040 for fiscal year 2004 to carry out 
     section 5308.
       ``(C) Allocation of funds.--Of the amounts made available 
     or appropriated under this paragraph--
       ``(i) 82.72 percent shall be allocated for metropolitan 
     planning under section 5308(c); and
       ``(ii) 17.28 percent shall be allocated for State planning 
     under section 5308(d).
       ``(5) Research.--
       ``(A) Trust fund.--For fiscal year 2004, $41,951,020 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out sections 5311(b), 5312, 5313, 5314, 
     5315, and 5322.
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there are authorized to be 
     appropriated $10,736,280 for fiscal year 2004 to carry out 
     sections 5311(b), 5312, 5313, 5314, 5315, and 5322.
       ``(C) Allocation of funds.--Of the funds made available or 
     appropriated under this paragraph--
       ``(i) not less than $3,976,400 shall be available to carry 
     out programs of the National Transit Institute under section 
     5315;
       ``(ii) not less than $5,219,025 shall be available to carry 
     out section 5311(b)(2);
       ``(iii) not less than $8,201,325 shall be available to 
     carry out section 5313; and
       ``(iv) the remainder shall be available to carry out 
     national research and technology programs under sections 
     5312, 5314, and 5322.
       ``(6) University transportation research.--

[[Page 2089]]

       ``(A) Trust fund.--For fiscal year 2004, $4,771,680 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out sections 5505 and 5506.
       ``(B) General fund.--In addition to amounts made available 
     under subparagraph (A), there are authorized to be 
     appropriated $1,192,920 for fiscal year 2004 to carry out 
     sections 5505 and 5506.
       ``(C) Allocation of funds.--Of the amounts made available 
     or appropriated under this paragraph--
       ``(i) $1,988,200 shall be available for grants under 
     5506(f)(5) to the institution identified in section 
     5505(j)(3)(E), as in effect on the day before the date of 
     enactment of the Federal Public Transportation Act of 2004;
       ``(ii) $1,988,200 shall be available for grants under 
     section 5505(d) to the institution identified in section 
     5505(j)(4)(A), as in effect on the date specified in clause 
     (i); and
       ``(iii) $1,988,200 shall be available for grants under 
     section 5505(d) to the institution identified in section 
     5505(j)(4)(F), as in effect on the date specified in 
     subclause (I).
       ``(C) Special rule.--Nothing in this paragraph shall be 
     construed to limit the transportation research conducted by 
     the centers receiving financial assistance under this 
     section.
       ``(7) Administration.--
       ``(A) Trust fund.--For fiscal year 2004, $60,043,640 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out section 5334.
       ``(B) General fund.--In addition to amounts made available 
     under subparagraph (A), there are authorized to be 
     appropriated $15,010,910 for fiscal year 2004 to carry out 
     section 5334.
       ``(8) Grants as contractual obligations.--
       ``(A) Grants financed from highway trust fund.--A grant or 
     contract that is approved by the Secretary and financed with 
     amounts made available under paragraph (1)(A), (2)(A), 
     (3)(A), (4)(A), (5)(A), (6)(A), or (7)(A) is a contractual 
     obligation of the United States Government to pay the Federal 
     share of the cost of the project.
       ``(B) Grants financed from general fund.--A grant or 
     contract that is approved by the Secretary and financed with 
     amounts appropriated in advance under paragraph (1)(B), 
     (2)(B), (3)(B), (4)(B), (5)(B), (6)(B), or (7)(B) is a 
     contractual obligation of the United States Government to pay 
     the Federal share of the cost of the project only to the 
     extent that amounts are appropriated for such purpose by an 
     Act of Congress.
       ``(9) Availability of Amounts.--Amounts made available or 
     appropriated under paragraphs (1) through (6) shall remain 
     available until expended.''.
       ``(b) Formula Grants and Research.--
       ``(1) In general.--There shall be available from the Mass 
     Transit Account of the Highway Trust Fund to carry out 
     sections 5307, 5308, 5309, 5310 through 5316, 5322, 5335, 
     5340, and 5505 of this title, and sections 3037 and 3038 of 
     the Federal Transit Act of 1998 (112 Stat. 387 et seq.)--
       ``(A) $6,262,600,000 for fiscal year 2005;
       ``(B) $6,577,629,000 for fiscal year 2006;
       ``(C) $6,950,400,000 for fiscal year 2007;
       ``(D) $7,594,760,000 for fiscal year 2008; and
       ``(E) $8,275,320,000 for fiscal year 2009.
       ``(2) Allocation of funds.--Of the amounts made available 
     under paragraph (1) for each fiscal year--
       ``(A) 0.092 percent shall be available for grants to the 
     Alaska Railroad under section 5307 for improvements to its 
     passenger operations;
       ``(B) 1.75 percent shall be available to carry out section 
     5308;
       ``(C) 2.05 percent shall be available to provide financial 
     assistance for job access and reverse commute projects under 
     section 3037 of the Federal Transit Act of 1998 (49 U.S.C. 
     5309 note);
       ``(D) 3.00 percent shall be available to provide financial 
     assistance for services for elderly persons and persons with 
     disabilities under section 5310;
       ``(E) 0.125 percent shall be available to carry out section 
     3038 of the Transportation Equity Act for the 21st Century 
     (49 U.S.C. 5310 note);
       ``(F) 6.25 percent shall be available to provide financial 
     assistance for other than urbanized areas under section 5311;
       ``(G) 0.89 percent shall be available to carry out transit 
     cooperative research programs under section 5313, the 
     National Transit Institute under section 5315, university 
     research centers under section 5505, and national research 
     programs under sections 5312, 5313, 5314, and 5322, of 
     which--
       ``(i) 17.0 percent shall be allocated to carry out transit 
     cooperative research programs under section 5313;
       ``(ii) 7.5 percent shall be allocated to carry out programs 
     under the National Transit Institute under section 5315, 
     including not more than $1,000,000 to carry out section 
     5315(a)(16);
       ``(iii) 11.0 percent shall be allocated to carry out the 
     university centers program under section 5505; and
       ``(iv) any funds made available under this subparagraph 
     that are not allocated under clauses (i) through (iii) shall 
     be allocated to carry out national research programs under 
     sections 5312, 5313, 5314, and 5322;
       ``(H) $25,000,000 shall be available for each of the fiscal 
     years 2005 through 2009 to carry out section 5316;
       ``(I) there shall be available to carry out section 5335--
       ``(i) $3,700,000 in fiscal year 2005;
       ``(iii) $3,900,000 in fiscal year 2006;
       ``(iv) $4,200,000 in fiscal year 2007;
       ``(v) $4,600,000 in fiscal year 2008; and
       ``(vi) $5,000,000 in fiscal year 2009;
       ``(J) 6.25 percent shall be allocated in accordance with 
     section 5340 to provide financial assistance for urbanized 
     areas under section 5307 and other than urbanized areas under 
     section 5311; and
       ``(K) 22.0 percent shall be allocated in accordance with 
     section 5337 to provide financial assistance under section 
     5309(i)(3); and
       ``(L) any amounts not made available under subparagraphs 
     (A) through (K) shall be allocated in accordance with section 
     5336 to provide financial assistance for urbanized areas 
     under section 5307.
       ``(3) University centers program.--
       ``(A) Allocation.--Of the amounts allocated under paragraph 
     (2)(G)(iii), $1,000,000 shall be available in each of the 
     fiscal years 2005 through 2009 for Morgan State University to 
     provide transportation research, training, and curriculum 
     development.
       ``(B) Requirements.--The university specified under 
     subparagraph (A) shall be considered a University 
     Transportation Center under section 510 of title 23, and 
     shall be subject to the requirements under subsections (c), 
     (d), (e), and (f) of such section.
       ``(C) Report.--In addition to the report required under 
     section 510(e)(3) of title 23, the university specified under 
     subparagraph (A) shall annually submit a report to the 
     Secretary that describes the university's contribution to 
     public transportation.
       ``(4) Bus grants.--In addition to the amounts made 
     available under paragraph (1), there shall be available from 
     the Mass Transit Account of the Highway Trust Fund to carry 
     out section 5309(i)(2)(B)--
       ``(A) $839,829,000 for fiscal year 2005;
       ``(B) $882,075,000 for fiscal year 2006;
       ``(C) $932,064,000 for fiscal year 2007;
       ``(D) $1,018,474,000 for fiscal year 2008; and
       ``(E) $1,109,739,000 for fiscal year 2009.
       ``(c) Major Capital Investment Grants.--There are 
     authorized to be appropriated to carry out section 
     5309(i)(2)(A)--
       ``(1) $1,461,072,000 for fiscal year 2005;
       ``(2) $1,534,568,000 for fiscal year 2006;
       ``(3) $1,621,536,000 for fiscal year 2007;
       ``(4) $1,771,866,000 for fiscal year 2008; and
       ``(5) $1,930,641,000 for fiscal year 2009.
       ``(d) Administration.--There shall be available from the 
     Mass Transit Account of the Highway Trust Fund to carry out 
     section 5334--
       ``(1) $86,500,000 for fiscal year 2005;
       ``(2) $90,851,000 for fiscal year 2006;
       ``(3) $96,000,000 for fiscal year 2007;
       ``(4) $104,900,000 for fiscal year 2008; and
       ``(5) $114,300,000 for fiscal year 2009.
       ``(e) Grants as Contractual Obligations.--
       ``(1) Mass transit account funds.--A grant or contract 
     approved by the Secretary that is financed with amounts made 
     available under subsection (b)(1) or (d) is a contractual 
     obligation of the United States Government to pay the Federal 
     share of the cost of the project.
       ``(2) Appropriated funds.--A grant or contract approved by 
     the Secretary that is financed with amounts made available 
     under subsection (b)(2) or (c) is a contractual obligation of 
     the United States Government to pay the Federal share of the 
     cost of the project only to the extent that amounts are 
     appropriated in advance for such purpose by an Act of 
     Congress.
       ``(f) Availability of Amounts.--Amounts made available by 
     or appropriated under subsections (b) and (c) shall remain 
     available until expended.''.

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

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

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

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

[[Page 2090]]

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

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

     SEC. 3039. JOB ACCESS AND REVERSE COMMUTE GRANTS.

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

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

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

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

       (b) Funding.--Section 3038(g) of the Federal Transit Act of 
     1998 (49 U.S.C. 5310 note) is amended to read as follows:
       ``(g) Funding.--Of the amounts made available for each 
     fiscal year under subsections (a)(1)(C)(iii) and (b)(2)(E) of 
     section 5338 of title 49, United States Code--
       ``(1) 75 percent shall be available, and shall remain 
     available until expended, for operators of over-the-road 
     buses, used substantially or exclusively in intercity, fixed-
     route over-the-road bus service, to finance the incremental 
     capital and training costs of the Department of 
     Transportation's final rule regarding accessibility of over-
     the-road buses; and
       ``(2) 25 percent shall be available, and shall remain 
     available until expended, for operators of over-the-road bus 
     service not described in paragraph (1), to finance the 
     incremental capital and training costs of the Department of 
     Transportation's final rule regarding accessibility of over-
     the-road buses.''.
       (b) Conforming Amendment.--The item relating to section 
     3038 in the table of contents for the Transportation Equity 
     Act for the 21st Century (Public Law 105-178) is amended to 
     read as follows:

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

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

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

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

       ``(a) In General.--
       ``(1) Authorization.--
       ``(A) In general.--The Secretary, in consultation with the 
     Secretary of the Interior, may award a grant or enter into a 
     contract, cooperative agreement, interagency agreement, 
     intraagency agreement, or other transaction to carry out a 
     qualified project under this section to enhance the 
     protection of America's National Parks and public lands and 
     increase the enjoyment of those visiting the parks and public 
     lands by ensuring access to all, including persons with 
     disabilities, improving conservation and park and public land 
     opportunities in urban areas through partnering with state 
     and local governments, and improving park and public land 
     transportation infrastructure.
       ``(B) Consultation with other agencies.--To the extent that 
     projects are proposed or funded in eligible areas that are 
     not within the jurisdiction of the Department of the 
     Interior, the Secretary of the Interior shall consult with 
     the heads of the relevant Federal land management agencies in 
     carrying out the responsibilities under this section.
       ``(2) Use of funds.--A grant, cooperative agreement, 
     interagency agreement, intraagency agreement, or other 
     transaction for a qualified project under this section

[[Page 2091]]

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

[[Page 2092]]

     payable on bonds issued by a State or local governmental 
     authority, to the extent that proceeds of the bond are 
     expended in carrying out that part.
       ``(B) The rate of interest under this paragraph may not 
     exceed the most favorable rate reasonably available for the 
     qualified project at the time of borrowing.
       ``(C) The qualified participant shall certify, in a manner 
     satisfactory to the Secretary, that the qualified participant 
     has exercised reasonable diligence in seeking the most 
     favorable interest rate.
       ``(i) Relationship to Other Laws.--
       ``(1) Section 5307.--A qualified participant under this 
     section shall be subject to the requirements of sections 5307 
     and 5333(a) to the extent the Secretary determines to be 
     appropriate.
       ``(2) Other requirements.--A qualified participant under 
     this section is subject to any other terms, conditions, 
     requirements, and provisions that the Secretary determines to 
     be appropriate to carry out this section, including 
     requirements for the distribution of proceeds on disposition 
     of real property and equipment resulting from a qualified 
     project assisted under this section.
       ``(3) Project management plan.--If the amount of assistance 
     anticipated to be required for a qualified project under this 
     section is not less than $25,000,000--
       ``(A) the qualified project shall, to the extent the 
     Secretary considers appropriate, be carried out through a 
     full funding grant agreement, in accordance with section 
     5309(g); and
       ``(B) the qualified participant shall prepare a project 
     management plan in accordance with section 5327(a).
       ``(i) Asset Management.--The Secretary, in consultation 
     with the Secretary of the Interior, may transfer the interest 
     of the Department of Transportation in, and control over, all 
     facilities and equipment acquired under this section to a 
     qualified participant for use and disposition in accordance 
     with any property management regulations that the Secretary 
     determines to be appropriate.
       ``(j) Coordination of Research and Deployment of New 
     Technologies.--
       ``(1) The Secretary, in cooperation with the Secretary of 
     the Interior, may undertake, or make grants, cooperative 
     agreements, contracts (including agreements with departments, 
     agencies, and instrumentalities of the Federal Government) or 
     other transactions for research, development, and deployment 
     of new technologies in eligible areas that will--
       ``(A) conserve resources;
       ``(B) prevent or mitigate adverse environmental impact;
       ``(C) improve visitor mobility, accessibility, and 
     enjoyment; and
       ``(D) reduce pollution (including noise pollution and 
     visual pollution).
       ``(2) The Secretary may request and receive appropriate 
     information from any source.
       ``(3) Grants, cooperative agreements, contracts or other 
     transactions under paragraph (1) shall be awarded from 
     amounts allocated under subsection (c)(1).
       ``(k) Innovative Financing.--A qualified project receiving 
     financial assistance under this section shall be eligible for 
     funding through a state infrastructure bank or other 
     innovative financing mechanism available to finance an 
     eligible project under this chapter.
       ``(l) Reports.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of the Interior, shall annually submit a report on 
     the allocation of amounts made available to assist qualified 
     projects under this section to--
       ``(A) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate; and
       ``(B) the Committee on Transportation and Infrastructure of 
     the House of Representatives.
       ``(2) Annual and supplemental reports.--The report required 
     under paragraph (1) shall be included in the report submitted 
     under section 5309(m).''.
       (b) Conforming Amendments.--The table of sections for 
     chapter 53 is amended by inserting after the item relating to 
     section 5315 the following:

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

     SEC. 3042. OBLIGATION CEILING.

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

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

       (a) In General.--Notwithstanding any other provision of 
     law, the Secretary shall reduce the total apportionments and 
     allocations made for fiscal year 2004 to each grant recipient 
     under section 5338 of title 49, United States Code, by the 
     amount apportioned to that recipient pursuant to section 8 of 
     the Surface Transportation Extension Act of 2003 (117 Stat. 
     1121).
       (b) Fixed Guideway Modernization Adjustment.--In making the 
     apportionments described in subsection (a), the Secretary 
     shall adjust the amount apportioned for fiscal year 2004 to 
     each urbanized area for fixed guideway modernization to 
     reflect the apportionment method set forth in 5337(a) of 
     title 49, United States Code.

     SEC. 3044. DISADVANTAGED BUSINESS ENTERPRISE.

       Section 1101(b) of the Transportation Equity Act of the 
     21st Century shall apply to all funds authorized or otherwise 
     made available under this title.

     SEC. 3045. INTERMODAL PASSENGER FACILITIES.

       (a) In General.--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

       ``(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

[[Page 2093]]

     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 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) 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 under 
     subsection (a) shall remain available until expended.''.
       (b) Conforming Amendment.--The chapter 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.''.
                                 ______
                                 
  SA 2614. Mr. BUNNING submitted an amendment intended to be proposed 
by him to the bill S. 1072, to authorize funds for Federal-aid 
highways, highway safety programs, and transit programs, and for other 
purposes; which was ordered to lie on the table; as follows:

       Insert in the appropriate place

     SECTION 1. TEMPORARY SPECIAL RULES FOR REFUND OF THE COAL 
                   EXCISE TAX TO CERTAIN COAL EXPORTERS.

       (a) In General.--Notwithstanding sections 6416(a)(1) and 
     (c) and 6511 of the Internal Revenue Code of 1986, the amount 
     of any tax imposed on exported coal under section 4121 of 
     such Code shall be refunded to the exporter of such coal and 
     consistent with the requirements of this section and 
     otherwise applicable provisions of such Code.
       (b) Limitations.--
       (1) Time of filing.--Subsection (a) shall apply only with 
     respect to amounts of tax for which a return was filed on or 
     after December 28, 1992, and before April 1, 2003.
       (2) Exporters related to producers excluded.--Subsection 
     (a) shall not apply with respect to the amount of tax on any 
     coal if the exporter of such coal is also the producer of 
     such coal--
       (A) is related (within the meaning of section 144(a)(3) of 
     such Code) to the producers or seller of such coal, or
       (B) has a contract, fee arrangement, or any other agreement 
     with the producer or seller of such coal to sell such coal to 
     a third party on behalf of the producer or seller of such 
     coal.
       (c) Requirements.--No refund shall be made under this 
     section unless the exporter establishes, through statements, 
     documentation or other evidence--
       (1) the amount of the tax imposed under section 4121 of 
     such Code on such coal;
       (2) the quarter and year that such tax was required to be 
     remitted or paid by the producer or seller of the coal to the 
     Secretary;
       (3) that the amount of such tax was included in the price 
     paid by the exporter for such coal;
       (4) that such coal was exported; and
       (5) that the exporter--
       (A) has not included the tax in the price of such coal and 
     has not collected the amount of such tax from the person who 
     purchased such coal;
       (B) has repaid the amount of the tax to the ultimate 
     purchaser of the coal to the making of the refund; or
       (C) has filed with the Secretary the written consent of the 
     ultimate purchaser of the coal to the making of the refund.
       (d) Presumption of Payment.--If the requirements of 
     Subsection (c) are met, it is presumed that the tax was paid 
     or remitted by the exporter to the government, and the 
     exporter shall be treated as the person (and the only person) 
     who paid the tax.
       (e) Sunset.--This section shall not apply to any claim for 
     refund filed after the date which is 1 year after the date of 
     the enactment of this Act.
                                 ______
                                 
  SA 2615. Ms. LANDRIEU (for herself, Mr. Breaux, Mrs. Lincoln, and Mr. 
Pryor) submitted an amendment intended to be proposed to amendment SA 
2285 proposed by Mr. Inhofe to the bill S. 1072, to authorize funds for 
Federal-aid highways, highway safety programs, and transit programs, 
and for other purposes; as follows:

       On page 39, between lines 22 and 23, insert the following:
       (17) FINISH program.--For the FINISH program under section 
     178 of that title, for each of fiscal years 2004 through 
     2009, an amount equal to 6.4 percent of the amounts received 
     in the Highway Trust Fund (other than the Mass Transit 
     Account) for the fiscal year under section 9503(b) of the 
     Internal Revenue Code of 1986.
       On page 389, between lines 15 and 16, insert the following:

     SEC. 18__. FINISH PROGRAM.

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

     ``Sec. 178. FINISH program

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

``178. FINISH program.''.
                                 ______
                                 
  SA 2616. Mr. INHOFE proposed an amendment to amendment SA 2285 
proposed by Mr. Inhofe to the bill S. 1072, to authorize funds for 
Federal-aid highways, highway safety programs, and transit programs, 
and for other purposes; as follows:

       On page 39, line 6, strike ``$38,000,000'' and insert 
     ``$50,000,000''.
       On page 58, line 21, add a period after the closing 
     quotation marks.
       Beginning on page 80, strike line 7 and all that follows 
     through page 81, line 3, and insert the following:

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

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

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

       ``(a) Construction of Ferry Boats and Ferry Terminal 
     Facilities.--
       ``(1) In general.--The Secretary shall carry out a program 
     for construction of ferry boats and ferry terminal facilities 
     in accordance with section 129(c).
       ``(2) Federal share.--The Federal share of the cost of 
     construction of ferry boats and ferry terminals and 
     maintenance facilities under this subsection shall be 80 
     percent.

[[Page 2094]]

       ``(3) Allocation of funds.--The Secretary shall give 
     priority in the allocation of funds under this subsection to 
     those ferry systems, and public entities responsible for 
     developing ferries, that--
       ``(A) carry the greatest number of passengers and vehicles;
       ``(B) carry the greatest number of passengers in passenger-
     only service; or
       ``(C) provide critical access to areas that are not well-
     served by other modes of surface transportation.
       ``(1) In general.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) $50,000,000 for each fiscal year to carry out this 
     section.
       ``(2) Availability.--Notwithstanding section 118(a), funds 
     made available under paragraph (1) shall be available in 
     advance of an annual appropriation.
       (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 and maintenance 
              facilities.''.

       (2) Section 1064 of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (105 Stat. 2005) is repealed.
       On page 82, line 16, insert ``and'' after the semicolon.
       On page 82, line 18, strike ``; and'' and insert a period.
       On page 82, strike lines 19 through 21.
       On page 83, strike line 3.
       On page 118, line 3, before ``equipment,'' insert 
     ``integrated, interoperable emergency communications,''.
       On page 120, line 18, after ``elements'', insert 
     ``(including integrated, interoperable emergency 
     communications)''.
       On page 127, line 23, strike ``paragraph (1)'' and insert 
     ``subsection (c)(1)(D)''.
       On page 128, strike lines 5 through 20 and insert the 
     following:
       ``(4) Discovery and admission into evidence of certain 
     reports, surveys, and information.--Notwithstanding any other 
     provision of law, reports, surveys, schedules, lists, or data 
     compiled or collected for any purpose directly relating to 
     paragraph (1) or subsection (c)(1)(D), or published by the 
     Secretary in accordance with paragraph (3), shall not be 
     subject to discovery or admitted into evidence in a Federal 
     or State court proceeding or considered for other purposes in 
     any action for damages arising from any occurrence at a 
     location identified or addressed in such reports, surveys, 
     schedules, lists, or other data.
       On page 134, line 25, strike ``be available'' and insert 
     the following: ``be--
       ``(1) available''.
       On page 135, line 2, strike the first period, the closing 
     quotation marks, and the following period and insert ``; 
     and''.
       On page 135, between lines 2 and 3, insert the following:
       ``(2) apportioned in accordance with section 104(b)(5).''.
       On page 147, after the matter following line 24, add the 
     following:
       On page 224, line 23, strike ``and''.
       On page 226, line 10, strike ``(4)'' and insert ``(3)''.
       On page 257, line 12, strike ``B'' and insert ``(B)''.
       On page 260, strike lines 3 through 9 and insert the 
     following:
       (2) in paragraph (5), by striking the period at the end and 
     inserting a semicolon; 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; or
       ``(7) if the project or program involves the purchase of 
     integrated, interoperable emergency communications 
     equipment.''.
       On page 261, between lines 5 and 6, insert the following:
       (c) Responsibility of States.--
       (1) In general.--Each State shall be responsible for 
     ensuring that subrecipients of Federal funds within the State 
     under section 149 of title 23, United States Code, have 
     emission reduction strategies for fleets that are--
       (A) used in construction projects located in nonattainment 
     and maintenance areas; and
       (B) funded under title 23, United States Code.
       (2) Emission reduction strategies.--The Administrator of 
     the Environmental Protection Agency, in consultation with the 
     Secretary, shall develop a nonbinding list of emission 
     reduction strategies and supporting technical information for 
     each strategy, including--
       (A) contract preferences;
       (B) requirements for the use of anti-idling equipment;
       (C) diesel retrofits; and
       (D) such other matters as the Administrator of the 
     Environmental Protection Agency, in consultation with the 
     Secretary, determine to be appropriate.
       (3) Use of cmaq funds.--A State may use funds made 
     available under this title and title 23, United States Code, 
     for the congestion mitigation and air quality program under 
     section 149 of title 23, United States Code, to ensure the 
     deployment of the emission reduction strategies described in 
     paragraph (1).
       On page 288, between lines 2 and 3, insert the following:

     SEC. 1622. FUNDS FOR REBUILDING FISH STOCKS.

       Section 105 of the Miscellaneous Appropriations and Offsets 
     Act, 2004 (Division H of the Consolidated Appropriations Act, 
     2004 (Public Law 108-199)) is repealed.
       Beginning on page 321, strike line 7 and all that follows 
     through page 326, line 12 and insert the following:
     Secretary.'';
       (C) in paragraph (3)--
       (i) in subparagraph (A), by striking ``under this title'' 
     and inserting ``under this chapter and section 125(e)''; and
       (ii) by adding at the end the following:
       ``(C) Federal lands highway program demonstration 
     project.--
       ``(i) In general.--The Secretary shall establish a 
     demonstration project under which all funds made available 
     under this chapter for Indian reservation roads and for 
     highway bridges located on Indian reservation roads as 
     provided for in subparagraph (A) shall be made available, on 
     the request of an affected Indian tribal government, to the 
     Indian tribal government for use in carrying out, in 
     accordance with the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b et seq.), contracts and 
     agreements for the planning, research, engineering, and 
     construction described in that subparagraph.
       ``(ii) Exclusion of agency participation.--In accordance 
     with subparagraph (B), all funds for Indian reservation roads 
     and for highway bridges located on Indian reservation roads 
     to which clause (i) applies shall be paid without regard to 
     the organizational level at which the Federal lands highway 
     program has previously carried out the programs, functions, 
     services, or activities involved.
       ``(iii) Selection of participating tribes.--

       ``(I) Participants.--

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

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

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

       ``(III) Criteria for determining financial stability and 
     financial management capacity.--For the purpose of subclause 
     (II), evidence that, during the 3-year period referred to in 
     subclause (II)(cc), an Indian tribe had no uncorrected 
     significant and material audit exceptions in the required 
     annual audit of the Indian tribe's self-determination 
     contracts or self-governance funding agreements with any 
     Federal agency shall be conclusive evidence of the required 
     stability and capability.
       ``(IV) Planning phase.--

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

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

       (D) in paragraph (4)--
       (i) in subparagraph (B)--

[[Page 2095]]

       (I) by striking ``(B) Reservation.--Of the amounts'' and 
     all that follows through ``to replace,'' and inserting the 
     following:

       ``(B) Funding.--
       ``(i) Authorization of appropriations.--In addition to any 
     other funds made available for Indian reservation roads for 
     each fiscal year, there is authorized to be appropriated from 
     the Highway Trust Fund (other than the Mass Transit Account) 
     $15,000,000 for each of fiscal years 2004 through 2009 to 
     carry out planning, design, engineering, preconstruction, 
     construction, and inspection of projects to replace,''; and

       (II) by adding at the end the following:

       ``(ii) Availability.--Funds made available to carry out 
     this subparagraph shall be available for obligation in the 
     same manner as if the funds were apportioned under chapter 
     1.''; and
       (ii) by striking subparagraph (D) and inserting the 
     following:
       ``(D) Approval requirement.--
       ``(i) In general.--Subject to clause (ii), on request by an 
     Indian tribe or the Secretary of the Interior, the Secretary 
     may make funds available under this subsection for 
     preliminary engineering for Indian reservation road bridge 
     projects.
       ``(ii) Construction and construction engineering.--The 
     Secretary may make funds available under clause (i) for 
     construction and construction engineering only after approval 
     by the Secretary of applicable plans, specifications, and 
     estimates.''; and
       (5) by adding at the end the following:
       ``(f) Administration of Indian Reservation Roads.--
       ``(1) Contract authority.--Notwithstanding any other 
     provision of law, for any fiscal year, not more than 6 
     percent of the contract authority amounts made available from 
     the Highway Trust Fund to the Bureau of Indian Affairs under 
     this title shall be used to pay the expenses incurred by the 
     Bureau in administering the Indian reservation roads program 
     (including the administrative expenses relating to individual 
     projects associated with the Indian reservation roads 
     program).
       ``(2) Health and safety assurances.--Notwithstanding any 
     other provision of law, an Indian tribe or tribal 
     organization may commence road and bridge construction under 
     the Transportation Equity Act for the 21st Century (Public 
     Law 105-178) or the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2004 that is funded 
     through a contract or agreement under the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b et 
     seq.) if the Indian tribe or tribal organization--
       ``(A) provides assurances in the contract or agreement that 
     the construction will meet or exceed applicable health and 
     safety standards;
       ``(B) obtains the advance review of the plans and 
     specifications from a licensed professional that has 
     certified that the plans and specifications meet or exceed 
     the applicable health and safety standards; and
       ``(C) provides a copy of the certification under 
     subparagraph (B) to the Assistant Secretary for Indian 
     Affairs.''.
       (d) Planning and Agency Coordination.--Section 204 of title 
     23, United States Code, is amended--
       (1) in subsection (a)(1), by inserting ``refuge roads, 
     recreation roads,'' after ``parkways,'';
       (2) by striking subsection (b) and inserting the following:
       ``(b) Use of Funds.--
       ``(1) In general.--Funds available for public lands 
     highways, recreation roads, park roads and parkways, forest 
     highways, and Indian reservation roads shall be used by the 
     Secretary and the Secretary of the appropriate Federal land 
     management agency to pay the cost of transportation planning, 
     research, engineering, operation and maintenance of transit 
     facilities, and construction of the highways, roads, 
     parkways, forest highways, and transit facilities located on 
     public land, national parks, and Indian reservations.
       ``(2) Contract.--In connection with an activity described 
     in paragraph (1), the Secretary and the Secretary of the 
     appropriate Federal land management agency may enter into a 
     construction contract or other appropriate agreement with--
       ``(A) a State (including a political subdivision of a 
     State); or
       ``(B) an Indian tribe.
       ``(3) Indian reservation roads.--In the case of an Indian 
     reservation road--
       ``(A) Indian labor may be used, in accordance with such 
     rules and regulations as may be promulgated by the Secretary 
     of the Interior, to carry out any construction or other 
     activity described in paragraph (1); and
       ``(B) funds made available to carry out this section may be 
     used to pay bridge preconstruction costs (including planning, 
     design, and engineering).
       ``(4) Federal employment.--No maximum on Federal employment 
     shall be applicable to construction or improvement of Indian 
     reservation roads.
       ``(5) Availability of funds.--Funds available under this 
     section for each class of Federal lands highway shall be 
     available for any kind of transportation project eligible for 
     assistance under this title that is within or adjacent to, or 
     that provides access to, the areas served by the particular 
     class of Federal lands highway.
       ``(6) Reservation of funds.--The Secretary of the Interior 
     may reserve funds from administrative funds of the Bureau of 
     Indian Affairs that are associated with the Indian 
     reservation road program to finance the Indian technical 
     centers authorized under section 504(b).''; and
       (3) in subsection (k)(1)--
       (A) in subparagraph (B)--
       (i) by striking ``(2), (5),'' and inserting ``(2), (3), 
     (5),''; and
       (ii) by striking ``and'' after the semicolon;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(D) maintenance of public roads in national fish 
     hatcheries under the jurisdiction of the United States Fish 
     and Wildlife Service;
       ``(E) the non-Federal share of the cost of any project 
     funded under this title or chapter 53 of title 49 that 
     provides access to or within a wildlife refuge; and
       ``(F) maintenance and improvement of recreational trails 
     (except that expenditures on trails under this subparagraph 
     shall not exceed 5 percent of available funds for each fiscal 
     year).''.
       (e) Maintenance of Indian Reservation Roads.--Section 
     204(c) of title 23, United States Code, is amended by 
     striking the second and third sentences and inserting the 
     following: ``Notwithstanding any other provision of this 
     title, of the amount of funds apportioned for Indian 
     reservation roads from the Highway Trust Fund, an Indian 
     tribe may expend for the purpose of maintenance not more than 
     the greater of $250,000 or 25 percent of the apportioned 
     amount. The Bureau of Indian Affairs shall continue to retain 
     primary responsibility, including annual funding request 
     responsibility, for road maintenance programs on Indian 
     reservations. The Secretary shall ensure that funding made 
     available under this subsection for maintenance of Indian 
     reservation roads for each fiscal year is supplementary to 
     and not in lieu of any obligation of funds by the Bureau of 
     Indian Affairs for road maintenance programs on Indian 
     reservations.''.
       On page 387, line 8, strike ``I and II'' and insert ``I, 
     II, and III''.
       On page 389, between lines 15 and 16, insert the following:

     SEC. 1823. MULTISTATE INTERNATIONAL CORRIDOR DEVELOPMENT 
                   PROGRAM.

       (a) Establishment.--The Secretary shall establish a program 
     to develop international trade corridors to facilitate the 
     movement of freight from international ports of entry and 
     inland ports through and to the interior of the United 
     States.
       (b) Eligible Recipients.--State transportation departments 
     and metropolitan planning organizations shall be eligible to 
     receive and administer funds provided under the program.
       (c) Eligible Activities.--The Secretary shall make 
     allocations under this program for any activity eligible for 
     funding under title 23, United States Code, including 
     multistate highway and multistate multimodal planning and 
     project construction.
       (d) Other Provisions Regarding Eligibility.--All activities 
     funded under this program shall be consistent with the 
     continuing, cooperative, and comprehensive planning processes 
     required by sections 134 and 135 of title 23, United States 
     Code.
       (e) Selection Criteria.--The Secretary shall only select 
     projects for corridors--
       (1) that have significant levels or increases in truck and 
     traffic volume relating to international freight movement;
       (2) connect to at least 1 international terminus or inland 
     port;
       (3) traverse at least 3 States; and
       (4) are identified by section 115(c) of the Intermodal 
     Transportation Efficiency Act of 1991 (Public Law 102-240; 
     105 Stat. 2032).
       (f) Program Priorities.--In administering the program, the 
     Secretary shall--
       (1) encourage and enable States and other jurisdictions to 
     work together to develop plans for multimodal and 
     multijurisdictional transportation decisionmaking; and
       (2) give priority to studies that emphasize multimodal 
     planning, including planning for operational improvements 
     that increase mobility, freight productivity, access to 
     marine ports, safety, and security while enhancing the 
     environment.
       (g) Federal Share.--The Federal share required for any 
     study carried out under this section shall be available for 
     obligation in the same manner as if the funds were 
     apportioned under chapter I of title 23, United States Code.

     SEC. 1824. AUTHORIZATION OF CONTRACT AUTHORITY FOR STATES 
                   WITH INDIAN RESERVATIONS.

       Section 1214(d) of the Transportation Equity Act for the 
     21st Century (23 U.S.C. 202 note; 112 Stat. 206) is amended--
       (1) in paragraph (1), by inserting ``(except Arizona)'' 
     after ``each State''; and
       (2) in paragraph (5)(A), by striking ``$1,500,000 for each 
     of fiscal years 1998 through 2003'' and inserting 
     ``$1,800,000 for each of fiscal years 2004 through 2009''.
       On page 398, strike lines 5 through 11 and insert the 
     following:
     further development and deployment of techniques to prevent 
     and mitigate alkali silica reactivity;

[[Page 2096]]

       (H) $2,000,000 for fiscal year 2005 shall be remain 
     available until expended for asphalt and asphalt-related 
     reclamation research at the South Dakota School of Mines; and
       (I) $3,000,000 for each of fiscal years 2004 through 2009 
     shall be made available to carry out section 502(f)(3) of 
     title 23, United States Code.
       On page 403, in the matter following line 2, strike the 
     item relating to section 511 and insert the following:

``511. Multistate corridor operations and management.
``512. Transportation analysis simulation system.''.

       
       On page 404, line 7, before ``communications'' insert 
     ``integrated, interoperable emergency''.
       On page 420, line 23, strike ``enhanced'' and insert 
     ``integrated, interoperable emergency''.
       On page 476, line 18, strike the period and closing 
     quotation marks.
       On page 476, between lines 18 and 19, insert the following:

     ``Sec. 512. Transportation analysis simulation system

       ``(a) Continuation of Transims Development.--
       ``(1) In general.--The Secretary shall continue the 
     deployment of the advanced transportation model known as the 
     `Transportation Analysis Simulation System' (referred to in 
     this section as `TRANSIMS') developed by the Los Alamos 
     National Laboratory.
       ``(2) Requirements and considerations.--In carrying out 
     paragraph(1), the Secretary shall--
       ``(A) further improve TRANSIMS to reduce the cost and 
     complexity of using the TRANSIMS;
       ``(B) continue development of TRANSIMS for applications to 
     facilitate transportation planning, regulatory compliance, 
     and response to natural disasters and other transportation 
     disruptions; and
       ``(C) assist State transportation departments and 
     metropolitan planning organizations, especially smaller 
     metropolitan planning organizations, in the implementation of 
     TRANSIMS by providing training and technical assistance.
       ``(b) Eligible Activities.--The Secretary shall use funds 
     made available to carry out this section--
       ``(1) to further develop TRANSIMS for additional 
     applications, including--
       ``(A) congestion analyses;
       ``(B) major investment studies;
       ``(C) economic impact analyses;
       ``(D) alternative analyses;
       ``(E) freight movement studies;
       ``(F) emergency evacuation studies;
       ``(G) port studies; and
       ``(H) airport access studies;
       ``(2) provide training and technical assistance with 
     respect to the implementation and application of TRANSIMS to 
     States, local governments, and metropolitan planning 
     organizations with responsibility for travel modeling;
       ``(3) develop methods to simulate the national 
     transportation infrastructure as a single, integrated system 
     for the movement of individuals and goods;
       ``(4) provide funding to State transportation departments 
     and metropolitan planning organizations for implementation of 
     TRANSIMS.
       ``(c) Allocation of Funds.--Of the funds made available to 
     carry out this section for each fiscal year, not less than 15 
     percent shall be allocated for activities described in 
     subsection (b)(3).
       ``(d) Funding.--Of the amounts made available under section 
     2001(a) of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2004 for each of fiscal years 
     2004 through 2009, the Secretary shall use $1,000,000 to 
     carry out this section.
       ``(e) Availability of Funds.--Funds made available under 
     this section shall be available to the Secretary through the 
     Transportation Planning, Research, and Development Account of 
     the Office of the Secretary.''.
       On page 489, after line 23, add the following:

     SEC. 2105. TRANSPORTATION TECHNOLOGY INNOVATION AND 
                   DEMONSTRATION PROGRAM.

       (a) In General.--Section 5117(b)(3) of the Transportation 
     Equity Act for the 21st Century (112 Stat. 449; 112 Stat. 
     864; 115 Stat. 2330) is amended--
       (1) in subparagraph (B)--
       (A) in clause (i)--
       (i) in the first sentence--

       (I) by striking ``Build an'' and inserting ``Build or 
     integrate an''; and
       (II) by striking ``$2,000,000'' and inserting 
     ``$2,500,000''; and

       (ii) in the second sentence--

       (I) by striking ``300,000 and that'' and inserting 
     ``300,000,''; and
       (II) by inserting before the period at the end the 
     following: ``, and includes major transportation corridors 
     serving that metropolitan area'';

       (B) in clause (ii), by striking all that follows ``will 
     be'' and inserting ``reinvested in the intelligent 
     transportation infrastructure system.'';
       (C) by striking clause (iii); and
       (D) by redesignating clauses (iv) and (v) as clauses (iii) 
     and (iv), respectively;
       (2) in subparagraph (C)(ii), by striking ``July 1, 2002'' 
     and inserting ``the date that is 180 days after the date of 
     enactment of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2003'';
       (3) in subparagraph (E), by striking clause (ii) and 
     inserting the following:
       ``(ii) The term ``follow-on deployment areas'' means the 
     metropolitan areas of Albany, Atlanta, Austin, Baltimore, 
     Birmingham, Boston, Burlington Vermont, Charlotte, Chicago, 
     Cleveland, Columbus, Dallas/Ft. Worth, Denver, Detroit, 
     Greensboro, Hartford, Houston, Indianapolis, Jacksonville, 
     Kansas City, Las Vegas, Los Angeles, Louisville, Miami, 
     Milwaukee, Minneapolis-St. Paul, Nashville, New Orleans, New 
     York/Northern New Jersey, Norfolk, Northern Kentucky/
     Cincinnati, Oklahoma City, Orlando, Philadelphia, Phoenix, 
     Pittsburgh, Portland, Providence, Raleigh, Richmond, 
     Sacramento, Salt Lake, San Diego, San Francisco, San Jose, 
     St. Louis, Seattle, Tampa, Tucson, Tulsa, and Washington, 
     District of Columbia.'';
       (4) in subparagraph (F)--
       (A) by striking ``Of the amounts'' and inserting the 
     following:
       ``(i) This act.--Of the amounts''; and
       (B) by adding at the end the following:
       ``(ii) SAFETEA.--There are authorized to be appropriated 
     out of the Highway Trust Fund (other than the Mass Transit 
     Account) $5,000,000 for each fiscal year to carry out this 
     paragraph.
       ``(iii) Availability; no reduction or setaside.--Amounts 
     made available by this subparagraph--

       ``(I) shall remain available until expended; and
       ``(II) shall not be subject to any reduction or 
     setaside.''; and

       (5) by adding at the end the following:
       ``(H) Use of rights-of-way.--
       ``(i) In general.--An intelligent transportation system 
     project described in paragraph (3) or (6) that involves 
     privately owned intelligent transportation system components 
     and is carried out using funds made available from the 
     Highway Trust Fund shall not be subject to any law (including 
     a regulation) of a State or political subdivision of a State 
     prohibiting or regulating commercial activities in the 
     rights-of-way of a highway for which Federal-aid highway 
     funds have been used for planning, design, construction, or 
     maintenance, if the Secretary determines that such use is in 
     the public interest.
       ``(ii) Effect of subparagraph.--Nothing in this 
     subparagraph affects the authority of a State or political 
     subdivision of a State to regulate highway safety.''.
       (b) Conforming Amendment.--Section 5204 of the 
     Transportation Equity Act for the 21st Century (112 Stat. 
     453) is amended by striking subsection (k) (112 Stat. 2681-
     478).
       On page 874, line 22, strike ``and''.
       On page 875, strike lines 3 through 5.
       On page 995, line 20, insert ``(a) In General.--'' before 
     ``Section''.
       On page 996, between lines 5 and 6, insert the following:
       (b) Conforming Amendments.--
       (1) In general.--Section 3 of the Dingell-Johnson Sport 
     Fish Restoration Act (16 U.S.C. 777b) is amended in the first 
     sentence--
       (A) by striking ``Sport Fish Restoration Account'' and 
     inserting ``Sport Fish Restoration Trust Fund''; and
       (B) by striking ``that Account'' and inserting ``that Trust 
     Fund, except as provided in section 9504(c) of the Internal 
     Revenue Code of 1986''.
       (2) Effective date.--The amendments made by paragraph (1) 
     take effect on October 1, 2004.
       On page 1020, between lines 9 and 10, insert the following:

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

       Notwithstanding any other provision of law, funds 
     authorized to be appropriated under section 1101(5) that are 
     made available to the State of Maine may be used to support, 
     through December 15, 2006, the operation of passenger rail 
     service between Boston, Massachusetts, and Portland, Maine.
       On page 1310, after line 4, add the following:

                  TITLE VII--MISCELLANEOUS PROVISIONS

     SEC. 7001. REIMBURSEMENT OF CERTAIN TRANSPORTATION COSTS 
                   INCURRED BY MEMBERS OF THE UNITED STATES ARMED 
                   FORCES ON REST AND RECUPERATION LEAVE.

       The Secretary of Defense shall reimburse a member of the 
     United States Armed Forces (out of funds available for the 
     Armed Forces for operation and maintenance for the relevant 
     fiscal year) for transportation expenses incurred by such 
     member for 1 round trip by such member between 2 locations 
     within the United States in connection with leave taken under 
     the Central Command Rest and Recuperation Leave Program 
     during the period beginning on September 25, 2003, and ending 
     on December 18, 2003.

[[Page 2097]]



                    TITLE VIII--SOLID WASTE DISPOSAL

     SEC. 8001. INCREASED USE OF RECOVERED MINERAL COMPONENT IN 
                   FEDERALLY FUNDED PROJECTS INVOLVING PROCUREMENT 
                   OF CEMENT OR CONCRETE.

       (a) In General.--Subtitle F of the Solid Waste Disposal Act 
     (42 U.S.C. 6961 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 6005. INCREASED USE OF RECOVERED MINERAL COMPONENT IN 
                   FEDERALLY FUNDED PROJECTS INVOLVING PROCUREMENT 
                   OF CEMENT OR CONCRETE.

       ``(a) Definitions.--In this section:
       ``(1) Agency head.--The term `agency head' means--
       ``(A) the Secretary of Transportation; and
       ``(B) the head of each other Federal agency that on a 
     regular basis procures, or provides Federal funds to pay or 
     assist in paying the cost of procuring, material for cement 
     or concrete projects.
       ``(2) Cement or concrete project.--The term `cement or 
     concrete project' means a project for the construction or 
     maintenance of a highway or other transportation facility or 
     a Federal, State, or local government building or other 
     public facility that--
       ``(A) involves the procurement of cement or concrete; and
       ``(B) is carried out in whole or in part using Federal 
     funds.
       ``(3) Recovered mineral component.--The term `recovered 
     mineral component' means--
       ``(A) ground granulated blast furnace slag;
       ``(B) coal combustion fly ash; and
       ``(C) any other waste material or byproduct recovered or 
     diverted from solid waste that the Administrator, in 
     consultation with an agency head, determines should be 
     treated as recovered mineral component under this section for 
     use in cement or concrete projects paid for, in whole or in 
     part, by the agency head.
       ``(b) Implementation of Requirements.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Administrator and each agency 
     head shall take such actions as are necessary to implement 
     fully all procurement requirements and incentives in effect 
     as of the date of enactment of this section (including 
     guidelines under section 6002) that provide for the use of 
     cement and concrete incorporating recovered mineral component 
     in cement or concrete projects.
       ``(2) Priority.--In carrying out paragraph (1) an agency 
     head shall give priority to achieving greater use of 
     recovered mineral component in cement or concrete projects 
     for which recovered mineral components historically have not 
     been used or have been used only minimally.
       ``(3) Conformance.--The Administrator and each agency head 
     shall carry out this subsection in accordance with section 
     6002.
       ``(c) Full Implementation Study.--
       ``(1) In general.--The Administrator, in cooperation with 
     the Secretary of Transportation and the Secretary of Energy, 
     shall conduct a study to determine the extent to which 
     current procurement requirements, when fully implemented in 
     accordance with subsection (b), may realize energy savings 
     and environmental benefits attainable with substitution of 
     recovered mineral component in cement used in cement or 
     concrete projects.
       ``(2) Matters to be addressed.--The study shall--
       ``(A) quantify the extent to which recovered mineral 
     components are being substituted for Portland cement, 
     particularly as a result of current procurement requirements, 
     and the energy savings and environmental benefits associated 
     with that substitution;
       ``(B) identify all barriers in procurement requirements to 
     greater realization of energy savings and environmental 
     benefits, including barriers resulting from exceptions from 
     current law; and
       ``(C)(i) identify potential mechanisms to achieve greater 
     substitution of recovered mineral component in types of 
     cement or concrete projects for which recovered mineral 
     components historically have not been used or have been used 
     only minimally;
       ``(ii) evaluate the feasibility of establishing guidelines 
     or standards for optimized substitution rates of recovered 
     mineral component in those cement or concrete projects; and
       ``(iii) identify any potential environmental or economic 
     effects that may result from greater substitution of 
     recovered mineral component in those cement or concrete 
     projects.
       ``(3) Report.--Not later than 30 months after the date of 
     enactment of this section, the Administrator shall submit to 
     Congress a report on the study.
       ``(d) Additional Procurement Requirements.--Unless the 
     study conducted under subsection (c) identifies any effects 
     or other problems described in subsection (c)(2)(C)(iii) that 
     warrant further review or delay, the Administrator and each 
     agency head shall, not later than 1 year after the release of 
     the report in accordance with subsection (c)(3), take 
     additional actions authorized under this Act to establish 
     procurement requirements and incentives that provide for the 
     use of cement and concrete with increased substitution of 
     recovered mineral component in the construction and 
     maintenance of cement or concrete projects, so as to--
       ``(1) realize more fully the energy savings and 
     environmental benefits associated with increased 
     substitution; and
       ``(2) eliminate barriers identified under subsection (c).
       ``(e) Effect of Section.--Nothing in this section affects 
     the requirements of section 6002 (including the guidelines 
     and specifications for implementing those requirements).''.
       (b) Table of Contents Amendment.--The table of contents in 
     section 1001 of the Solid Waste Disposal Act (42 U.S.C. prec. 
     6901) is amended by adding after the item relating to section 
     6004 the following:

``Sec. 6005. Increased use of recovered mineral component in federally 
              funded projects involving procurement of cement or 
              concrete.''.

     SEC. 8002. USE OF GRANULAR MINE TAILINGS.

       (a) In General.--Subtitle F of the Solid Waste Disposal Act 
     (42 U.S.C. 6961 et seq.) (as amended by section 8001(a)) is 
     amended by adding at the end the following:

     ``SEC. 6006. USE OF GRANULAR MINE TAILINGS.

       ``(a) Mine Tailings.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this section, the Administrator, in 
     consultation with the Secretary of Transportation and heads 
     of other Federal agencies, shall establish criteria 
     (including an evaluation of whether to establish a numerical 
     standard for concentration of lead and other hazardous 
     substances) for the safe and environmentally protective use 
     of granular mine tailings from the Tar Creek, Oklahoma Mining 
     District, known as `chat', for--
       ``(A) cement or concrete projects; and
       ``(B) transportation construction projects (including 
     transportation construction projects involving the use of 
     asphalt) that are carried out, in whole or in part, using 
     Federal funds.
       ``(2) Requirements.--In establishing criteria under 
     paragraph (1), the Administrator shall consider--
       ``(A) the current and previous uses of granular mine 
     tailings as an aggregate for asphalt; and
       ``(B) any environmental and public health risks and 
     benefits derived from the removal, transportation, and use in 
     transportation projects of granular mine tailings.
       ``(3) Public participation.--In establishing the criteria 
     under paragraph (1), the Administrator shall solicit and 
     consider comments from the public.
       ``(4) Applicability of criteria.--On the establishment of 
     the criteria under paragraph (1), any use of the granular 
     mine tailings described in paragraph (1) in a transportation 
     project that is carried out, in whole or in part, using 
     Federal funds, shall meet the criteria established under 
     paragraph (1).
       ``(b) Effect of Sections.--Nothing in this section or 
     section 6005 affects any requirement of any law (including a 
     regulation) in effect on the date of enactment of this 
     section.''.
       (b) Conforming Amendment.--The table of contents in section 
     1001 of the Solid Waste Disposal Act (42 U.S.C. prec. 6901) 
     (as amended by section 8001(b)) is amended by adding after 
     the item relating to section 6005 the following:

``Sec. 6006. Use of granular mine tailings.''.
       On page 738, strike lines 5 through 12 and insert the 
     following:

     motor vehicles that became effective by December 31, 2002.
       ``(ii) For each of fiscal years 2004 through 2009, the 
     Secretary shall, after making grants under clause (i) of this 
     subparagraph, make a one-time grant to each State that either 
     enacts for the first time after December 31, 2002, and has in 
     effect
       On page 792, between lines 15 and 16, insert the following:

                    Part 3--Miscellaneous Provisions

     SEC. 4171. DRIVER LICENSING AND EDUCATION.

       (a) National Office of Driver Licensing and Education.--
     Section 105 of title 49, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(f)(1) There is a National Office of Driver Licensing and 
     Education in the National Highway Traffic Safety 
     Administration.
       ``(2) The head of the National Office of Driver Licensing 
     and Education is the Director.
       ``(3) The functions of the National Office of Driver 
     Licensing and Education are as follows:
       ``(A) To provide States with services for coordinating the 
     motor vehicle driver training and licensing programs of the 
     States.
       ``(B) To develop and make available to the States a 
     recommended comprehensive model for motor vehicle driver 
     education and graduated licensing that incorporates the best 
     practices in driver education and graduated licensing, 
     including best practices with respect to--
       ``(i) vehicle handling and crash avoidance;
       ``(ii) driver behavior and risk reduction;
       ``(iii) roadway features and associated safety 
     implications;
       ``(iv) roadway interactions involving all types of vehicles 
     and road users, such as car-truck and pedestrian-car 
     interactions;
       ``(v) parent education; and
       ``(vi) other issues identified by the Director.

[[Page 2098]]

       ``(C) To carry out such research (pursuant to cooperative 
     agreements or otherwise) and undertake such other activities 
     as the Director determines appropriate to develop and, on an 
     ongoing basis, improve the recommended comprehensive model.
       ``(D) To provide States with technical assistance for the 
     implementation and deployment of the motor vehicle driver 
     education and licensing comprehensive model recommended under 
     subparagraph (B).
       ``(E) To develop and recommend to the States methods for 
     harmonizing the presentation of motor vehicle driver 
     education and licensing with the requirements of multistage 
     graduated licensing systems, including systems described in 
     section 410(c)(4) of title 23, and to demonstrate and 
     evaluate the effectiveness of those methods in selected 
     States.
       ``(F) To assist States with the development and 
     implementation of programs to certify driver education 
     instructors, including the development and implementation of 
     proposed uniform certification standards.
       ``(G) To provide States with financial assistance under 
     section 412 of title 23 for--
       ``(i) the implementation of the motor vehicle driver 
     education and licensing comprehensive model recommended under 
     subparagraph (B);
       ``(ii) the establishment or improved administration of 
     multistage graduated licensing systems; and
       ``(iii) the support of other improvements in motor vehicle 
     driver education and licensing programs.
       ``(H) To evaluate the effectiveness of the comprehensive 
     model recommended under subparagraph (B).
       ``(I) To examine different options for delivering driver 
     education in the States.
       ``(J) To perform such other functions relating to motor 
     vehicle driver education or licensing as the Secretary may 
     require.
       ``(4) Not later than 42 months after the date of the 
     enactment of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2004, the Director shall submit 
     to Congress a report on the progress made by the National 
     Office of Driver Licensing and Education with respect to the 
     functions under paragraph (3).''.
       (b) Grant Program for Improvement of Driver Education and 
     Licensing.--
       (1) Authority.--
       (A) In general.--Chapter 4 of title 23, United States Code, 
     is amended by adding at the end the following new section:

     ``SEC. 412. DRIVER EDUCATION AND LICENSING.

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

``412. Driver education and licensing.''.
       (2) Time for promulgation of regulations.--The Secretary of 
     Transportation shall promulgate the regulations under section 
     412(b) of title 23, United States Code (as added by paragraph 
     (1)), not later than October 1, 2005.
       (c) Grant Program for Public Awareness of Organ Donation 
     Through Driver Licensing Programs.--
       (1) Authority.--
       (A) In general.--Chapter 4 of title 23, United States Code 
     (as amended by subsection (b)), is further amended by adding 
     at the end the following new section:

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

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

``413. Organ donation through driver licensing.''.
       (2) Time for promulgation of regulations.--The Secretary of 
     Transportation shall promulgate the regulations under section 
     413(b) of title 23, United States Code (as added by paragraph 
     (1)), not later than October 1, 2005.
       (d) Study of National Driver Education Standards.--
       (1) Requirement for study.--The Secretary of Transportation 
     shall carry out a study to determine whether the 
     establishment and imposition of nationwide minimum standards 
     of motor vehicle driver education would improve national 
     highway traffic safety or the performance and legal 
     compliance of novice drivers.
       (2) Time for completion of study.--The Secretary shall 
     complete the study not later than 2 years after the date of 
     the enactment of this Act.
       (3) Report.--The Secretary shall publish a report on the 
     results of the study under this section not later than 2 
     years after the study is completed.
       (e) Authorization of Appropriations.--Of the amounts 
     available to carry out section 403 of title 23, United States 
     Code, for each of the fiscal years 2005 through 2010, 
     $5,000,000 may be made available for each such fiscal year to 
     carry out sections 412 and 413 of title 23, United States 
     Code (as added by subsections (b) and (c), respectively).

     SEC. 4172. AMENDMENT OF AUTOMOBILE INFORMATION DISCLOSURE 
                   ACT.

       (a) Safety Labeling Requirement.--Section 3 of the 
     Automobile Information Disclosure Act (15 U.S.C. 1232) is 
     amended by adding at the end the following:
       ``(g) if one or more safety ratings for such automobile 
     have been assigned and formally published or released by the 
     National Highway Traffic Safety Administration under the New 
     Car Assessment Program, information about safety ratings 
     that--
       ``(1) includes a graphic depiction of the number of stars 
     that corresponds to each such assigned safety rating 
     displayed in a clearly differentiated fashion from stars 
     indicating the unattained safety rating;
       ``(2) refers to frontal impact crash tests, side impact 
     crash tests, and rollover resistance tests (whether or not 
     such automobile has been assigned a safety rating for such 
     tests), including statements that--
       ``(A) frontal impact crash test ratings are based on risk 
     of head and chest injury;
       ``(B) side impact crash test ratings are based on risk of 
     chest injury; and
       ``(C) rollover resistance ratings are based on risk of 
     rollover in the event of a single automobile crash;
       ``(3) is presented in a legible, visible, and prominent 
     fashion and covers at least--
       ``(A) 8 percent of the total area of the label; or

[[Page 2099]]

       ``(B) an area with a minimum length of 4 \1/2\ inches and a 
     minimum height of 3 \1/2\ inches; and
       ``(4) contains a heading titled `Government Safety 
     Information' and a disclaimer including the following text: 
     `Star ratings for frontal impact crash tests can only be 
     compared to other vehicles in the same weight class and those 
     plus or minus 250 pounds. Side impact and rollover ratings 
     can be compared across all vehicle weights and classes. For 
     more information on safety and testing, please visit http://
www.nhtsa.dot.gov'; and
       ``(h) if an automobile has not been tested by the National 
     Highway Traffic Safety Administration under the New Car 
     Assessment Program, or safety ratings for such automobile 
     have not been assigned in one or more rating categories, a 
     statement to that effect.''.
       (b) Regulations.--Not later than January 1, 2005, the 
     Secretary of Transportation shall prescribe regulations to 
     implement the labeling requirements under subsections (g) and 
     (h) of section 3 of such Act (as added by subsection (a)).
       (c) Conforming and Technical Amendments.--Section 3 of such 
     Act is further amended--
       (1) in subsection (e), by striking ``and'' after the 
     semicolon; and
       (2) in subsection (f)--
       (A) by adding ``and'' at the end of paragraph (3); and
       (B) by striking the period at the end and inserting a 
     semicolon.
       (d) Applicability.--The labeling requirements under 
     subsections (g) and (h) of section 3 of such Act (as added by 
     subsection (a)), and the regulations prescribed under 
     subsection (b), shall apply to new automobiles delivered on 
     or after--
       (1) September 1, 2005, if the regulations under subsection 
     (b) are prescribed not later than August 31, 2004; or
       (2) September 1, 2006, if the regulations under subsection 
     (b) are prescribed after August 31, 2004.

     SEC. 4173. CHILD SAFETY.

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

     SEC. 4174. SAFE INTERSECTIONS.

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

     ``Sec. 39. Traffic signal preemption transmitters

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

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

     SEC. 4175. STUDY ON INCREASED SPEED LIMITS.

       (a) Study.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall conduct a study to 
     examine the effects of increased speed limits enacted by 
     States after 1995.
       (2) Requirements.--The study shall collect empirical data 
     regarding--
       (A) increases or decreases in driving speeds on Interstate 
     highways since 1995;
       (B) correlations between changes in driving speeds and 
     accident, injury, and fatality rates;
       (C) correlations between posted speed limits and observed 
     driving speeds;
       (D) the overall impact on motor vehicle safety resulting 
     from the repeal of the national maximum speed limit in 1995; 
     and
       (E) such other matters as the Secretary determines to be 
     appropriate.
       (b) Report.--Not later than 1 year after the date of 
     completion of the study under subsection (a), the Secretary 
     shall submit to Congress a report that describes the results 
     of the study.
       Beginning on page 1005, line 22, strike all through page 
     1020, line 9, and insert the following:

     SEC. 4602. ESTABLISHMENT OF BUILD AMERICA CORPORATION.

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

     SEC. 4603. FEDERAL BONDS FOR TRANSPORTATION INFRASTRUCTURE.

       (a) Use of Bond Proceeds.--The proceeds from the sale of--
       (1) any bonds authorized, issued, or guaranteed by the 
     Federal Government that are available to fund passenger rail 
     projects pursuant to any Federal law (enacted before, on, or 
     after the date of the enactment of this Act), and
       (2) any Build America bonds issued by the Build America 
     Corporation as authorized by section 4602,

     may be used to fund a qualified project if the Secretary of 
     Transportation determines that

[[Page 2100]]

     the qualified project is a cost-effective alternative for 
     efficiently maximizing mobility of individuals and goods.
       (b) Compliance of Beneficiaries With Certain Standards.--A 
     recipient of proceeds of a grant, loan, Federal tax-credit 
     bonds, or any other form of financial assistance provided 
     under this title shall comply with the standards described in 
     section 24312 of title 49, United States Code, as in effect 
     on June 25, 2003, with respect to any qualified project 
     described in subsection (c)(1) in the same manner that the 
     National Passenger Railroad Corporation is required to comply 
     with such standards for construction work financed under an 
     agreement entered into under section 24308(a) of such title.
       (c) Qualified Project Defined.--In this section--
       (1) In general.--Except as provided in paragraph (2), the 
     term ``qualified project'' means any transportation 
     infrastructure project of any governmental unit or other 
     person that is proposed by a State, including a highway 
     project, a transit system project, a railroad project, an 
     airport project, a port project, and an inland waterways 
     project.
       (2) Build america corporation projects.--
       (A) In general.--With respect to any Build America bonds 
     issued by the Build America Corporation as authorized by 
     section 4602, the term ``qualified project'' means any--
       (i) qualified highway project,
       (ii) qualified public transportation project, and
       (iii) congestion relief project,

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

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

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

                  Part 2--Railroad Track Modernization

     SEC. 4631. SHORT TITLE.

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

     SEC. 4632. CAPITAL GRANTS FOR RAILROAD TRACK.

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

            ``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

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

     ``Sec. 22301. Capital grants for railroad track

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

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

     SEC. 4633. REGULATIONS.

       (a) Regulations.--The Secretary of Transporation shall 
     prescribe under subsection (a)(3) of section 22301 of title 
     49, United States Code (as added by section 4601), interim 
     and final regulations for the administration of the grant 
     program under such section as follows:
       (1) Interim regulations.--The Secretary shall prescribe the 
     interim regulations to

[[Page 2101]]

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

     SEC. 4634. STUDY OF GRANT-FUNDED PROJECTS.

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

     SEC. 4635. AUTHORIZATION OF APPROPRIATIONS.

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

          Part 3--Other Rail Transportation-related Provisions

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

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

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

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

``20154. Capital grants for rail line relocation projects.''.
       (b) Regulations.--
       (1) Interim regulations.--Not later than October 1, 2003, 
     the Secretary of Transportation shall issue temporary 
     regulations to implement the grant program under section 
     20154 of title 49, United States Code, as added by subsection 
     (a). Subchapter II of chapter 5 of title 5, United States 
     Code, shall not apply to the issuance of a temporary 
     regulation under this subsection or of any amendment of such 
     a temporary regulation.
       (2) Final regulations.--Not later than April 1, 2004, the 
     Secretary shall issue final regulations implementing the 
     program.
       On page 738, strike lines 5 through 12 and insert the 
     following:

     motor vehicles that became effective by December 31, 2002.
       ``(ii) For each of fiscal years 2004 through 2009, the 
     Secretary shall, after making grants under clause (i) of this 
     subparagraph, make a one-time grant to each State that either 
     enacts for the first time after December 31, 2002, and has in 
     effect
       Beginning on page 1005, line 22, strike all through page 
     1020, line 9, and insert the following:

     SEC. 4602. ESTABLISHMENT OF BUILD AMERICA CORPORATION.

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

     SEC. 4603. FEDERAL BONDS FOR TRANSPORTATION INFRASTRUCTURE.

       (a) Use of Bond Proceeds.--The proceeds from the sale of--
       (1) any bonds authorized, issued, or guaranteed by the 
     Federal Government that are available to fund passenger rail 
     projects pursuant to any Federal law (enacted before, on, or 
     after the date of the enactment of this Act), and

[[Page 2102]]

       (2) any Build America bonds issued by the Build America 
     Corporation as authorized by section 4602,
     may be used to fund a qualified project if the Secretary of 
     Transportation determines that the qualified project is a 
     cost-effective alternative for efficiently maximizing 
     mobility of individuals and goods.
       (b) Compliance of Beneficiaries With Certain Standards.--A 
     recipient of proceeds of a grant, loan, Federal tax-credit 
     bonds, or any other form of financial assistance provided 
     under this title shall comply with the standards described in 
     section 24312 of title 49, United States Code, as in effect 
     on June 25, 2003, with respect to any qualified project 
     described in subsection (c)(1) in the same manner that the 
     National Passenger Railroad Corporation is required to comply 
     with such standards for construction work financed under an 
     agreement entered into under section 24308(a) of such title.
       (c) Qualified Project Defined.--In this section--
       (1) In general.--Except as provided in paragraph (2), the 
     term ``qualified project'' means any transportation 
     infrastructure project of any governmental unit or other 
     person that is proposed by a State, including a highway 
     project, a transit system project, a railroad project, an 
     airport project, a port project, and an inland waterways 
     project.
       (2) Build america corporation projects.--
       (A) In general.--With respect to any Build America bonds 
     issued by the Build America Corporation as authorized by 
     section 4602, the term ``qualified project'' means any--
       (i) qualified highway project,
       (ii) qualified public transportation project, and
       (iii) congestion relief project,
     proposed by 1 or more States and approved by the Build 
     America Corporation, which meets the requirements under 
     clauses (i), (ii), and (iii) of subparagraph (D).
       (B) Qualified highway project.--The term ``qualified 
     highway project'' means a project for highway facilities or 
     other facilities which are eligible for assistance under 
     title 23, United States Code.
       (C) Qualified public transportation project.--The term 
     ``qualified public transportation project'' means a project 
     for public transportation facilities or other facilities 
     which are eligible for assistance under chapter 53 of title 
     49, United States Code.
       (D) Congestion relief project.--The term ``congestion 
     relief project'' means an intermodal freight transfer 
     facility, freight rail facility, freight movement corridor, 
     intercity passenger rail or facility, intercity bus vehicle 
     or facility, border crossing facility, or other public or 
     private facility approved as a congestion relief project by 
     the Secretary of Transportation. In making such approvals, 
     the Secretary of Transportation shall--
       (i) consider the economic, environmental, mobility, and 
     national security improvements to be realized through the 
     project, and
       (ii) give preference to projects with national or regional 
     significance, including any projects sponsored by a coalition 
     of States or a combination of States and private sector 
     entities, in terms of generating economic benefits, 
     supporting international commerce, or otherwise enhancing the 
     national transportation system.
       (D) Additional requirements for qualified projects.--For 
     purposes of subparagraph (A)--
       (i) Costs of qualified projects.--The requirement of this 
     clause is met if the costs of the qualified project funded by 
     Build America bonds only relate to capital investments in 
     depreciable assets and do not include any costs relating to 
     operations, maintenance, or rolling stock.
       (ii) Applicability of federal law.--The requirement of this 
     clause is met if the requirements of any Federal law, 
     including titles 23, 40, and 49 of the United States Code, 
     which would otherwise apply to projects to which the United 
     States is a party or to funds made available under such law 
     and projects assisted with those funds are applied to--

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

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

                  Part 2--Railroad Track Modernization

     SEC. 4631. SHORT TITLE.

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

     SEC. 4632. CAPITAL GRANTS FOR RAILROAD TRACK.

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

            ``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

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

     ``Sec. 22301. Capital grants for railroad track

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

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

     SEC. 4633. REGULATIONS.

       (a) Regulations.--The Secretary of Transporation shall 
     prescribe under subsection (a)(3) of section 22301 of title 
     49,

[[Page 2103]]

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

     SEC. 4634. STUDY OF GRANT-FUNDED PROJECTS.

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

     SEC. 4635. AUTHORIZATION OF APPROPRIATIONS.

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

          Part 3--Other Rail Transportation-related Provisions

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

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

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

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

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

       (b) Regulations.--
       (1) Interim regulations.--Not later than October 1, 2003, 
     the Secretary of Transportation shall issue temporary 
     regulations to implement the grant program under section 
     20154 of title 49, United States Code, as added by subsection 
     (a). Subchapter II of chapter 5 of title 5, United States 
     Code, shall not apply to the issuance of a temporary 
     regulation under this subsection or of any amendment of such 
     a temporary regulation.
       (2) Final regulations.--Not later than April 1, 2004, the 
     Secretary shall issue final regulations implementing the 
     program.
       On page 389, between lines 15 and 16, insert the following:

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

       Section 133(e)(5) of title 23, United States Code, is 
     amended by adding at the end the following:
       ``(D) Priority pedestrian and bicycle facility enhancement 
     projects.--Among the pedestrian and bicycle facility 
     enhancement projects under consideration, the Secretary shall 
     urge that a priority be given to those pedestrian and bicycle 
     facility projects that include a coordinated physical or 
     healthy lifestyle program''.
       On page 1027, strike lines 3 through 18, and insert the 
     following:
       (g) Prohibition on Use of Highway Account for Rail 
     Projects.--Section 9503(c) (relating to transfers from 
     Highway Trust Fund for certain repayments and credits) is 
     amended by adding at the end the following new paragraph:
       ``(6) Prohibition on use of highway account for certain 
     rail projects.--With respect to rail projects beginning after 
     the date of the enactment of this paragraph, no amount shall 
     be available from the Highway

[[Page 2104]]

     Account (as defined in subsection (e)(5)(B)) for any rail 
     project, except for any rail project involving publicly owned 
     rail facilities or any rail project yielding a public 
     benefit.''.
       (h) Highway Trust Fund Expenditures for Highway Use Tax 
     Evasion Projects.--Section 9503(c), as amended by subsection 
     (g), is amended to add at the end the following new 
     paragraph:
       ``(7) Highway use tax evasion projects.--From amounts 
     available in the Highway Trust Fund, there is authorized to 
     be expended--
       ``(A) for each fiscal year after 2003 to the Internal 
     Revenue Service--
       ``(i) $30,000,000 for enforcement of fuel tax compliance, 
     including the per-certification of tax-exempt users,
       ``(ii) $10,000,000 for Xstars, and
       ``(iii) $10,000,000 for xfirs, and
       ``(B) for each fiscal year after 2003 to the Federal 
     Highway Administration, $50,000,000 to be allocated 
     $1,000,000 to each State to combat fuel tax evasion on the 
     State level.''.
       On page 1028, lines 3 and 4, strike ``paragraphs (3), (4), 
     (5), and (6) as paragraphs (2), (3), (4), and (5), 
     respectively.'' and insert ``paragraphs (3), (4), (5), (6), 
     and (7) as paragraphs (2), (3), (4), (5), and (6), 
     respectively.''
       Beginning on page 1062, line 11, strike all through page 
     1064, line 2, and insert the following:

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

       (a) In General.--Section 9502(d) is amended by adding at 
     the end the following new paragraph:
       ``(7) Transfers from the trust fund to the highway trust 
     fund.--
       ``(A) In general.--The Secretary shall pay annually from 
     the Airport and Airway Trust Fund into the Highway Trust Fund 
     an amount (as determined by him) equivalent to amounts 
     received in the Airport and Airway Trust Fund which are 
     attributable to fuel that is used primarily for highway 
     transportation purposes.
       ``(B) Amounts transferred to mass transit account.--The 
     Secretary shall transfer 11 percent of the amounts paid into 
     the Highway Trust Fund under subparagraph (A) to the Mass 
     Transit Account established under section 9503(e).''.
       (b) Conforming Amendments.--
       (1) Subsection (a) of section 9503 is amended--
       (A) by striking ``appropriated or credited'' and inserting 
     ``paid, appropriated, or credited'', and
       (B) by striking ``or section 9602(b)'' and inserting ``, 
     section 9502(d)(7), or section 9602(b)''.
       (2) Subsection (e)(1) of section 9503 is amended by 
     striking ``or section 9602(b)'' and inserting ``, section 
     9502(d)(7), or section 9602(b)''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2004.
       On page 1081, between lines 19 and 20, insert the 
     following:

     SEC. 5246. ELECTRONIC REPORTING.

       (a) In General.--Section 4101(d), as amended by section 
     5273 of this Act, is amended by adding at the end the 
     following new sentence: ``Any person who is required to 
     report under this subsection and who has 25 or more 
     reportable transactions in a month shall file such report in 
     electronic format.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply on October 1, 2004.
       On page 1298, strike lines 16 through 24 and insert the 
     following:

               Subtitle H--Additional Revenue Provisions

                   PART I--ADMINISTRATIVE PROVISIONS

     SEC. 5672. EXTENSION OF IRS USER FEES.

       (a) In General.--Section 7528(c) (relating to termination) 
     is amended by striking ``December 31, 2004'' and inserting 
     ``September 30, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to requests after the date of the enactment of 
     this Act.

     SEC. 5673. CLARIFICATION OF RULES FOR PAYMENT OF ESTIMATED 
                   TAX FOR CERTAIN DEEMED ASSET SALES.

       (a) In General.--Paragraph (13) of section 338(h) (relating 
     to tax on deemed sale not taken into account for estimated 
     tax purposes) is amended by adding at the end the following: 
     ``The preceding sentence shall not apply with respect to a 
     qualified stock purchase for which an election is made under 
     paragraph (10).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to transactions occurring after the date of the 
     enactment of this Act.

     SEC. 5674. PARTIAL PAYMENT OF TAX LIABILITY IN INSTALLMENT 
                   AGREEMENTS.

       (a) In General.--
       (1) Section 6159(a) (relating to authorization of 
     agreements) is amended--
       (A) by striking ``satisfy liability for payment of'' and 
     inserting ``make payment on'', and
       (B) by inserting ``full or partial'' after ``facilitate''.
       (2) Section 6159(c) (relating to Secretary required to 
     enter into installment agreements in certain cases) is 
     amended in the matter preceding paragraph (1) by inserting 
     ``full'' before ``payment''.
       (b) Requirement To Review Partial Payment Agreements Every 
     Two Years.--Section 6159, as amended by this Act, is amended 
     by redesignating subsections (d), (e), and (f) as subsections 
     (e), (f), and (g), respectively, and inserting after 
     subsection (c) the following new subsection:
       ``(d) Secretary Required To Review Installment Agreements 
     for Partial Collection Every Two Years.--In the case of an 
     agreement entered into by the Secretary under subsection (a) 
     for partial collection of a tax liability, the Secretary 
     shall review the agreement at least once every 2 years.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to agreements entered into on or after the date 
     of the enactment of this Act.

                     PART II--FINANCIAL INSTRUMENTS

     SEC. 5675. TREATMENT OF STRIPPED INTERESTS IN BOND AND 
                   PREFERRED STOCK FUNDS, ETC.

       (a) In General.--Section 1286 (relating to tax treatment of 
     stripped bonds) is amended by redesignating subsection (f) as 
     subsection (g) and by inserting after subsection (e) the 
     following new subsection:
       ``(f) Treatment of Stripped Interests in Bond and Preferred 
     Stock Funds, Etc.--In the case of an account or entity 
     substantially all of the assets of which consist of bonds, 
     preferred stock, or a combination thereof, the Secretary may 
     by regulations provide that rules similar to the rules of 
     this section and 305(e), as appropriate, shall apply to 
     interests in such account or entity to which (but for this 
     subsection) this section or section 305(e), as the case may 
     be, would not apply.''.
       (b) Cross Reference.--Subsection (e) of section 305 is 
     amended by adding at the end the following new paragraph:
       ``(7) Cross reference.--

  ``For treatment of stripped interests in certain accounts or entities 
holding preferred stock, see section 1286(f).''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to purchases and dispositions after the date of 
     the enactment of this Act.

     SEC. 5676. APPLICATION OF EARNINGS STRIPPING RULES TO 
                   PARTNERSHIPS AND S CORPORATIONS.

       (a) In General.--Section 168(j) (relating to limitation on 
     deduction for interest on certain indebtedness) is amended by 
     redesignating paragraph (8) as paragraph (9) and by inserting 
     after paragraph (7) the following new paragraph:
       ``(8) Application to partnerships and s corporations.--
       ``(A) In general.--This subsection shall apply to 
     partnerships and S corporations in the same manner as it 
     applies to C corporations.
       ``(B) Allocations to certain corporate partners.--If a C 
     corporation is a partner in a partnership--
       ``(i) the corporation's allocable share of indebtedness and 
     interest income of the partnership shall be taken into 
     account in applying this subsection to the corporation, and
       ``(ii) if a deduction is not disallowed under this 
     subsection with respect to any interest expense of the 
     partnership, this subsection shall be applied separately in 
     determining whether a deduction is allowable to the 
     corporation with respect to the corporation's allocable share 
     of such interest expense.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 5677. RECOGNITION OF CANCELLATION OF INDEBTEDNESS INCOME 
                   REALIZED ON SATISFACTION OF DEBT WITH 
                   PARTNERSHIP INTEREST.

       (a) In General.--Paragraph (8) of section 108(e) (relating 
     to general rules for discharge of indebtedness (including 
     discharges not in title 11 cases or insolvency)) is amended 
     to read as follows:
       ``(8) Indebtedness satisfied by corporate stock or 
     partnership interest.--For purposes of determining income of 
     a debtor from discharge of indebtedness, if--
       ``(A) a debtor corporation transfers stock, or
       ``(B) a debtor partnership transfers a capital or profits 
     interest in such partnership,
     to a creditor in satisfaction of its recourse or nonrecourse 
     indebtedness, such corporation or partnership shall be 
     treated as having satisfied the indebtedness with an amount 
     of money equal to the fair market value of the stock or 
     interest. In the case of any partnership, any discharge of 
     indebtedness income recognized under this paragraph shall be 
     included in the distributive shares of taxpayers which were 
     the partners in the partnership immediately before such 
     discharge.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to cancellations of indebtedness 
     occurring on or after the date of the enactment of this Act.

     SEC. 5678. MODIFICATION OF STRADDLE RULES.

       (a) Rules Relating to Identified Straddles.--
       (1) In general.--Subparagraph (A) of section 1092(a)(2) 
     (relating to special rule for identified straddles) is 
     amended to read as follows:
       ``(A) In general.--In the case of any straddle which is an 
     identified straddle--

[[Page 2105]]

       ``(i) paragraph (1) shall not apply with respect to 
     identified positions comprising the identified straddle,
       ``(ii) if there is any loss with respect to any identified 
     position of the identified straddle, the basis of each of the 
     identified offsetting positions in the identified straddle 
     shall be increased by an amount which bears the same ratio to 
     the loss as the unrecognized gain with respect to such 
     offsetting position bears to the aggregate unrecognized gain 
     with respect to all such offsetting positions, and
       ``(iii) any loss described in clause (ii) shall not 
     otherwise be taken into account for purposes of this 
     title.''.
       (2) Identified straddle.--Section 1092(a)(2)(B) (defining 
     identified straddle) is amended--
       (A) by striking clause (ii) and inserting the following:
       ``(ii) to the extent provided by regulations, the value of 
     each position of which (in the hands of the taxpayer 
     immediately before the creation of the straddle) is not less 
     than the basis of such position in the hands of the taxpayer 
     at the time the straddle is created, and'', and
       (B) by adding at the end the following new flush sentence:
     ``The Secretary shall prescribe regulations which specify the 
     proper methods for clearly identifying a straddle as an 
     identified straddle (and the positions comprising such 
     straddle), which specify the rules for the application of 
     this section for a taxpayer which fails to properly identify 
     the positions of an identified straddle, and which specify 
     the ordering rules in cases where a taxpayer disposes of less 
     than an entire position which is part of an identified 
     straddle.''.
       (3) Unrecognized gain.--Section 1092(a)(3) (defining 
     unrecognized gain) is amended by redesignating subparagraph 
     (B) as subparagraph (C) and by inserting after subparagraph 
     (A) the following new subparagraph:
       ``(B) Special rule for identified straddles.--For purposes 
     of paragraph (2)(A)(ii), the unrecognized gain with respect 
     to any identified offsetting position shall be the excess of 
     the fair market value of the position at the time of the 
     determination over the fair market value of the position at 
     the time the taxpayer identified the position as a position 
     in an identified straddle.''
       (4) Conforming amendment.--Section 1092(c)(2) is amended by 
     striking subparagraph (B) and by redesignating subparagraph 
     (C) as subparagraph (B).
       (b) Physically Settled Positions.--Section 1092(d) 
     (relating to definitions and special rules) is amended by 
     adding at the end the following new paragraph:
       ``(8) Special rules for physically settled positions.--For 
     purposes of subsection (a), if a taxpayer settles a position 
     which is part of a straddle by delivering property to which 
     the position relates (and such position, if terminated, would 
     result in a realization of a loss), then such taxpayer shall 
     be treated as if such taxpayer--
       ``(A) terminated the position for its fair market value 
     immediately before the settlement, and
       ``(B) sold the property so delivered by the taxpayer at its 
     fair market value.''.
       (c) Repeal of Stock Exception.--
       (1) In general.--Section 1092(d)(3) is repealed.
       (2) Conforming amendment.--Section 1258(d)(1) is amended by 
     striking ``; except that the term `personal property' shall 
     include stock''.
       (d) Repeal of Qualified Covered Call Exception.--Section 
     1092(c)(4) is amended by adding at the end the following new 
     subparagraph:
       ``(I) Termination.--This paragraph shall not apply to any 
     position established on or after the date of the enactment of 
     this subparagraph.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to positions established on or after the date of 
     the enactment of this Act.

     SEC. 5679. DENIAL OF INSTALLMENT SALE TREATMENT FOR ALL 
                   READILY TRADEABLE DEBT.

       (a) In General.--Section 453(f)(4)(B) (relating to 
     purchaser evidences of indebtedness payable on demand or 
     readily tradeable) is amended by striking ``is issued by a 
     corporation or a government or political subdivision thereof 
     and''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to sales occurring on or after the date of the 
     enactment of this Act.

                PART III--CORPORATIONS AND PARTNERSHIPS

     SEC. 5680. MODIFICATION OF TREATMENT OF TRANSFERS TO 
                   CREDITORS IN DIVISIVE REORGANIZATIONS.

       (a) In General.--Section 361(b)(3) (relating to treatment 
     of transfers to creditors) is amended by adding at the end 
     the following new sentence: ``In the case of a reorganization 
     described in section 368(a)(1)(D) with respect to which stock 
     or securities of the corporation to which the assets are 
     transferred are distributed in a transaction which qualifies 
     under section 355, this paragraph shall apply only to the 
     extent that the sum of the money and the fair market value of 
     other property transferred to such creditors does not exceed 
     the adjusted bases of such assets transferred.''.
       (b) Liabilities in Excess of Basis.--Section 357(c)(1)(B) 
     is amended by inserting ``with respect to which stock or 
     securities of the corporation to which the assets are 
     transferred are distributed in a transaction which qualifies 
     under section 355'' after ``section 368(a)(1)(D)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to transfers of money or other property, or 
     liabilities assumed, in connection with a reorganization 
     occurring on or after the date of the enactment of this Act.

     SEC. 5681. CLARIFICATION OF DEFINITION OF NONQUALIFIED 
                   PREFERRED STOCK.

       (a) In General.--Section 351(g)(3)(A) is amended by adding 
     at the end the following: ``Stock shall not be treated as 
     participating in corporate growth to any significant extent 
     unless there is a real and meaningful likelihood of the 
     shareholder actually participating in the earnings and growth 
     of the corporation.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to transactions after May 14, 2003.

     SEC. 5682. MODIFICATION OF DEFINITION OF CONTROLLED GROUP OF 
                   CORPORATIONS.

       (a) In General.--Section 1563(a)(2) (relating to brother-
     sister controlled group) is amended by striking 
     ``possessing--'' and all that follows through ``(B)'' and 
     inserting ``possessing''.
       (b) Application of Existing Rules to Other Code 
     Provisions.--Section 1563(f) (relating to other definitions 
     and rules) is amended by adding at the end the following new 
     paragraph:
       ``(5) Brother-sister controlled group definition for 
     provisions other than this part.--
       ``(A) In general.--Except as specifically provided in an 
     applicable provision, subsection (a)(2) shall be applied to 
     an applicable provision as if it read as follows:
       `(2) Brother-sister controlled group.--Two or more 
     corporations if 5 or fewer persons who are individuals, 
     estates, or trusts own (within the meaning of subsection 
     (d)(2) stock possessing--
       `(A) at least 80 percent of the total combined voting power 
     of all classes of stock entitled to vote, or at least 80 
     percent of the total value of shares of all classes of stock, 
     of each corporation, and
       `(B) more than 50 percent of the total combined voting 
     power of all classes of stock entitled to vote or more than 
     50 percent of the total value of shares of all classes of 
     stock of each corporation, taking into account the stock 
     ownership of each such person only to the extent such stock 
     ownership is identical with respect to each such 
     corporation.'
       ``(B) Applicable provision.--For purposes of this 
     paragraph, an applicable provision is any provision of law 
     (other than this part) which incorporates the definition of 
     controlled group of corporations under subsection (a).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 5683. MANDATORY BASIS ADJUSTMENTS IN CONNECTION WITH 
                   PARTNERSHIP DISTRIBUTIONS AND TRANSFERS OF 
                   PARTNERSHIP INTERESTS.

       (a) In General.--Section 754 is repealed.
       (b) Adjustment to Basis of Undistributed Partnership 
     Property.--Section 734 is amended--
       (1) by striking ``, with respect to which the election 
     provided in section 754 is in effect,'' in the matter 
     preceding paragraph (1) of subsection (b),
       (2) by striking ``(as adjusted by section 732(d))'' both 
     places it appears in subsection (b),
       (3) by striking the last sentence of subsection (b),
       (4) by striking subsection (a) and by redesignating 
     subsections (b) and (c) as subsections (a) and (b), 
     respectively, and
       (5) by striking ``optional'' in the heading.
       (c) Adjustment to Basis of Partnership Property.--Section 
     743 is amended--
       (1) by striking ``with respect to which the election 
     provided in section 754 is in effect'' in the matter 
     preceding paragraph (1) of subsection (b),
       (2) by striking subsection (a) and by redesignating 
     subsections (b) and (c) as subsections (a) and (b), 
     respectively,
       (3) by adding at the end the following new subsection:
       ``(c) Election to Adjust Basis for Transfers Upon Death of 
     Partner.--Subsection (a) shall not apply and no adjustments 
     shall be made in the case of any transfer of an interest in a 
     partnership upon the death of a partner unless an election to 
     do so is made by the partnership. Such an election shall 
     apply with respect to all such transfers of interests in the 
     partnership. Any election under section 754 in effect on the 
     date of the enactment of this subsection shall constitute an 
     election made under this subsection. Such election may be 
     revoked by the partnership, subject to such limitations as 
     may be provided by regulations prescribed by the 
     Secretary.'', and
       (4) by striking ``optional'' in the heading.
       (d) Conforming Amendments.--
       (1) Subsection (d) of section 732 is repealed.
       (2) Section 755(a) is amended--

[[Page 2106]]

       (A) by striking ``section 734(b) (relating to the optional 
     adjustment'' and inserting ``section 734(a) (relating to the 
     adjustment'', and
       (B) by striking ``section 743(b) (relating to the optional 
     adjustment'' and inserting ``section 743(a) (relating to the 
     adjustment''.
       (3) Section 761(e)(2) is amended by striking ``optional''.
       (4) Section 774(a) is amended by striking ``743(b)'' both 
     places it appears and inserting ``743(a)''.
       (5) The item relating to section 734 in the table of 
     sections for subpart B of part II of subchapter K of chapter 
     1 is amended by striking ``Optional''.
       (6) The item relating to section 743 in the table of 
     sections for subpart C of part II of subchapter K of chapter 
     1 is amended by striking ``Optional''.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to transfers and 
     distributions made after the date of the enactment of this 
     Act.
       (2) Repeal of section 732(d).--The amendments made by 
     subsections (b)(2) and (d)(1) shall apply to--
       (A) except as provided in subparagraph (B), transfers made 
     after the date of the enactment of this Act, and
       (B) in the case of any transfer made on or before such date 
     to which section 732(d) applies, distributions made after the 
     date which is 2 years after such date of enactment.

     SEC. 5685. CLASS LIVES FOR UTILITY GRADING COSTS.

       (a) Gas Utility Property.--Section 168(e)(3)(E) (defining 
     15-year property) is amended by striking ``and'' at the end 
     of clause (ii), by striking the period at the end of clause 
     (iii) and inserting ``, and'', and by adding at the end the 
     following new clause:
       ``(iv) initial clearing and grading land improvements with 
     respect to gas utility property.''.
       (b) Electric Utility Property.--Section 168(e)(3) is 
     amended by adding at the end the following new subparagraph:
       ``(F) 20-year property.--The term `20-year property' means 
     initial clearing and grading land improvements with respect 
     to any electric utility transmission and distribution 
     plant.''.
       (c) Conforming Amendments.--The table contained in section 
     168(g)(3)(B) is amended--
       (1) by inserting ``or (E)(iv)'' after ``(E)(iii)'', and
       (2) by adding at the end the following new item:

  ``(F).......................................................25''.....

       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 5686. CONSISTENT AMORTIZATION OF PERIODS FOR 
                   INTANGIBLES.

       (a) Start-Up Expenditures.--
       (1) Allowance of deduction.--Paragraph (1) of section 
     195(b) (relating to start-up expenditures) is amended to read 
     as follows:
       ``(1) Allowance of deduction.--If a taxpayer elects the 
     application of this subsection with respect to any start-up 
     expenditures--
       ``(A) the taxpayer shall be allowed a deduction for the 
     taxable year in which the active trade or business begins in 
     an amount equal to the lesser of--
       ``(i) the amount of start-up expenditures with respect to 
     the active trade or business, or
       ``(ii) $5,000, reduced (but not below zero) by the amount 
     by which such start-up expenditures exceed $50,000, and
       ``(B) the remainder of such start-up expenditures shall be 
     allowed as a deduction ratably over the 180-month period 
     beginning with the month in which the active trade or 
     business begins.''.
       (2) Conforming amendment.--Subsection (b) of section 195 is 
     amended by striking ``Amortize'' and inserting ``Deduct'' in 
     the heading.
       (b) Organizational Expenditures.--Subsection (a) of section 
     248 (relating to organizational expenditures) is amended to 
     read as follows:
       ``(a) Election To Deduct.--If a corporation elects the 
     application of this subsection (in accordance with 
     regulations prescribed by the Secretary) with respect to any 
     organizational expenditures--
       ``(1) the corporation shall be allowed a deduction for the 
     taxable year in which the corporation begins business in an 
     amount equal to the lesser of--
       ``(A) the amount of organizational expenditures with 
     respect to the taxpayer, or
       ``(B) $5,000, reduced (but not below zero) by the amount by 
     which such organizational expenditures exceed $50,000, and
       ``(2) the remainder of such organizational expenditures 
     shall be allowed as a deduction ratably over the 180-month 
     period beginning with the month in which the corporation 
     begins business.''.
       (c) Treatment of Organizational and Syndication Fees or 
     Partnerships.--
       (1) In general.--Section 709(b) (relating to amortization 
     of organization fees) is amended by redesignating paragraph 
     (2) as paragraph (3) and by amending paragraph (1) to read as 
     follows:
       ``(1) Allowance of deduction.--If a taxpayer elects the 
     application of this subsection (in accordance with 
     regulations prescribed by the Secretary) with respect to any 
     organizational expenses--
       ``(A) the taxpayer shall be allowed a deduction for the 
     taxable year in which the partnership begins business in an 
     amount equal to the lesser of--
       ``(i) the amount of organizational expenses with respect to 
     the partnership, or
       ``(ii) $5,000, reduced (but not below zero) by the amount 
     by which such organizational expenses exceed $50,000, and
       ``(B) the remainder of such organizational expenses shall 
     be allowed as a deduction ratably over the 180-month period 
     beginning with the month in which the partnership begins 
     business.
       ``(2) Dispositions before close of amortization period.--In 
     any case in which a partnership is liquidated before the end 
     of the period to which paragraph (1)(B) applies, any deferred 
     expenses attributable to the partnership which were not 
     allowed as a deduction by reason of this section may be 
     deducted to the extent allowable under section 165.''.
       (2) Conforming amendment.--Subsection (b) of section 709 is 
     amended by striking ``Amortization'' and inserting 
     ``Deduction'' in the heading.
       (d) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act.
       On page 521, strike line 18 and all that follows through 
     the matter following line 18 on page 720, and insert the 
     following:

                    TITLE III--PUBLIC TRANSPORTATION

     SEC. 3001. SHORT TITLE.

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

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

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

     SEC. 3003. POLICIES, FINDINGS, AND PURPOSES.

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

     SEC. 3004. DEFINITIONS.

       Section 5302(a) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (G)(i), by inserting ``including the 
     intercity bus and intercity rail portions of such facility or 
     mall,'' after ``transportation mall,'';
       (B) in subparagraph (G)(ii), by inserting ``, except for 
     the intercity bus portion of intermodal facilities or 
     malls,'' after ``commercial revenue-producing facility'';
       (C) in subparagraph (H)--
       (i) by striking ``and'' after ``innovative'' and inserting 
     ``or''; and

[[Page 2107]]

       (ii) by striking ``or'' after the semicolon at the end;
       (D) in subparagraph (I), by striking the period at the end 
     and inserting a semicolon; and
       (E) by adding at the end the following:
       ``(J) crime prevention and security, including--
       ``(i) projects to refine and develop security and emergency 
     response plans; or
       ``(ii) projects to detect chemical or biological agents in 
     public transportation;
       ``(K) conducting emergency response drills with public 
     transportation agencies and local first response agencies or 
     security training for public transportation employees, except 
     for expenses relating to operations; or
       ``(L) establishing a debt service reserve, made up of 
     deposits with a bondholder's trustee, to ensure the timely 
     payment of principal and interest on bonds issued by a grant 
     recipient to finance an eligible project under this 
     chapter.'';
       (2) by striking paragraph (16);
       (3) by redesignating paragraphs (8) through (15) as 
     paragraphs (9) through (16), respectively;
       (4) by striking paragraph (7) and inserting the following:
       ``(7) Mass transportation.--The term `mass transportation' 
     means public transportation.
       ``(8) Mobility management.--The term `mobility management' 
     means a short-range planning or management activity or 
     project that does not include operating public transportation 
     services and--
       ``(A) improves coordination among public transportation 
     providers, including private companies engaged in public 
     transportation;
       ``(B) addresses customer needs by tailoring public 
     transportation services to specific market niches; or
       ``(C) manages public transportation demand.'';
       (5) by amending paragraph (11), as redesignated, to read as 
     follows:
       ``(11) Public transportation.--The term `public 
     transportation' means transportation by a conveyance that 
     provides local regular and continuing general or special 
     transportation to the public, but does not include school 
     bus, charter bus, intercity bus or passenger rail, or 
     sightseeing transportation.'';
       (6) in subparagraphs (A) and (E) of paragraph (16), as 
     redesignated, by striking ``and'' each place it appears and 
     inserting ``or''; and
       (7) by amending paragraph (17) to read as follows:
       ``(17) Urbanized area.--The term `urbanized area' means an 
     area encompassing a population of not less than 50,000 people 
     that has been defined and designated in the most recent 
     decennial census as an `urbanized area' by the Secretary of 
     Commerce.''.

     SEC. 3005. METROPOLITAN TRANSPORTATION PLANNING.

       Section 5303 is amended to read as follows:

     ``Sec. 5303. Metropolitan transportation planning

       ``(a) Definitions.--As used in this section and in section 
     5304, the following definitions shall apply:
       ``(1) Consultation.--A `consultation' occurs when 1 party--
       ``(A) confers with another identified party in accordance 
     with an established process;
       ``(B) prior to taking action, considers the views of the 
     other identified party; and
       ``(C) periodically informs that party about action taken.
       ``(2) Metropolitan planning area.--The term `metropolitan 
     planning area' means the geographic area determined by 
     agreement between the metropolitan planning organization and 
     the Governor under subsection (d).
       ``(3) Metropolitan planning organization.--The term 
     `metropolitan planning organization' means the Policy Board 
     of the organization designated under subsection (c).
       ``(4) Nonmetropolitan area.--The term `nonmetropolitan 
     area' means any geographic area outside all designated 
     metropolitan planning areas.
       ``(5) Nonmetropolitan local official.--The term 
     `nonmetropolitan local official' means any elected or 
     appointed official of general purpose local government 
     located in a nonmetropolitan area who is responsible for 
     transportation services for such local government.
       ``(b) General Requirements.--
       ``(1) Development of plans and programs.--To accomplish the 
     objectives described in section 5301(a), each metropolitan 
     planning organization, in cooperation with the State and 
     public transportation operators, shall develop transportation 
     plans and programs for metropolitan planning areas of the 
     State in which it is located.
       ``(2) Contents.--The plans and programs developed under 
     paragraph (1) for each metropolitan planning area shall 
     provide for the development and integrated management and 
     operation of transportation systems and facilities (including 
     pedestrian walkways and bicycle transportation facilities) 
     that will function as an intermodal transportation system for 
     the metropolitan planning area and as an integral part of an 
     intermodal transportation system for the State and the United 
     States.
       ``(3) Process of development.--The process for developing 
     the plans and programs shall provide for consideration of all 
     modes of transportation and shall be continuing, cooperative, 
     and comprehensive to the degree appropriate, based on the 
     complexity of the transportation problems to be addressed.
       ``(4) Planning and project development.--The metropolitan 
     planning organization, the State Department of 
     Transportation, and the appropriate public transportation 
     provider shall agree upon the approaches that will be used to 
     evaluate alternatives and identify transportation 
     improvements that address the most complex problems and 
     pressing transportation needs in the metropolitan area.
       ``(c) Designation of Metropolitan Planning Organizations.--
       ``(1) In general.--To carry out the transportation planning 
     process under this section, a metropolitan planning 
     organization shall be designated for each urbanized area--
       ``(A) by agreement between the Governor and units of 
     general purpose local government that combined represent not 
     less than 75 percent of the affected population (including 
     the incorporated city or cities named by the Bureau of the 
     Census in designating the urbanized area); or
       ``(B) in accordance with procedures established by 
     applicable State or local law.
       ``(2) Structure.--Each metropolitan planning organization 
     designated under paragraph (1) that serves an area identified 
     as a transportation management area shall consist of--
       ``(A) local elected officials;
       ``(B) officials of public agencies that administer or 
     operate major modes of transportation in the metropolitan 
     area; and
       ``(C) appropriate State officials.
       ``(3) Limitation on statutory construction.--Nothing in 
     this subsection shall be construed to interfere with the 
     authority, under any State law in effect on December 18, 
     1991, of a public agency with multimodal transportation 
     responsibilities--
       ``(A) to develop plans and programs for adoption by a 
     metropolitan planning organization; and
       ``(B) to develop long-range capital plans, coordinate 
     transit services and projects, and carry out other activities 
     pursuant to State law.
       ``(4) Continuing designation.--The designation of a 
     metropolitan planning organization under this subsection or 
     any other provision of law shall remain in effect until the 
     metropolitan planning organization is redesignated under 
     paragraph (5).
       ``(5) Redesignation procedures.--A metropolitan planning 
     organization may be redesignated by agreement between the 
     Governor and units of general purpose local government that 
     combined represent not less than 75 percent of the existing 
     planning area population (including the incorporated city or 
     cities named by the Bureau of the Census in designating the 
     urbanized area) as appropriate to carry out this section.
       ``(6) Designation of more than 1 metropolitan planning 
     organization.--More than 1 metropolitan planning organization 
     may be designated within an existing metropolitan planning 
     area only if the Governor and the existing metropolitan 
     planning organization determine that the size and complexity 
     of the existing metropolitan planning area make designation 
     of more than 1 metropolitan planning organization for the 
     area appropriate.
       ``(d) Metropolitan Planning Area Boundaries.--
       ``(1) In general.--For the purposes of this section, the 
     boundaries of a metropolitan planning area shall be 
     determined by agreement between the metropolitan planning 
     organization and the Governor.
       ``(2) Included area.--Each metropolitan planning area--
       ``(A) shall encompass at least the existing urbanized area 
     and the contiguous area expected to become urbanized within a 
     20-year forecast period for the transportation plan; and
       ``(B) may encompass the entire metropolitan statistical 
     area or consolidated metropolitan statistical area, as 
     defined by the Office of Management and Budget.
       ``(3) Identification of new urbanized areas within existing 
     planning area boundaries.--The designation by the Bureau of 
     the Census of new urbanized areas within an existing 
     metropolitan planning area shall not require the 
     redesignation of the existing metropolitan planning 
     organization.
       ``(4) Existing metropolitan planning areas in 
     nonattainment.--Notwithstanding paragraph (2), in the case of 
     an urbanized area designated as a nonattainment area for 
     ozone or carbon monoxide under the Clean Air Act (42 U.S.C. 
     7401 et seq.), the boundaries of the metropolitan planning 
     area in existence as of the date of enactment of the Federal 
     Public Transportation Act of 2004 shall be retained, except 
     that the boundaries may be adjusted by agreement of the 
     Governor and affected metropolitan planning organizations in 
     accordance with paragraph (5).
       ``(5) New metropolitan planning areas in nonattainment.--If 
     an urbanized area is designated after the date of enactment 
     of this paragraph in a nonattainment area for ozone or carbon 
     monoxide, the boundaries of the metropolitan planning area--
       ``(A) shall be established in accordance with subsection 
     (c)(1);

[[Page 2108]]

       ``(B) shall encompass the areas described in paragraph 
     (2)(A);
       ``(C) may encompass the areas described in paragraph 
     (2)(B); and
       ``(D) may address any nonattainment identified under the 
     Clean Air Act (42 U.S.C. 7401 et seq.) for ozone or carbon 
     monoxide.
       ``(e) Coordination in Multistate Areas.--
       ``(1) In general.--The Secretary shall encourage each 
     Governor with responsibility for a portion of a multistate 
     metropolitan area and the appropriate metropolitan planning 
     organizations to provide coordinated transportation planning 
     for the entire metropolitan area.
       ``(2) Interstate compacts.--States are authorized--
       ``(A) to enter into agreements or compacts with other 
     States, which agreements or compacts are not in conflict with 
     any law of the United States, for cooperative efforts and 
     mutual assistance in support of activities authorized under 
     this section as the activities pertain to interstate areas 
     and localities within the States; and
       ``(B) to establish such agencies, joint or otherwise, as 
     the States may determine desirable for making the agreements 
     and compacts effective.
       ``(3) Lake tahoe region.--
       ``(A) Definition.--In this paragraph, the term `Lake Tahoe 
     region' has the meaning given the term `region' in 
     subdivision (a) of article II of the Tahoe Regional Planning 
     Compact, as set forth in the first section of Public Law 96-
     551 (94 Stat. 3234).
       ``(B) Transportation planning process.--The Secretary 
     shall--
       ``(i) establish with the Federal land management agencies 
     that have jurisdiction over land in the Lake Tahoe region a 
     transportation planning process for the region; and
       ``(ii) coordinate the transportation planning process with 
     the planning process required of State and local governments 
     under this section and section 5304.
       ``(C) Interstate compact.--
       ``(i) In general.--Subject to clause (ii) and 
     notwithstanding subsection (c), to carry out the 
     transportation planning process required by this section, 
     California and Nevada may designate a metropolitan planning 
     organization for the Lake Tahoe region, by agreement between 
     the Governor of the State of California, the Governor of the 
     State of Nevada, and units of general purpose local 
     government that combined represent not less than 75 percent 
     of the affected population (including the incorporated city 
     or cities named by the Bureau of the Census in designating 
     the urbanized area), or in accordance with procedures 
     established by applicable State or local law.
       ``(ii) Involvement of federal land management agencies.--

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

       ``(D) Activities.--Highway projects included in 
     transportation plans developed under this paragraph--
       ``(i) shall be selected for funding in a manner that 
     facilitates the participation of the Federal land management 
     agencies that have jurisdiction over land in the Lake Tahoe 
     region; and
       ``(ii) may, in accordance with chapter 2 of title 23, be 
     funded using funds allocated under section 202 of title 23.
       ``(f) Coordination of Metropolitan Planning 
     Organizations.--
       ``(1) Nonattainment areas.--If more than 1 metropolitan 
     planning organization has authority within a metropolitan 
     area or an area which is designated as a nonattainment area 
     for ozone or carbon monoxide under the Clean Air Act (42 
     U.S.C. 7401 et seq.), each metropolitan planning organization 
     shall consult with the other metropolitan planning 
     organizations designated for such area and the State in the 
     coordination of plans required by this section.
       ``(2) Transportation improvements located in multiple 
     metropolitan planning areas.--If a transportation improvement 
     funded from the highway trust fund is located within the 
     boundaries of more than 1 metropolitan planning area, the 
     metropolitan planning organizations shall coordinate plans 
     regarding the transportation improvement.
       ``(3) Interregional and interstate project impacts.--
     Planning for National Highway System, commuter rail projects, 
     or other projects with substantial impacts outside a single 
     metropolitan planning area or State shall be coordinated 
     directly with the affected, contiguous, metropolitan planning 
     organizations and States.
       ``(4) Coordination with other planning processes.--
       ``(A) In general.--The Secretary shall encourage each 
     metropolitan planning organization to coordinate its planning 
     process, to the maximum extent practicable, with those 
     officials responsible for other types of planning activities 
     that are affected by transportation, including State and 
     local land use planning, economic development, environmental 
     protection, airport operations, housing, and freight.
       ``(B) Other considerations.--The metropolitan planning 
     process shall develop transportation plans with due 
     consideration of, and in coordination with, other related 
     planning activities within the metropolitan area. This should 
     include the design and delivery of transportation services 
     within the metropolitan area that are provided by--
       ``(i) recipients of assistance under this chapter;
       ``(ii) governmental agencies and nonprofit organizations 
     (including representatives of the agencies and organizations) 
     that receive Federal assistance from a source other than the 
     Department of Transportation to provide nonemergency 
     transportation services; and
       ``(iii) recipients of assistance under section 204 of title 
     23.
       ``(g) Scope of Planning Process.--
       ``(1) In general.--The goals and objectives developed 
     through the metropolitan planning process for a metropolitan 
     planning area under this section shall address, in relation 
     to the performance of the metropolitan area transportation 
     systems--
       ``(A) supporting the economic vitality of the metropolitan 
     area, especially by enabling global competitiveness, 
     productivity, and efficiency, including through services 
     provided by public and private operators;
       ``(B) increasing the safety of the transportation system 
     for motorized and nonmotorized users;
       ``(C) increasing the security of the transportation system 
     for motorized and nonmotorized users;
       ``(D) increasing the accessibility and mobility of people 
     and for freight, including through services provided by 
     public and private operators;
       ``(E) protecting and enhancing the environment (including 
     the protection of habitat, water quality, and agricultural 
     and forest land, while minimizing invasive species), 
     promoting energy conservation, and promoting consistency 
     between transportation improvements and State and local land 
     use planning and economic development patterns (including 
     minimizing adverse health effects from mobile source air 
     pollution and promoting the linkage of the transportation and 
     development goals of the metropolitan area);
       ``(F) enhancing the integration and connectivity of the 
     transportation system, across and between modes, for people 
     and freight, including through services provided by public 
     and private operators;
       ``(G) promoting efficient system management and operation; 
     and
       ``(H) emphasizing the preservation and efficient use of the 
     existing transportation system, including services provided 
     by public and private operators.
       ``(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 to consider.
       ``(3) Failure to consider factors.--The failure to consider 
     any factor specified in paragraph (1) shall not be reviewable 
     by any court under title 23, this title, subchapter II of 
     chapter 5 of title 5, or chapter 7 of title 5 in any matter 
     affecting a transportation plan, a transportation improvement 
     plan, a project or strategy, or the certification of a 
     planning process.
       ``(h) Development of Transportation Plan.--
       ``(1) In general.--
       ``(A) Requirement.--Each metropolitan planning organization 
     shall develop a transportation plan for its metropolitan 
     planning area in accordance with this subsection, and update 
     such plan--
       ``(i) not less frequently than once 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 as attainment, in 
     accordance with paragraph (3) of such section, with a 
     maintenance plan under section 175A of the Clean Air Act (42 
     U.S.C. 7505a); or
       ``(ii) not less frequently than once every 5 years in areas 
     designated as attainment, as defined in section 107(d) of the 
     Clean Air Act.
       ``(B) Coordination factors.--In developing the 
     transportation plan under this section, each metropolitan 
     planning organization shall consider the factors described in 
     subsection (f) over a 20-year forecast period.
       ``(C) Financial estimates.--For the purpose of developing 
     the transportation plan, the metropolitan planning 
     organization, transit operator, and State shall cooperatively 
     develop estimates of funds that will be available to support 
     plan implementation.
       ``(2) Mitigation activities.--
       ``(A) In general.--A transportation plan under this 
     subsection 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

[[Page 2109]]

     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 described in 
     subparagraph (A) shall be developed in consultation with 
     Federal and State tribal wildlife, land management, and 
     regulatory agencies.
       ``(3) Contents.-- A transportation plan under this 
     subsection shall be in a form that the Secretary determines 
     to be appropriate and shall contain--
       ``(A) an identification of transportation facilities, 
     including major roadways, transit, multimodal and intermodal 
     facilities, intermodal connectors, and other relevant 
     facilities identified by the metropolitan planning 
     organization, which should function as an integrated 
     metropolitan transportation system, emphasizing those 
     facilities that serve important national and regional 
     transportation functions;
       ``(B) a financial plan that--
       ``(i) demonstrates how the adopted transportation plan can 
     be implemented;
       ``(ii) indicates resources from public and private sources 
     that are reasonably expected to be made available to carry 
     out the plan;
       ``(iii) recommends any additional financing strategies for 
     needed projects and programs; and
       ``(iv) may include, for illustrative purposes, additional 
     projects that would be included in the adopted transportation 
     plan if approved by the Secretary and reasonable additional 
     resources beyond those identified in the financial plan were 
     available;
       ``(C) operational and management strategies to improve the 
     performance of existing transportation facilities to relieve 
     vehicular congestion and maximize the safety and mobility of 
     people and goods;
       ``(D) capital investment and other strategies to preserve 
     the existing metropolitan transportation infrastructure and 
     provide for multimodal capacity increases based on regional 
     priorities and needs; and
       ``(E) proposed transportation and transit enhancement 
     activities.
       ``(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.
       ``(5) Coordination with clean air act agencies.--In 
     metropolitan areas in nonattainment for ozone or carbon 
     monoxide under the Clean Air Act (42 U.S.C. 7401 et seq.), 
     the metropolitan planning organization shall coordinate the 
     development of a transportation plan with the process for 
     development of the transportation control measures of the 
     State implementation plan required by the Clean Air Act.
       ``(6) Approval of the transportation plan.--Each 
     transportation plan prepared by a metropolitan planning 
     organization shall be--
       ``(A) approved by the metropolitan planning organization; 
     and
       ``(B) submitted to the Governor for information purposes at 
     such time and in such manner as the Secretary may reasonably 
     require.
       ``(i) Participation by Interested Parties.--
       ``(1) Development of participation plan.--Not less 
     frequently than every 4 years, each metropolitan planning 
     organization shall develop and adopt a plan for participation 
     in the process for developing the metropolitan transportation 
     plan and programs by--
       ``(A) citizens;
       ``(B) affected public agencies;
       ``(C) representatives of public transportation employees;
       ``(D) freight shippers;
       ``(E) providers of freight transportation services;
       ``(F) private providers of transportation;
       ``(G) representatives of users of public transit;
       ``(H) representatives of users of pedestrian walkways and 
     bicycle transportation facilities; and
       ``(I) other interested parties.
       ``(2) Contents of participation plan.--The participation 
     plan--
       ``(A) shall be developed in a manner the Secretary 
     determines to be appropriate;
       ``(B) shall be developed in consultation with all 
     interested parties; and
       ``(C) shall provide that all interested parties have 
     reasonable opportunities to comment on--
       ``(i) the process for developing the transportation plan; 
     and
       ``(ii) the contents of the transportation plan.
       ``(3) Methods.--The participation plan shall provide that 
     the metropolitan planning organization shall, to the maximum 
     extent practicable--
       ``(A) hold any public meetings at convenient and accessible 
     locations and times;
       ``(B) employ visualization techniques to describe plans; 
     and
       ``(C) make public information available in electronically 
     accessible format and means, such as the World Wide Web.
       ``(4) Certification.--Before the metropolitan planning 
     organizations approve a transportation plan or program, each 
     metropolitan planning organization shall certify that it has 
     complied with the requirements of the participation plan it 
     has adopted.
       ``(j) Transportation Improvement Program.--
       ``(1) Development and update.--
       ``(A) In general.--In cooperation with the State and 
     affected operators of public transportation, a metropolitan 
     planning organization designated for a metropolitan planning 
     area shall develop a transportation improvement program for 
     the area.
       ``(B) Participation.--In developing the transportation 
     improvement program, the metropolitan planning organization, 
     in cooperation with the Governor and any affected operator of 
     public transportation, shall provide an opportunity for 
     participation by interested parties in the development of the 
     program, in accordance with subsection (i).
       ``(C) Updates.--The transportation improvement program 
     shall be updated not less than once every 4 years and shall 
     be approved by the metropolitan planning organization and the 
     Governor.
       ``(D) Funding estimate.--In developing the transportation 
     improvement program, the metropolitan planning organization, 
     operators of public transportation, and the State shall 
     cooperatively develop estimates of funds that are reasonably 
     expected to be available to support program implementation.
       ``(E) Project advancement.--Projects listed in the 
     transportation improvement program may be selected for 
     advancement consistent with the project selection 
     requirements.
       ``(F) Major amendments.--Major amendments to the list 
     described in subparagraph (E), including the addition, 
     deletion, or concept and scope change of a regionally 
     significant project, may not be advanced without--
       ``(i) appropriate public involvement;
       ``(ii) financial planning;
       ``(iii) transportation conformity analyses; and
       ``(iv) a finding by the Federal Highway Administration and 
     Federal Transit Administration that the amended plan was 
     produced in a manner consistent with this section.
       ``(2) Included projects.--
       ``(A) Projects under chapter 1 of title 23 and this 
     chapter.--A transportation improvement program developed 
     under this section for a metropolitan area shall include the 
     projects and strategies within the metropolitan area that are 
     proposed for funding under chapter 1 of title 23 and this 
     chapter.
       ``(B) Projects under chapter 2 of title 23.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 of 
     title 23 shall be identified individually in the metropolitan 
     transportation improvement program.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 of title 23 that are not regionally significant 
     shall be grouped in 1 line item or identified individually in 
     the metropolitan transportation improvement program.
       ``(3) Selection of projects.--
       ``(A) In general.--Except as otherwise provided under 
     subsection (k)(4), the selection of federally funded projects 
     in metropolitan planning areas shall be carried out, from the 
     approved transportation plan--
       ``(i) by the State, in the case of projects under chapter 1 
     of title 23 or section 5308, 5310, 5311, or 5317 of this 
     title;
       ``(ii) by the designated recipient, in the case of projects 
     under section 5307; and
       ``(iii) in cooperation with the metropolitan planning 
     organization.
       ``(B) Modifications to project priority.--Notwithstanding 
     any other provision of law, a project may be advanced from 
     the transportation improvement program in place of another 
     project in the same transportation improvement program 
     without the approval of the Secretary.
       ``(4) Publication requirements.--
       ``(A) Publication of transportation improvement program.--A 
     transportation improvement program involving Federal 
     participation shall be published or otherwise made readily 
     available by the metropolitan planning organization for 
     public review, including, to the maximum extent practicable, 
     in electronically accessible formats and means, such as the 
     World Wide Web.
       ``(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 
     4 years shall be published or otherwise made available for 
     public review by the cooperative effort of the State, transit 
     operator, and the metropolitan planning

[[Page 2110]]

     organization. This listing shall be consistent with the 
     funding categories identified in the transportation 
     improvement program.
       ``(C) Rulemaking.--Not later than 120 days after the date 
     of enactment of the Federal Public Transportation Act of 
     2004, the Secretary shall issue regulations specifying--
       ``(i) the types of data to be included in the list 
     described in subparagraph (B), including--

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

       ``(ii) the media through which the list described in 
     subparagraph (B) will be made available to the public, 
     including written and visual components for each of the 
     projects listed.
       ``(k) Transportation Management Areas.--
       ``(1) Required identification.--The Secretary shall 
     identify each urbanized area with a population of more than 
     200,000 individuals as a transportation management area.
       ``(2) Transportation plans and programs.--Transportation 
     plans and programs for a metropolitan planning area serving a 
     transportation management area shall be based on a continuing 
     and comprehensive transportation planning process carried out 
     by the metropolitan planning organization in cooperation with 
     the State and transit operators.
       ``(3) Congestion management system.--
       ``(A) In general.--The transportation planning process 
     under this section shall address congestion management 
     through a process that provides for effective management and 
     operation, based on a cooperatively developed and implemented 
     metropolitan-wide strategy, of new and existing 
     transportation facilities eligible for funding under title 23 
     and this chapter through the use of travel demand reduction 
     and operational management strategies.
       ``(B) Phase-in schedule.--The Secretary shall establish a 
     phase-in schedule that provides for full compliance with the 
     requirements of this section not later than 1 year after the 
     identification of transportation management areas under 
     paragraph (1).
       ``(4) Selection of projects.--
       ``(A) In general.--All federally funded projects carried 
     out within the boundaries of a metropolitan planning area 
     serving a transportation management area under title 23 
     (except for projects carried out on the National Highway 
     System and projects carried out under the bridge program or 
     the interstate maintenance program) or under this chapter 
     shall be selected for implementation from the approved 
     transportation improvement program by the metropolitan 
     planning organization designated for the area in consultation 
     with the State and any affected public transit operator.
       ``(B) National highway system projects.--Projects on the 
     National Highway System carried out within the boundaries of 
     a metropolitan planning area serving a transportation 
     management area and projects carried out within such 
     boundaries under the bridge program or the interstate 
     maintenance program under title 23 shall be selected for 
     implementation from the approved transportation improvement 
     program by the State in cooperation with the metropolitan 
     planning organization designated for the area.
       ``(5) Certification.--
       ``(A) In general.--The Secretary shall--
       ``(i) ensure that the metropolitan planning process of a 
     metropolitan planning organization serving a transportation 
     management area is being carried out in accordance with 
     Federal law; and
       ``(ii) subject to subparagraph (B), certify, not less 
     frequently than once every 4 years in nonattainment and 
     maintenance areas (as defined under the Clean Air Act) and 
     not less frequently than once every 5 years in attainment 
     areas (as defined under such Act), 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 all other applicable Federal 
     law; and
       ``(ii) a transportation plan and a transportation 
     improvement program for the metropolitan planning area have 
     been approved by the metropolitan planning organization and 
     the Governor.
       ``(C) Penalty for failing to certify.--
       ``(i) Withholding project funds.--If the metropolitan 
     planning process of a metropolitan planning organization 
     serving a transportation management area is not certified, 
     the Secretary may withhold any funds otherwise available to 
     the metropolitan planning area for projects funded under 
     title 23 and this chapter.
       ``(ii) Restoration of withheld funds.--Any funds withheld 
     under clause (i) shall be restored to the metropolitan 
     planning area when the metropolitan planning process is 
     certified by the Secretary.
       ``(D) Review of certification.--In making a certification 
     under this paragraph, the Secretary shall provide for public 
     involvement appropriate to the metropolitan area under 
     review.
       ``(l) Abbreviated Plans for Certain Areas.--
       ``(1) In general.--Subject to paragraph (2), in the case of 
     a metropolitan area not designated as a transportation 
     management area under this section, the Secretary may provide 
     for the development of an abbreviated transportation plan and 
     transportation improvement program for the metropolitan 
     planning area that the Secretary determines is appropriate to 
     achieve the purposes of this section, after considering the 
     complexity of transportation problems in the area.
       ``(2) Nonattainment areas.--The Secretary may not permit 
     abbreviated plans for a metropolitan area that is in 
     nonattainment for ozone or carbon monoxide under the Clean 
     Air Act (42 U.S.C. 7401 et seq.).
       ``(m) Additional Requirements for Certain Nonattainment 
     Areas.--
       ``(1) In general.--Notwithstanding any other provisions of 
     title 23 or this chapter, Federal funds may not be advanced 
     for transportation management areas classified as 
     nonattainment for ozone or carbon monoxide pursuant to the 
     Clean Air Act (42 U.S.C. 7401 et seq.) for any highway 
     project that will result in a significant increase in 
     carrying capacity for single-occupant vehicles unless the 
     project is addressed through a congestion management process.
       ``(2) Applicability.--This subsection applies to any 
     nonattainment area within the metropolitan planning area 
     boundaries determined under subsection (d).
       ``(n) Limitation on Statutory Construction.--Nothing in 
     this section shall be construed to confer on a metropolitan 
     planning organization the authority to impose legal 
     requirements on any transportation facility, provider, or 
     project that is not eligible under title 23 or this chapter.
       ``(o) Availability of Funds.--Funds set aside under section 
     104(f) of title 23 or section 5308 of this title shall be 
     available to carry out this section.
       ``(p) Continuation of Current Review Practice.--Any 
     decision by the Secretary concerning a plan or program 
     described in this section shall not be considered to be a 
     Federal action subject to review under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).''.

     SEC. 3006. STATEWIDE TRANSPORTATION PLANNING.

       Section 5304 is amended to read as follows:

     ``Sec. 5304. Statewide transportation planning

       ``(a) General Requirements.--
       ``(1) Development of plans and programs.--To support the 
     policies described in section 5301(a), each State shall 
     develop a statewide transportation plan (referred to in this 
     section as a ``Plan'') and a statewide transportation 
     improvement program (referred to in this section as a 
     ``Program'') for all areas of the State subject to section 
     5303.
       ``(2) Contents.--The Plan and the Program developed for 
     each State shall provide for the development and integrated 
     management and operation of transportation systems and 
     facilities (including pedestrian walkways and bicycle 
     transportation facilities) that will function as an 
     intermodal transportation system for the State and an 
     integral part of an intermodal transportation system for the 
     United States.
       ``(3) Process of development.--The process for developing 
     the Plan and the Program shall--
       ``(A) provide for the consideration of all modes of 
     transportation and the policies described in section 5301(a); 
     and
       ``(B) be continuing, cooperative, and comprehensive to the 
     degree appropriate, based on the complexity of the 
     transportation problems to be addressed.
       ``(b) Coordination With Metropolitan Planning; State 
     Implementation Plan.--Each State shall--
       ``(1) coordinate planning under this section with--
       ``(A) the transportation planning activities under section 
     5303 for metropolitan areas of the State; and
       ``(B) other related statewide planning activities, 
     including trade and economic development and related 
     multistate planning efforts; and
       ``(2) develop the transportation portion of the State 
     implementation plan, as required by the Clean Air Act (42 
     U.S.C. 7401 et seq.).
       ``(c) Interstate Agreements.--States may enter into 
     agreements or compacts with other States for cooperative 
     efforts and mutual assistance in support of activities 
     authorized under this section related to interstate areas and 
     localities in the States and establishing authorities the 
     States consider desirable for making the agreements and 
     compacts effective.
       ``(d) Scope of Planning Process.--
       ``(1) In general.--Each State shall carry out a statewide 
     transportation planning process that provides for the 
     consideration of projects, strategies, and implementing 
     projects and services that will--
       ``(A) support the economic vitality of the United States, 
     the States, nonmetropolitan areas, and metropolitan areas, 
     especially by

[[Page 2111]]

     enabling global competitiveness, productivity, and 
     efficiency;
       ``(B) increase the safety of the transportation system for 
     motorized and nonmotorized users;
       ``(C) increase the security of the transportation system 
     for motorized and nonmotorized users;
       ``(D) increase the accessibility and mobility of people and 
     freight;
       ``(E) protect and enhance the environment (including the 
     protection of habitat, water quality, and agricultural and 
     forest land, while minimizing invasive species), promote 
     energy conservation, promote consistency between 
     transportation improvements and State and local land use 
     planning and economic development patterns, and improve the 
     quality of life (including minimizing adverse health effects 
     from mobile source air pollution and promoting the linkage of 
     the transportation and development goals of the State);
       ``(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 and efficient use of the 
     existing transportation system.
       ``(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.
       ``(3) Mitigation activities.--
       ``(A) In general.--A transportation plan under this 
     subsection 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.
       ``(B) Consultation.--The discussion described in 
     subparagraph (A) shall be developed in consultation with 
     Federal and State tribal wildlife, land management, and 
     regulatory agencies.
       ``(4) Failure to consider factors.--The failure to consider 
     any factor described in paragraph (1) shall not be reviewable 
     by any court under title 23, this title, subchapter II of 
     chapter 5 of title 5, or chapter 7 of title 5 in any matter 
     affecting a Plan, a Program, a project or strategy, or the 
     certification of a planning process.
       ``(e) Additional Requirements.--In carrying out planning 
     under this section, each State shall consider--
       ``(1) with respect to nonmetropolitan areas, the concerns 
     of affected local officials with responsibility for 
     transportation;
       ``(2) the concerns of Indian tribal governments and Federal 
     land management agencies that have jurisdiction over land 
     within the boundaries of the State; and
       ``(3) coordination of Plans, Programs, and planning 
     activities with related planning activities being carried out 
     outside of metropolitan planning areas and between States.
       ``(f) Statewide Transportation Plan.--
       ``(1) Development.--Each State shall develop a Plan, with a 
     minimum 20-year forecast period for all areas of the State, 
     that provides for the development and implementation of the 
     intermodal transportation system of the State.
       ``(2) Consultation with governments.--
       ``(A) Metropolitan planning areas.--The Plan shall be 
     developed for each metropolitan planning area in the State in 
     cooperation with the metropolitan planning organization 
     designated for the metropolitan planning area under section 
     5303.
       ``(B) Nonmetropolitan areas.--With respect to 
     nonmetropolitan areas, the statewide transportation plan 
     shall be developed in consultation with affected 
     nonmetropolitan officials with responsibility for 
     transportation. The consultation process shall not require 
     the review or approval of the Secretary.
       ``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the Plan shall be developed in consultation with 
     the tribal government and the Secretary of the Interior.
       ``(D) Consultation, comparison, and consideration.--
       ``(i) In general.--The 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.

       ``(3) Participation by interested parties.--In developing 
     the Plan, the State shall--
       ``(A) provide citizens, affected public agencies, 
     representatives of public transportation employees, freight 
     shippers, private providers of transportation, 
     representatives of users of public transportation, 
     representatives of users of pedestrian walkways and bicycle 
     transportation facilities, providers of freight 
     transportation services, and other interested parties with a 
     reasonable opportunity to comment on the proposed Plan; and
       ``(B) 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.
       ``(4) Mitigation activities.--
       ``(A) In general.--A 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 described in 
     subparagraph (A) shall be developed in consultation with 
     Federal and State tribal wildlife, land management, and 
     regulatory agencies.
       ``(5) Transportation strategies.--A Plan shall identify 
     transportation strategies necessary to efficiently serve the 
     mobility needs of people.
       ``(6) Financial plan.--The Plan may include a financial 
     plan that--
       ``(A) demonstrates how the adopted Plan can be implemented;
       ``(B) indicates resources from public and private sources 
     that are reasonably expected to be made available to carry 
     out the Plan;
       ``(C) recommends any additional financing strategies for 
     needed projects and programs; and
       ``(D) may include, for illustrative purposes, additional 
     projects that would be included in the adopted Plan if 
     reasonable additional resources beyond those identified in 
     the financial plan were available.
       ``(7) Selection of projects from illustrative list.--A 
     State shall not be required to select any project from the 
     illustrative list of additional projects described in 
     paragraph (6)(D).
       ``(8) Existing system.--The Plan should include capital, 
     operations and management strategies, investments, 
     procedures, and other measures to ensure the preservation and 
     most efficient use of the existing transportation system.
       ``(9) Publication of long-range transportation plans.--Each 
     Plan prepared by a State shall be published or otherwise made 
     available, including, to the maximum extent practicable, in 
     electronically accessible formats and means, such as the 
     World Wide Web.
       ``(g) Statewide Transportation Improvement Program.--
       ``(1) Development.--Each State shall develop a Program for 
     all areas of the State.
       ``(2) Consultation with governments.--
       ``(A) Metropolitan planning areas.--With respect to each 
     metropolitan planning area in the State, the Program shall be 
     developed in cooperation with the metropolitan planning 
     organization designated for the metropolitan planning area 
     under section 5303.
       ``(B) Nonmetropolitan areas.--With respect to each 
     nonmetropolitan area in the State, the Program shall be 
     developed in consultation with affected nonmetropolitan local 
     officials with responsibility for transportation. The 
     consultation process shall not require the review or approval 
     of the Secretary.
       ``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the Program shall be developed in consultation 
     with the tribal government and the Secretary of the Interior.
       ``(3) Participation by interested parties.--In developing 
     the Program, the State shall provide citizens, affected 
     public agencies, representatives of public transportation 
     employees, freight shippers, private providers of 
     transportation, providers of freight transportation services, 
     representatives of users of public transit, representatives 
     of users of pedestrian walkways and bicycle transportation 
     facilities, and other interested parties with a reasonable 
     opportunity to comment on the proposed Program.
       ``(4) Included projects.--
       ``(A) In general.--A Program developed under this 
     subsection for a State shall include federally supported 
     surface transportation expenditures within the boundaries of 
     the State.

[[Page 2112]]

       ``(B) Listing of projects.--
       ``(i) In general.--The Program shall cover a minimum of 4 
     years, identify projects by year, be fiscally constrained by 
     year, and be updated not less than once every 4 years.
       ``(ii) Publication.--An annual listing of projects for 
     which funds have been obligated in the preceding 4 years in 
     each metropolitan planning area shall be published or 
     otherwise made available by the cooperative effort of the 
     State, transit operator, and the metropolitan planning 
     organization for public review. The listing shall be 
     consistent with the funding categories identified in each 
     metropolitan transportation improvement program.
       ``(C) Individual identification.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 of 
     title 23 shall be identified individually in the 
     transportation improvement program.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 of title 23 that are not determined to be 
     regionally significant shall be grouped in 1 line item or 
     identified individually.
       ``(D) Consistency with statewide transportation plan.--Each 
     project included in the list described in subparagraph (B) 
     shall be--
       ``(i) consistent with the Plan developed under this section 
     for the State;
       ``(ii) identical to the project or phase of the project as 
     described in each year of the approved metropolitan 
     transportation improvement program; and
       ``(iii) in conformance with the applicable State air 
     quality implementation plan developed under the Clean Air Act 
     (42 U.S.C. 7401 et seq.), if the project is carried out in an 
     area designated as nonattainment for ozone or carbon monoxide 
     under that Act.
       ``(E) Requirement of anticipated full funding.--The Program 
     shall not include a project, or an identified phase of a 
     project, unless full funding can reasonably be anticipated to 
     be available for the project within the time period 
     contemplated for completion of the project.
       ``(F) Financial plan.--The Program may include a financial 
     plan that--
       ``(i) demonstrates how the approved Program can be 
     implemented;
       ``(ii) indicates resources from public and private sources 
     that are reasonably expected to be made available to carry 
     out the Program;
       ``(iii) recommends any additional financing strategies for 
     needed projects and programs; and
       ``(iv) may include, for illustrative purposes, additional 
     projects that would be included in the adopted transportation 
     plan if reasonable additional resources beyond those 
     identified in the financial plan were available.
       ``(G) Selection of projects from illustrative list.--
       ``(i) No required selection.--Notwithstanding subparagraph 
     (F), a State shall not be required to select any project from 
     the illustrative list of additional projects described in 
     subparagraph (F)(iv).
       ``(ii) Required approval by the secretary.--A State shall 
     not include any project from the illustrative list of 
     additional projects described in subparagraph (F)(iv) in an 
     approved Program without the approval of the Secretary.
       ``(H) Priorities.--The Program shall reflect the priorities 
     for programming and expenditures of funds, including 
     transportation and transit enhancement activities, required 
     by title 23 and this chapter, and transportation control 
     measures included in the State's air quality implementation 
     plan.
       ``(5) Project selection for areas with fewer than 50,000 
     individuals.--
       ``(A) In general.--Each State, in cooperation with the 
     affected nonmetropolitan local officials with responsibility 
     for transportation, shall select projects to be carried out 
     in areas with fewer than 50,000 individuals from the approved 
     Program (excluding projects carried out under the National 
     Highway System, the bridge program, or the interstate 
     maintenance program under title 23 or sections 5310 and 5311 
     of this title).
       ``(B) Certain programs.--Each State, in consultation with 
     the affected nonmetropolitan local officials with 
     responsibility for transportation, shall select, from the 
     approved Program, projects to be carried out in areas with 
     fewer than 50,000 individuals under the National Highway 
     System, the bridge program, or the Interstate maintenance 
     program under title 23 or under sections 5310 and 5311 of 
     this title.
       ``(6) Statewide transportation improvement program 
     approval.--A Program developed under this subsection shall be 
     reviewed and based on a current planning finding approved by 
     the Secretary not less frequently than once every 4 years.
       ``(7) Planning finding.--Not less frequently than once 
     every 4 years, the Secretary shall determine whether the 
     transportation planning process through which Plans and 
     Programs are developed are consistent with this section and 
     section 5303.
       ``(8) Modifications to project priority.--Notwithstanding 
     any other provision of law, a project included in the 
     approved Program may be advanced in place of another project 
     in the program without the approval of the Secretary.
       ``(h) Funding.--Funds set aside pursuant to section 104(i) 
     of title 23 and 5308 of this title shall be available to 
     carry out this section.
       ``(i) Treatment of Certain State Laws as Congestion 
     Management Systems.--For purposes of this section and section 
     5303, State laws, rules, or regulations pertaining to 
     congestion management systems or programs may constitute the 
     congestion management system under section 5303(i)(3) if the 
     Secretary determines that the State laws, rules, or 
     regulations are consistent with, and fulfill the intent of, 
     the purposes of section 5303.
       ``(j) Continuation of Current Review Practice.--Any 
     decision by the Secretary under this section, regarding a 
     metropolitan or statewide transportation plan or the Program, 
     shall not be considered to be a Federal action subject to 
     review under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.).''.

     SEC. 3007. TRANSPORTATION MANAGEMENT AREAS.

       Section 5305 is repealed.

     SEC. 3008. PRIVATE ENTERPRISE PARTICIPATION.

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

     SEC. 3009. URBANIZED AREA FORMULA GRANTS.

       (a) Technical Amendments.--Section 5307 is amended--
       (1) by striking subsections (h), (j) and (k); and
       (2) by redesignating subsections (i), (l), (m), and (n) as 
     subsections (h), (i), (j), and (k), respectively.
       (b) Definitions.--Section 5307(a) is amended--
       (1) by amending paragraph (2)(A) to read as follows:
       ``(A) an entity designated, in accordance with the planning 
     process under sections 5303, 5304, and 5306, by the chief 
     executive officer of a State, responsible local officials, 
     and publicly owned operators of public transportation, to 
     receive and apportion amounts under sections 5336 and 5337 
     that are attributable to transportation management areas 
     designated under section 5303; or''; and
       (2) by adding at the end the following:
       ``(3) Subrecipient.--The term `subrecipient' means a State 
     or local governmental authority, a nonprofit organization, or 
     a private operator of public transportation service that may 
     receive a Federal transit program grant indirectly through a 
     recipient, rather than directly from the Federal 
     Government.''.
       (c) General Authority.--Section 5307(b) is amended--
       (1) by amending paragraph (1) to read as follows:
       ``(1) In general.--The Secretary of Transportation may 
     award grants under this section for--
       ``(A) capital projects, including associated capital 
     maintenance items;
       ``(B) planning, including mobility management;
       ``(C) transit enhancements;
       ``(D) operating costs of equipment and facilities for use 
     in public transportation in an urbanized area with a 
     population of less than 200,000; and
       ``(E) operating costs of equipment and facilities for use 
     in public transportation in a portion or portions of an 
     urbanized area with a population of at least 200,000, but not 
     more than 225,000, if--
       ``(i) the urbanized area includes parts of more than 1 
     State;
       ``(ii) the portion of the urbanized area includes only 1 
     State;
       ``(iii) the population of the portion of the urbanized area 
     is less than 30,000; and
       ``(iv) the grants will not be used to provide public 
     transportation outside of the portion of the urbanized 
     area.'';
       (2) by amending paragraph (2) to read as follows:
       ``(2) Special rule for fiscal years 2004 through 2006--
       ``(A) Increased flexibility.--The Secretary may award 
     grants under this section, from funds made available to carry 
     out this section for each of the fiscal years 2004 through 
     2006, to finance the operating cost of equipment and 
     facilities for use in mass transportation in an urbanized 
     area with a population of at least 200,000, as determined by 
     the 2000 decennial census of population if--
       ``(i) the urbanized area had a population of less than 
     200,000, as determined by the 1990 decennial census of 
     population;
       ``(ii) a portion of the urbanized area was a separate 
     urbanized area with a population of less than 200,000, as 
     determined by the 1990 decennial census of population;

[[Page 2113]]

       ``(iii) the area was not designated as an urbanized area, 
     as determined by the 1990 decennial census of population; or
       ``(iv) a portion of the area was not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and received assistance under section 5311 in fiscal year 
     2002.
       ``(B) Maximum amounts in fiscal year 2004.--In fiscal year 
     2004--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     the amount apportioned in fiscal year 2002 to the urbanized 
     area with a population of less than 200,000, as determined in 
     the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than the amount 
     apportioned to the urbanized area under this section for 
     fiscal year 2003; and
       ``(iii) each portion of any area not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and eligible to receive funds under subparagraph (A)(iv), 
     shall receive an amount of funds to carry out this section 
     that is not less than the amount the portion of the area 
     received under section 5311 for fiscal year 2002.
       ``(C) Maximum amounts in fiscal year 2005.--In fiscal year 
     2005--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     50 percent of the amount apportioned in fiscal year 2002 to 
     the urbanized area with a population of less than 200,000, as 
     determined in the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than 50 percent of 
     the amount apportioned to the urbanized area under this 
     section for fiscal year 2003; and
       ``(iii) each portion of any area not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and eligible to receive funds under subparagraph (A)(iv), 
     shall receive an amount of funds to carry out this section 
     that is not less 50 percent of the amount the portion of the 
     area received under section 5311 for fiscal year 2002.
       ``(D) Maximum amounts in fiscal year 2006.--In fiscal year 
     2006--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     25 percent of the amount apportioned in fiscal year 2002 to 
     the urbanized area with a population of less than 200,000, as 
     determined in the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than 25 percent of 
     the amount apportioned to the urbanized area under this 
     section for fiscal year 2003; and
       ``(iii) each portion of any area not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and eligible to receive funds under subparagraph (A)(iv), 
     shall receive an amount of funds to carry out this section 
     that is not less than 25 percent of the amount the portion of 
     the area received under section 5311 in fiscal year 2002.''; 
     and
       (3) by striking paragraph (4).
       (d) Public Participation Requirements.--Section 5307(c)(5) 
     is amended by striking ``section 5336'' and inserting 
     ``sections 5336 and 5337''.
       (e) Grant Recipient Requirements.--Section 5307(d)(1) is 
     amended--
       (1) in subparagraph (A), by inserting ``, including safety 
     and security aspects of the program'' after ``program'';
       (2) in subparagraph (E), by striking ``section'' and all 
     that follows and inserting ``section, the recipient will 
     comply with sections 5323 and 5325;'';
       (3) in subparagraph (H), by striking ``sections 5301(a) and 
     (d), 5303-5306, and 5310(a)-(d) of this title'' and inserting 
     ``subsections (a) and (d) of section 5301 and sections 5303 
     through 5306'';
       (4) in subparagraph (I) by striking ``and'' at the end;
       (5) in subparagraph (J), by striking the period at the end 
     and inserting ``; and''; and
       (6) by adding at the end the following:
       ``(K) if located in an urbanized area with a population of 
     at least 200,000, will expend not less than 1 percent of the 
     amount the recipient receives each fiscal year under this 
     section for transit enhancement activities described in 
     section 5302(a)(15).''.
       (f) Government's Share of Costs.--Section 5307(e) is 
     amended--
       (1) by striking the first sentence and inserting the 
     following:
       ``(1) Capital projects.--A grant for a capital project 
     under this section shall cover 80 percent of the net project 
     cost.'';
       (2) by striking ``A grant for operating expenses'' and 
     inserting the following:
       ``(2) Operating expenses.--A grant for operating 
     expenses'';
       (3) by striking the fourth sentence and inserting the 
     following:
       ``(3) Remaining costs.--The remainder of the net project 
     cost shall be provided in cash from non-Federal sources or 
     revenues derived from the sale of advertising and concessions 
     and amounts received under a service agreement with a State 
     or local social service agency or a private social service 
     organization.''; and
       (4) by adding at the end the following: ``The prohibitions 
     on the use of funds for matching requirements under section 
     403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 
     603(a)(5)(C)(vii)) shall not apply to the remainder.''.
       (g) Undertaking Projects in Advance.--Section 5307(g) is 
     amended by striking paragraph (4).
       (h) Relationship to Other Laws.--Section 5307(k), as 
     redesignated, is amended to read as follows:
       ``(k) Relationship to Other Laws.--
       ``(1) Applicable provisions.--Sections 5301, 5302, 5303, 
     5304, 5306, 5315(c), 5318, 5319, 5323, 5325, 5327, 5329, 
     5330, 5331, 5332, 5333 and 5335 apply to this section and to 
     any grant made under this section.
       ``(2) Inapplicable provisions.--
       ``(A) In general.--Except as provided under this section, 
     no other provision of this chapter applies to this section or 
     to a grant made under this section.
       ``(B) Title 5.--The provision of assistance under this 
     chapter shall not be construed as bringing within the 
     application of chapter 15 of title 5, any nonsupervisory 
     employee of a public transportation system (or any other 
     agency or entity performing related functions) to which such 
     chapter is otherwise inapplicable.''.

     SEC. 3010. PLANNING PROGRAMS.

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

     ``Sec. 5308. Planning programs

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

[[Page 2114]]

     States, as shown by the latest available decennial census.
       ``(2) Minimum allocation.--Each State shall receive not 
     less than 0.5 percent of the amount allocated under this 
     subsection.
       ``(3) Reallocation.--A State may authorize part of the 
     amount made available under this subsection to be used to 
     supplement amounts available under subsection (c).
       ``(e) Planning Capacity Building Program.--
       ``(1) Establishment.--The Secretary shall establish a 
     Planning Capacity Building Program (referred to in this 
     subsection as the ``Program'') to support and fund innovative 
     practices and enhancements in transportation planning.
       ``(2) Purpose.--The purpose of the Program shall be to 
     promote activities that support and strengthen the planning 
     processes required under this section and sections 5303 and 
     5304.
       ``(3) Administration.--The Program shall be administered by 
     the Federal Transit Administration in cooperation with the 
     Federal Highway Administration.
       ``(4) Use of funds.--
       ``(A) In general.--Appropriations authorized under 
     subsection (g)(1) to carry out this subsection may be used--
       ``(i) to provide incentive grants to States, metropolitan 
     planning organizations, and public transportation operators; 
     and
       ``(ii) to conduct research, disseminate information, and 
     provide technical assistance.
       ``(B) Grants, contracts, cooperative agreements.--In 
     carrying out the activities described in subparagraph (A), 
     the Secretary may--
       ``(i) expend appropriated funds directly; or
       ``(ii) award grants to, or enter into contracts, 
     cooperative agreements, and other transactions with, a 
     Federal agency, State agency, local governmental authority, 
     association, nonprofit or for-profit entity, or institution 
     of higher education.
       ``(f) Government's Share of Costs.--Amounts made available 
     to carry out subsections (c), (d), and (e) may not exceed 80 
     percent of the costs of the activity unless the Secretary of 
     Transportation determines that it is in the interest of the 
     Government not to require State or local matching funds.
       ``(g) Allocation of Funds.--Of the amounts made available 
     under section 5338(b)(2)(B) for fiscal year 2005 and each 
     fiscal year thereafter to carry out this section--
       ``(1) $5,000,000 shall be allocated for the Planning 
     Capacity Building Program established under subsection (e);
       ``(2) $20,000,000 shall be allocated for grants under 
     subsection (a)(2) for alternatives analyses required by 
     section 5309(e)(2)(A); and
       ``(3) of the remaining amount--
       ``(A) 82.72 percent shall be allocated for the metropolitan 
     planning program described in subsection (d); and
       ``(B) 17.28 percent shall be allocated to carry out 
     subsection (b).
       ``(h) Reallocations.--Any amount allocated under this 
     section that has not been used 3 years after the end of the 
     fiscal year in which the amount was allocated shall be 
     reallocated among the States.''.
       (b) Conforming Amendment.--The item relating to section 
     5308 in the table of sections for chapter 53 is amended to 
     read as follows:

``5308. Planning programs.''.

     SEC. 3011. CAPITAL INVESTMENT PROGRAM.

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

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

       (b) General Authority.--Section 5309(a) is amended--
       (1) in paragraph (1)--
       (A) by striking ``(1) The Secretary of Transportation may 
     make grants and loans'' and inserting the following:
       ``(1) Grants authorized.--The Secretary may award grants'';
       (B) in subparagraph (A), by striking ``alternatives 
     analysis related to the development of systems,'';
       (C) by striking subparagraphs (B), (C), (D), and (G);
       (D) by redesignating subparagraphs (E), (F), and (H) as 
     subparagraphs (B), (C), and (D), respectively;
       (E) in subparagraph (C), as redesignated, by striking the 
     semicolon at the end and inserting ``, including programs of 
     bus and bus-related projects for assistance to subrecipients 
     which are public agencies, private companies engaged in 
     public transportation, or private nonprofit organizations; 
     and''; and
       (F) in subparagraph (D), as redesignated--
       (i) by striking ``to support fixed guideway systems''; and
       (ii) by striking ``dedicated bus and high occupancy 
     vehicle'';
       (2) by amending paragraph (2) to read as follows:
       ``(2) Grantee requirements.--
       ``(A) Grantee in urbanized area.--The Secretary shall 
     require that any grants awarded under this section to a 
     recipient or subrecipient located in an urbanized area shall 
     be subject to all terms, conditions, requirements, and 
     provisions that the Secretary determines to be necessary or 
     appropriate for the purposes of this section, including 
     requirements for the disposition of net increases in the 
     value of real property resulting from the project assisted 
     under this section.
       ``(B) Grantee not in urbanized area.--The Secretary shall 
     require that any grants awarded under this section to a 
     recipient or subrecipient not located in an urbanized area 
     shall be subject to the same terms, conditions, requirements, 
     and provisions as a recipient or subrecipient of assistance 
     under section 5311.
       ``(C) Subrecipient.--The Secretary shall require that any 
     private, nonprofit organization that is a subrecipient of a 
     grant awarded under this section shall be subject to the same 
     terms, conditions, requirements, and provisions as a 
     subrecipient of assistance under section 5310.
       ``(D) Statewide transit provider grantees.--A statewide 
     transit provider that receives a grant under this section 
     shall be subject to the terms, conditions, requirements, and 
     provisions of this section or section 5311, consistent with 
     the scope and purpose of the grant and the location of the 
     project.''; and
       (3) by adding at the end the following:
       ``(3) Certification.--An applicant that has submitted the 
     certifications required under subparagraphs (A), (B), (C), 
     and (H) of section 5307(d)(1) shall be deemed to have 
     provided sufficient information upon which the Secretary may 
     make the findings required under this subsection.''.
       (c) Defined Term.--Section 5309(b) is amended to read as 
     follows:
       ``(b) Defined Term.--As used in this section, the term 
     `alternatives analysis' means a study conducted as part of 
     the transportation planning process required under sections 
     5303 and 5304, which includes--
       ``(1) an assessment of a wide range of public 
     transportation alternatives designed to address a 
     transportation problem in a corridor or subarea;
       ``(2) sufficient information to enable the Secretary to 
     make the findings of project justification and local 
     financial commitment required under this section;
       ``(3) the selection of a locally preferred alternative; and
       ``(4) the adoption of the locally preferred alternative as 
     part of the long-range transportation plan required under 
     section 5303.''.
       (d) Grant Requirements.--Section 5309(d) is amended to read 
     as follows:
       ``(d) Grant Requirements.--The Secretary may not approve a 
     grant for a project under this section unless the Secretary 
     determines that--
       ``(1) the project is part of an approved transportation 
     plan and program of projects required under sections 5303, 
     5304, and 5306; and
       ``(2) the applicant has, or will have--
       ``(A) the legal, financial, and technical capacity to carry 
     out the project, including safety and security aspects of the 
     project;
       ``(B) satisfactory continuing control over the use of the 
     equipment or facilities; and
       ``(C) the capability and willingness to maintain the 
     equipment or facilities.''.
       (e) Major Capital Investment Projects of $75,000,000 or 
     More.--Section 5309(e) is amended to read as follows:
       ``(e) Major Capital Investment Projects of $75,000,000 or 
     More.--
       ``(1) Full funding grant agreement.--The Secretary shall 
     enter into a full funding grant agreement, based on the 
     evaluations and ratings required under this subsection, with 
     each grantee receiving not less than $75,000,000 under this 
     subsection for a new fixed guideway capital project that--
       ``(A) is authorized for final design and construction; and
       ``(B) has been rated as medium, medium-high, or high, in 
     accordance with paragraph (5)(B).
       ``(2) Determinations.--The Secretary may not award a grant 
     under this subsection for a new fixed guideway capital 
     project unless the Secretary determines that the proposed 
     project is--
       ``(A) based on the results of an alternatives analysis and 
     preliminary engineering;
       ``(B) justified based on a comprehensive review of its 
     mobility improvements, environmental benefits, cost-
     effectiveness, operating efficiencies, economic development 
     effects, and public transportation supportive land use 
     patterns and policies; and
       ``(C) supported by an acceptable degree of local financial 
     commitment, including evidence of stable and dependable 
     financing sources to construct the project, and maintain and 
     operate the entire public transportation system, while 
     ensuring that the extent and quality of existing public 
     transportation services are not degraded.
       ``(3) Evaluation of project justification.--In making the 
     determinations under paragraph (2)(B) for a major capital 
     investment grant, the Secretary shall analyze, evaluate, and 
     consider--
       ``(A) the results of the alternatives analysis and 
     preliminary engineering for the proposed project;
       ``(B) the reliability of the forecasts of costs and 
     utilization made by the recipient and the contractors to the 
     recipient;
       ``(C) the direct and indirect costs of relevant 
     alternatives;
       ``(D) factors such as--
       ``(i) congestion relief;
       ``(ii) improved mobility;
       ``(iii) air pollution;
       ``(iv) noise pollution;
       ``(v) energy consumption; and
       ``(vi) all associated ancillary and mitigation costs 
     necessary to carry out each alternative analyzed;

[[Page 2115]]

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

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

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

[[Page 2116]]

     Public Transportation Act of 2004, the Secretary shall issue 
     regulations establishing an evaluation and rating process for 
     proposed projects under this subsection that is based on the 
     results of project justification and local financial 
     commitment, as required under this subsection.''.
       (g) Full Funding Grant Agreements.--Section 5309(g)(2) is 
     amended by adding at the end the following:
       ``(C) Before and after study.--
       ``(i) In general.--Each full funding grant agreement shall 
     require the applicant to conduct a study that--
       ``(I) describes and analyzes the impacts of the new start 
     project on transit services and transit ridership;
       ``(II) evaluates the consistency of predicted and actual 
     project characteristics and performance; and
       ``(III) identifies sources of differences between predicted 
     and actual outcomes.
       ``(ii) Information collection and analysis plan.--
       ``(I) Submission of plan.--Applicants seeking a full 
     funding grant agreement shall submit a complete plan for the 
     collection and analysis of information to identify the 
     impacts of the new start project and the accuracy of the 
     forecasts prepared during the development of the project. 
     Preparation of this plan shall be included in the full 
     funding grant agreement as an eligible activity.
       ``(II) Contents of plan.--The plan submitted under 
     subclause (I) shall provide for--
       ``(aa) the collection of data on the current transit system 
     regarding transit service levels and ridership patterns, 
     including origins and destinations, access modes, trip 
     purposes, and rider characteristics;
       ``(bb) documentation of the predicted scope, service 
     levels, capital costs, operating costs, and ridership of the 
     project;
       ``(cc) collection of data on the transit system 2 years 
     after the opening of the new start project, including 
     analogous information on transit service levels and ridership 
     patterns and information on the as-built scope and capital 
     costs of the new start project; and
       ``(dd) analysis of the consistency of predicted project 
     characteristics with the after data.
       ``(D) Collection of data on current system.--To be eligible 
     for a full funding grant agreement, recipients shall have 
     collected data on the current system, according to the plan 
     required, before the beginning of construction of the 
     proposed new start project. Collection of this data shall be 
     included in the full funding grant agreement as an eligible 
     activity.
       ``(E) Public private partnership pilot program.--
       ``(i) Authorization.--The Secretary may establish a pilot 
     program to demonstrate the advantages of public-private 
     partnerships for certain fixed guideway systems development 
     projects.
       ``(ii) Identification of qualified projects.--The Secretary 
     shall identify qualified public-private partnership projects 
     as permitted by applicable State and local enabling laws and 
     work with project sponsors to enhance project delivery and 
     reduce overall costs.''.
       (h) Federal Share of Net Project Cost.--Section 5309(h) is 
     amended to read as follows:
       ``(h) Federal Share of Adjusted Net Project Cost.--
       ``(1) In general.--The Secretary shall estimate the net 
     project cost based on engineering studies, studies of 
     economic feasibility, and information on the expected use of 
     equipment or facilities.
       ``(2) Adjustment for completion under budget.--The 
     Secretary may adjust the final net project cost of a major 
     capital investment project evaluated under subsections (e) 
     and (f) to include the cost of eligible activities not 
     included in the originally defined project if the Secretary 
     determines that the originally defined project has been 
     completed at a cost that is significantly below the original 
     estimate.
       ``(3) Maximum federal share.--
       ``(A) In general.--A grant for the project shall be for 80 
     percent of the net project cost, or the net project cost as 
     adjusted under paragraph (2), unless the grant recipient 
     requests a lower grant percentage.
       ``(B) Exceptions.--The Secretary may provide a higher grant 
     percentage than requested by the grant recipient if--
       ``(i) the Secretary determines that the net project cost of 
     the project is not more than 10 percent higher than the net 
     project cost estimated at the time the project was approved 
     for advancement into preliminary engineering; and
       ``(ii) the ridership estimated for the project is not less 
     than 90 percent of the ridership estimated for the project at 
     the time the project was approved for advancement into 
     preliminary engineering.
       ``(4) Other sources.--The costs not funded by a grant under 
     this section may be funded from--
       ``(A) an undistributed cash surplus;
       ``(B) a replacement or depreciation cash fund or reserve; 
     or
       ``(C) new capital, including any Federal funds that are 
     eligible to be expended for transportation.
       ``(5) Planned extension to fixed guideway system.--In 
     addition to amounts allowed under paragraph (1), a planned 
     extension to a fixed guideway system may include the cost of 
     rolling stock previously purchased if the Secretary 
     determines that only non-Federal funds were used and that the 
     purchase was made for use on the extension. A refund or 
     reduction of the costs not funded by a grant under this 
     section may be made only if a refund of a proportional amount 
     of the grant is made at the same time.
       ``(6) Exception.--The prohibitions on the use of funds for 
     matching requirements under section 403(a)(5)(C)(vii) of the 
     Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not 
     apply to amounts allowed under paragraph (4).''.
       (i) Loan Provisions and Fiscal Capacity Considerations.--
     Section 5309 is amended--
       (1) by striking subsections (i), (j), (k), and (l);
       (2) by redesignating subsections (m) and (n) as subsections 
     (i) and (j), respectively;
       (3) by striking subsection (o) (as added by section 3009(i) 
     of the Federal Transit Act of 1998); and
       (4) by redesignating subsections (o) and (p) as subsections 
     (k) and (l), respectively.
       (j) Allocating Amounts.--Section 5309(i), as redesignated, 
     is amended to read as follows:
       ``(i) Allocating Amounts.--
       ``(1) Fiscal year 2004.--Of the amounts made available or 
     appropriated for fiscal year 2004 under section 5338(a)(3)--
       ``(A) $1,315,983,615 shall be allocated for projects of not 
     less than $75,000,000 for major capital projects for new 
     fixed guideway systems and extensions of such systems under 
     subsection (e) and projects for new fixed guideway or 
     corridor improvement capital projects under subsection (f);
       ``(B) $1,199,387,615 shall be allocated for capital 
     projects for fixed guideway modernization; and
       ``(C) $603,617,520 shall be allocated for capital projects 
     for buses and bus-related equipment and facilities.
       ``(2) In general.--Of the amounts made available or 
     appropriated for fiscal year 2005 and each fiscal year 
     thereafter for grants under this section pursuant to 
     subsections (b)(4) and (c) of section 5338--
       ``(A) the amounts appropriated under section 5338(c) shall 
     be allocated for major capital projects for--
       ``(i) new fixed guideway systems and extensions of not less 
     than $75,000,000, in accordance with subsection (e); and
       ``(ii) projects for new fixed guideway or corridor 
     improvement capital projects, in accordance with subsection 
     (f); and
       ``(B) the amounts made available under section 5338(b)(4) 
     shall be allocated for capital projects for buses and bus-
     related equipment and facilities.
       ``(3) Fixed guideway modernization.--The amounts made 
     available for fixed guideway modernization under section 
     5338(b)(2)(K) for fiscal year 2005 and each fiscal year 
     thereafter shall be allocated in accordance with section 
     5337.
       ``(4) Preliminary engineering.--Not more that 8 percent of 
     the allocation described in paragraphs (1)(A) and (2)(A) may 
     be expended on preliminary engineering.
       ``(5) Funding for ferry boats.--Of the amounts described in 
     paragraphs (1)(A) and (2)(A), $10,400,000 shall be available 
     in each of the fiscal years 2004 through 2009 for capital 
     projects in Alaska and Hawaii for new fixed guideway systems 
     and extension projects utilizing ferry boats, ferry boat 
     terminals, or approaches to ferry boat terminals.
       ``(6) Bus and bus facility grants.--
       ``(A) Considerations.--In making grants under paragraphs 
     (1)(C) and (2)(B), the Secretary shall consider the age and 
     condition of buses, bus fleets, related equipment, and bus-
     related facilities.
       ``(B) Projects not in urbanized areas.--Of the amounts made 
     available under paragraphs (1)(C) and (2)(B), not less than 
     5.5 percent shall be available in each fiscal year for 
     projects that are not in urbanized areas.
       ``(C) Intermodal terminals.--Of the amounts made available 
     under paragraphs (1)(C) and (2)(B), not less than $75,000,000 
     shall be available in each fiscal year for intermodal 
     terminal projects, including the intercity bus portion of 
     such projects.''.
       (k) Reports.--Section 5309 is amended by inserting at the 
     end the following:
       ``(m) Reports.--
       ``(1) Annual report on funding recommendations.--
       ``(A) In general.--Not later than the first Monday of 
     February of each year, the Secretary shall submit a report on 
     funding recommendations to--
       ``(i) the Committee on Transportation and Infrastructure of 
     the House of Representatives;
       ``(ii) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate;
       ``(iii) the Subcommittee on Transportation of the Committee 
     on Appropriations of the House of Representatives; and
       ``(iv) the Subcommittee on Transportation of the Committee 
     on Appropriations of the Senate.
       ``(B) Contents.--The report submitted under subparagraph 
     (A) shall contain--
       ``(i) a proposal on the allocation of amounts to finance 
     grants for capital investment projects among grant 
     applicants;

[[Page 2117]]

       ``(ii) a recommendation of projects to be funded based on--

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

       ``(iii) detailed ratings and evaluations on each project 
     recommended for funding.
       ``(2) Triennial reports on project ratings.--
       ``(A) In general.--Not later than the first Monday of 
     February, the first Monday of June, and the first Monday of 
     October of each year, the Secretary shall submit a report on 
     project ratings to--
       ``(i) the Committee on Transportation and Infrastructure of 
     the House of Representatives;
       ``(ii) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate;
       ``(iii) the Subcommittee on Transportation of the Committee 
     on Appropriations of the House of Representatives; and
       ``(iv) the Subcommittee on Transportation of the Committee 
     on Appropriations of the Senate.
       ``(B) Contents.--Each report submitted under subparagraph 
     (A) shall contain--
       ``(i) a summary of the ratings of all capital investment 
     projects for which funding was requested under this section;
       ``(ii) detailed ratings and evaluations on the project of 
     each applicant that had significant changes to the finance or 
     project proposal or has completed alternatives analysis or 
     preliminary engineering since the date of the latest report; 
     and
       ``(iii) all relevant information supporting the evaluation 
     and rating of each updated project, including a summary of 
     the financial plan of each updated project.
       ``(3) Before and after study reports.--Not later than the 
     first Monday of August of each year, the Secretary shall 
     submit a report containing a summary of the results of the 
     studies conducted under subsection (g)(2) to--
       ``(A) the Committee on Transportation and Infrastructure of 
     the House of Representatives;
       ``(B) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate;
       ``(C) the Subcommittee on Transportation of the Committee 
     on Appropriations of the House of Representatives; and
       ``(D) the Subcommittee on Transportation of the Committee 
     on Appropriations of the Senate.
       ``(4) Contractor performance assessment report.--
       ``(A) In general.--Not later than 180 days after the 
     enactment of the Federal Public Transportation Act of 2004, 
     and each year thereafter, the Secretary shall submit a report 
     analyzing the consistency and accuracy of cost and ridership 
     estimates made by each contractor to public transportation 
     agencies developing major investment projects to the 
     committees and subcommittees listed under paragraph (3).
       ``(B) Contents.--The report submitted under subparagraph 
     (A) shall compare the cost and ridership estimates made at 
     the time projects are approved for entrance into preliminary 
     engineering with--
       ``(i) estimates made at the time projects are approved for 
     entrance into final design;
       ``(ii) costs and ridership when the project commences 
     revenue operation; and
       ``(iii) costs and ridership when the project has been in 
     operation for 2 years.
       ``(5) Annual general accounting office review.--
       ``(A) Review.--The Comptroller General of the United States 
     shall conduct an annual review of the processes and 
     procedures for evaluating and rating projects and 
     recommending projects and the Secretary's implementation of 
     such processes and procedures.
       ``(B) Report.--Not later than 90 days after the submission 
     of each report required under paragraph (1), the Comptroller 
     General shall submit a report to Congress that summarizes the 
     results of the review conducted under subparagraph (A).
       ``(6) Contractor performance incentive report.--Not later 
     than 180 days after the enactment of the Federal Public 
     Transportation Act of 2004, the Secretary shall submit a 
     report to the committees and subcommittees listed under 
     paragraph (3) on the suitability of allowing contractors to 
     public transportation agencies that undertake major capital 
     investments under this section to receive performance 
     incentive awards if a project is completed for less than the 
     original estimated cost.''.

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

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

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

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

[[Page 2118]]

       ``(g) Meal Delivery for Homebound Individuals.--Public 
     transportation service providers receiving assistance under 
     this section or section 5311(c) may coordinate and assist in 
     regularly providing meal delivery service for homebound 
     individuals if the delivery service does not conflict with 
     providing public transportation service or reduce service to 
     public transportation passengers.
       ``(h) Transfers of Facilities and Equipment.--With the 
     consent of the recipient in possession of a facility or 
     equipment acquired with a grant under this section, a State 
     may transfer the facility or equipment to any recipient 
     eligible to receive assistance under this chapter if the 
     facility or equipment will continue to be used as required 
     under this section.
       ``(i) Fares Not Required.--This section does not require 
     that elderly individuals and individuals with disabilities be 
     charged a fare.''.
       (b) Conforming Amendment.--The item relating to section 
     5310 in the table of sections for chapter 53 is amended to 
     read as follows:

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

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

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

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

       (5) by adding after paragraph (3) the following:
       ``(4) Of the amount made available to carry out paragraph 
     (3)--
       ``(A) not more than 15 percent may be used to carry out 
     projects of a national scope; and
       ``(B) any amounts not used under subparagraph (A) shall be 
     allocated to the States.''.
       (c) Apportionments.--Section 5311(c) is amended to read as 
     follows:
       ``(c) Apportionments.--
       ``(1) Public transportation on indian reservations.--Of the 
     amounts made available or appropriated for each fiscal year 
     pursuant to subsections (a)(1)(C)(v) and (b)(2)(F) of section 
     5338, the following amounts shall be apportioned for grants 
     to Indian tribes for any purpose eligible under this section, 
     under such terms and conditions as may be established by the 
     Secretary:
       ``(A) $6,000,000 for fiscal year 2005.
       ``(B) $8,000,000 for fiscal year 2006.
       ``(C) $10,000,000 for fiscal year 2007.
       ``(D) $12,000,000 for fiscal year 2008.
       ``(E) $15,000,000 for fiscal year 2009.
       ``(2) Remaining amounts.--Of the amounts made available or 
     appropriated for each fiscal year pursuant to subsections 
     (a)(1)(C)(v) and (b)(2)(F) of section 5338 that are not 
     apportioned under paragraph (1)--
       ``(A) 20 percent shall be apportioned to the States in 
     accordance with paragraph (3); and
       ``(B) 80 percent shall be apportioned to the States in 
     accordance with paragraph (4).
       ``(3) Apportionments based on land area in nonurbanized 
     areas.--
       ``(A) In general.--Subject to subparagraph (B), each State 
     shall receive an amount that is equal to the amount 
     apportioned under paragraph (2)(A) multiplied by the ratio of 
     the land area in areas other than urbanized areas in that 
     State and divided by the land area in all areas other than 
     urbanized areas in the United States, as shown by the most 
     recent decennial census of population.
       ``(B) Maximum apportionment.--No State shall receive more 
     than 5 percent of the amount apportioned under this 
     paragraph.
       ``(4) Apportionments based on population in nonurbanized 
     areas.--Each State shall receive an amount equal to the 
     amount apportioned under paragraph (2)(B) multiplied by the 
     ratio of the population of areas other than urbanized areas 
     in that State divided by the population of all areas other 
     than urbanized areas in the United States, as shown by the 
     most recent decennial census of population.''.
       (d) Use for Administrative, Planning, and Technical 
     Assistance.--Section 5311(e) is amended--
       (1) by striking ``and Technical Assistance.--(1) The 
     Secretary of Transportation'' and inserting ``, Planning, and 
     Technical Assistance.--The Secretary'';
       (2) by striking ``to a recipient''; and
       (3) by striking paragraph (2).
       (e) Intercity Bus Transportation.--Section 5311(f) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``(1)'' and inserting the following:
       ``(1) In general.--''; and
       (B) by striking ``after September 30, 1993,''; and
       (2) in paragraph (2)--
       (A) by striking ``A State'' and inserting ``After 
     consultation with affected intercity bus service providers, a 
     State''; and
       (B) by striking ``of Transportation''.
       (f) Federal Share of Costs.--Section 5311(g) is amended to 
     read as follows:
       ``(g) Federal Share of Costs.--
       ``(1) Maximum federal share.--
       ``(A) Capital projects.--
       ``(i) In general.--Except as provided under clause (ii), a 
     grant awarded under this section for any purpose other than 
     operating assistance may not exceed 80 percent of the net 
     capital costs of the project, as determined by the Secretary.
       ``(ii) Exception.--A State described in section 120(d) of 
     title 23 shall receive a Federal share of the net capital 
     costs in accordance with the formula under that section.
       ``(B) Operating assistance.--
       ``(i) In general.--Except as provided under clause (ii), a 
     grant made under this section for operating assistance may 
     not exceed 50 percent of the net operating costs of the 
     project, as determined by the Secretary.
       ``(ii) Exception.--A State described in section 120(d) of 
     title 23 shall receive a Federal share of the net operating 
     costs equal to 62.5 percent of the Federal share provided for 
     under subparagraph (A)(ii).
       ``(2) Other funding sources.--Funds for a project under 
     this section that are not provided for by a grant under this 
     section--
       ``(A) may be provided from--
       ``(i) an undistributed cash surplus;
       ``(ii) a replacement or depreciation cash fund or reserve;
       ``(iii) a service agreement with a State or local social 
     service agency or a private social service organization; or
       ``(iv) new capital; and
       ``(B) may be derived from amounts appropriated to or made 
     available to a Federal agency (other than the Department of 
     Transportation, except for Federal Land Highway funds) that 
     are eligible to be expended for transportation.
       ``(3) Use of federal grant.--A State carrying out a program 
     of operating assistance under this section may not limit the 
     level or extent of use of the Federal grant for the payment 
     of operating expenses.
       ``(4) Exception.--For purposes of paragraph (2)(B), the 
     prohibitions on the use of funds for matching requirements 
     under section 403(a)(5)(c)(vii) of the Social Security Act 
     (42 U.S.C. 603(a)(5)(c)(vii)) shall not apply to Federal or 
     State funds to be used for transportation purposes.''.
       (g) Waiver Condition.--Section 5311(j)(1) is amended by 
     striking ``but the Secretary of Labor may waive the 
     application of section 5333(b)'' and inserting ``if the 
     Secretary of Labor utilizes a Special Warranty that provides 
     a fair and equitable arrangement to protect the interests of 
     employees''.

[[Page 2119]]



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

       (a) In General.--Section 5312 is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) Research, Development, and Demonstration Projects.--
       ``(1) In general.--The Secretary may make grants, 
     contracts, cooperative agreements, or other transactions 
     (including agreements with departments, agencies, and 
     instrumentalities of the United States Government) for 
     research, development, demonstration or deployment projects, 
     or evaluation of technology of national significance to 
     public transportation that the Secretary determines will 
     improve public transportation service or help public 
     transportation service meet the total transportation needs at 
     a minimum cost.
       ``(2) Information.--The Secretary may request and receive 
     appropriate information from any source.
       ``(3) Savings provision.--This subsection does not limit 
     the authority of the Secretary under any other law.'';
       (2) by striking subsections (b) and (c);
       (3) by redesignating subsections (d) and (e) as (b) and 
     (c), respectively.
       (4) in subsection (b), as redesignated--
       (A) in paragraph (2), by striking ``other agreements'' and 
     inserting ``other transactions''; and
       (B) in paragraph (5), by striking ``within the Mass Transit 
     Account of the Highway Trust Fund''; and
       (5) in subsection (c), as redesignated--
       (A) in paragraph (2), by striking ``public and private'' 
     and inserting ``public or private''; and
       (B) in paragraph (3), by striking ``within the Mass Transit 
     Account of the Highway Trust Fund'' .
       (b) Conforming Amendments.--
       (1) Section heading.--The heading of section 5312 is 
     amended to read as follows:

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

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

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

     SEC. 3015. TRANSIT COOPERATIVE RESEARCH PROGRAM.

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

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

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

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

     SEC. 3016. NATIONAL RESEARCH PROGRAMS.

       (a) In General.--Section 5314 is amended--
       (1) in subsection (a)--
       (A) by amending paragraph (1) to read as follows:
       ``(1) Availability of funds.--The Secretary may use amounts 
     made available under subsections (a)(5)(C)(iv) and 
     (b)(2)(G)(iv) of section 5338 for grants, contracts, 
     cooperative agreements, or other transactions for the 
     purposes described in sections 5312, 5315, and 5322.'';
       (B) in paragraph (2), by striking ``(2) Of'' and inserting 
     the following:
       ``(2) ADA compliance.--From'';
       (C) by amending paragraph (3) to read as follows:
       ``(3) Special demonstration initiatives.--The Secretary may 
     use not more than 25 percent of the amounts made available 
     under paragraph (1) for special demonstration initiatives, 
     subject to terms that the Secretary determines to be 
     consistent with this chapter. For a nonrenewable grant of not 
     more than $100,000, the Secretary shall provide expedited 
     procedures for complying with the requirements of this 
     chapter.'';
       (D) in paragraph (4)--
       (i) by striking subparagraph (B); and
       (ii) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (E) by adding at the end the following:
       ``(6) Medical transportation demonstration grants.--
       ``(A) Grants authorized.--The Secretary may award 
     demonstration grants, from funds made available under 
     paragraph (1), to eligible entities to provide transportation 
     services to individuals to access dialysis treatments and 
     other medical treatments for renal disease.
       ``(B) Eligible entities.--An entity shall be eligible to 
     receive a grant under this paragraph if the entity--
       ``(i) meets the conditions described in section 501(c)(3) 
     of the Internal Revenue Code of 1986; or
       ``(ii) is an agency of a State or unit of local government.
       ``(C) Use of funds.--Grant funds received under this 
     paragraph may be used to provide transportation services to 
     individuals to access dialysis treatments and other medical 
     treatments for renal disease.
       ``(D) Application.--
       ``(i) In general.--Each eligible entity desiring a grant 
     under this paragraph shall submit an application to the 
     Secretary at such time, at such place, and containing such 
     information as the Secretary may reasonably require.
       ``(ii) Selection of grantees.--In awarding grants under 
     this paragraph, the Secretary shall give preference to 
     eligible entities from communities with--

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

       ``(E) Rulemaking.--The Secretary shall issue regulations to 
     implement and administer the grant program established under 
     this paragraph.
       ``(F) Report.--The Secretary shall submit a report on the 
     results of the demonstration projects funded under this 
     paragraph to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives.''; and
       (2) by amending subsection (b) to read as follows:
       ``(b) Federal Share.--If there would be a clear and direct 
     financial benefit to an entity under a grant, contract, 
     cooperative agreement, or other transaction financed under 
     subsection (a) or section 5312, 5313, 5315, or 5322, the 
     Secretary shall establish a Federal share consistent with 
     such benefit.''.
       (c) National Technical Assistance Center for Senior 
     Transportation; Alternative Fuels Study.--Section 5314 is 
     amended by adding at the end the following:
       ``(c) National Technical Assistance Center for Senior 
     Transportation.--
       ``(1) Establishment.--The Secretary shall award grants to a 
     national not-for-profit organization for the establishment 
     and maintenance of a national technical assistance center.
       ``(2) Eligibility.--An organization shall be eligible to 
     receive the grant under paragraph (1) if the organization--
       ``(A) focuses significantly on serving the needs of the 
     elderly;
       ``(B) has demonstrated knowledge and expertise in senior 
     transportation policy and planning issues;
       ``(C) has affiliates in a majority of the States;
       ``(D) has the capacity to convene local groups to consult 
     on operation and development of senior transportation 
     programs; and
       ``(E) has established close working relationships with the 
     Federal Transit Administration and the Administration on 
     Aging.
       ``(3) Use of funds.--The national technical assistance 
     center established under this section shall--
       ``(A) gather best practices from throughout the country and 
     provide such practices to local communities that are 
     implementing senior transportation programs;
       ``(B) work with teams from local communities to identify 
     how they are successfully meeting the transportation needs of 
     senior and any gaps in services in order to create a plan for 
     an integrated senior transportation program;
       ``(C) provide resources on ways to pay for senior 
     transportation services;
       ``(D) create a web site to publicize and circulate 
     information on senior transportation programs;
       ``(E) establish a clearinghouse for print, video, and audio 
     resources on senior mobility; and
       ``(F) administer the demonstration grant program 
     established under paragraph (4).
       ``(4) Grants authorized.--
       ``(A) In general.--The national technical assistance center 
     established under this section, in consultation with the 
     Federal Transit Administration, shall award senior 
     transportation demonstration grants to--
       ``(i) local transportation organizations;
       ``(ii) State agencies;
       ``(iii) units of local government; and
       ``(iv) nonprofit organizations.
       ``(B) Use of funds.--Grant funds received under this 
     paragraph may be used to--
       ``(i) evaluate the state of transportation services for 
     senior citizens;
       ``(ii) recognize barriers to mobility that senior citizens 
     encounter in their communities;
       ``(iii) establish partnerships and promote coordination 
     among community stakeholders, including public, not-for-
     profit, and for-profit providers of transportation services 
     for senior citizens;
       ``(iv) identify future transportation needs of senior 
     citizens within local communities; and
       ``(v) establish strategies to meet the unique needs of 
     healthy and frail senior citizens.

[[Page 2120]]

       ``(C) Selection of grantees.--The Secretary shall select 
     grantees under this subsection based on a fair representation 
     of various geographical locations throughout the United 
     States.
       ``(5) Allocations.--From the funds made available for each 
     fiscal year under subsections (a)(5)(C)(iv) and (b)(2)(G)(iv) 
     of section 5338, $3,000,000 shall be allocated to carry out 
     this subsection.
       ``(d) Alternative Fuels Study.--
       ``(1) Study.--The Secretary shall conduct a study of the 
     actions necessary to facilitate the purchase of increased 
     volumes of alternative fuels (as defined in section 301 of 
     the Energy Policy Act of 1992 (42 U.S.C. 13211)) for use in 
     public transit vehicles
       ``(2) Scope of study.--The study conducted under this 
     subsection shall focus on the incentives necessary to 
     increase the use of alternative fuels in public transit 
     vehicles, including buses, fixed guideway vehicles, and 
     ferries.
       ``(3) Contents.--The study shall consider--
       ``(A) the environmental benefits of increased use of 
     alternative fuels in transit vehicles;
       ``(B) existing opportunities available to transit system 
     operators that encourage the purchase of alternative fuels 
     for transit vehicle operation;
       ``(C) existing barriers to transit system operators that 
     discourage the purchase of alternative fuels for transit 
     vehicle operation, including situations where alternative 
     fuels that do not require capital improvements to transit 
     vehicles are disadvantaged over fuels that do require such 
     improvements; and
       ``(D) the necessary levels and type of support necessary to 
     encourage additional use of alternative fuels for transit 
     vehicle operation.
       ``(4) Recommendations.--The study shall recommend 
     regulatory and legislative alternatives that will result in 
     the increased use of alternative fuels in transit vehicles.
       ``(5) Report.--Not later than 1 year after the date of 
     enactment of the Federal Public Transportation Act of 2004, 
     the Secretary shall submit the study completed under this 
     subsection to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives''.
       (c) Conforming Amendments.--
       (1) Section heading.--The heading for section 5314 is 
     amended to read as follows:

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

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

  ``5314. National research programs.''.

     SEC. 3017. NATIONAL TRANSIT INSTITUTE.

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

     SEC. 3018. BUS TESTING FACILITY.

       Section 5318 is amended--
       (1) in subsection (a)--
       (A) by striking ``Establishment.--The Secretary of 
     Transportation shall establish one facility'' and inserting 
     ``In General.--The Secretary shall maintain 1 facility''; and
       (B) by striking ``established by renovating'' and inserting 
     ``maintained at''; and
       (2) in subsection (d), by striking ``section 5309(m)(1)(C) 
     of this title'' and inserting ``paragraphs (1)(C) and (2)(B) 
     of section 5309(i)''.

     SEC. 3019. BICYCLE FACILITIES.

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

     SEC. 3020. SUSPENDED LIGHT RAIL TECHNOLOGY PILOT PROJECT.

       Section 5320 is repealed.

     SEC. 3021. CRIME PREVENTION AND SECURITY.

       Section 5321 is repealed.

     SEC. 3022. GENERAL PROVISIONS ON ASSISTANCE.

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

       ``(I) indicating its intent to offer incidental charter bus 
     service within its lawful service area; and
       ``(II) soliciting notices from private bus operators that 
     wish to appear on a list of carriers offering charter bus 
     service in that service area;

       ``(ii) the recipient provides private bus operators with an 
     annual opportunity to notify the recipient of its desire to 
     appear on a list of carriers offering charter bus service in 
     such service area;
       ``(iii) upon receiving a request for charter bus service, 
     the recipient electronically notifies the private bus 
     operators listed as offering charter service in that service 
     area with the name and contact information of the requestor 
     and the nature of the charter service request; and
       ``(iv) the recipient does not offer to provide charter bus 
     service unless no private bus operator indicates that it is 
     willing and able to provide the service within a 72-hour 
     period after the receipt of such notice.
       ``(B) Exception.--A recipient that operates 2,000 or fewer 
     vehicles in fixed-route peak hour service may provide 
     incidental charter bus transportation directly to --
       ``(i) local governments; and
       ``(ii) social service entities with limited resources.
       ``(C) Irregularly scheduled events.--Service, other than 
     commuter service, by a recipient to irregularly scheduled 
     events,

[[Page 2121]]

     where the service is conducted in whole or in part outside 
     the service area of the recipient, regardless of whether the 
     service is contracted for individually with passengers, is 
     subject to a rebuttable presumption that such service is 
     charter service.
       ``(2) Violation of agreements.--
       ``(A) Complaints.--A complaint regarding the violation of a 
     charter bus service agreement shall be submitted to the 
     Regional Administrator of the Federal Transit Administration, 
     who shall--
       ``(i) provide a reasonable opportunity for the recipient to 
     respond to the complaint;
       ``(ii) provide the recipient with an opportunity for an 
     informal hearing; and
       ``(iii) issue a written decision not later than 60 days 
     after the parties have completed their submissions.
       ``(B) Appeals.--
       ``(i) In general.--A decision by the Regional Administrator 
     may be appealed to a panel comprised of the Federal Transit 
     Administrator, personnel in the Office of the Secretary of 
     Transportation, and other persons with expertise in surface 
     passenger transportation issues.
       ``(ii) Standard of review.--The panel described in clause 
     (i) shall consider the complaint de novo on all issues of 
     fact and law.
       ``(iii) Written decision.--The appeals panel shall issue a 
     written decision on an appeal not later than 60 days after 
     the completion of submissions. This decision shall be the 
     final order of the agency and subject to judicial review in 
     district court.
       ``(C) Correction.--If the Secretary determines that a 
     violation of an agreement relating to the provision of 
     charter service has occurred, the Secretary shall correct the 
     violation under terms of the agreement.
       ``(D) Remedies.--The Secretary may issue orders to 
     recipients to cease and desist in actions that violate the 
     agreement, and such orders shall be binding upon the parties. 
     In addition to any remedy spelled out in the agreement, if a 
     recipient has failed to correct a violation within 60 days 
     after the receipt of a notice of violation from the 
     Secretary, the Secretary shall withhold from the recipient 
     the lesser of--
       ``(i) 5 percent of the financial assistance available to 
     the recipient under this chapter for the next fiscal year; or
       ``(ii) $200,000.
       ``(3) Regulations.--Not later than 1 year after the date of 
     enactment of the Federal Public Transportation Act of 2004, 
     the Secretary shall issue amended regulations that--
       ``(A) implement this subsection, as revised by such Act; 
     and
       ``(B) impose restrictions, procedures, and remedies in 
     connection with sightseeing service by a recipient.
       ``(4) Public notice.--The Secretary shall make all written 
     decisions, guidance, and other pertinent materials relating 
     to the procedures in this subsection available to the public 
     in electronic and other appropriate formats in a timely 
     manner.'';
       (5) by striking subsection (e);
       (6) by redesignating subsection (f) as subsection (e);
       (7) in subsection (e), as redesignated--
       (A) by striking ``(1)'' and inserting the following:
       ``(1) In general.--'';
       (B) by striking paragraph (2);
       (C) by striking ``This subsection'' and inserting the 
     following:
       ``(2) Exceptions.--This subsection; and
       (D) by adding at the end the following:
       ``(3) Penalty.--If the Secretary determines that an 
     applicant, governmental authority, or publicly owned operator 
     has violated the agreement required under paragraph (1), the 
     Secretary shall bar the applicant, authority, or operator 
     from receiving Federal transit assistance in an amount the 
     Secretary determines to be appropriate.'';
       (8) by inserting after subsection (e) the following:
       ``(f) Bond Proceeds Eligible for Local Share.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, a recipient of assistance under section 5307 or 5309, 
     may use the proceeds from the issuance of revenue bonds as 
     part of the local matching funds for a capital project.
       ``(2) Reimbursement by secretary.--The Secretary may 
     reimburse an eligible recipient for deposits of bond proceeds 
     in a debt service reserve that the recipient established 
     pursuant to section 5302(a)(1)(K) from amounts made available 
     to the recipient under section 5307 or 5309.'';
       (9) in subsection (g)--
       (A) by striking ``(f)'' each place it appears and inserting 
     ``(e)''; and
       (B) by striking ``103(e)(4) and 142 (a) or (c)'' each place 
     it appears and inserting ``133 and 142'';
       (10) by amending subsection (h) to read as follows:
       ``(h) Transfer of Lands or Interests in Lands Owned by the 
     United States.--
       ``(1) Request by secretary.--If the Secretary determines 
     that any part of the lands or interests in lands owned by the 
     United States and made available as a result of a military 
     base closure is necessary for transit purposes eligible under 
     this chapter, including corridor preservation, the Secretary 
     shall submit a request to the head of the Federal agency 
     supervising the administration of such lands or interests in 
     lands. Such request shall include a map showing the portion 
     of such lands or interests in lands, which is desired to be 
     transferred for public transportation purposes.
       ``(2) Transfer of land.--If 4 months after submitting a 
     request under paragraph (1), the Secretary does not receive a 
     response from the Federal agency described in paragraph (1) 
     that certifies that the proposed appropriation of land is 
     contrary to the public interest or inconsistent with the 
     purposes for which such land has been reserved, or if the 
     head of such agency agrees to the utilization or transfer 
     under conditions necessary for the adequate protection and 
     utilization of the reserve, such land or interests in land 
     may be utilized or transferred to a State, local governmental 
     authority, or public transportation operator for such 
     purposes and subject to the conditions specified by such 
     agency.
       ``(3) Reversion.--If at any time the lands or interests in 
     land utilized or transferred under paragraph (2) are no 
     longer needed for public transportation purposes, the State, 
     local governmental authority, or public transportation 
     operator that received the land shall notify to the 
     Secretary, and such lands shall immediately revert to the 
     control of the head of the Federal agency from which the land 
     was originally transferred.'';
       (11) in subsection (j)(5), by striking ``Intermodal Surface 
     Transportation Efficiency Act of 1991 (Public Law 102-240, 
     105 Stat. 1914)'' and inserting ``Federal Public 
     Transportation Act of 2004'';
       (12) by amending subsection (l) to read as follows:
       ``(l) Relationship to Other Laws.--Section 1001 of title 18 
     applies to a certificate, submission, or statement provided 
     under this chapter. The Secretary may terminate financial 
     assistance under this chapter and seek reimbursement 
     directly, or by offsetting amounts, available under this 
     chapter, if the Secretary determines that a recipient of such 
     financial assistance has made a false or fraudulent statement 
     or related act in connection with a Federal transit 
     program.'';
       (13) in subsection (m), by inserting at the end the 
     following: ``Requirements to perform preaward and 
     postdelivery reviews of rolling stock purchases to ensure 
     compliance with subsection (j) shall not apply to private 
     nonprofit organizations or to grantees serving urbanized 
     areas with a population of fewer than 1,000,000.'';
       (14) in subsection (o), by striking ``the Transportation 
     Infrastructure Finance and Innovation Act of 1998'' and 
     inserting ``sections 181 through 188 of title 23''; and
       (15) by adding at the end the following:
       ``(p) Prohibited Use of Funds.--Grant funds received under 
     this chapter may not be used to pay ordinary governmental or 
     nonproject operating expenses.''.

     SEC. 3023. SPECIAL PROVISIONS FOR CAPITAL PROJECTS.

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

     ``Sec. 5324. Special provisions for capital projects

       ``(a) Real Property and Relocation Services.--Whenever real 
     property is acquired or furnished as a required contribution 
     incident to a project, the Secretary shall not approve the 
     application for financial assistance unless the applicant has 
     made all payments and provided all assistance and assurances 
     that are required of a State agency under sections 210 and 
     305 of the Uniform Relocation Assistance and Real Property 
     Acquisition Policies Act of 1970 (42 U.S.C. 4630 and 4655). 
     The Secretary must be advised of specific references to any 
     State law that are believed to be an exception to section 301 
     or 302 of such Act (42 U.S.C. 4651 and 4652).
       ``(b) Advance Real Property Acquisitions.--
       ``(1) In general.--The Secretary may participate in the 
     acquisition of real property 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 and if--
       ``(A) there are offers on the open real estate market to 
     convey that property for a use that is incompatible with the 
     project under study;
       ``(B) there is an imminent threat of development or 
     redevelopment of the property for a use that is incompatible 
     with the project under study;
       ``(C) recent appraisals reflect a rapid increase in the 
     fair market value of the property;
       ``(D) the property, because it is located near an existing 
     transportation facility, is likely to be developed and to be 
     needed for a future transportation improvement; or
       ``(E) the property owner can demonstrate that, for health, 
     safety, or financial reasons, retaining ownership of the 
     property poses an undue hardship on the owner in comparison 
     to other affected property owners and requests the 
     acquisition to alleviate that hardship.
       ``(2) Environmental reviews.--Property acquired in 
     accordance with this subsection may not be developed in 
     anticipation of the project until all required environmental 
     reviews for the project have been completed.
       ``(3) Limitation.--The Secretary shall limit the size and 
     number of properties acquired under this subsection as 
     necessary to avoid any prejudice to the Secretary's objective 
     evaluation of project alternatives.

[[Page 2122]]

       ``(4) Exemption.--An acquisition under this section shall 
     be considered an exempt project under section 176 of the 
     Clean Air Act (42 U.S.C. 7506).
       ``(c) Railroad Corridor Preservation.--
       ``(1) In general.--The Secretary may assist an applicant to 
     acquire railroad right-of-way before the completion of the 
     environmental reviews for any project that may use the right-
     of-way if the acquisition is otherwise permitted under 
     Federal law. The Secretary may establish restrictions on such 
     an acquisition as the Secretary determines to be necessary 
     and appropriate.
       ``(2) Environmental reviews.--Railroad right-of-way 
     acquired under this subsection may not be developed in 
     anticipation of the project until all required environmental 
     reviews for the project have been completed.
       ``(d) Consideration of Economic, Social, and Environmental 
     Interests.--
       ``(1) In general.--The Secretary may not approve an 
     application for financial assistance for a capital project 
     under this chapter unless the Secretary determines that the 
     project has been developed in accordance with the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
     The Secretary's findings under this paragraph shall be made a 
     matter of public record.
       ``(2) Cooperation and consultation.--In carrying out 
     section 5301(e), the Secretary shall cooperate and consult 
     with the Secretary of the Interior and the Administrator of 
     the Environmental Protection Agency on each project that may 
     have a substantial impact on the environment.''.
       (b) Conforming Amendment.--The item relating to section 
     5324 in the table of sections for chapter 53 is amended to 
     read as follows:

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

     SEC. 3024. CONTRACT REQUIREMENTS.

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

     ``Sec. 5325. Contract requirements

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

     SEC. 3025. PROJECT MANAGEMENT OVERSIGHT AND REVIEW.

       (a) Project Management Plan Requirements.--Section 5327(a) 
     is amended--
       (1) in paragraph (11), by striking ``and'' at the end;
       (2) in paragraph (12), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(13) safety and security management.''.
       (b) Limitations on Use of Available Amounts.--Section 
     5327(c) is amended--
       (1) by amending paragraph (1) to read as follows:
       ``(1) In general.--The Secretary may not use more than 1 
     percent of amounts made available for a fiscal year to carry 
     out any of sections 5307 through 5311, 5316, or 5317, or a 
     project under the National Capital Transportation Act of 1969 
     (Public Law 91-143) to make a contract to oversee the 
     construction of major projects under any of sections 5307 
     through 5311, 5316, or 5317 or under that Act.'';
       (2) in paragraph (2)--
       (A) by striking ``(2)'' and inserting the following:
       ``(2) Other allowable uses.--''; and
       (B) by inserting ``and security'' after ``safety''; and
       (3) in paragraph (3), by striking ``(3) The Government 
     shall'' and inserting the following:
       ``(3) Federal share.--Federal funds shall be used to''.

     SEC. 3026. PROJECT REVIEW.

       Section 5328 is amended--
       (1) in subsection (a)--
       (A) in paragraph (1) by striking ``(1) When the Secretary 
     of Transportation allows a new fixed guideway project to 
     advance into the alternatives analysis stage of project 
     review, the Secretary shall cooperate with the applicant'' 
     and inserting the following:
       ``(1) Alternatives analysis.--The Secretary shall cooperate 
     with an applicant undertaking an alternatives analysis under 
     subsections (e) and (f) of section 5309'';
       (B) in paragraph (2)--
       (i) by striking ``(2)'' and inserting the following:
       ``(2) Advancement to preliminary engineering stage.--''; 
     and
       (ii) by striking ``is consistent with'' and inserting 
     ``meets the requirements of'';
       (C) in paragraph (3)--
       (i) by striking ``(3)'' and inserting the following:
       ``(3) Record of decision.--'';

[[Page 2123]]

       (ii) by striking ``of construction''; and
       (iii) by adding before the period at the end the following: 
     ``if the Secretary determines that the project meets the 
     requirements of subsection (e) or (f) of section 5309''; and
       (D) by striking paragraph (4); and
       (2) by striking subsection (c).

     SEC. 3027. INVESTIGATIONS OF SAFETY AND SECURITY RISK.

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

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

       ``(a) In General.--The Secretary may conduct investigations 
     into safety hazards and security risks associated with a 
     condition in equipment, a facility, or an operation financed 
     under this chapter to establish the nature and extent of the 
     condition and how to eliminate, mitigate, or correct it.
       ``(b) Submission of Corrective Plan.--If the Secretary 
     establishes that a safety hazard or security risk warrants 
     further protective measures, the Secretary shall require the 
     local governmental authority receiving amounts under this 
     chapter to submit a plan for eliminating, mitigating, or 
     correcting it.
       ``(c) Withholding of Funds.--Financial assistance under 
     this chapter, in an amount to be determined by the Secretary, 
     may be withheld until a plan is approved and carried out.
       ``(d) Public Transportation Security.--
       ``(1) In general.--Not later than 90 days after the date of 
     enactment of the Federal Public Transportation Act of 2004, 
     the Secretary shall enter into a memorandum of understanding 
     with the Secretary of Homeland Security to define and clarify 
     the respective roles and responsibilities of the Department 
     of Transportation and the Department of Homeland Security 
     relating to public transportation security.
       ``(2) Contents.--The memorandum of understanding described 
     in paragraph (1) shall--
       ``(A) establish national security standards for public 
     transportation agencies;
       ``(B) establish funding priorities for grants from the 
     Department of Homeland Security to public transportation 
     agencies;
       ``(C) create a method of coordination with public 
     transportation agencies on security matters; and
       ``(D) address any other issues determined to be appropriate 
     by the Secretary and the Secretary of Homeland Security.''.
       (b) Conforming Amendment.--The item relating to section 
     5329 in the table of sections for chapter 53 is amended to 
     read as follows:

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

     SEC. 3028. STATE SAFETY OVERSIGHT.

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

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

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

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

     SEC. 3029. SENSITIVE SECURITY INFORMATION.

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

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

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

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

     SEC. 3031. CONTROLLED SUBSTANCES AND ALCOHOL MISUSE TESTING.

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

     SEC. 3032. EMPLOYEE PROTECTIVE ARRANGEMENTS.

       Section 5333(b) is amended--
       (1) in paragraph (3), by striking the period at the end and 
     inserting ``, provided that--
       ``(A) the protective period shall not exceed 4 years; and
       ``(B) the separation allowance shall not exceed 12 
     months.''; and
       (2) by adding at the end the following:
       ``(4) An arrangement under this subsection shall not 
     guarantee continuation of employment as a result of a change 
     in private contractors through competitive bidding unless 
     such continuation is otherwise required under subparagraph 
     (A), (B), or (D) of paragraph (2).
       ``(5) Fair and equitable arrangements to protect the 
     interests of employees utilized by the Secretary of Labor for 
     assistance to purchase like-kind equipment or facilities, and 
     amendments to existing assistance agreements, shall be 
     certified without referral.
       ``(6) Nothing in this subsection shall affect the level of 
     protection provided to freight railroad employees.''.

     SEC. 3033. ADMINISTRATIVE PROCEDURES.

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

     SEC. 3034. REPORTS AND AUDITS.

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

     SEC. 3035. APPORTIONMENTS OF APPROPRIATIONS FOR FORMULA 
                   GRANTS.

       Section 5336 is amended--
       (1) by striking subsection (d);
       (2) by striking subsection (h);
       (3) by striking subsection (k);
       (4) by redesignating subsections (a) through (c) as 
     subsections (b) through (d), respectively;
       (5) by adding before subsection (b), as redesignated, the 
     following:
       ``(a) Apportionments.--Of the amounts made available for 
     each fiscal year under subsections (a)(1)(C)(vi) and 
     (b)(2)(L) of section 5338--
       ``(1) there shall be apportioned, in fiscal year 2005 and 
     each fiscal year thereafter, $35,000,000 to certain urbanized 
     areas with populations of less than 200,000 in accordance 
     with subsection (k); and
       ``(2) any amount not apportioned under paragraph (1) shall 
     be apportioned to urbanized areas in accordance with 
     subsections (b) through (d).'';
       (6) in subsection (b), as redesignated--

[[Page 2124]]

       (A) by striking ``Of the amount made available or 
     appropriated under section 5338(a) of this title'' and 
     inserting ``Of the amount apportioned under subsection 
     (a)(3)''; and
       (B) in paragraph (2), by striking ``subsections (b) and (c) 
     of this section'' and inserting ``subsections (c) and (d)'';
       (7) in subsection (c)(2), as redesignated, by striking 
     ``subsection (a)(2) of this section'' and inserting 
     ``subsection (b)(2)'';
       (8) in subsection (d), as redesignated, by striking 
     ``subsection (a)(2) of this section'' and inserting 
     ``subsection (b)(2)'';
       (9) in subsection (e)(1), by striking ``subsections (a) and 
     (h)(2) of section 5338 of this title'' and inserting 
     ``subsections (a) and (b) of section 5338'';
       (10) in subsection (g), by striking ``subsection (a)(1) of 
     this section'' each place it appears and inserting 
     ``subsection (b)(1)''; and
       (11) by adding at the end the following:
       ``(k) Small Transit Intensive Cities Factors.--The amount 
     apportioned under subsection (a)(1) shall be apportioned to 
     urbanized areas as follows:
       ``(1) The Secretary shall calculate a factor equal to the 
     sum of revenue vehicle hours operated within urbanized areas 
     with a population of between 200,000 and 1,000,000 divided by 
     the sum of the population of all such urbanized areas.
       ``(2) The Secretary shall designate as eligible for an 
     apportionment under this subsection all urbanized areas with 
     a population of under 200,000 for which the number of revenue 
     vehicle hours operated within the urbanized area divided by 
     the population of the urbanized area exceeds the factor 
     calculated under paragraph (1).
       ``(3) For each urbanized area qualifying for an 
     apportionment under paragraph (2), the Secretary shall 
     calculate an amount equal to the product of the population of 
     that urbanized area and the factor calculated under paragraph 
     (1).
       ``(4) For each urbanized area qualifying for an 
     apportionment under paragraph (2), the Secretary shall 
     calculate an amount equal to the difference between the 
     number of revenue vehicle hours within that urbanized area 
     less the amount calculated in paragraph (3).
       ``(5) Each urbanized area qualifying for an apportionment 
     under paragraph (2) shall receive an amount equal to the 
     amount to be apportioned under this subsection multiplied by 
     the amount calculated for that urbanized area under paragraph 
     (4) divided by the sum of the amounts calculated under 
     paragraph (4) for all urbanized areas qualifying for an 
     apportionment under paragraph (2).
       ``(l) Study on Incentives in Formula Programs.--
       ``(1) Study.--The Secretary shall conduct a study to assess 
     the feasibility and appropriateness of developing and 
     implementing an incentive funding system under sections 5307 
     and 5311 for operators of public transportation.
       ``(2) Report.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of the Federal Public Transportation Act of 2004, 
     the Secretary shall submit a report on the results of the 
     study conducted under paragraph (1) to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives.
       ``(B) Contents.--The report submitted under subparagraph 
     (A) shall include--
       ``(i) an analysis of the availability of appropriate 
     measures to be used as a basis for the distribution of 
     incentive payments;
       ``(ii) the optimal number and size of any incentive 
     programs;
       ``(iii) what types of systems should compete for various 
     incentives;
       ``(iv) how incentives should be distributed; and
       ``(v) the likely effects of the incentive funding 
     system.''.

     SEC. 3036. APPORTIONMENTS FOR FIXED GUIDEWAY MODERNIZATION.

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

     SEC. 3037. AUTHORIZATIONS.

       Section 5338 is amended to read as follows:

     ``Sec. 5338. Authorizations

       ``(a) Fiscal Year 2004.--
       ``(1) Formula grants.--
       ``(A) Trust fund.--For fiscal year 2004, $3,053,079,920 
     shall be available from the Mass Transit Account of the 
     Highway Trust Fund to carry out sections 5307, 5309, 5310, 
     and 5311 of this chapter and section 3038 of the 
     Transportation Equity Act for the 21st Century (49 U.S.C. 
     5310 note).
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there are authorized to be 
     appropriated $763,269,980 for fiscal year 2004 to carry out 
     sections 5307, 5309, 5310, and 5311 of this chapter and 
     section 3038 of the Transportation Equity Act for the 21st 
     Century (49 U.S.C. 5310 note).
       ``(C) Allocation of funds.--Of the amounts made available 
     or appropriated under this paragraph--
       ``(i) $4,821,335 shall be available to the Alaska Railroad 
     for improvements to its passenger operations under section 
     5307;
       ``(ii) $6,908,995 shall be available to provide over-the-
     road bus accessibility grants under section 3038 of the 
     Transportation Equity Act for the 21st Century (49 U.S.C. 
     5310 note);
       ``(iii) $90,117,950 shall be available to provide 
     transportation services to elderly individuals and 
     individuals with disabilities under section 5310;
       ``(iv) $239,188,058 shall be available to provide financial 
     assistance for other than urbanized areas under section 5311;
       ``(v) $3,425,608,562 shall be available to provide 
     financial assistance for urbanized areas under section 5307; 
     and
       ``(vi) $49,705,000 shall be available to provide financial 
     assistance for buses and bus facilities under section 5309..
       ``(2) Job access and reverse commute.--
       ``(A) Trust fund.--For fiscal year 2004, $99,410,000 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out section 3037 of the Transportation 
     Equity Act for the 21st Century (49 U.S.C. 5309 note).
       ``(B) General fund.--In addition to the amounts made 
     available under paragraph (A), there are authorized to be 
     appropriated $24,852,500 for fiscal year 2004 to carry out 
     section 3037 of the Transportation Equity Act of the 21st 
     Century (49 U.S.C. 5309 note).
       ``(3) Capital program grants.--
       ``(A) Trust fund.--For fiscal year 2004, $2,495,191,000 
     shall be available from the Mass Transit Account of the 
     Highway Trust Fund to carry out section 5309.
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there are authorized to be 
     appropriated $623,797,750 for fiscal year 2004 to carry out 
     section 5309.
       ``(4) Planning.--
       ``(A) Trust fund.--For fiscal year 2004, $58,254,260 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out section 5308.
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there are authorized to be 
     appropriated $14,315,040 for fiscal year 2004 to carry out 
     section 5308.
       ``(C) Allocation of funds.--Of the amounts made available 
     or appropriated under this paragraph--
       ``(i) 82.72 percent shall be allocated for metropolitan 
     planning under section 5308(c); and
       ``(ii) 17.28 percent shall be allocated for State planning 
     under section 5308(d).
       ``(5) Research.--
       ``(A) Trust fund.--For fiscal year 2004, $41,951,020 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out sections 5311(b), 5312, 5313, 5314, 
     5315, and 5322.
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there are authorized to be 
     appropriated $10,736,280 for fiscal year 2004 to carry out 
     sections 5311(b), 5312, 5313, 5314, 5315, and 5322.
       ``(C) Allocation of funds.--Of the funds made available or 
     appropriated under this paragraph--
       ``(i) not less than $3,976,400 shall be available to carry 
     out programs of the National Transit Institute under section 
     5315;
       ``(ii) not less than $5,219,025 shall be available to carry 
     out section 5311(b)(2);
       ``(iii) not less than $8,201,325 shall be available to 
     carry out section 5313; and
       ``(iv) the remainder shall be available to carry out 
     national research and technology programs under sections 
     5312, 5314, and 5322.
       ``(6) University transportation research.--
       ``(A) Trust fund.--For fiscal year 2004, $4,771,680 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out sections 5505 and 5506.
       ``(B) General fund.--In addition to amounts made available 
     under subparagraph (A), there are authorized to be 
     appropriated $1,192,920 for fiscal year 2004 to carry out 
     sections 5505 and 5506.
       ``(C) Allocation of funds.--Of the amounts made available 
     or appropriated under this paragraph--
       ``(i) $1,988,200 shall be available for grants under 
     5506(f)(5) to the institution identified in section 
     5505(j)(3)(E), as in effect on the day before the date of 
     enactment of the Federal Public Transportation Act of 2004;
       ``(ii) $1,988,200 shall be available for grants under 
     section 5505(d) to the institution identified in section 
     5505(j)(4)(A), as in effect on the date specified in clause 
     (i); and
       ``(iii) $1,988,200 shall be available for grants under 
     section 5505(d) to the institution identified in section 
     5505(j)(4)(F), as in effect on the date specified in 
     subclause (I).
       ``(C) Special rule.--Nothing in this paragraph shall be 
     construed to limit the transportation research conducted by 
     the centers receiving financial assistance under this 
     section.
       ``(7) Administration.--
       ``(A) Trust fund.--For fiscal year 2004, $60,043,640 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out section 5334.
       ``(B) General fund.--In addition to amounts made available 
     under subparagraph (A), there are authorized to be 
     appropriated $15,010,910 for fiscal year 2004 to carry out 
     section 5334.
       ``(8) Grants as contractual obligations.--

[[Page 2125]]

       ``(A) Grants financed from highway trust fund.--A grant or 
     contract that is approved by the Secretary and financed with 
     amounts made available under paragraph (1)(A), (2)(A), 
     (3)(A), (4)(A), (5)(A), (6)(A), or (7)(A) is a contractual 
     obligation of the United States Government to pay the Federal 
     share of the cost of the project.
       ``(B) Grants financed from general fund.--A grant or 
     contract that is approved by the Secretary and financed with 
     amounts appropriated in advance under paragraph (1)(B), 
     (2)(B), (3)(B), (4)(B), (5)(B), (6)(B), or (7)(B) is a 
     contractual obligation of the United States Government to pay 
     the Federal share of the cost of the project only to the 
     extent that amounts are appropriated for such purpose by an 
     Act of Congress.
       ``(9) Availability of amounts.--Amounts made available or 
     appropriated under paragraphs (1) through (6) shall remain 
     available until expended.''.
       ``(b) Formula Grants and Research.--
       ``(1) In general.--There shall be available from the Mass 
     Transit Account of the Highway Trust Fund to carry out 
     sections 5307, 5308, 5309, 5310 through 5316, 5322, 5335, 
     5340, and 5505 of this title, and sections 3037 and 3038 of 
     the Federal Transit Act of 1998 (112 Stat. 387 et seq.)--
       ``(A) $6,262,600,000 for fiscal year 2005;
       ``(B) $6,577,629,000 for fiscal year 2006;
       ``(C) $6,950,400,000 for fiscal year 2007;
       ``(D) $7,594,760,000 for fiscal year 2008; and
       ``(E) $8,275,320,000 for fiscal year 2009.
       ``(2) Allocation of funds.--Of the amounts made available 
     under paragraph (1) for each fiscal year--
       ``(A) 0.092 percent shall be available for grants to the 
     Alaska Railroad under section 5307 for improvements to its 
     passenger operations;
       ``(B) 1.75 percent shall be available to carry out section 
     5308;
       ``(C) 2.05 percent shall be available to provide financial 
     assistance for job access and reverse commute projects under 
     section 3037 of the Federal Transit Act of 1998 (49 U.S.C. 
     5309 note);
       ``(D) 3.00 percent shall be available to provide financial 
     assistance for services for elderly persons and persons with 
     disabilities under section 5310;
       ``(E) 0.125 percent shall be available to carry out section 
     3038 of the Transportation Equity Act for the 21st Century 
     (49 U.S.C. 5310 note);
       ``(F) 6.25 percent shall be available to provide financial 
     assistance for other than urbanized areas under section 5311;
       ``(G) 0.89 percent shall be available to carry out transit 
     cooperative research programs under section 5313, the 
     National Transit Institute under section 5315, university 
     research centers under section 5505, and national research 
     programs under sections 5312, 5313, 5314, and 5322, of 
     which--
       ``(i) 17.0 percent shall be allocated to carry out transit 
     cooperative research programs under section 5313;
       ``(ii) 7.5 percent shall be allocated to carry out programs 
     under the National Transit Institute under section 5315, 
     including not more than $1,000,000 to carry out section 
     5315(a)(16);
       ``(iii) 11.0 percent shall be allocated to carry out the 
     university centers program under section 5505; and
       ``(iv) any funds made available under this subparagraph 
     that are not allocated under clauses (i) through (iii) shall 
     be allocated to carry out national research programs under 
     sections 5312, 5313, 5314, and 5322;
       ``(H) $25,000,000 shall be available for each of the fiscal 
     years 2005 through 2009 to carry out section 5316;
       ``(I) there shall be available to carry out section 5335--
       ``(i) $3,700,000 in fiscal year 2005;
       ``(iii) $3,900,000 in fiscal year 2006;
       ``(iv) $4,200,000 in fiscal year 2007;
       ``(v) $4,600,000 in fiscal year 2008; and
       ``(vi) $5,000,000 in fiscal year 2009;
       ``(J) 6.25 percent shall be allocated in accordance with 
     section 5340 to provide financial assistance for urbanized 
     areas under section 5307 and other than urbanized areas under 
     section 5311; and
       ``(K) 22.0 percent shall be allocated in accordance with 
     section 5337 to provide financial assistance under section 
     5309(i)(3); and
       ``(L) any amounts not made available under subparagraphs 
     (A) through (K) shall be allocated in accordance with section 
     5336 to provide financial assistance for urbanized areas 
     under section 5307.
       ``(3) University centers program.--
       ``(A) Allocation.--Of the amounts allocated under paragraph 
     (2)(G)(iii), $1,000,000 shall be available in each of the 
     fiscal years 2005 through 2009 for Morgan State University to 
     provide transportation research, training, and curriculum 
     development.
       ``(B) Requirements.--The university specified under 
     subparagraph (A) shall be considered a University 
     Transportation Center under section 510 of title 23, and 
     shall be subject to the requirements under subsections (c), 
     (d), (e), and (f) of such section.
       ``(C) Report.--In addition to the report required under 
     section 510(e)(3) of title 23, the university specified under 
     subparagraph (A) shall annually submit a report to the 
     Secretary that describes the university's contribution to 
     public transportation.
       ``(4) Bus grants.--In addition to the amounts made 
     available under paragraph (1), there shall be available from 
     the Mass Transit Account of the Highway Trust Fund to carry 
     out section 5309(i)(2)(B)--
       ``(A) $839,829,000 for fiscal year 2005;
       ``(B) $882,075,000 for fiscal year 2006;
       ``(C) $932,064,000 for fiscal year 2007;
       ``(D) $1,018,474,000 for fiscal year 2008; and
       ``(E) $1,109,739,000 for fiscal year 2009.
       ``(c) Major Capital Investment Grants.--There are 
     authorized to be appropriated to carry out section 
     5309(i)(2)(A)--
       ``(1) $1,461,072,000 for fiscal year 2005;
       ``(2) $1,534,568,000 for fiscal year 2006;
       ``(3) $1,621,536,000 for fiscal year 2007;
       ``(4) $1,771,866,000 for fiscal year 2008; and
       ``(5) $1,930,641,000 for fiscal year 2009.
       ``(d) Administration.--There shall be available from the 
     Mass Transit Account of the Highway Trust Fund to carry out 
     section 5334--
       ``(1) $86,500,000 for fiscal year 2005;
       ``(2) $90,851,000 for fiscal year 2006;
       ``(3) $96,000,000 for fiscal year 2007;
       ``(4) $104,900,000 for fiscal year 2008; and
       ``(5) $114,300,000 for fiscal year 2009.
       ``(e) Grants as Contractual Obligations.--
       ``(1) Mass transit account funds.--A grant or contract 
     approved by the Secretary that is financed with amounts made 
     available under subsection (b)(1) or (d) is a contractual 
     obligation of the United States Government to pay the Federal 
     share of the cost of the project.
       ``(2) Appropriated funds.--A grant or contract approved by 
     the Secretary that is financed with amounts made available 
     under subsection (b)(2) or (c) is a contractual obligation of 
     the United States Government to pay the Federal share of the 
     cost of the project only to the extent that amounts are 
     appropriated in advance for such purpose by an Act of 
     Congress.
       ``(f) Availability of Amounts.--Amounts made available by 
     or appropriated under subsections (b) and (c) shall remain 
     available until expended.''.

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

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

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

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

[[Page 2126]]

     under paragraph (1), the Secretary shall calculate an amount 
     equal to the product of the urban land area of urbanized 
     areas in the State times 370 persons per square mile.
       ``(3) State apportionment factor.--For each State 
     qualifying for an apportionment under paragraph (1), the 
     Secretary shall calculate an amount equal to the difference 
     between the total population of the State less the amount 
     calculated in paragraph (2).
       ``(4) State apportionment.--Each State qualifying for an 
     apportionment under paragraph (1) shall receive an amount 
     equal to the amount to be apportioned under this subsection 
     multiplied by the amount calculated for the State under 
     paragraph (3) divided by the sum of the amounts calculated 
     under paragraph (3) for all States qualifying for an 
     apportionment under paragraph (1).
       ``(5) Apportionments between urbanized areas and other than 
     urbanized areas in each state.--
       ``(A) In general.--The Secretary shall apportion amounts 
     apportioned to each State under paragraph (4) so that 
     urbanized areas in that State receive an amount equal to the 
     amount apportioned to that State multiplied by a ratio equal 
     to the sum of the population of all urbanized areas in that 
     State divided by the total population of that State.
       ``(B) Remaining amounts.--Amounts remaining for each State 
     after apportionment under subparagraph (a) shall be 
     apportioned to that State and added to the amount made 
     available for grants under section 5311.
       ``(6) Apportionments among urbanized areas in each state.--
     The Secretary shall apportion amounts made available to 
     urbanized areas in each State under subsection (c)(5)(A) so 
     that each urbanized area receives an amount equal to the 
     amount apportioned under subsection (c)(5)(A) multiplied by a 
     ratio equal to the population of each urbanized area divided 
     by the sum of populations of all urbanized areas in the 
     State. Amounts apportioned to each urbanized area shall be 
     added to amounts apportioned to that urbanized area under 
     section 5336, and made available for grants under section 
     5307.''.
       (b) Conforming Amendment.--The table of sections for 
     chapter 53 is amended by adding at the end the following:

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

     SEC. 3039. JOB ACCESS AND REVERSE COMMUTE GRANTS.

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

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

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

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

       (b) Funding.--Section 3038(g) of the Federal Transit Act of 
     1998 (49 U.S.C. 5310 note) is amended to read as follows:
       ``(g) Funding.--Of the amounts made available for each 
     fiscal year under subsections (a)(1)(C)(iii) and (b)(2)(E) of 
     section 5338 of title 49, United States Code--
       ``(1) 75 percent shall be available, and shall remain 
     available until expended, for operators of over-the-road 
     buses, used substantially or exclusively in intercity, fixed-
     route over-the-road bus service, to finance the incremental 
     capital and training costs of the Department of 
     Transportation's final rule regarding accessibility of over-
     the-road buses; and
       ``(2) 25 percent shall be available, and shall remain 
     available until expended, for operators of over-the-road bus 
     service not described in paragraph (1), to finance the 
     incremental capital and training costs of the Department of 
     Transportation's final rule regarding accessibility of over-
     the-road buses.''.
       (b) Conforming Amendment.--The item relating to section 
     3038 in the table of contents for the Transportation Equity 
     Act for the 21st Century (Public Law 105-178) is amended to 
     read as follows:

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

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

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

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

       ``(a) In General.--
       ``(1) Authorization.--
       ``(A) In general.--The Secretary, in consultation with the 
     Secretary of the Interior, may award a grant or enter into a 
     contract, cooperative agreement, interagency agreement, 
     intraagency agreement, or other transaction to carry out a 
     qualified project under this section to enhance the 
     protection of America's National Parks and public lands and 
     increase the enjoyment of those visiting the parks and public 
     lands by ensuring access to all, including persons with 
     disabilities, improving conservation and park and public land 
     opportunities in urban areas through partnering with state 
     and local governments, and improving park and public land 
     transportation infrastructure.
       ``(B) Consultation with other agencies.--To the extent that 
     projects are proposed or funded in eligible areas that are 
     not within the jurisdiction of the Department of the 
     Interior, the Secretary of the Interior shall consult with 
     the heads of the relevant Federal land management agencies in 
     carrying out the responsibilities under this section.
       ``(2) Use of funds.--A grant, cooperative agreement, 
     interagency agreement, intraagency agreement, or other 
     transaction for a qualified project under this section shall 
     be available to finance the leasing of equipment and 
     facilities for use in public transportation, subject to any 
     regulation that the Secretary may prescribe limiting the 
     grant or agreement to leasing arrangements that are more 
     cost-effective than purchase or construction.
       ``(b) Definitions.--As used in this section, the following 
     definitions shall apply:
       ``(1) Eligible area.--The term `eligible area' means any 
     federally owned or managed park, refuge, or recreational area 
     that is open to the general public, including--
       ``(A) a unit of the National Park System;
       ``(B) a unit of the National Wildlife Refuge System;
       ``(C) a recreational area managed by the Bureau of Land 
     Management; and
       ``(D) a recreation area managed by the Bureau of 
     Reclamation.
       ``(2) Federal land management agency.--The term `Federal 
     land management agency' means a Federal agency that manages 
     an eligible area.
       ``(3) Alternative transportation.--The term `alternative 
     transportation' means transportation by bus, rail, or any 
     other publicly or privately owned conveyance that provides to 
     the public general or special service on a regular basis, 
     including sightseeing service.
       ``(4) Qualified participant.--The term `qualified 
     participant' means--
       ``(A) a Federal land management agency; or
       ``(B) a State, tribal, or local governmental authority with 
     jurisdiction over land in the vicinity of an eligible area 
     acting with the consent of the Federal land management 
     agency, alone or in partnership with a Federal land 
     management agency or other Governmental or nongovernmental 
     participant.

[[Page 2127]]

       ``(5) Qualified project.--The term `qualified project' 
     means a planning or capital project in or in the vicinity of 
     an eligible area that--
       ``(A) is an activity described in section 5302, 5303, 5304, 
     5308, or 5309(a)(1)(A);
       ``(B) involves--
       ``(i) the purchase of rolling stock that incorporates clean 
     fuel technology or the replacement of buses of a type in use 
     on the date of enactment of this section with clean fuel 
     vehicles; or
       ``(ii) the deployment of alternative transportation 
     vehicles that introduce innovative technologies or methods;
       ``(C) relates to the capital costs of coordinating the 
     Federal land management agency public transportation systems 
     with other public transportation systems;
       ``(D) provides a nonmotorized transportation system 
     (including the provision of facilities for pedestrians, 
     bicycles, and nonmotorized watercraft);
       ``(E) provides waterborne access within or in the vicinity 
     of an eligible area, as appropriate to and consistent with 
     this section; or
       ``(F) is any other alternative transportation project 
     that--
       ``(i) enhances the environment;
       ``(ii) prevents or mitigates an adverse impact on a natural 
     resource;
       ``(iii) improves Federal land management agency resource 
     management;
       ``(iv) improves visitor mobility and accessibility and the 
     visitor experience;
       ``(v) reduces congestion and pollution (including noise 
     pollution and visual pollution); or
       ``(vi) conserves a natural, historical, or cultural 
     resource (excluding rehabilitation or restoration of a non-
     transportation facility).
       ``(c) Federal Agency Cooperative Arrangements.--The 
     Secretary shall develop cooperative arrangements with the 
     Secretary of the Interior that provide for--
       ``(1) technical assistance in alternative transportation;
       ``(2) interagency and multidisciplinary teams to develop 
     Federal land management agency alternative transportation 
     policy, procedures, and coordination; and
       ``(3) the development of procedures and criteria relating 
     to the planning, selection, and funding of qualified projects 
     and the implementation and oversight of the program of 
     projects in accordance with this section.
       ``(d) Limitation on Use of Available Amounts.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of the Interior, may use not more than 10 percent 
     of the amount made available for a fiscal year under section 
     5338(a)(2)(I) to carry out planning, research, and technical 
     assistance under this section, including the development of 
     technology appropriate for use in a qualified project.
       ``(2) Additional amounts.--Amounts made available under 
     this subsection are in addition to amounts otherwise 
     available to the Secretary to carry out planning, research, 
     and technical assistance under this title or any other 
     provision of law.
       ``(3) Maximum amount.--No qualified project shall receive 
     more than 12 percent of the total amount made available to 
     carry out this section under section 5338(a)(2)(I) for any 
     fiscal year.
       ``(e) Planning Process.--In undertaking a qualified project 
     under this section,
       ``(1) if the qualified participant is a Federal land 
     management agency--
       ``(A) the Secretary, in cooperation with the Secretary of 
     the Interior, shall develop transportation planning 
     procedures that are consistent with--
       ``(i) the metropolitan planning provisions under section 
     5303 of this title;
       ``(ii) the statewide planning provisions under section 5304 
     of this title; and
       ``(iii) the public participation requirements under section 
     5307(e); and
       ``(B) in the case of a qualified project that is at a unit 
     of the National Park system, the planning process shall be 
     consistent with the general management plans of the unit of 
     the National Park system; and
       ``(2) if the qualified participant is a State or local 
     governmental authority, or more than one State or local 
     governmental authority in more than one State, the qualified 
     participant shall--
       ``(A) comply with the metropolitan planning provisions 
     under section 5303 of this title;
       ``(B) comply with the statewide planning provisions under 
     section 5304 of this title;
       ``(C) comply with the public participation requirements 
     under section 5307(e) of this title; and
       ``(D) consult with the appropriate Federal land management 
     agency during the planning process.
       ``(f) Cost Sharing.--
       ``(1) The Secretary, in cooperation with the Secretary of 
     the Interior, shall establish the agency share of net project 
     cost to be provided under this section to a qualified 
     participant.
       ``(2) In establishing the agency share of net project cost 
     to be provided under this section, the Secretary shall 
     consider--
       ``(A) visitation levels and the revenue derived from user 
     fees in the eligible area in which the qualified project is 
     carried out;
       ``(B) the extent to which the qualified participant 
     coordinates with a public transportation authority or private 
     entity engaged in public transportation;
       ``(C) private investment in the qualified project, 
     including the provision of contract services, joint 
     development activities, and the use of innovative financing 
     mechanisms;
       ``(D) the clear and direct benefit to the qualified 
     participant; and
       ``(E) any other matters that the Secretary considers 
     appropriate to carry out this section.
       ``(3) Notwithstanding any other provision of law, Federal 
     funds appropriated to any Federal land management agency may 
     be counted toward the non-agency share of the net project 
     cost of a qualified project.
       ``(g) Selection of Qualified Projects.--
       ``(1) The Secretary of the Interior, after consultation 
     with and in cooperation with the Secretary, shall determine 
     the final selection and funding of an annual program of 
     qualified projects in accordance with this section.
       ``(2) In determining whether to include a project in the 
     annual program of qualified projects, the Secretary of the 
     Interior shall consider--
       ``(A) the justification for the qualified project, 
     including the extent to which the qualified project would 
     conserve resources, prevent or mitigate adverse impact, and 
     enhance the environment;
       ``(B) the location of the qualified project, to ensure that 
     the selected qualified projects--
       ``(i) are geographically diverse nationwide; and
       ``(ii) include qualified projects in eligible areas located 
     in both urban areas and rural areas;
       ``(C) the size of the qualified project, to ensure that 
     there is a balanced distribution;
       ``(D) the historical and cultural significance of a 
     qualified project;
       ``(E) safety;
       ``(F) the extent to which the qualified project would--
       ``(i) enhance livable communities;
       ``(ii) reduce pollution (including noise pollution, air 
     pollution, and visual pollution);
       ``(iii) reduce congestion; and
       ``(iv) improve the mobility of people in the most efficient 
     manner; and
       ``(G) any other matters that the Secretary considers 
     appropriate to carry out this section, including--
       ``(i) visitation levels;
       ``(ii) the use of innovative financing or joint development 
     strategies; and
       ``(iii) coordination with gateway communities.
       ``(h) Qualified Projects Carried Out in Advance.--
       ``(1) When a qualified participant carries out any part of 
     a qualified project without assistance under this section in 
     accordance with all applicable procedures and requirements, 
     the Secretary, in consultation with the Secretary of the 
     Interior, may pay the share of the net capital project cost 
     of a qualified project if--
       ``(A) the qualified participant applies for the payment;
       ``(B) the Secretary approves the payment; and
       ``(C) before carrying out that part of the qualified 
     project, the Secretary approves the plans and specifications 
     in the same manner as plans and specifications are approved 
     for other projects assisted under this section.
       ``(2)(A) The cost of carrying out part of a qualified 
     project under paragraph (1) includes the amount of interest 
     earned and payable on bonds issued by a State or local 
     governmental authority, to the extent that proceeds of the 
     bond are expended in carrying out that part.
       ``(B) The rate of interest under this paragraph may not 
     exceed the most favorable rate reasonably available for the 
     qualified project at the time of borrowing.
       ``(C) The qualified participant shall certify, in a manner 
     satisfactory to the Secretary, that the qualified participant 
     has exercised reasonable diligence in seeking the most 
     favorable interest rate.
       ``(i) Relationship to Other Laws.--
       ``(1) Section 5307.--A qualified participant under this 
     section shall be subject to the requirements of sections 5307 
     and 5333(a) to the extent the Secretary determines to be 
     appropriate.
       ``(2) Other requirements.--A qualified participant under 
     this section is subject to any other terms, conditions, 
     requirements, and provisions that the Secretary determines to 
     be appropriate to carry out this section, including 
     requirements for the distribution of proceeds on disposition 
     of real property and equipment resulting from a qualified 
     project assisted under this section.
       ``(3) Project management plan.--If the amount of assistance 
     anticipated to be required for a qualified project under this 
     section is not less than $25,000,000--
       ``(A) the qualified project shall, to the extent the 
     Secretary considers appropriate, be carried out through a 
     full funding grant agreement, in accordance with section 
     5309(g); and
       ``(B) the qualified participant shall prepare a project 
     management plan in accordance with section 5327(a).
       ``(i) Asset Management.--The Secretary, in consultation 
     with the Secretary of the Interior, may transfer the interest 
     of the Department of Transportation in, and control

[[Page 2128]]

     over, all facilities and equipment acquired under this 
     section to a qualified participant for use and disposition in 
     accordance with any property management regulations that the 
     Secretary determines to be appropriate.
       ``(j) Coordination of Research and Deployment of New 
     Technologies.--
       ``(1) The Secretary, in cooperation with the Secretary of 
     the Interior, may undertake, or make grants, cooperative 
     agreements, contracts (including agreements with departments, 
     agencies, and instrumentalities of the Federal Government) or 
     other transactions for research, development, and deployment 
     of new technologies in eligible areas that will--
       ``(A) conserve resources;
       ``(B) prevent or mitigate adverse environmental impact;
       ``(C) improve visitor mobility, accessibility, and 
     enjoyment; and
       ``(D) reduce pollution (including noise pollution and 
     visual pollution).
       ``(2) The Secretary may request and receive appropriate 
     information from any source.
       ``(3) Grants, cooperative agreements, contracts or other 
     transactions under paragraph (1) shall be awarded from 
     amounts allocated under subsection (c)(1).
       ``(k) Innovative Financing.--A qualified project receiving 
     financial assistance under this section shall be eligible for 
     funding through a state infrastructure bank or other 
     innovative financing mechanism available to finance an 
     eligible project under this chapter.
       ``(l) Reports.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of the Interior, shall annually submit a report on 
     the allocation of amounts made available to assist qualified 
     projects under this section to--
       ``(A) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate; and
       ``(B) the Committee on Transportation and Infrastructure of 
     the House of Representatives.
       ``(2) Annual and supplemental reports.--The report required 
     under paragraph (1) shall be included in the report submitted 
     under section 5309(m).''.
       (b) Conforming Amendments.--The table of sections for 
     chapter 53 is amended by inserting after the item relating to 
     section 5315 the following:

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

     SEC. 3042. OBLIGATION CEILING.

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

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

       (a) In General.--Notwithstanding any other provision of 
     law, the Secretary shall reduce the total apportionments and 
     allocations made for fiscal year 2004 to each grant recipient 
     under section 5338 of title 49, United States Code, by the 
     amount apportioned to that recipient pursuant to section 8 of 
     the Surface Transportation Extension Act of 2003 (117 Stat. 
     1121).
       (b) Fixed Guideway Modernization Adjustment.--In making the 
     apportionments described in subsection (a), the Secretary 
     shall adjust the amount apportioned for fiscal year 2004 to 
     each urbanized area for fixed guideway modernization to 
     reflect the apportionment method set forth in 5337(a) of 
     title 49, United States Code.

     SEC. 3044. DISADVANTAGED BUSINESS ENTERPRISE.

       Section 1101(b) of the Transportation Equity Act of the 
     21st Century shall apply to all funds authorized or otherwise 
     made available under this title.

     SEC. 3045. INTERMODAL PASSENGER FACILITIES.

       (a) In General.--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

       ``(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 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) 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.

[[Page 2129]]

       ``(b) Period of Availability.--Amounts made available under 
     subsection (a) shall remain available until expended.''.
       (b) Conforming Amendment.--The chapter 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.''.
       Beginning on page 1309 strike lines 17 thru page 1310 line 
     1 and insert the following:
       (b) Mass Transit Category.--For the purpose of section 
     251(b) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 (2 U.S.C. 901(b)), the level of obligation 
     limitations for the mass transit category is--
       (1) for fiscal year 2004, $7,265,877,000;
       (2) for fiscal year 2005, $8,650,000,000;
       (3) for fiscal year 2006, $9,085,123,000;
       (4) for fiscal year 2007, $9,600,000,000;
       (5) for fiscal year 2008, $10,490,000,000 and
       (6) for fiscal year 2009, $11,430,000,000.

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