[Congressional Record (Bound Edition), Volume 151 (2005), Part 8]
[Senate]
[Pages 10555-10692]
[From the U.S. Government Publishing Office, www.gpo.gov]




             TRANSPORTATION EQUITY ACT: A LEGACY FOR USERS

  On Tuesday, May 17, 2005, the Senate passed H.R. 3, as follows:

                                 H.R. 3

       Resolved, That the bill from the House of Representatives 
     (H.R. 3) entitled ``An Act to authorize funds for Federal-aid 
     highways, highway safety programs, and transit programs, and 
     for other purposes.'', do pass with the following amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2005''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

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

                     TITLE I--FEDERAL-AID HIGHWAYS

                          Subtitle A--Funding

Sec. 1101. Authorization of appropriations.
Sec. 1102. Obligation ceiling.
Sec. 1103. Apportionments.
Sec. 1104. Equity bonus programs.
Sec. 1105. Revenue aligned budget authority.
Sec. 1106. Use of excess funds and funds for inactive projects.

                        Subtitle B--New Programs

Sec. 1201. Infrastructure performance and maintenance program.
Sec. 1202. Future of surface transportation system.
Sec. 1203. Freight transportation gateways; freight intermodal 
              connections.
Sec. 1204. Construction of ferry boats and ferry terminal and 
              maintenance facilities; coordination of ferry 
              construction and maintenance.
Sec. 1205. Designation of Interstate Highways.
Sec. 1206. State-by-State comparison of highway construction costs.

                          Subtitle C--Finance

Sec. 1301. Federal share.
Sec. 1302. Transfer of highway and transit funds.
Sec. 1303. Transportation Infrastructure Finance and Innovation Act 
              Amendments.
Sec. 1304. State infrastructure banks.
Sec. 1305. Public-private partnerships pilot program.

                           Subtitle D--Safety

Sec. 1401. Highway safety improvement program.
Sec. 1402. Operation lifesaver.
Sec. 1403. Increased penalties for higher-risk drivers driving while 
              intoxicated or driving under the influence.
Sec. 1404. Bus axle weight exemption.
Sec. 1405. Safe routes to schools program.
Sec. 1406. Purchases of equipment.
Sec. 1407. Workzone safety.
Sec. 1408. Worker injury prevention and free flow of vehicular traffic.
Sec. 1409. Open container requirements.
Sec. 1410. Safe intersections.
Sec. 1411. Presidential commission on alcohol-impaired driving.
Sec. 1412. Sense of the Senate in support of increased public awareness 
              of blood alcohol concentration levels and the dangers of 
              drinking and driving.
Sec. 1413. Grant program for commercial driver training.

             Subtitle E--Environmental Planning and Review

                   Chapter 1--Transportation Planning

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

         Chapter 2--Transportation Project Development Process

Sec. 1511. Transportation project development process.
Sec. 1512. Assumption of responsibility for categorical exclusions.
Sec. 1513. Surface transportation project delivery pilot program.
Sec. 1514. Parks, recreation areas, wildlife and waterfowl refuges, and 
              historic sites.
Sec. 1515. Regulations.

                        Chapter 3--Miscellaneous

Sec. 1521. Critical real property acquisition.
Sec. 1522. Planning capacity building initiative.
Sec. 1523. Intermodal passenger facilities.

[[Page 10556]]

Sec. 1524. 14th Amendment highway and 3rd infantry division highway.

                        Subtitle F--Environment

Sec. 1601. Environmental restoration and pollution abatement; control 
              of invasive plant species and establishment of native 
              species.
Sec. 1602. National scenic byways program.
Sec. 1603. Recreational trails program.
Sec. 1604. Exemption of Interstate System.
Sec. 1605. Standards.
Sec. 1606. Use of high occupancy vehicle lanes.
Sec. 1607. Bicycle transportation and pedestrian walkways.
Sec. 1608. Idling reduction facilities in Interstate rights-of-way.
Sec. 1609. Toll programs.
Sec. 1610. Federal reference method.
Sec. 1611. Addition of particulate matter areas to CMAQ.
Sec. 1612. Addition to CMAQ-eligible projects.
Sec. 1613. Improved interagency consultation.
Sec. 1614. Evaluation and assessment of CMAQ projects.
Sec. 1615. Synchronized planning and conformity timelines, 
              requirements, and horizon.
Sec. 1616. Transition to new air quality standards.
Sec. 1617. Reduced barriers to air quality improvements.
Sec. 1618. Air quality monitoring data influenced by exceptional 
              events.
Sec. 1619. Conforming amendments.
Sec. 1620. Highway stormwater discharge mitigation program.
Sec. 1621. Federal procurement of recycled coolant.
Sec. 1622. Clean school bus program.
Sec. 1623. Conserve by bicycling program.

                         Subtitle G--Operations

Sec. 1701. Transportation systems management and operations.
Sec. 1702. Real-time system management information program.
Sec. 1703. Contracting for engineering and design services.
Sec. 1704. Designation of transportation management areas.

                  Subtitle H--Federal-Aid Stewardship

Sec. 1801. Future Interstate System routes.
Sec. 1802. Stewardship and oversight.
Sec. 1803. Revision of regulations.
Sec. 1804. Program efficiencies--finance.
Sec. 1805. Set-asides for interstate discretionary projects.
Sec. 1806. Federal lands highways program.
Sec. 1807. Highway bridge program.
Sec. 1808. Appalachian development highway system.
Sec. 1809. Multistate corridor program.
Sec. 1810. Border planning, operations, technology, and capacity 
              program.
Sec. 1811. Puerto Rico highway program.
Sec. 1812. National historic covered bridge preservation.
Sec. 1813. Transportation and community and system preservation 
              program.
Sec. 1814. Parking pilot programs.
Sec. 1815. Interstate oasis program.
Sec. 1816. Tribal-State road maintenance agreements.
Sec. 1817. National forest system roads.
Sec. 1818. Territorial highway program.
Sec. 1819. High-speed magnetic levitation system deployment program.
Sec. 1820. Donations and credits.
Sec. 1821. Disadvantaged business enterprises.
Sec. 1822. [Reserved].
Sec. 1823. Priority for pedestrian and bicycle facility enhancement 
              projects.
Sec. 1824. The Delta Regional Authority.
Sec. 1825. Multistate international corridor development program.
Sec. 1826. Authorization of contract authority for States with Indian 
              Reservations.
Sec. 1827. Value pricing pilot program.
Sec. 1828. Credit to State of Louisiana for State matching funds.
Sec. 1829. Approval and funding for certain construction projects.
Sec. 1830. Notice regarding participation of small business concerns.
Sec. 1831. Alaska Way viaduct study.
Sec. 1832. Bridge construction, North Dakota.
Sec. 1833. Community enhancement study.
Sec. 1834. Comprehensive coastal evacuation plan.
Sec. 1835. Priority projects.
Sec. 1836. Transportation needs, Grayling, Michigan.
Sec. 1837. US-95 Project, Las Vegas, Nevada.

                   Subtitle I--Technical Corrections

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

                   TITLE II--TRANSPORTATION RESEARCH

                          Subtitle A--Funding

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

                  Subtitle B--Research and Technology

Sec. 2101. Research and technology program.
Sec. 2102. Study of data collection and statistical analysis efforts.
Sec. 2103. Centers for surface transportation excellence.
Sec. 2104. Motorcycle crash causation study grants.
Sec. 2105. Transportation technology innovation and demonstration 
              program.

         Subtitle C--Intelligent Transportation System Research

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

 TITLE III--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET 
                                OFFSETS

Sec. 3101. Sense of the Senate on overall Federal budget.
Sec. 3102. Discretionary spending categories.
Sec. 3103. Level of obligation limitations.

                     TITLE IV--SOLID WASTE DISPOSAL

Sec. 4001. Increased use of recovered mineral component in federally 
              funded projects involving procurement of cement or 
              concrete.
Sec. 4002. Use of granular mine tailings.

     TITLE V--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

Sec. 5000. Short title; amendment of 1986 Code.

                 Subtitle A--Trust Fund Reauthorization

Sec. 5101. Extension of highway-related taxes and trust funds.
Sec. 5102. Modification of adjustments of apportionments.

            Subtitle B--Excise Tax Reform and Simplification

                      Part I--Highway Excise Taxes

Sec. 5201. Modification of gas guzzler tax.
Sec. 5202. Exclusion for tractors weighing 19,500 pounds or less from 
              Federal excise tax on heavy trucks and trailers.
Sec. 5203. Exemption for equipment for transporting bulk beds of farm 
              crops from excise tax on retail sale of heavy trucks and 
              trailers.
Sec. 5204. Volumetric excise tax credit for alternative fuels.

                     Part II--Aquatic Excise Taxes

Sec. 5211. Elimination of Aquatic Resources Trust Fund and 
              transformation of Sport Fish Restoration Account.
Sec. 5212. Repeal of harbor maintenance tax on exports.
Sec. 5213. Cap on excise tax on certain fishing equipment.

                     Part III--Aerial Excise Taxes

Sec. 5221. Clarification of excise tax exemptions for agricultural 
              aerial applicators and exemption for fixed-wing aircraft 
              engaged in forestry operations.
Sec. 5222. Modification of rural airport definition.
Sec. 5223. Exemption from taxes on transportation provided by 
              seaplanes.
Sec. 5224. Certain sightseeing flights exempt from taxes on air 
              transportation.

                   Part IV--Taxes Relating to Alcohol

Sec. 5231. Repeal of special occupational taxes on producers and 
              marketers of alcoholic beverages.
Sec. 5232. Modification of limitation on rate of rum excise tax cover 
              over to Puerto Rico and Virgin Islands.
Sec. 5233. Income tax credit for distilled spirits wholesalers and for 
              distilled spirits in control State bailment warehouses 
              for costs of carrying Federal excise taxes on bottled 
              distilled spirits.
Sec. 5234. Quarterly excise tax filing for small alcohol excise 
              taxpayers.

                       Part V--Sport Excise Taxes

Sec. 5241. Custom gunsmiths.

                  Subtitle C--Miscellaneous Provisions

Sec. 5301. Motor Fuel Tax Enforcement Advisory Commission.
Sec. 5302. National Surface Transportation Infrastructure Financing 
              Commission.
Sec. 5303. Expansion of Highway Trust Fund expenditure purposes to 
              include funding for studies of supplemental or 
              alternative financing for the Highway Trust Fund.
Sec. 5304. Delta Regional transportation plan.
Sec. 5305. Build America Corporation.
Sec. 5306. Increase in dollar limitation for qualified transportation 
              fringe benefits.
Sec. 5307. Treasury study of highway fuels used by trucks for non-
              transportation purposes.
Sec. 5308. Tax-exempt financing of highway projects and rail-truck 
              transfer facilities.
Sec. 5309. Tax treatment of State ownership of railroad real estate 
              investment trust.
Sec. 5310. Incentives for the installation of alternative fuel 
              refueling stations.
Sec. 5311. Modification of recapture rules for amortizable section 197 
              intangibles.
Sec. 5312. Diesel fuel tax evasion report.

            Subtitle D--Fuels-Related Technical Corrections

Sec. 5401. Fuels-related technical corrections.

                 Subtitle E--Revenue Offset Provisions

                       Part I--General Provisions

Sec. 5501. Treatment of contingent payment convertible debt 
              instruments.
Sec. 5502. Frivolous tax submissions.
Sec. 5503. Increase in certain criminal penalties.
Sec. 5504. Doubling of certain penalties, fines, and interest on 
              underpayments related to certain offshore financial 
              arrangements.

[[Page 10557]]

Sec. 5505. Modification of interaction between subpart F and passive 
              foreign investment company rules.
Sec. 5506. Declaration by chief executive officer relating to Federal 
              annual corporate income tax return.
Sec. 5507. Treasury regulations on foreign tax credit.
Sec. 5508. Whistleblower reforms.
Sec. 5509. Denial of deduction for certain fines, penalties, and other 
              amounts.
Sec. 5510. Freeze of interest suspension rules with respect to listed 
              transactions.
Sec. 5511. Modifications of effective dates of leasing provisions of 
              the American Jobs Creation Act of 2004.
Sec. 5512. Imposition of mark-to-market tax on individuals who 
              expatriate.
Sec. 5513. Disallowance of deduction for punitive damages.
Sec. 5514. Application of earnings stripping rules to partners which 
              are C corporations.
Sec. 5515. Prohibition on deferral of gain from the exercise of stock 
              options and restricted stock gains through deferred 
              compensation arrangements.
Sec. 5516. Limitation of employer deduction for certain entertainment 
              expenses.
Sec. 5517. Increase in penalty for bad checks and money orders.
Sec. 5518. Elimination of double deduction on mining exploration and 
              development costs under the minimum tax.

                  Part II--Economic Substance Doctrine

Sec. 5521. Clarification of economic substance doctrine.
Sec. 5522. Penalty for understatements attributable to transactions 
              lacking economic substance, etc.
Sec. 5523. Denial of deduction for interest on underpayments 
              attributable to noneconomic substance transactions.

Part III--Improvements in Efficiency and Safeguards in Internal Revenue 
                           Service Collection

Sec. 5531. Waiver of user fee for installment agreements using 
              automated withdrawals.
Sec. 5532. Termination of installment agreements.
Sec. 5533. Office of Chief Counsel review of offers-in-compromise.
Sec. 5534. Partial payments required with submission of offers-in-
              compromise.
Sec. 5535. Joint task force on offers-in-compromise.

               Subtitle F--Additional Revenue Provisions

                       Part I--General Provisions

Sec. 5601. Suspension of transfers from Highway Trust Fund for certain 
              repayments and credits.
Sec. 5602. Temporary dedication of gas guzzler tax to Highway Trust 
              Fund.

                Part II--Provisions to Combat Fuel Fraud

Sec. 5611. Treatment of kerosene for use in aviation.
Sec. 5612. Repeal of ultimate vendor refund claims with respect to 
              farming.
Sec. 5613. Refunds of excise taxes on exempt sales of fuel by credit 
              card.
Sec. 5614. Additional requirement for exempt purchases.
Sec. 5615. Reregistration in event of change in ownership.
Sec. 5616. Reconciliation of on-loaded cargo to entered cargo.
Sec. 5617. Registration of deep-draft vessels.
Sec. 5618. Taxation of gasoline blendstocks and kerosene.
Sec. 5619. Nonapplication of export exemption to delivery of fuel to 
              motor vehicles removed from United States.
Sec. 5620. Penalty with respect to certain adulterated fuels.

                    TITLE VI--PUBLIC TRANSPORTATION

Sec. 6001. Short title.
Sec. 6002. Amendments to title 49, United States Code; updated 
              terminology.
Sec. 6003. Policies, findings, and purposes.
Sec. 6004. Definitions.
Sec. 6005. Metropolitan transportation planning.
Sec. 6006. Statewide transportation planning.
Sec. 6007. Transportation management areas.
Sec. 6008. Private enterprise participation.
Sec. 6009. Urbanized area formula grants.
Sec. 6010. Planning programs.
Sec. 6011. Capital investment program.
Sec. 6012. New freedom for elderly persons and persons with 
              disabilities.
Sec. 6013. Formula grants for other than urbanized areas.
Sec. 6014. Research, development, demonstration, and deployment 
              projects.
Sec. 6015. Transit cooperative research program.
Sec. 6016. National research programs.
Sec. 6017. National transit institute.
Sec. 6018. Bus testing facility.
Sec. 6019. Bicycle facilities.
Sec. 6020. Suspended light rail technology pilot project.
Sec. 6021. Crime prevention and security.
Sec. 6022. General provisions on assistance.
Sec. 6023. Special provisions for capital projects.
Sec. 6024. Contract requirements.
Sec. 6025. Project management oversight and review.
Sec. 6026. Project review.
Sec. 6027. Investigations of safety and security risk.
Sec. 6028. State safety oversight.
Sec. 6029. Terrorist attacks and other acts of violence against public 
              transportation systems.
Sec. 6030. Controlled substances and alcohol misuse testing.
Sec. 6031. Employee protective arrangements.
Sec. 6032. Administrative procedures.
Sec. 6033. Reports and audits.
Sec. 6034. Apportionments of appropriations for formula grants.
Sec. 6035. Apportionments for fixed guideway modernization.
Sec. 6036. Authorizations.
Sec. 6037. Apportionments based on growing States formula factors.
Sec. 6038. Job access and reverse commute grants.
Sec. 6039. Over-the-road bus accessibility program.
Sec. 6040. Alternative transportation in parks and public lands.
Sec. 6041. Obligation ceiling.
Sec. 6042. Adjustments for The Surface Transportation Extension Act of 
              2004.
Sec. 6043. Disadvantaged business enterprise.
Sec. 6044. Transit pass transportation fringe benefits.
Sec. 6045. Funding for ferry boats.
Sec. 6046. Commuter rail.

          TITLE VII--SURFACE TRANSPORTATION SAFETY IMPROVEMENT

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

                    Subtitle A--Motor Carrier Safety

                       Chapter 1--Motor Carriers

Sec. 7101. Short title.
Sec. 7102. Contract authority.
Sec. 7103. Authorization of appropriations.
Sec. 7104. High risk carrier compliance reviews.
Sec. 7105. Overdue reports, studies, and rulemakings.
Sec. 7106. Amendments to the listed reports, studies, and rulemaking 
              proceedings.
Sec. 7107. Motor carrier safety grants.
Sec. 7108. Technical corrections.
Sec. 7109. Penalty for denial of access to records.
Sec. 7110. Medical program.
Sec. 7111. Operation of commercial motor vehicles by individuals who 
              use insulin to treat diabetes mellitus.
Sec. 7112. Financial responsibility for private motor carriers.
Sec. 7113. Increased penalties for out-of-service violations and false 
              records.
Sec. 7114. Intrastate operations of interstate motor carriers.
Sec. 7115. Authority to stop commercial motor vehicles.
Sec. 7116. Revocation of operating authority.
Sec. 7117. Pattern of safety violations by motor carrier management.
Sec. 7118. Motor carrier research and technology program.
Sec. 7119. International cooperation.
Sec. 7120. Performance and registration information system management.
Sec. 7121. Commercial vehicle information systems and networks 
              deployment.
Sec. 7122. Outreach and education.
Sec. 7123. Foreign commercial motor vehicles.
Sec. 7124. Pre-employment safety screening.
Sec. 7125. Class or category exemptions.
Sec. 7126. Decals.
Sec. 7127. Roadability.
Sec. 7128. Motor carrier regulations.
Sec. 7129. Vehicle towing.
Sec. 7130. Certification of vehicle emission performance standards.

                Chapter 2--Unified Carrier Registration

Sec. 7131. Short title.
Sec. 7132. Relationship to other laws.
Sec. 7133. Inclusion of motor private and exempt carriers.
Sec. 7134. Unified carrier registration system.
Sec. 7135. Registration of motor carriers by States.
Sec. 7136. Identification of vehicles.
Sec. 7137. Use of UCR agreement revenues as matching funds.
Sec. 7138. Facilitation of international registration plans and 
              international fuel tax agreements.
Sec. 7139. Identity authentication standards.
Sec. 7140. Off-duty time for drivers of commercial vehicles.

                Chapter 3--Commercial Driver's Licenses

Sec. 7151. CDL task force.
Sec. 7152. CDL learner's permit program.
Sec. 7153. Grants to States for commercial driver's license 
              improvements.
Sec. 7154. Modernization of CDL information system.
Sec. 7155. School bus endorsement knowledge test requirement.

                Subtitle B--Highway and Vehicular Safety

Sec. 7201. Short title.

                Chapter 1--Highway Safety Grant Program

Sec. 7211. Short title.
Sec. 7212. Authorization of appropriations.
Sec. 7213. Highway safety programs.
Sec. 7214. Highway safety research and outreach programs.
Sec. 7215. National Highway Safety Advisory Committee technical 
              correction.
Sec. 7216. Occupant protection grants.
Sec. 7217. Older driver safety; law enforcement training.
Sec. 7218. Emergency medical services.
Sec. 7219. Repeal of authority for alcohol traffic safety programs.

[[Page 10558]]

Sec. 7220. Impaired driving program.
Sec. 7221. State traffic safety information system improvements.
Sec. 7222. NHTSA accountability.
Sec. 7223. Grants for improving child passenger safety programs.
Sec. 7224. Motorcyclist safety training and motorist awareness 
              programs.

           Chapter 2--Specific Vehicle Safety-related Rulings

Sec. 7251. Vehicle rollover prevention and crash mitigation.
Sec. 7252. Side-impact crash protection rulemaking.
Sec. 7253. Tire research.
Sec. 7254. Vehicle backover avoidance technology study.
Sec. 7255. Nontraffic incident data collection.
Sec. 7256. Safety belt use reminders.
Sec. 7257. Amendment of Automobile Information Disclosure Act.
Sec. 7258. Power window switches.
Sec. 7259. 15-passenger van safety.
Sec. 7260. Updated fuel economy labeling procedures.
Sec. 7261. Identification of certain alternative fueled vehicles.
Sec. 7262. Authorization of appropriations.

                    Subtitle C--Hazardous Materials

Sec. 7301. Short title.

Chapter 1--General Authorities on Transportation of Hazardous Materials

Sec. 7321. Purpose.
Sec. 7322. Definitions.
Sec. 7323. General regulatory authority.
Sec. 7324. Limitation on issuance of hazmat licenses.
Sec. 7325. Background checks for drivers hauling hazardous materials.
Sec. 7326. Representation and tampering.
Sec. 7327. Transporting certain material.
Sec. 7328. Hazmat employee training requirements and grants.
Sec. 7329. Registration.
Sec. 7330. Shipping papers and disclosure.
Sec. 7331. Rail tank cars.
Sec. 7332. Unsatisfactory safety ratings.
Sec. 7333. Training curriculum for the public sector.
Sec. 7334. Planning and training grants; emergency preparedness fund.
Sec. 7335. Special permits and exclusions.
Sec. 7336. Uniform forms and procedures.
Sec. 7337. Hazardous materials transportation safety and security.
Sec. 7338. Enforcement.
Sec. 7339. Civil penalties.
Sec. 7340. Criminal penalties.
Sec. 7341. Preemption.
Sec. 7342. Relationship to other laws.
Sec. 7343. Judicial review.
Sec. 7344. Authorization of appropriations.
Sec. 7345. Additional civil and criminal penalties.
Sec. 7346. Technical corrections.

                        Chapter 2--Other Matters

Sec. 7361. Administrative authority for Pipeline and Hazardous 
              Materials Safety Administration.
Sec. 7362. Mailability of hazardous materials.
Sec. 7363. Criminal matters.
Sec. 7364. Cargo inspection program.
Sec. 7365. Information on hazmat registrations.
Sec. 7366. Report on applying hazardous materials regulations to 
              persons who reject hazardous materials.
Sec. 7367. National first responder transportation incident response 
              system.
Sec. 7368. Hazardous material transportation plan requirement.
Sec. 7369. Welded rail and tank car safety improvements.
Sec. 7370. Hazardous materials cooperative research program.

                Chapter 3--Sanitary Food Transportation

Sec. 7381. Short title.
Sec. 7382. Responsibilities of the Secretary of Health and Human 
              Services.
Sec. 7383. Department of Transportation requirements.
Sec. 7384. Effective date.

                   Chapter 4--Household Goods Movers

Sec. 7401. Short title.
Sec. 7402. Definitions; application of provisions.
Sec. 7403. Payment of rates.
Sec. 7404. Household goods carrier operations.
Sec. 7405. Liability of carriers under receipts and bills of lading.
Sec. 7406. Arbitration requirements.
Sec. 7407. Enforcement of regulations related to transportation of 
              household goods.
Sec. 7408. Working group for development of practices and procedures to 
              enhance Federal-State relations.
Sec. 7409. Information about household goods transportation on 
              carriers' websites.
Sec. 7410. Consumer complaints.
Sec. 7411. Review of liability of carriers.
Sec. 7412. Civil penalties relating to household goods brokers.
Sec. 7413. Civil and criminal penalty for failing to give up possession 
              of household goods.
Sec. 7414. Progress report.
Sec. 7415. Additional registration requirements for motor carriers of 
              household goods.

        Subtitle E--Sportfishing and Recreational Boating Safety

Sec. 7501. Short title.

    Chapter 1--Federal Aid in Sport Fish Restoration Act Amendments

Sec. 7511. Amendment of Federal Aid in Sport Fish Restoration Act.
Sec. 7512. Authorization of appropriations.
Sec. 7513. Division of annual appropriations.
Sec. 7514. Maintenance of projects.
Sec. 7515. Boating infrastructure.
Sec. 7516. Requirements and restrictions concerning use of amounts for 
              expenses for administration.
Sec. 7517. Payments of funds to and cooperation with Puerto Rico, the 
              District of Columbia, Guam, American Samoa, the 
              Commonwealth of the Northern Mariana Islands, and the 
              Virgin Islands.
Sec. 7518. Multistate conservation grant program.
Sec. 7519. Expenditures from boat safety account.

                 Chapter 2--Clean Vessel Act Amendments

Sec. 7531. Grant program.

       Chapter 3--Recreational Boating Safety Program Amendments

Sec. 7551. State matching funds requirement.
Sec. 7552. Availability of allocations.
Sec. 7553. Authorization of appropriations for State recreational 
              boating safety programs.
Sec. 7554. Maintenance of effort for State recreational boating safety 
              programs.

                  Subtitle F--Miscellaneous Provisions

Sec. 7601. Office of intermodalism.
Sec. 7602. Capital grants for rail line relocation projects.
Sec. 7603. Rehabilitation and improvement financing.
Sec. 7604. Report regarding impact on public safety of train travel in 
              communities without grade separation.
Sec. 7605. First responder vehicle safety program.
Sec. 7606. Federal school bus driver qualifications.

     SEC. 2. GENERAL DEFINITIONS.

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

     SEC. 3. DEFINITIONS FOR TITLE 23.

       Section 101 of title 23, United States Code, is amended by 
     striking subsection (a) and inserting the following:
       ``(a) Definitions.--In this title:
       ``(1) Apportionment.--The term `apportionment' includes an 
     unexpended apportionment made under a law enacted before the 
     date of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005.
       ``(2) Carpool project.--
       ``(A) In general.--The term `carpool project' means any 
     project to encourage the use of carpools and vanpools.
       ``(B) Inclusions.--The term `carpool project' includes a 
     project--
       ``(i) to provide carpooling opportunities to the elderly 
     and individuals with disabilities;
       ``(ii) to develop and implement a system for locating 
     potential riders and informing the riders of carpool 
     opportunities;
       ``(iii) to acquire vehicles for carpool use;
       ``(iv) to designate highway lanes as preferential carpool 
     highway lanes;
       ``(v) to provide carpool-related traffic control devices; 
     and
       ``(vi) to designate facilities for use for preferential 
     parking for carpools.
       ``(3) Construction.--
       ``(A) In general.--The term `construction' means the 
     supervision, inspection, and actual building of, and 
     incurring of all costs incidental to the construction or 
     reconstruction of a highway, including bond costs and other 
     costs relating to the issuance in accordance with section 122 
     of bonds or other debt financing instruments and costs 
     incurred by the State in performing Federal-aid project 
     related audits that directly benefit the Federal-aid highway 
     program.
       ``(B) Inclusions.--The term `construction' includes--
       ``(i) locating, surveying, and mapping (including the 
     establishment of temporary and permanent geodetic markers in 
     accordance with specifications of the National Oceanic and 
     Atmospheric Administration);
       ``(ii) resurfacing, restoration, and rehabilitation;
       ``(iii) acquisition of rights-of-way;
       ``(iv) relocation assistance, acquisition of replacement 
     housing sites, and acquisition and rehabilitation, 
     relocation, and construction of replacement housing;
       ``(v) elimination of hazards of railway grade crossings;
       ``(vi) elimination of roadside obstacles;
       ``(vii) improvements that directly facilitate and control 
     traffic flow, such as--

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

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

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

       ``(ix) improvements directly relating to securing 
     transportation infrastructures for detection, preparedness, 
     response, and recovery;
       ``(x) operating costs relating to traffic monitoring, 
     management, and control;

[[Page 10559]]

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

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

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

[[Page 10560]]

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

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

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

                     TITLE I--FEDERAL-AID HIGHWAYS

                          Subtitle A--Funding

     SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.

       The following sums are authorized to be appropriated out of 
     the Highway Trust Fund (other than the Mass Transit Account):
       (1) Interstate maintenance program.--For the Interstate 
     maintenance program under section 119 of title 23, United 
     States Code--
       (A) $6,017,113,333 for fiscal year 2005;
       (B) $6,258,525,160 for fiscal year 2006;
       (C) $6,276,479,750 for fiscal year 2007;
       (D) $6,589,235,166 for fiscal year 2008; and
       (E) $6,685,150,152 for fiscal year 2009.
       (2) National highway system.--For the National Highway 
     System under section 103 of that title--
       (A) $7,316,858,660 for fiscal year 2005;
       (B) $7,606,591,948 for fiscal year 2006;
       (C) $7,628,384,160 for fiscal year 2007;
       (D) $8,007,988,062 for fiscal year 2008; and
       (E) $8,124,348,085 for fiscal year 2009.
       (3) Bridge program.--For the bridge program under section 
     144 of that title--
       (A) $5,171,723,801 for fiscal year 2005;
       (B) $5,365,009,649 for fiscal year 2006;
       (C) $5,349,259,875 for fiscal year 2007;
       (D) $5,647,754,080 for fiscal year 2008; and
       (E) $5,729,786,635 for fiscal year 2009.
       (4) Surface transportation program.--For the surface 
     transportation program under section 133 of that title--
       (A) $7,588,497,988 for fiscal year 2005;
       (B) $7,878,361,598 for fiscal year 2006;
       (C) $7,900,976,158 for fiscal year 2007;
       (D) $8,294,904,735 for fiscal year 2008; and
       (E) $8,415,808,100 for fiscal year 2009.
       (5) Congestion mitigation and air quality improvement 
     program.--For the congestion mitigation and air quality 
     improvement program under section 149 of that title--
       (A) $2,051,899,502 for fiscal year 2005;
       (B) $2,124,435,995 for fiscal year 2006;
       (C) $2,130,535,073 for fiscal year 2007;
       (D) $2,236,776,417 for fiscal year 2008; and
       (E) $2,269,463,235 for fiscal year 2009.
       (6) Highway safety improvement program.--For the highway 
     safety improvement program under section 148 of that title--
       (A) $1,253,007,425 for fiscal year 2005;
       (C) $1,291,977,089 for fiscal year 2006;
       (D) $1,305,007,731 for fiscal year 2007;
       (E) $1,369,468,771 for fiscal year 2008; and
       (F) $1,389,408,993 for fiscal year 2009.
       (7) Appalachian development highway system program.--For 
     the Appalachian development highway system program under 
     section 170 of that title, $552,048,803 for each of fiscal 
     years 2005 through 2009.
       (8) Recreational trails program.--For the recreational 
     trails program under section 206 of that title, $56,140,557 
     for each of fiscal years 2005 through 2009.
       (9) Federal lands highways program.--
       (A) Indian reservation roads.--For Indian reservation roads 
     under section 204 of that title--
       (i) $305,054,403 for fiscal year 2005;
       (ii) $328,520,126 for fiscal year 2006;
       (iii) $351,985,849 for fiscal year 2007;
       (iv) $375,451,572 for fiscal year 2008; and
       (v) $398,917,296 for fiscal year 2009.
       (B) Recreation roads.--For recreation roads under section 
     204 of that title, $46,931,447 for each of fiscal years 2005 
     through 2009.
       (C) Park roads and parkways.--
       (i) In general.--For park roads and parkways under section 
     204 of that title--

       (I) $320,000,000 for fiscal year 2005; and
       (II) $330,000,000 for each of fiscal years 2006 through 
     2009.

       (ii) Minimum allocation to certain states.--A State more 
     than 50 percent of the acreage of which is within the 
     National Park System shall receive not less than 3 percent of 
     any funds appropriated under this subparagraph, to be used 
     for park transportation projects.
       (iii) Modification of authorization.--Any amount authorized 
     to be appropriated under section 2001(a)(1)(A) to carry out 
     surface transportation research shall be reduced by--

       (I) for fiscal year 2005, $29,025,031; and
       (II) for each of fiscal years 2006 through 2009, 
     $29,638,742.

       (D) Refuge roads.--For refuge roads under section 204 of 
     that title, $29,158,868 for each of fiscal years 2005 through 
     2009.
       (E) Public lands highways.--For Federal lands highways 
     under section 204 of that title, $281,588,679 for each of 
     fiscal years 2005 through 2009.
       (F) Safety.--For safety under section 204 of that title, 
     $37,545,157 for each of fiscal years 2005 through 2009.
       (10) Multistate corridor program.--For the multistate 
     corridor program under section 171 of that title--
       (A) $124,987,840 for fiscal year 2005;
       (B) $145,819,146 for fiscal year 2006;
       (C) $166,650,453 for fiscal year 2007;
       (D) $187,481,760 for fiscal year 2008; and
       (E) $208,313,066 for fiscal year 2009.
       (11) Border planning, operations, and technology program.--
     For the border planning, operations, and technology program 
     under section 172 of that title--
       (A) $124,987,840 for fiscal year 2005;
       (B) $145,819,146 for fiscal year 2006;
       (C) $166,650,453 for fiscal year 2007;
       (D) $187,481,760 for fiscal year 2008; and
       (E) $208,313,066 for fiscal year 2009.
       (12) National scenic byways program.--For the national 
     scenic byways program under section 162 of that title--
       (A) $32,852,013 for fiscal year 2005;
       (B) $33,790,642 for fiscal year 2006;
       (C) $34,729,270 for fiscal year 2007; and

[[Page 10561]]

       (D) $36,606,528 for each of fiscal years 2008 and 2009.
       (13) Infrastructure performance and maintenance program.--
     For carrying out the infrastructure performance and 
     maintenance program under section 139 of that title $0 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, 
     $56,916,300 for each of fiscal years 2005 through 2009.
       (15) Commonwealth of puerto rico highway program.--For the 
     Commonwealth of Puerto Rico highway program under section 173 
     of that title--
       (A) $136,101,195 for fiscal year 2005;
       (B) $139,855,711 for fiscal year 2006;
       (C) $144,548,855 for fiscal year 2007;
       (D) $150,180,629 for fiscal year 2008; and
       (E) $152,996,516 for fiscal year 2009.
       (16) Public-private partnerships pilot program.--For the 
     public-private partnerships pilot program under section 
     109(c)(3) of that title, $8,386,289 for each of fiscal years 
     2005 through 2009.
       (17) Denali access system.--For the Denali Access System 
     under section 309 of the Denali Commission Act of 1998 (42 
     U.S.C. 3121 note; Public Law 105-277), $28,158,868 for each 
     of fiscal years 2005 through 2009.
       (18) Delta region transportation development program.--For 
     planning and construction activities authorized under the 
     Delta Regional Authority, $75,090,314 for each of fiscal 
     years 2005 through 2009.
       (19) Intermodal passenger facilities.--For intermodal 
     passenger facilities under subchapter III of chapter 55 of 
     title 49, United States Code, $9,386,289 for each of fiscal 
     years 2005 through 2009.

     SEC. 1102. OBLIGATION CEILING.

       (a) General Limitation.--Subject to subsections (g) and 
     (h), and notwithstanding any other provision of law, the 
     obligations for Federal-aid highway and highway safety 
     construction programs shall not exceed--
       (1) $34,263,000,000 for fiscal year 2005;
       (2) $38,924,000,000 for fiscal year 2006;
       (3) $39,352,000,000 for fiscal year 2007;
       (4) $41,304,000,000 for fiscal year 2008; and
       (5) $42,007,000,000 for fiscal year 2009.
       (b) Exceptions.--The limitations under subsection (a) shall 
     not apply to obligations under or for--
       (1) section 125 of title 23, United States Code;
       (2) section 147 of the Surface Transportation Assistance 
     Act of 1978 (23 U.S.C. 144 note; 92 Stat. 2714);
       (3) section 9 of the Federal-Aid Highway Act of 1981 
     (Public Law 97-134; 95 Stat. 1701);
       (4) subsections (b) and (j) of section 131 of the Surface 
     Transportation Assistance Act of 1982 (Public Law 97-424; 96 
     Stat. 2119);
       (5) subsections (b) and (c) of section 149 of the Surface 
     Transportation and Uniform Relocation Assistance Act of 1987 
     (Public Law 100-17; 101 Stat. 198);
       (6) sections 1103 through 1108 of the Intermodal Surface 
     Transportation Efficiency Act of 1991 (Public Law 102-240; 
     105 Stat. 2027);
       (7) section 157 of title 23, United States Code (as in 
     effect on June 8, 1998);
       (8) section 105 of title 23, United States Code (as in 
     effect for fiscal years 1998 through 2003, but only in an 
     amount equal to $639,000,000 for each of those fiscal years);
       (9) Federal-aid highway programs for which obligation 
     authority was made available under the Transportation Equity 
     Act for the 21st Century (Public Law 105-178; 112 Stat. 107) 
     or subsequent public laws for multiple years or to remain 
     available until used, but only to the extent that the 
     obligation authority has not lapsed or been used;
       (10) section 105 of title 23, United States Code (but, for 
     each of fiscal years 2005 through 2009, only in an amount 
     equal to $639,000,000 per fiscal year); and
       (11) section 1106 of this Act, to the extent that funds 
     obligated in accordance with that section were not subject to 
     a limitation on obligations at the time at which the funds 
     were initially made available for obligation.
       (c) Distribution of Obligation Authority.--For each of 
     fiscal years 2005 through 2009, the Secretary--
       (1) shall not distribute obligation authority provided by 
     subsection (a) for the fiscal year for--
       (A) amounts authorized for administrative expenses and 
     programs by section 104(a) of title 23, United States Code;
       (B) programs funded from the administrative takedown 
     authorized by section 104(a)(1) of title 23, United States 
     Code; and
       (C) amounts authorized for the highway use tax evasion 
     program and the Bureau of Transportation Statistics;
       (2) shall not distribute an amount of obligation authority 
     provided by subsection (a) that is equal to the unobligated 
     balance of amounts made available from the Highway Trust Fund 
     (other than the Mass Transit Account) for Federal-aid highway 
     and highway safety programs for previous fiscal years the 
     funds for which are allocated by the Secretary;
       (3) shall determine the ratio that--
       (A) the obligation authority provided by subsection (a) for 
     the fiscal year, less the aggregate of amounts not 
     distributed under paragraphs (1) and (2); bears to
       (B) the total of the sums authorized to be appropriated for 
     the Federal-aid highway and highway safety construction 
     programs (other than sums authorized to be appropriated for 
     provisions of law described in paragraphs (1) through (9) of 
     subsection (b) and sums authorized to be appropriated for 
     section 105 of title 23, United States Code, equal to the 
     amount referred to in subsection (b)(10) for the fiscal 
     year), less the aggregate of the amounts not distributed 
     under paragraphs (1) and (2);
       (4) shall distribute the obligation authority provided by 
     subsection (a) less the aggregate amounts not distributed 
     under paragraphs (1) and (2), for section 14501 of title 40, 
     United States Code, so that the amount of obligation 
     authority available for that section is equal to the amount 
     determined by multiplying--
       (A) the ratio determined under paragraph (3); by
       (B) the sums authorized to be appropriated for that section 
     for the fiscal year;
       (5) shall distribute among the States the obligation 
     authority provided by subsection (a), less the aggregate 
     amounts not distributed under paragraphs (1) and (2), for 
     each of the programs that are allocated by the Secretary 
     under this Act and title 23, United States Code (other than 
     to programs to which paragraph (1) applies), by multiplying--
       (A) the ratio determined under paragraph (3); by
       (B) the amounts authorized to be appropriated for each such 
     program for the fiscal year; and
       (6) shall distribute the obligation authority provided by 
     subsection (a), less the aggregate amounts not distributed 
     under paragraphs (1) and (2) and the amounts distributed 
     under paragraphs (4) and (5), for Federal-aid highway and 
     highway safety construction programs (other than the amounts 
     apportioned for the equity bonus program, but only to the 
     extent that the amounts apportioned for the equity bonus 
     program for the fiscal year are greater than $639,000,000, 
     and the Appalachian development highway system program) that 
     are apportioned by the Secretary under this Act and title 23, 
     United States Code, in the ratio that--
       (A) amounts authorized to be appropriated for the programs 
     that are apportioned to each State for the fiscal year; bear 
     to
       (B) the total of the amounts authorized to be appropriated 
     for the programs that are apportioned to all States for the 
     fiscal year.
       (d) Redistribution of Unused Obligation Authority.--
     Notwithstanding subsection (c), the Secretary shall, after 
     August 1 of each of fiscal years 2005 through 2009--
       (1) revise a distribution of the obligation authority made 
     available under subsection (c) if an amount distributed 
     cannot be obligated during that fiscal year; and
       (2) redistribute sufficient amounts to those States able to 
     obligate amounts in addition to those previously distributed 
     during that fiscal year, giving priority to those States 
     having large unobligated balances of funds apportioned under 
     sections 104 and 144 of title 23, United States Code.
       (e) Applicability of Obligation Limitations to 
     Transportation Research Programs.--
       (1) In general.--Except as provided in paragraph (2), 
     obligation limitations imposed by subsection (a) shall apply 
     to contract authority for transportation research programs 
     carried out under--
       (A) chapter 5 of title 23, United States Code; and
       (B) title II of this Act.
       (2) Exception.--Obligation authority made available under 
     paragraph (1) shall--
       (A) remain available for a period of 3 fiscal years; and
       (B) be in addition to the amount of any limitation imposed 
     on obligations for Federal-aid highway and highway safety 
     construction programs for future fiscal years.
       (f) Redistribution of Certain Authorized Funds.--
       (1) In general.--Not later than 30 days after the date of 
     distribution of obligation authority under subsection (c) for 
     each of fiscal years 2005 through 2009, the Secretary shall 
     distribute to the States any funds that--
       (A) are authorized to be appropriated for the fiscal year 
     for Federal-aid highway programs; and
       (B) the Secretary determines will not be allocated to the 
     States, and will not be available for obligation, in the 
     fiscal year due to the imposition of any obligation 
     limitation for the fiscal year.
       (2) Ratio.--Funds shall be distributed under paragraph (1) 
     in the same ratio as the distribution of obligation authority 
     under subsection (c)(6).
       (3) Availability.--Funds distributed under paragraph (1) 
     shall be available for any purpose described in section 
     133(b) of title 23, United States Code.
       (g) Special Rule.--Obligation authority distributed for a 
     fiscal year under subsection (c)(4) for the provision 
     specified in subsection (c)(4) shall--
       (1) remain available until used for obligation of funds for 
     that provision; and
       (2) be in addition to the amount of any limitation imposed 
     on obligations for Federal-aid highway and highway safety 
     construction programs for future fiscal years.
       (h) Adjustment in Obligation Limit.--
       (1) In general.--A limitation on obligations imposed by 
     subsection (a) for a fiscal year shall be adjusted by an 
     amount equal to the amount determined in accordance with 
     section 251(b)(1)(B) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (2 U.S.C. 901(b)(1)(B)) for the 
     fiscal year.
       (2) Distribution.--An adjustment under paragraph (1) shall 
     be distributed in accordance with this section.

[[Page 10562]]

       (i) Limitations on Obligations for Administrative 
     Expenses.--Notwithstanding any other provision of law, the 
     total amount of all obligations under section 104(a) of title 
     23, United States Code, shall not exceed--
       (1) $436,462,453 for fiscal year 2005;
       (2) $450,541,887 for fiscal year 2006;
       (3) $464,621,321 for fiscal year 2007;
       (4) $478,700,755 for fiscal year 2008; and
       (5) $492,780,189 for fiscal year 2009.
       (j) National Highway System Component.--Section 104(b)(1) 
     of title 23, United States Code, is amended by striking 
     ``$36,400,000'' and insert ``$46,931,447''.

     SEC. 1103. APPORTIONMENTS.

       (a) Administrative Expenses.--
       (1) In general.--Section 104 of title 23, United States 
     Code, is amended by striking subsection (a) and inserting the 
     following:
       ``(a) Administrative Expenses.--
       ``(1) In general.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to be made available to the Secretary of 
     Transportation for administrative expenses of the Federal 
     Highway Administration--
       ``(A) $436,462,453 for fiscal year 2005;
       ``(B) $450,541,887 for fiscal year 2006;
       ``(C) $464,621,321 for fiscal year 2007;
       ``(D) $478,700,755 for fiscal year 2008; and
       ``(E) $492,780,189 for fiscal year 2009.
       ``(2) Purposes.--The funds authorized by this subsection 
     shall be used--
       ``(A) to administer the provisions of law to be financed 
     from appropriations for the Federal-aid highway program and 
     programs authorized under chapter 2; and
       ``(B) to make transfers of such sums as the Secretary 
     determines to be appropriate to the Appalachian Regional 
     Commission for administrative activities associated with the 
     Appalachian development highway system.
       ``(3) Availability.--The funds made available under 
     paragraph (1) shall remain available until expended.''.
       (2) Conforming amendments.--Section 104 of title 23, United 
     States Code, is amended--
       (A) in the matter preceding paragraph (1) of subsection 
     (b), by striking ``the deduction authorized by subsection (a) 
     and'';
       (B) in the first sentence of subsection (e)(1), by striking 
     ``, and also'' and all that follows through ``this section''; 
     and
       (C) in subsection (i), by striking ``deducted'' and 
     inserting ``made available''.
       (b) Metropolitan Planning.--Section 104(f) of title 23, 
     United States Code, is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) Set-aside.--On October 1 of each fiscal year, the 
     Secretary shall set aside 1.5 percent of the funds authorized 
     to be appropriated for the Interstate maintenance, national 
     highway system, surface transportation, congestion mitigation 
     and air quality improvement, highway safety improvement, and 
     highway bridge programs authorized under this title to carry 
     out the requirements of section 134.'';
       (2) in paragraph (2), by striking ``per centum'' and 
     inserting ``percent'';
       (3) in paragraph (3)--
       (A) by striking ``The funds'' and inserting the following:
       ``(A) In general.--The funds''; and
       (B) by striking ``These funds'' and all that follows and 
     inserting the following:
       ``(B) Unused funds.--Any funds that are not used to carry 
     out section 134 may be made available by a metropolitan 
     planning organization to the State to fund activities under 
     section 135.''; and
       (4) by adding at the end the following:
       ``(6) Federal share.--Funds apportioned to a State under 
     this subsection shall be matched in accordance with section 
     120(b) unless the Secretary determines that the interests of 
     the Federal-aid highway program would be best served without 
     the match.''.
       (c) Alaska Highway.--Section 104(b)(1)(A) of title 23, 
     United States Code, is amended by striking ``$18,800,000 for 
     each of fiscal years 1998 through 2002'' and inserting 
     ``$30,000,000 for each of fiscal years 2005 through 2009''.

     SEC. 1104. EQUITY BONUS PROGRAM.

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

     ``Sec. 105. Equity bonus program

       ``(a) Program.--
       ``(1) In general.--Subject to subsections (c) and (d), for 
     each of fiscal years 2005 through 2009, the Secretary shall 
     allocate among the States amounts sufficient to ensure that 
     no State receives a percentage of the total apportionments 
     for the fiscal year for the programs specified in paragraph 
     (2) that is less than the percentage calculated under 
     subsection (b).
       ``(2) Specific programs.--The programs referred to in 
     subsection (a) are--
       ``(A) the Interstate maintenance program under section 119;
       ``(B) the national highway system program under section 
     103;
       ``(C) the bridge program under section 144;
       ``(D) the surface transportation program under section 133;
       ``(E) the highway safety improvement program under section 
     148;
       ``(F) the congestion mitigation and air quality improvement 
     program under section 149;
       ``(G) metropolitan planning programs under section 104(f) 
     (other than planning programs funded by amounts provided 
     under the equity bonus program under this section);
       ``(H) the infrastructure performance and maintenance 
     program under section 139;
       ``(I) the equity bonus program under this section;
       ``(J) the Appalachian development highway system program 
     under subtitle IV of title 40;
       ``(K) the recreational trails program under section 206;
       ``(L) the safe routes to schools program under section 150;
       ``(M) the rail-highway grade crossing program under section 
     130; and
       ``(N) the border planning, operations, technology, and 
     capacity program under section 172.
       ``(b) State Percentage.--
       ``(1) In general.--The percentage referred to in subsection 
     (a) for each State shall be--
       ``(A) 92 percent of the quotient obtained by dividing--
       ``(i) the estimated tax payments attributable to highway 
     users in the State paid into the Highway Trust Fund (other 
     than the Mass Transit Account) in the most recent fiscal year 
     for which data are available; by
       ``(ii) the estimated tax payments attributable to highway 
     users in all States paid into the Highway Trust Fund (other 
     than the Mass Transit Account) for the fiscal year; or
       ``(B) for a State with a total population density of less 
     than 20 persons per square mile, as reported in the decennial 
     census conducted by the Federal Government in 2000, a total 
     population of less than 1,000,000, as reported in that 
     decennial census, a median household income of less than 
     $35,000, as reported in that decennial census, or a State 
     with a fatality rate during 2002 on Interstate highways that 
     is greater than 1 fatality for each 100,000,000 vehicle miles 
     traveled on Interstate highways, the greater of--
       ``(i) the percentage under paragraph (1); or
       ``(ii) the average percentage of the State's share of total 
     apportionments for the period of fiscal years 1998 through 
     2003 for the programs specified in paragraph (2).
       ``(2) Specific programs.--The programs referred to in 
     paragraph (1)(B)(ii) are (as in effect on the day before the 
     date of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005)--
       ``(A) the Interstate maintenance program under section 119;
       ``(B) the national highway system program under section 
     103;
       ``(C) the bridge program under section 144;
       ``(D) the surface transportation program under section 133;
       ``(E) the recreational trails program under section 206;
       ``(F) the high priority projects program under section 117;
       ``(G) the minimum guarantee provided under this section;
       ``(H) revenue aligned budget authority amounts provided 
     under section 110;
       ``(I) the congestion mitigation and air quality improvement 
     program under section 149;
       ``(J) the Appalachian development highway system program 
     under subtitle IV of title 40; and
       ``(K) metropolitan planning programs under section 104(f).
       ``(c) Special Rules.--
       ``(1) Minimum combined allocation.--For each fiscal year, 
     before making the allocations under subsection (a)(1), the 
     Secretary shall allocate among the States amounts sufficient 
     to ensure that no State receives a combined total of amounts 
     allocated under subsection (a)(1), apportionments for the 
     programs specified in subsection (a)(2), and amounts 
     allocated under this subsection, that is less than 115 
     percent of the average for fiscal years 1998 through 2003 of 
     the annual apportionments for the State for all programs 
     specified in subsection (b)(2).
       ``(2) No negative adjustment.--Notwithstanding subsection 
     (d), no negative adjustment shall be made under subsection 
     (a)(1) to the apportionment of any State.
       ``(3) Minimum share of tax payments.--
       ``(A) In general.--Notwithstanding subsection (d), for each 
     fiscal year, the Secretary shall allocate among the States 
     amounts sufficient to ensure that no State receives a 
     percentage of apportionments for the fiscal year for the 
     programs specified in subsection (a)(2) that is less than the 
     percentage specified in subparagraph (B) of the percentage 
     share of the State of estimated tax payments attributable to 
     highway users in the State paid into the Highway Trust Fund 
     (other than the Mass Transit Account) in the most recent 
     fiscal year for which data are available.
       ``(B) Percentages.--The percentages referred to in 
     subparagraph (A) are--
       ``(i) for fiscal year 2005, 90.5 percent;
       ``(ii) for each of fiscal years 2006 through 2008, 91 
     percent; and
       ``(iii) for fiscal year 2009, 92 percent.
       ``(d) Limitation on Adjustments.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3) of subsection (c), no State shall receive, for any fiscal 
     year, additional amounts under subsection (a)(1) if--
       ``(A) the total apportionments of the State for the fiscal 
     year for the programs specified in subsection (a)(2); exceed
       ``(B) the percentage of the average, for the period of 
     fiscal years 1998 through 2003, of the annual apportionments 
     of the State for all programs specified in subsection (b)(2), 
     as specified in paragraph (2).
       ``(2) Percentages.--The percentages referred to in 
     paragraph (1)(B) are--
       ``(A) for fiscal year 2005, 124 percent;
       ``(B) for fiscal year 2006, 128 percent;
       ``(C) for fiscal year 2007, 131 percent;
       ``(D) for fiscal year 2008, 137 percent; and
       ``(E) for fiscal year 2009, 250 percent.
       ``(e) Programmatic Distribution of Funds.--The Secretary 
     shall apportion the

[[Page 10563]]

     amounts made available under this section so that the amount 
     apportioned to each State under this section for each program 
     referred to in subparagraphs (A) through (G) of subsection 
     (a)(2) is equal to the amount determined by multiplying the 
     amount to be apportioned under this section by the proportion 
     that--
       ``(1) the amount of funds apportioned to each State for 
     each program referred to in subparagraphs (A) through (G) of 
     subsection (a)(2) for a fiscal year; bears to
       ``(2) the total amount of funds apportioned to each State 
     for all such programs for the fiscal year.
       ``(f) Metro Planning Set Aside.--Notwithstanding section 
     104(f), no set aside provided for under that section shall 
     apply to funds allocated under this section.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated from the Highway Trust Fund 
     (other than the Mass Transit Account) such sums as are 
     necessary to carry out this section for each of fiscal years 
     2005 through 2009.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code, is amended by 
     striking the item relating to section 105 and inserting the 
     following:

``105. Equity bonus program.''

     SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY.

       Section 110 of title 23, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraphs (1) and (2), by striking ``2000'' and 
     inserting ``2006'';
       (B) in paragraph (1), by inserting ``(as in effect on 
     September 30, 2002)'' after ``(2 U.S.C. 
     901(b)(2)(B)(ii)(I)(cc))''; and
       (C) in paragraph (2)--
       (i) by striking ``If the amount'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     if the amount'';
       (ii) by inserting ``(as in effect on September 30, 2002)'' 
     after ``(2 U.S.C. 901(b)(1)(B)(ii)(I)(cc)'';
       (iii) by striking ``the succeeding'' and inserting 
     ``that'';
       (iv) by striking ``and the motor carrier safety grant 
     program''; and
       (v) by adding at the end the following:
       ``(B) Limitation.--No reduction under subparagraph (A) 
     shall be made for a fiscal year if, as of October 1 of the 
     fiscal year, the cash balance in the Highway Trust Fund 
     (other than the Mass Transit Account) exceeds 
     $6,000,000,000.'';
       (2) in subsection (b)(1), by striking subparagraph (A) and 
     inserting the following:
       ``(A) the sums authorized to be appropriated from the 
     Highway Trust Fund (other than the Mass Transit Account) for 
     each of the Federal-aid highway and highway safety 
     construction programs (other than the equity bonus program) 
     and for which funds are allocated from the Highway Trust Fund 
     by the Secretary under this title and the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2005; 
     bears to'';
       (3) in subsection (c), by inserting ``the highway safety 
     improvement program,'' after ``the surface transportation 
     program,''; and
       (4) by striking subsections (e), (f), and (g).

     SEC. 1106. USE OF EXCESS FUNDS AND FUNDS FOR INACTIVE 
                   PROJECTS.

       (a) Definitions.--In this section:
       (1) Eligible funds.--
       (A) In general.--The term ``eligible funds'' means excess 
     funds or inactive funds for a specific transportation project 
     or activity that were--
       (i) allocated before fiscal year 1998; and
       (ii) designated in a public law, or a report accompanying a 
     public law, for allocation for the specific surface 
     transportation project or activity.
       (B) Inclusion.--The term ``eligible funds'' includes funds 
     described in subparagraph (A) that were allocated and 
     designated for a demonstration project.
       (2) Excess funds.--The term ``excess funds'' means--
       (A) funds obligated for a specific transportation project 
     or activity that remain available for the project or activity 
     after the project or activity has been completed or canceled; 
     or
       (B) an unobligated balance of funds allocated for a 
     transportation project or activity that the State in which 
     the project or activity was to be carried out certifies are 
     no longer needed for the project or activity.
       (3) Inactive funds.--The term ``inactive funds'' means--
       (A) an obligated balance of Federal funds for an eligible 
     transportation project or activity against which no 
     expenditures have been charged during any 1-year period 
     beginning after the date of obligation of the funds; and
       (B) funds that are available to carry out a transportation 
     project or activity in a State, but, as certified by the 
     State, are unlikely to be advanced for the project or 
     activity during the 1-year period beginning on the date of 
     certification.
       (b) Availability for STP Purposes.--Eligible funds shall 
     be--
       (1) made available in accordance with this section to the 
     State that originally received the funds; and
       (2) available for obligation for any eligible purpose under 
     section 133 of title 23, United States Code.
       (c) Retention for Original Purpose.--
       (1) In general.--The Secretary may determine that eligible 
     funds identified as inactive funds shall remain available for 
     the purpose for which the funds were initially made available 
     if the applicable State certifies that the funds are 
     necessary for that initial purpose.
       (2) Report.--A certification provided by a State under 
     paragraph (1) shall include a report on the status of, and an 
     estimated completion date for, the project that is the 
     subject of the certification.
       (d) Authority to Obligate.--Notwithstanding the original 
     source or period of availability of eligible funds, the 
     Secretary may, on the request by a State--
       (1) obligate the funds for any eligible purpose under 
     section 133 of title 23, United States Code; or
       (2)(A) deobligate the funds; and
       (B) reobligate the funds for any eligible purpose under 
     that section.
       (e) Applicability.--
       (1) In general.--Subject to paragraph (2), this section 
     applies only to eligible funds.
       (2) Discretionary allocations; section 125 projects.--This 
     section does not apply to funds that are--
       (A) allocated at the discretion of the Secretary and for 
     which the Secretary has the authority to withdraw the 
     allocation for use on other projects; or
       (B) made available to carry out projects under section 125 
     of title 23, United States Code.
       (f) Period of Availability; Title  23 Requirements.--
       (1) In general.--Notwithstanding the original source or 
     period of availability of eligible funds obligated, or 
     deobligated and reobligated, under subsection (d), the 
     eligible funds--
       (A) shall remain available for obligation for a period of 3 
     fiscal years after the fiscal year in which this Act is 
     enacted; and
       (B) except as provided in paragraph (2), shall be subject 
     to the requirements of title 23, United States Code, that 
     apply to section 133 of that title, including provisions 
     relating to cost-sharing.
       (2) Exception.--With respect to eligible funds described in 
     paragraph (1)--
       (A) section 133(d) of title 23, United States Code, shall 
     not apply; and
       (B) the period of availability of the eligible funds shall 
     be determined in accordance with this section.
       (g) Sense of Congress Regarding Use of Eligible Funds.--It 
     is the sense of Congress that eligible funds made available 
     under this Act or title 23, United States Code, should be 
     available for obligation for transportation projects and 
     activities in the same geographic region for which the 
     eligible funds were initially made available.

                        Subtitle B--New Programs

     SEC. 1201. INFRASTRUCTURE PERFORMANCE AND MAINTENANCE 
                   PROGRAM.

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

     ``Sec. 139. Infrastructure performance and maintenance 
       program

       ``(a) Establishment.--The Secretary shall establish and 
     implement an infrastructure performance and maintenance 
     program in accordance with this section.
       ``(b) Eligible Projects.--A State may obligate funds 
     allocated to the State under this section only for projects 
     eligible under the Interstate maintenance program under 
     section 119, the National Highway System program under 
     section 103, the surface transportation program under section 
     133, the highway safety improvement program under section 
     148, the highway bridge program under section 144, and the 
     congestion mitigation and air quality improvement program 
     under section 149 that will--
       ``(1) preserve, maintain, or otherwise extend, in a cost-
     effective manner, the useful life of existing highway 
     infrastructure elements and hurricane evacuation routes on 
     the Federal-aid system; or
       ``(2) provide operational improvements (including traffic 
     management and intelligent transportation system strategies 
     and limited capacity enhancements) at points of recurring 
     highway congestion or through transportation systemic changes 
     to manage or ameliorate congestion.
       ``(c) Period of Availability.--
       ``(1) Obligation within 180 days.--
       ``(A) In general.--Funds allocated to a State under this 
     section shall be obligated by the State not later than 180 
     days after the date of apportionment.
       ``(B) Unobligated funds.--Any amounts that remain 
     unobligated at the end of that period shall be allocated in 
     accordance with subsection (d).
       ``(2) Obligation by end of fiscal year.--
       ``(A) In general.--All funds allocated or reallocated under 
     this section shall remain available for obligation until the 
     last day of the fiscal year for which the funds are 
     apportioned.
       ``(B) Unobligated funds.--Any amounts allocated that remain 
     unobligated at the end of the fiscal year shall lapse.
       ``(d) Redistribution of Allocated Funds and Obligation 
     Authority.--
       ``(1) In general.--On the date that is 180 days after the 
     date of allocation, or as soon thereafter as practicable, for 
     each fiscal year, the Secretary shall--
       ``(A) withdraw--
       ``(i) any funds allocated to a State under this section 
     that remain unobligated; and
       ``(ii) an equal amount of obligation authority provided for 
     the use of the funds in accordance with section 1101(13) of 
     the Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2005; and

[[Page 10564]]

       ``(B) reallocate the funds and redistribute the obligation 
     authority to those States that--
       ``(i) have fully obligated all amounts allocated under this 
     section for the fiscal year; and
       ``(ii) demonstrate that the State is able to obligate 
     additional amounts for projects eligible under this section 
     before the end of the fiscal year.
       ``(2) Equity bonus.--The calculation and distribution of 
     funds under section 105 shall be adjusted as a result of the 
     allocation of funds under this subsection.
       ``(e) Federal Share Payable.--The Federal share payable for 
     a project funded under this section shall be determined in 
     accordance with section 120.''.
       (b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by adding after the 
     item relating to section 138 the following:

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

     SEC. 1202. FUTURE OF SURFACE TRANSPORTATION SYSTEM.

       (a) Declaration of Policy.--Section 101 of title 23, United 
     States Code, is amended--
       (1) by striking ``(b) It is hereby declared to be'' and 
     inserting the following:
       ``(b) Declaration of Policy.--
       ``(1) Acceleration of construction of federal-aid highway 
     systems.--Congress declares that it is'';
       (2) in the second paragraph, by striking ``It is hereby 
     declared'' and inserting the following:
       ``(2) Completion of interstate system.--Congress 
     declares''; and
       (3) by striking the last paragraph and inserting the 
     following:
       ``(3) Transportation needs of 21st century.--Congress 
     declares that--
       ``(A) it is in the national interest to preserve and 
     enhance the surface transportation system to meet the needs 
     of the United States for the 21st Century;
       ``(B) the current urban and long distance personal travel 
     and freight movement demands have surpassed the original 
     forecasts and travel demand patterns are expected to change;
       ``(C) continued planning for and investment in surface 
     transportation is critical to ensure the surface 
     transportation system adequately meets the changing travel 
     demands of the future;
       ``(D) among the foremost needs that the surface 
     transportation system must meet to provide for a strong and 
     vigorous national economy are safe, efficient, and reliable--
       ``(i) national and interregional personal mobility 
     (including personal mobility in rural and urban areas) and 
     reduced congestion;
       ``(ii) flow of interstate and international commerce and 
     freight transportation; and
       ``(iii) travel movements essential for national security;
       ``(E) special emphasis should be devoted to providing safe 
     and efficient access for the type and size of commercial and 
     military vehicles that access designated National Highway 
     System intermodal freight terminals;
       ``(F) it is in the national interest to seek ways to 
     eliminate barriers to transportation investment created by 
     the current modal structure of transportation financing;
       ``(G) the connection between land use and infrastructure is 
     significant;
       ``(H) transportation should play a significant role in 
     promoting economic growth, improving the environment, and 
     sustaining the quality of life; and
       ``(I) the Secretary should take appropriate actions to 
     preserve and enhance the Interstate System to meet the needs 
     of the 21st Century.''.
       (b) National Surface Transportation Policy Study 
     Commission.--
       (1) Establishment.--There is established a commission to be 
     known as the ``National Surface Transportation Policy Study 
     Commission'' (referred to in this subsection as the 
     ``Commission'').
       (2) Membership.--
       (A) Composition.--The Commission shall be composed of 12 
     members, of whom--
       (i) 1 member shall be the Secretary, who shall serve as 
     Chairperson;
       (ii) 3 members shall be appointed by the President;
       (iii) 2 members shall be appointed by the Speaker of the 
     House of Representatives;
       (iv) 2 members shall be appointed by the minority leader of 
     the House of Representatives;
       (v) 2 members shall be appointed by the majority leader of 
     the Senate; and
       (vi) 2 members shall be appointed by the minority leader of 
     the Senate.
       (B) Qualifications.--Members appointed under paragraph 
     (1)--
       (i) shall include individuals representing State and local 
     governments, metropolitan planning organizations, 
     transportation-related industries, academic and technical 
     institutions, and public interest organizations involved with 
     scientific, regulatory, economic, and environmental 
     transportation activities; and
       (ii) shall be balanced geographically to the extent 
     consistent with maintaining the highest level of expertise on 
     the Commission.
       (C) Date of appointments.--The appointment of a member of 
     the Commission shall be made not later than 120 days after 
     the date of establishment of the Commission.
       (D) Terms.--A member shall be appointed for the life of the 
     Commission.
       (E) Vacancies.--A vacancy on the Commission--
       (i) shall not affect the powers of the Commission; and
       (ii) shall be filled in the same manner as the original 
     appointment was made.
       (F) Initial meeting.--Not later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold the initial meeting of the 
     Commission.
       (G) Meetings.--The Commission shall meet at the call of the 
     Chairperson.
       (H) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (I) Vice chairperson.--The Commission shall select a Vice 
     Chairperson from among the members of the Commission.
       (3) Duties.--
       (A) In general.--The Commission shall--
       (i) conduct a complete and comprehensive investigation and 
     study of--

       (I) the current condition and future needs of the surface 
     transportation system; and
       (II) a comprehensive study of alternatives to replace or to 
     supplement the fuel tax as the principal revenue source to 
     support the Highway Trust Fund and suggest new or alternative 
     sources of revenue to fund the needs of the surface 
     transportation system over at least the next 30 years;

       (B) develop a conceptual plan, with alternative approaches, 
     for the future to ensure that the surface transportation 
     system will continue to serve the needs of the United States, 
     including specific recommendations regarding design and 
     operational standards, Federal policies, and legislative 
     changes;
       (C) consult with the Secretary and the Secretary of the 
     Treasury in conducting the study to ensure that the views of 
     the Secretaries concerning essential attributes of Highway 
     Trust Fund revenue alternatives are considered;
       (D) consult with representatives of State departments of 
     transportation and metropolitan planning organizations and 
     other key interested stakeholders in conducting the study to 
     ensure that--
       (i) the views of the stakeholders on alternative revenue 
     sources to support State transportation improvement programs 
     are considered; and
       (ii) any recommended Federal financing strategy takes into 
     account State financial requirements; and
       (E) based on the study, make specific recommendations 
     regarding--
       (i) actions that should be taken to develop alternative 
     revenue sources to sup port the Highway Trust Fund; and
       (ii) the time frame for taking those actions.
       (4) Related work.--To the maximum extent practicable, the 
     study shall build on related work that has been completed 
     by--
       (A) the Secretary of Transportation;
       (B) the Secretary of Energy;
       (C) the Transportation Research Board, including the 
     findings, conclusions, and recommendations of the recent 
     study conducted by the Transportation Research Board on 
     alternatives to the fuel tax to support highway program 
     financing; and
       (D) other entities and persons.
       (5) Surface transportation needs.--With respect to surface 
     transportation needs, the investigation and study shall 
     specifically address--
       (A) the current condition and performance of the Interstate 
     System (including the physical condition of bridges and 
     pavements and operational characteristics and performance), 
     relying primarily on existing data sources;
       (B) the future of the Interstate System, based on a range 
     of legislative and policy approaches for 15-, 30-, and 50-
     year time periods;
       (C) the expected demographics and business uses that impact 
     the surface transportation system;
       (D) the expected use of the surface transportation system, 
     including the effects of changing vehicle types, modes of 
     transportation, fleet size and weights, and traffic volumes;
       (E) desirable design policies and standards for future 
     improvements of the surface transportation system, including 
     additional access points;
       (F) the identification of urban, rural, national, and 
     interregional needs for the surface transportation system;
       (G) the potential for expansion, upgrades, or other changes 
     to the surface transportation system, including--
       (i) deployment of advanced materials and intelligent 
     technologies;
       (ii) critical multistate, urban, and rural corridors 
     needing capacity, safety, and operational enhancements;
       (iii) improvements to intermodal linkages;
       (iv) security and military deployment enhancements;
       (v) strategies to enhance asset preservation; and
       (vi) implementation strategies;
       (H) the improvement of emergency preparedness and 
     evacuation using the surface transportation system, 
     including--
       (i) examination of the potential use of all modes of the 
     surface transportation system in the safe and efficient 
     evacuation of citizens during times of emergency;
       (ii) identification of the location of critical 
     bottlenecks; and
       (iii) development of strategies to improve system 
     redundancy, especially in areas with a high potential for 
     terrorist attacks;
       (I) alternatives for addressing environmental concerns 
     associated with the future development of the surface 
     transportation system;
       (J) the evaluation and assessment of the current and future 
     capabilities for conducting system-wide real-time performance 
     data collection

[[Page 10565]]

     and analysis, traffic monitoring, and transportation systems 
     operations and management; and
       (K) a range of policy and legislative alternatives for 
     addressing future needs for the surface transportation 
     system.
       (6) Financing.--With respect to financing, the study shall 
     address specifically--
       (A) the advantages and disadvantages of alternative revenue 
     sources to meet anticipated Federal surface transportation 
     financial requirements;
       (B) recommendations concerning the most promising revenue 
     sources to support long-term Federal surface transportation 
     financing requirements;
       (C) development of a broad transition strategy to move from 
     the current tax base to new funding mechanisms, including the 
     time frame for various components of the transition strategy;
       (D) recommendations for additional research that may be 
     needed to implement recommended alternatives; and
       (E) the extent to which revenues should reflect the 
     relative use of the highway system.
       (7) Financing recommendations.--In developing financing 
     recommendations under this subsection, the Commission shall 
     consider--
       (A) the ability to generate sufficient revenues from all 
     modes to meet anticipated long-term surface transportation 
     financing needs;
       (B) the roles of the various levels of government and the 
     private sector in meeting future surface transportation 
     financing needs;
       (C) administrative costs (including enforcement costs) to 
     implement each option;
       (D) the expected increase in nontaxed fuels and the impact 
     of taxing those fuels;
       (E) the likely technological advances that could ease 
     implementation of each option;
       (F) the equity and economic efficiency of each option;
       (G) the flexibility of different options to allow various 
     pricing alternatives to be implemented; and
       (H) potential compatibility issues with State and local tax 
     mechanisms under each alternative.
       (8) Technical advisory committee.--The Secretary shall 
     establish a technical advisory committee, in a manner 
     consistent with the Federal Advisory Committee Act (5 U.S.C. 
     App.), to collect and evaluate technical input from--
       (A) the Department of Defense;
       (B) appropriate Federal, State, and local officials with 
     responsibility for transportation;
       (C) appropriate State and local elected officials;
       (D) transportation and trade associations;
       (E) emergency management officials;
       (F) freight providers;
       (G) the general public; and
       (H) other entities and persons determined to be appropriate 
     by the Secretary to ensure a diverse range of views.
       (9) Report and recommendations.--Not later than September 
     30, 2007, the Commission shall submit to Congress a final 
     report that contains--
       (A) a detailed statement of the findings and conclusions of 
     the Commission; and
       (B) the recommendations of the Commission for such 
     legislation and administrative actions as the Commission 
     considers to be appropriate.
       (10) Powers of the commission.--
       (A) Hearings.--The Commission may hold such hearings, meet 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out this section.
       (B) Information from federal agencies.--
       (i) In general.--The Commission may secure directly from a 
     Federal agency such information as the Commission considers 
     necessary to carry out this section.
       (ii) Provision of information.--On request of the 
     Chairperson of the Commission, the head of a Federal agency 
     shall provide the requested information to the Commission.
       (C) Postal services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other agencies of the Federal Government.
       (D) Donations.--The Commission may accept, use, and dispose 
     of donations of services or property.
       (11) Commission personnel matters.--
       (A) Members.--A member of the Commission shall serve 
     without pay but shall be allowed travel expenses, including 
     per diem in lieu of subsistence, at rates authorized for an 
     employee of an agency under subchapter I of chapter 57 of 
     title 5, United States Code, while away from the home or 
     regular place of business of the member in the performance of 
     the duties of the Commission.
       (B) Contractors.--The Commission may enter into contracts 
     with an appropriate organizations, agencies, and entities to 
     conduct the study required under this section, under the 
     strategic guidance of the Commission.
       (C) Administrative support.--On the request of the 
     Commission, the Administrator of the Federal Highway 
     Administration shall provide to the Commission, on a 
     reimbursable basis, the administrative support and services 
     necessary for the Commission to carry out the duties of the 
     Commission under this section.
       (D) Detail of personnel.--
       (i) In general.--On the request of the Commission, the 
     Secretary may detail, on a reimbursable basis, any of the 
     personnel of the Department to the Commission to assist the 
     Commission in carrying out the duties of the Commission under 
     this section.
       (ii) Civil service status.--The detail of the employee 
     shall be without interruption or loss of civil service status 
     or privilege.
       (12) Cooperation.--The staff of the Secretary shall 
     cooperate with the Commission in the study required under 
     this section, including providing such nonconfidential data 
     and information as are necessary to conduct the study.
       (13) Relationship to other law.--
       (A) In general.--Except as provided in subparagraphs (B) 
     and (C), funds made available to carry out this section shall 
     be available for obligation in the same manner as if the 
     funds were apportioned under chapter 1 of title 23, United 
     States Code.
       (B) Federal share.--The Federal share of the cost of the 
     study and the Commission under this section shall be 100 
     percent.
       (C) Availability.--Funds made available to carry out this 
     section shall remain available until expended.
       (14) Definition of surface transportation system.--In this 
     subsection, the term ``surface transportation system'' 
     includes--
       (A) the National Highway System;
       (B) the Interstate System;
       (C) the strategic highway network;
       (D) congressional high priority corridors;
       (E) intermodal connectors;
       (F) freight facilities;
       (G) navigable waterways;
       (H) mass transportation;
       (I) freight and intercity passenger rail infrastructure and 
     facilities; and
       (J) surface access to airports.
       (15) Authorization of appropriations.--There is authorized 
     to be appropriated from the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out this section 
     $2,815,886 for fiscal year 2005.
       (16) Termination.--
       (A) In general.--The Commission shall terminate on the date 
     that is 180 days after the date on which the Commission 
     submits the report of the Commission under paragraph (10).
       (B) Records.--Not later than the date of termination of the 
     Commission under subparagraph (A), all records and papers of 
     the Commission shall be delivered to the Archivist of the 
     United States for deposit in the National Archives.

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

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

     ``Sec. 325. Freight transportation gateways

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

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

       ``(ii) promote programs that build professional capacity to 
     better plan, coordinate, integrate, and understand freight 
     transportation needs for the State.
       ``(c) Innovative Finance Strategies.--
       ``(1) In general.--States and localities are encouraged to 
     adopt innovative financing strategies for freight 
     transportation gateway improvements, including--
       ``(A) new user fees;
       ``(B) modifications to existing user fees, including trade 
     facilitation charges;
       ``(C) revenue options that incorporate private sector 
     investment; and
       ``(D) a blending of Federal-aid and innovative finance 
     programs.

[[Page 10566]]

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

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

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

``325. Freight transportation gateways.''.

     SEC. 1204. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL 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.
       ``(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.
       ``(b) Non-Contract Authority Authorization of 
     Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) $46,931,447 for each fiscal year to carry out this 
     section.
       ``(2) Availability.--Notwithstanding section 118(a), funds 
     made available under paragraph (1) shall not 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.

     SEC. 1205. DESIGNATION OF INTERSTATE HIGHWAYS.

       (a) Designation of Daniel Patrick Moynihan Interstate 
     Highway.--
       (1) Designation.--Interstate Route 86 in the State of New 
     York, extending from the Pennsylvania border near Lake Erie 
     through Orange County, New York, shall be known and 
     designated as the ``Daniel Patrick Moynihan Interstate 
     Highway''.
       (2) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     highway referred to in paragraph (1) shall be deemed to be a 
     reference to the Daniel Patrick Moynihan Interstate Highway.
       (b) Designation of Amo Houghton Bypass.--
       (1) Designation.--The 3-mile segment of Interstate Route 86 
     between the interchange of Interstate Route 86 with New York 
     State Route 15 in the vicinity of Painted Post, New York, and 
     the interchange of Interstate Route 86 with New York State 
     Route 352 in the vicinity of Corning, New York, shall be 
     known and designated as the ``Amo Houghton Bypass''.
       (2) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     highway referred to in paragraph (1) shall be deemed to be a 
     reference to the Amo Houghton Bypass.

     SEC. 1206. STATE-BY-STATE COMPARISON OF HIGHWAY CONSTRUCTION 
                   COSTS.

       (a) Collection of Data.--
       (1) In general.--The Administrator of the Federal Highway 
     Administration (referred to in this section as the 
     ``Administrator'') shall collect from States any bid price 
     data that is necessary to make State-by-State comparisons of 
     highway construction costs.
       (2) Data required.--In determining which data to collect 
     and the procedures for collecting data, the Administrator 
     shall take into account the data collection deficiencies 
     identified in the report prepared by the General Accounting 
     Office numbered GAO-04-113R.
       (b) Report.--
       (1) In general.--The Administrator shall submit to Congress 
     an annual report on the bid price data collected under 
     subsection (a).
       (2) Inclusions.--The report shall include--
       (A) State-by-State comparisons of highway construction 
     costs for the previous fiscal year (including the cost to 
     construct a 1-mile road segment of a standard design, as 
     determined by the Administrator); and
       (B) a description of the competitive bidding procedures 
     used in each State; and
       (C) a determination by Administrator as to whether the 
     competitive bidding procedures described under subparagraph 
     (B) are effective.
       (c) Innovative and Cost-Effective Materials.--The Secretary 
     shall encourage and provide incentives to States to make 
     maximum use of innovative and cost-effective materials and 
     products in highway construction.

                          Subtitle C--Finance

     SEC. 1301. FEDERAL SHARE.

       Section 120 of title 23, United States Code, is amended--
       (1) in subsection (a), by striking paragraph (1) and 
     inserting the following:
       ``(1) In general.--Except as otherwise provided in this 
     chapter, the Federal share payable on account of any project 
     on the Interstate System (including a project to add high 
     occupancy

[[Page 10567]]

     vehicle lanes and a project to add a bridge project auxiliary 
     lanes but excluding a project to add any other lanes) shall 
     be 90 percent of the total cost of the project.'';
       (2) in subsection (b)--
       (A) by striking ``Except as otherwise'' and inserting the 
     following:
       ``(1) In general.--Except as otherwise'';
       (B) by striking ``shall be--'' and all that follows and 
     inserting ``shall be 80 percent of the cost of the 
     project.''; and
       (C) by adding at the end the following:
       ``(2) State-determined lower federal share.--In the case of 
     any project subject to this subsection, a State may determine 
     a lower Federal share than the Federal share determined under 
     paragraph (1).'';
       (3) by striking subsection (d) and inserting the following:
       ``(d) Increased Federal Share.--
       ``(1) In general.--The Federal share payable under 
     subsection (a) or (b) may be increased for projects and 
     activities in each State in which is located--
       ``(A) nontaxable Indian land;
       ``(B) public land (reserved or unreserved);
       ``(C) a national forest; or
       ``(D) a national park or monument.
       ``(2) Amount.--
       ``(A) In general.--The Federal share for States described 
     in paragraph (1) shall be increased by a percentage of the 
     remaining cost that--
       ``(i) is equal to the percentage that--

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

       ``(ii) does not exceed 95 percent of the total cost of the 
     project or activity for which the Federal share is provided.
       ``(B) Adjustment.--The Secretary shall adjust the Federal 
     share for States under subparagraph (A) as the Secretary 
     determines necessary, on the basis of data provided by the 
     Federal agencies that are responsible for maintaining the 
     data.''.

     SEC. 1302. TRANSFER OF HIGHWAY AND TRANSIT FUNDS.

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

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

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

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

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

[[Page 10568]]

       (ii) in subparagraph (B)(ii), by striking ``loan'' and all 
     that follows and inserting ``loan.''.
       (d) Lines of Credit.--Section 184 of title 23, United 
     States Code, is amended--
       (1) in subsection (b)--
       (A) in paragraph (3), by striking ``interest, any debt 
     service reserve fund, and any other available reserve'' and 
     inserting ``interest (but not including reasonably required 
     financing reserves)'';
       (B) in paragraph (4), by striking ``marketable United 
     States Treasury securities as of the date on which the line 
     of credit is obligated'' and inserting `` United States 
     Treasury securities as of the date of execution of the line 
     of credit agreement''; and
       (C) in paragraph (5)(A)(i), by inserting ``that also secure 
     the senior project obligations'' after ``sources''; and
       (2) in subsection (c)--
       (A) in paragraph (2)--
       (i) by striking ``scheduled'';
       (ii) by inserting ``be scheduled to'' after ``shall''; and
       (iii) by striking ``be fully repaid, with interest,'' and 
     inserting ``to conclude, with full repayment of principal and 
     interest,''; and
       (B) by striking paragraph (3).
       (e) Program Administration.--Section 185 of title 23, 
     United States Code, is amended to read as follows:

     ``Sec. 185. Program administration

       ``(a) Requirement.--The Secretary shall establish a uniform 
     system to service the Federal credit instruments made 
     available under this subchapter.
       ``(b) Fees.--The Secretary may establish fees at a level to 
     cover all or a portion of the costs to the Federal government 
     of servicing the Federal credit instruments.
       ``(c) Servicer.--
       ``(1) In general.--The Secretary may appoint a financial 
     entity to assist the Secretary in servicing the Federal 
     credit instruments.
       ``(2) Duties.--The servicer shall act as the agent for the 
     Secretary.
       ``(3) Fee.--The servicer shall receive a servicing fee, 
     subject to approval by the Secretary.
       ``(d) Assistance From Expert Firms.--The Secretary may 
     retain the services of expert firms, including counsel, in 
     the field of municipal and project finance to assist in the 
     underwriting and servicing of Federal credit instruments.''.
       (f) Funding.--Section 188 of title 23, United States Code, 
     is amended to read as follows:

     ``Sec. 188. Funding

       ``(a) Funding.--
       ``(1) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this subchapter $122,021,761 for each 
     of fiscal years 2005 through 2009.
       ``(2) Administrative costs.--Of amounts made available 
     under paragraph (1), the Secretary may use for the 
     administration of this subchapter not more than $1,877,258 
     for each of fiscal years 2005 through 2009.
       ``(3) Collected fees and services.--In addition to funds 
     provided under paragraph (2)--
       ``(A) all fees collected under this subchapter shall be 
     made available without further appropriation to the Secretary 
     until expended, for use in administering this subchapter; and
       ``(B) the Secretary may accept and use payment or services 
     provided by transaction participants, or third parties that 
     are paid by participants from transaction proceeds, for due 
     diligence, legal, financial, or technical services.
       ``(4) Availability.--Amounts made available under paragraph 
     (1) shall remain available until expended.
       ``(b) Contract Authority.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, approval by the Secretary of a Federal credit instrument 
     that uses funds made available under this subchapter shall be 
     deemed to be acceptance by the United States of a contractual 
     obligation to fund the Federal credit investment.
       ``(2) Availability.--Amounts authorized under this section 
     for a fiscal year shall be available for obligation on 
     October 1 of the fiscal year.''.
       (g) Repeal.--Section 189 of title 23, United States code, 
     is repealed.
       (h) Conforming Amendments.--The analysis for chapter 1 of 
     title 23, United States Code, is amended--
       (1) by striking the item relating to section 185 and 
     inserting the following:

``185. Program administration.'';
     and
       (2) by striking the item relating to section 189.

     SEC. 1304. STATE INFRASTRUCTURE BANKS.

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

     SEC. 1305. PUBLIC-PRIVATE PARTNERSHIPS PILOT PROGRAM.

       Section 109(c) of title 23, United States Code, is amended 
     by adding at the end the following:
       ``(3) Public-private partnerships pilot program.--
       ``(A) In general.--The Secretary may undertake a pilot 
     program to demonstrate the advantages of public-private 
     partnerships for critical capital development projects, 
     including highway, bridge, and freight intermodal connector 
     projects authorized under this title.
       ``(B) Projects.--In carrying out the program, the Secretary 
     shall--
       ``(i) select not less than 10 qualified public-private 
     partnership projects that are authorized under applicable 
     State and local laws; and
       ``(ii) use funds made available to carry out the program to 
     provide to sponsors of the projects assistance for 
     development phase activities described in section 181(1)(A), 
     to enhance project delivery and reduce overall costs.''.

                           Subtitle D--Safety

     SEC. 1401. HIGHWAY SAFETY IMPROVEMENT PROGRAM.

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

     ``Sec. 148. Highway safety improvement program

       ``(a) Definitions.--In this section:
       ``(1) Highway safety improvement program.--The term 
     `highway safety improvement program' means the program 
     carried out under this section.
       ``(2) Highway safety improvement project.--
       ``(A) In general.--The term `highway safety improvement 
     project' means a project described in the State strategic 
     highway safety plan that--
       ``(i) corrects or improves a hazardous road location or 
     feature; or
       ``(ii) addresses a highway safety problem.
       ``(B) Inclusions.--The term `highway safety improvement 
     project' includes a project for--
       ``(i) an intersection safety improvement;
       ``(ii) pavement and shoulder widening (including addition 
     of a passing lane to remedy an unsafe condition);
       ``(iii) installation of rumble strips or another warning 
     device, if the rumble strips or other warning devices do not 
     adversely affect the safety or mobility of bicyclists and 
     pedestrians;
       ``(iv) installation of a skid-resistant surface at an 
     intersection or other location with a high frequency of 
     accidents;
       ``(v) an improvement for pedestrian or bicyclist safety;
       ``(vi)(I) construction of any project for the elimination 
     of hazards at a railway-highway crossing that is eligible for 
     funding under section 130, including the separation or 
     protection of grades at railway-highway crossings;
       ``(II) construction of a railway-highway crossing safety 
     feature; or
       ``(III) the conduct of a model traffic enforcement activity 
     at a railway-highway crossing;
       ``(vii) construction of a traffic calming feature;
       ``(viii) elimination of a roadside obstacle;
       ``(ix) improvement of highway signage and pavement 
     markings;
       ``(x) installation of a priority control system for 
     emergency vehicles at signalized intersections;
       ``(xi) installation of a traffic control or other warning 
     device at a location with high accident potential;
       ``(xii) safety-conscious planning;
       ``(xiii) improvement in the collection and analysis of 
     crash data;
       ``(xiv) planning, integrated, interoperable emergency 
     communications, equipment, operational activities, or traffic 
     enforcement activities (including police assistance) relating 
     to workzone safety;
       ``(xv) installation of guardrails, barriers (including 
     barriers between construction work zones and traffic lanes 
     for the safety of motorists and workers), and crash 
     attenuators;
       ``(xvi) the addition or retrofitting of structures or other 
     measures to eliminate or reduce accidents involving vehicles 
     and wildlife; or
       ``(xvii) installation and maintenance of signs (including 
     fluorescent, yellow-green signs) at pedestrian-bicycle 
     crossings and in school zones.
       ``(3) Safety project under any other section.--
       ``(A) In general.--The term `safety project under any other 
     section' means a project carried out for the purpose of 
     safety under any other section of this title.
       ``(B) Inclusion.--The term `safety project under any other 
     section' includes a project to--
       ``(i) promote the awareness of the public and educate the 
     public concerning highway safety matters (including 
     motorcyclist safety); or
       ``(ii) enforce highway safety laws.
       ``(4) State highway safety improvement program.--The term 
     `State highway safety improvement program' means projects or 
     strategies included in the State strategic highway safety 
     plan carried out as part of the State transportation 
     improvement program under section 135(f).
       ``(5) State strategic highway safety plan.--The term `State 
     strategic highway safety plan' means a plan developed by the 
     State transportation department that--
       ``(A) is developed after consultation with--
       ``(i) a highway safety representative of the Governor of 
     the State;
       ``(ii) regional transportation planning organizations and 
     metropolitan planning organizations, if any;
       ``(iii) representatives of major modes of transportation;
       ``(iv) State and local traffic enforcement officials;
       ``(v) persons responsible for administering section 130 at 
     the State level;
       ``(vi) representatives conducting Operation Lifesaver;
       ``(vii) representatives conducting a motor carrier safety 
     program under section 31104 or 31107 of title 49;
       ``(viii) motor vehicle administration agencies; and

[[Page 10569]]

       ``(ix) other major State and local safety stakeholders;
       ``(B) analyzes and makes effective use of State, regional, 
     or local crash data;
       ``(C) addresses engineering, management, operation, 
     education, enforcement, and emergency services elements 
     (including integrated, interoperable emergency 
     communications) of highway safety as key factors in 
     evaluating highway projects;
       ``(D) considers safety needs of, and high-fatality segments 
     of, public roads;
       ``(E) considers the results of State, regional, or local 
     transportation and highway safety planning processes;
       ``(F) describes a program of projects or strategies to 
     reduce or eliminate safety hazards;
       ``(G) is approved by the Governor of the State or a 
     responsible State agency; and
       ``(H) is consistent with the requirements of section 
     135(f).
       ``(b) Program.--
       ``(1) In general.--The Secretary shall carry out a highway 
     safety improvement program.
       ``(2) Purpose.--The purpose of the highway safety 
     improvement program shall be to achieve a significant 
     reduction in traffic fatalities and serious injuries on 
     public roads.
       ``(c) Eligibility.--
       ``(1) In general.--To obligate funds apportioned under 
     section 104(b)(5) to carry out this section, a State shall 
     have in effect a State highway safety improvement program 
     under which the State--
       ``(A) develops and implements a State strategic highway 
     safety plan that identifies and analyzes highway safety 
     problems and opportunities as provided in paragraph (2);
       ``(B) produces a program of projects or strategies to 
     reduce identified safety problems;
       ``(C) evaluates the plan on a regular basis to ensure the 
     accuracy of the data and priority of proposed improvements; 
     and
       ``(D) submits to the Secretary an annual report that--
       ``(i) describes, in a clearly understandable fashion, not 
     less than 5 percent of locations determined by the State, 
     using criteria established in accordance with paragraph 
     (2)(B)(ii), as exhibiting the most severe safety needs; and
       ``(ii) contains an assessment of--

       ``(I) potential remedies to hazardous locations identified;
       ``(II) estimated costs associated with those remedies; and
       ``(III) impediments to implementation other than cost 
     associated with those remedies.

       ``(2) Identification and analysis of highway safety 
     problems and opportunities.--As part of the State strategic 
     highway safety plan, a State shall--
       ``(A) have in place a crash data system with the ability to 
     perform safety problem identification and countermeasure 
     analysis;
       ``(B) based on the analysis required by subparagraph (A)--
       ``(i) identify hazardous locations, sections, and elements 
     (including roadside obstacles, railway-highway crossing 
     needs, and unmarked or poorly marked roads) that constitute a 
     danger to motorists (including motorcyclists), bicyclists, 
     pedestrians, and other highway users; and
       ``(ii) using such criteria as the State determines to be 
     appropriate, establish the relative severity of those 
     locations, in terms of accidents, injuries, deaths, traffic 
     volume levels, and other relevant data;
       ``(C) adopt strategic and performance-based goals that--
       ``(i) address traffic safety, including behavioral and 
     infrastructure problems and opportunities on all public 
     roads;
       ``(ii) focus resources on areas of greatest need; and
       ``(iii) are coordinated with other State highway safety 
     programs;
       ``(D) advance the capabilities of the State for traffic 
     records data collection, analysis, and integration with other 
     sources of safety data (such as road inventories) in a manner 
     that--
       ``(i) complements the State highway safety program under 
     chapter 4 and the commercial vehicle safety plan under 
     section 31102 of title 49;
       ``(ii) includes all public roads;
       ``(iii) identifies hazardous locations, sections, and 
     elements on public roads that constitute a danger to 
     motorists (including motorcyclists), bicyclists, pedestrians, 
     and other highway users; and
       ``(iv) includes a means of identifying the relative 
     severity of hazardous locations described in clause (iii) in 
     terms of accidents, injuries, deaths, and traffic volume 
     levels;
       ``(E)(i) determine priorities for the correction of 
     hazardous road locations, sections, and elements (including 
     railway-highway crossing improvements), as identified through 
     crash data analysis;
       ``(ii) identify opportunities for preventing the 
     development of such hazardous conditions; and
       ``(iii) establish and implement a schedule of highway 
     safety improvement projects for hazard correction and hazard 
     prevention; and
       ``(F)(i) establish an evaluation process to analyze and 
     assess results achieved by highway safety improvement 
     projects carried out in accordance with procedures and 
     criteria established by this section; and
       ``(ii) use the information obtained under clause (i) in 
     setting priorities for highway safety improvement projects.
       ``(d) Eligible Projects.--
       ``(1) In general.--A State may obligate funds apportioned 
     to the State under section 104(b)(5) to carry out--
       ``(A) any highway safety improvement project on any public 
     road or publicly owned bicycle or pedestrian pathway or 
     trail; or
       ``(B) as provided in subsection (e), for other safety 
     projects.
       ``(2) Use of other funding for safety.--
       ``(A) Effect of section.--Nothing in this section prohibits 
     the use of funds made available under other provisions of 
     this title for highway safety improvement projects.
       ``(B) Use of other funds.--States are encouraged to address 
     the full scope of their safety needs and opportunities by 
     using funds made available under other provisions of this 
     title (except a provision that specifically prohibits that 
     use).
       ``(e) Flexible Funding for States With a Strategic Highway 
     Safety Plan.--
       ``(1) In general.--To further the implementation of a State 
     strategic highway safety plan, a State may use up to 25 
     percent of the amount of funds made available under this 
     section for a fiscal year to carry out safety projects under 
     any other section as provided in the State strategic highway 
     safety plan.
       ``(2) Other transportation and highway safety plans.--
     Nothing in this subsection requires a State to revise any 
     State process, plan, or program in effect on the date of 
     enactment of this section.
       ``(f) Reports.--
       ``(1) In general.--A State shall submit to the Secretary a 
     report that--
       ``(A) describes progress being made to implement highway 
     safety improvement projects under this section;
       ``(B) assesses the effectiveness of those improvements; and
       ``(C) describes the extent to which the improvements funded 
     under this section contribute to the goals of--
       ``(i) reducing the number of fatalities on roadways;
       ``(ii) reducing the number of roadway-related injuries;
       ``(iii) reducing the occurrences of roadway-related 
     crashes;
       ``(iv) mitigating the consequences of roadway-related 
     crashes; and
       ``(v) reducing the occurrences of roadway-railroad grade 
     crossing crashes.
       ``(2) Contents; schedule.--The Secretary shall establish 
     the content and schedule for a report under paragraph (1).
       ``(3) Transparency.--The Secretary shall make reports under 
     subsection (c)(1)(D) available to the public through--
       ``(A) the Internet site of the Department; and
       ``(B) such other means as the Secretary determines to be 
     appropriate.
       ``(4) Discovery and admission into evidence of certain 
     reports, surveys, and information.--Notwithstanding any other 
     provision of law, 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.
       ``(g) Federal Share of Highway Safety Improvement 
     Projects.--Except as provided in sections 120 and 130, the 
     Federal share of the cost of a highway safety improvement 
     project carried out with funds made available under this 
     section shall be 90 percent.
       ``(h) Funds for Bicycle and Pedestrian Safety.--A State 
     shall allocate for bicycle and pedestrian improvements in the 
     State a percentage of the funds remaining after 
     implementation of sections 130(e) and 150, in an amount that 
     is equal to or greater than the percentage of all fatal 
     crashes in the State involving bicyclists and pedestrians.
       ``(i) Roadway Safety Improvements for Older Drivers and 
     Pedestrians.--For each of fiscal years 2005 through 2009, 
     $23,465,723 is authorized to be appropriated out of the 
     Highway Trust Fund (other than the Mass Transit Account) for 
     projects in all States to improve traffic signs and pavement 
     markings in a manner consistent with the recommendations 
     included in the publication of the Federal Highway 
     Administration entitled `Guidelines and Recommendations to 
     Accommodate Older Drivers and Pedestrians (FHWA-RD-01-103)' 
     and dated October 2001.''.
       (2) Allocations of apportioned funds.--Section 133(d) of 
     title 23, United States Code, is amended--
       (A) by striking paragraph (1);
       (B) by redesignating paragraphs (2) through (5) as 
     paragraphs (1) through (4), respectively;
       (C) in paragraph (2) (as redesignated by subparagraph 
     (B))--
       (i) in the first sentence of subparagraph (A)--

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

       (ii) in subparagraph (B), by striking ``tobe'' and 
     inserting ``to be'';
       (iii) by striking subparagraph (C);
       (iv) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D), respectively; and
       (v) in subparagraph (C) (as redesignated by clause (iv)), 
     by adding a period at the end; and
       (D) in paragraph (4)(A) (as redesignated by subparagraph 
     (B)), by striking ``paragraph (2)'' and inserting ``paragraph 
     (1)''.
       (3) Administration.--Section 133(e) of title 23, United 
     States Code, is amended in each of

[[Page 10570]]

     paragraphs (3)(B)(i), (5)(A), and (5)(B) of subsection (e), 
     by striking ``(d)(2)'' each place it appears and inserting 
     ``(d)(1)''.
       (4) Conforming amendments.--
       (A) The analysis for chapter 1 of title 23, United States 
     Code, is amended by striking the item relating to section 148 
     and inserting the following:

``148. Highway safety improvement program.''.
       (B) Section 104(g) of title 23, United States Code, is 
     amended in the first sentence by striking ``sections 130, 
     144, and 152 of this title'' and inserting ``sections 130 and 
     144''.
       (C) Section 126 of title 23, United States Code, is 
     amended--
       (i) in subsection (a), by inserting ``under'' after 
     ``State's apportionment''; and
       (ii) in subsection (b)--

       (I) in the first sentence, by striking ``the last sentence 
     of section 133(d)(1) or to section 104(f) or to section 
     133(d)(3)'' and inserting ``section 104(f) or 133(d)(2)''; 
     and
       (II) in the second sentence, by striking ``or 133(d)(2)''.

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

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

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

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

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

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

       ``(B) Minimum apportionment.--Notwithstanding subparagraph 
     (A), each State shall receive a minimum of \1/2\ of 1 percent 
     of the funds apportioned under this paragraph.''.
       (c) Elimination of Hazards Relating to Railway-Highway 
     Crossings.--
       (1) Funds for railway-highway crossings.--Section 130(e) of 
     title 23, United States Code, is amended by inserting before 
     ``At least'' the following: ``For each fiscal year, at least 
     $187,725,786 of the funds authorized and expended under 
     section 148 shall be available for the elimination of hazards 
     and the installation of protective devices at railway-highway 
     crossings.''.
       (2) Biennial reports to congress.--Section 130(g) of title 
     23, United States Code, is amended in the third sentence--
       (A) by inserting ``and the Committee on Commerce, Science, 
     and Transportation,'' after ``Public Works''; and
       (B) by striking ``not later than April 1 of each year'' and 
     inserting ``every other year''.
       (3) Expenditure of funds.--Section 130 of title 23, United 
     States Code, is amended by adding at the end the following:
       ``(k) Expenditure of Funds.--Funds made available to carry 
     out this section shall be--
       ``(1) available for expenditure on compilation and analysis 
     of data in support of activities carried out under subsection 
     (g); and
       ``(2) apportioned in accordance with section 104(b)(5).''.
       (d) Transition.--
       (1) Implementation.--Except as provided in paragraph (2), 
     the Secretary shall approve obligations of funds apportioned 
     under section 104(b)(5) of title 23, United States Code (as 
     added by subsection (b)) to carry out section 148 of that 
     title, only if, not later than October 1 of the second fiscal 
     year after the date of enactment of this Act, a State has 
     developed and implemented a State strategic highway safety 
     plan as required under section 148(c) of that title.
       (2) Interim period.--
       (A) In general.--Before October 1 of the second fiscal year 
     after the date of enactment of this Act and until the date on 
     which a State develops and implements a State strategic 
     highway safety plan, the Secretary shall apportion funds to a 
     State for the highway safety improvement program and the 
     State may obligate funds apportioned to the State for the 
     highway safety improvement program under section 148 for 
     projects that were eligible for funding under sections 130 
     and 152 of that title, as in effect on the day before the 
     date of enactment of this Act.
       (B) No strategic highway safety plan.--If a State has not 
     developed a strategic highway safety plan by October 1 of the 
     second fiscal year after the date of enactment of this Act, 
     but certifies to the Secretary that progress is being made 
     toward developing and implementing such a plan, the Secretary 
     shall continue to apportion funds for 1 additional fiscal 
     year for the highway safety improvement program under section 
     148 of title 23, United States Code, to the State, and the 
     State may continue to obligate funds apportioned to the State 
     under this section for projects that were eligible for 
     funding under sections 130 and 152 of that title, as in 
     effect on the day before the date of enactment of this Act.
       (C) Penalty.--If a State has not adopted a strategic 
     highway safety plan by the date that is 2 years after the 
     date of enactment of this Act, funds made available to the 
     State under section 1101(6) shall be redistributed to other 
     States in accordance with section 104(b)(3) of title 23, 
     United States Code.

     SEC. 1402. OPERATION LIFESAVER.

       Section 104(d)(1) of title 23, United States Code, is 
     amended--
       (1) by striking ``subsection (b)(3)'' and inserting 
     ``subsection (b)(5)''; and
       (2) by striking ``$500,000'' and inserting ``$563,177''.

     SEC. 1403. INCREASED PENALTIES FOR HIGHER-RISK DRIVERS 
                   DRIVING WHILE INTOXICATED OR DRIVING UNDER THE 
                   INFLUENCE.

       (a) In General.--Section 164 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 164. Increased penalties for higher-risk drivers 
       driving while intoxicated or driving under the influence

       ``(a) Definitions.--In this section:
       ``(1) Blood alcohol concentration.--The term `blood alcohol 
     concentration' means grams of alcohol per 100 milliliters of 
     blood or the equivalent grams of alcohol per 210 liters of 
     breath.
       ``(2) Driving while intoxicated; driving under the 
     influence.--The terms `driving while intoxicated' and 
     `driving under the influence' mean driving or being in actual 
     physical control of a motor vehicle while having a blood 
     alcohol concentration above the permitted limit as 
     established by each State.
       ``(3) Higher-risk impaired driver law.--
       ``(A) In general.--The term `higher-risk impaired driver 
     law' means a State law that provides, as a minimum penalty, 
     that--
       ``(i) an individual described in subparagraph (B) shall--

       ``(I) receive a driver's license suspension;
       ``(II)(aa) have the motor vehicle driven at the time of 
     arrest impounded or immobilized for not less than 45 days; 
     and
       ``(bb) for the remainder of the license suspension period, 
     be required to install a certified alcohol ignition interlock 
     device on the vehicle;
       ``(III)(aa) be subject to an assessment by a certified 
     substance abuse official of the State that assesses the 
     degree of abuse of alcohol by the individual; and
       ``(bb) be assigned to a treatment program or impaired 
     driving education program, as determined by the assessment 
     and paid for by the individual; and
       ``(IV) be imprisoned for not less than 10 days, or have an 
     electronic monitoring device for not less than 100 days; and

       ``(ii) an individual who is convicted of driving while 
     intoxicated or driving under the influence with a blood 
     alcohol concentration level of 0.15 percent or greater 
     shall--

       ``(I) receive a driver's license suspension; and
       ``(II)(aa) be subject to an assessment by a certified 
     substance abuse official of the State that assesses the 
     degree of abuse of alcohol by the individual; and
       ``(bb) be assigned to a treatment program or impaired 
     driving education program, as determined by the assessment 
     and paid for by the individual.

       ``(B) Covered individuals.--An individual referred to in 
     subparagraph (A)(i) is an individual who--
       ``(i) is convicted of a second or subsequent offense for 
     driving while intoxicated or driving under the influence 
     within a period of 7 consecutive years; or
       ``(ii) is convicted of a driving-while-suspended offense, 
     if the suspension was the result of a conviction for driving 
     under the influence.
       ``(4) License suspension.--The term `license suspension' 
     means, for a period of not less than 1 year--
       ``(A) the suspension of all driving privileges of an 
     individual for the duration of the suspension period; or
       ``(B) a combination of suspension of all driving privileges 
     of an individual for the first 45 days of the suspension 
     period, followed by reinstatement of limited driving 
     privileges requiring the individual to operate only motor 
     vehicles equipped with an ignition interlock system or other 
     device approved by the Secretary during the remainder of the 
     suspension period.
       ``(5) Motor vehicle.--
       ``(A) In general.--The term `motor vehicle' means a vehicle 
     driven or drawn by mechanical power and manufactured 
     primarily for use on public highways.
       ``(B) Exclusions.--The term `motor vehicle' does not 
     include--
       ``(i) a vehicle operated solely on a rail line; or
       ``(ii) a commercial vehicle.
       ``(b) Transfer of Funds.--
       ``(1) In general.--Except as provided in paragraph (2), on 
     October 1, 2008, and each October 1 thereafter, if a State 
     has not enacted or is not enforcing a higher-risk impaired 
     driver law, the Secretary shall transfer an amount equal to 3 
     percent of the funds apportioned to the State on that date 
     under paragraphs (1), (3), and (4) of section 104(b) to the 
     apportionment of the State

[[Page 10571]]

     under section 402 to be used in accordance with section 
     402(a)(3) only to carry out impaired driving programs.
       ``(2) Nationwide traffic safety campaigns.--The Secretary 
     shall--
       ``(A) reserve 25 percent of the funds that would otherwise 
     be transferred to States for a fiscal year under paragraph 
     (1); and
       ``(B) use the reserved funds to make law enforcement 
     grants, in connection with nationwide traffic safety 
     campaigns, to be used in accordance with section 
     402(a)(3).''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code, is amended by 
     striking the item relating to section 164 and inserting the 
     following:

``164. Increased penalties for higher-risk drivers driving while 
              intoxicated or driving under the influence.''.

     SEC. 1404. BUS AXLE WEIGHT EXEMPTION.

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

     SEC. 1405. SAFE ROUTES TO SCHOOLS PROGRAM.

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

     ``Sec. 150. Safe routes to schools program

       ``(a) Definitions.--In this section:
       ``(1) Primary and secondary school.--The term `primary and 
     secondary school' means a school that provides education to 
     children in any of grades kindergarten through 12.
       ``(2) Program.--The term `program' means the safe routes to 
     schools program established under subsection (b).
       ``(3) Vicinity of a school.--The term `vicinity of a 
     school' means the area within 2 miles of a primary or 
     secondary school.
       ``(b) Establishment.--The Secretary shall establish and 
     carry out a safe routes to school program for the benefit of 
     children in primary and secondary schools in accordance with 
     this section.
       ``(c) Purposes.--The purposes of the program shall be--
       ``(1) to enable and to encourage children to walk and 
     bicycle to school;
       ``(2) to encourage a healthy and active lifestyle by making 
     walking and bicycling to school safer and more appealing 
     transportation alternatives; and
       ``(3) to facilitate the planning, development, and 
     implementation of projects and activities that will improve 
     safety in the vicinity of schools.
       ``(d) Eligible Recipients.--A State shall use amounts 
     apportioned under this section to provide financial 
     assistance to State, regional, and local agencies that 
     demonstrate an ability to meet the requirements of this 
     section.
       ``(e) Eligible Projects and Activities.--
       ``(1) Infrastructure-related projects.--
       ``(A) In general.--Amounts apportioned to a State under 
     this section may be used for the planning, design, and 
     construction of infrastructure-related projects to encourage 
     walking and bicycling to school, including--
       ``(i) sidewalk improvements;
       ``(ii) traffic calming and speed reduction improvements;
       ``(iii) pedestrian and bicycle crossing improvements;
       ``(iv) on-street bicycle facilities;
       ``(v) off-street bicycle and pedestrian facilities;
       ``(vi) secure bicycle parking facilities;
       ``(vii) traffic signal improvements; and
       ``(viii) pedestrian-railroad grade crossing improvements.
       ``(B) Location of projects.--Infrastructure-related 
     projects under subparagraph (A) may be carried out on--
       ``(i) any public road in the vicinity of a school; or
       ``(ii) any bicycle or pedestrian pathway or trail in the 
     vicinity of a school.
       ``(2) Behavioral activities.--
       ``(A) In general.--In addition to projects described in 
     paragraph (1), amounts apportioned to a State under this 
     section may be used for behavioral activities to encourage 
     walking and bicycling to school, including--
       ``(i) public awareness campaigns and outreach to press and 
     community leaders;
       ``(ii) traffic education and enforcement in the vicinity of 
     schools; and
       ``(iii) student sessions on bicycle and pedestrian safety, 
     health, and environment.
       ``(B) Allocation.--Of the amounts apportioned to a State 
     under this section for a fiscal year, not less than 10 
     percent shall be used for behavioral activities under this 
     paragraph.
       ``(f) Funding.--
       ``(1) Set aside.--Before apportioning amounts to carry out 
     section 148 for a fiscal year, the Secretary shall set aside 
     and use $65,704,024 to carry out this section.
       ``(2) Apportionment.--Amounts made available to carry out 
     this section shall be apportioned to States in accordance 
     with section 104(b)(5).
       ``(3) Administration of amounts.--Amounts apportioned to a 
     State under this section shall be administered by the State 
     transportation department.
       ``(4) Federal share.--Except as provided in sections 120 
     and 130, the Federal share of the cost of a project or 
     activity funded under this section shall be 90 percent.
       ``(5) Period of availability.--Notwithstanding section 
     118(b)(2), amounts apportioned under this section shall 
     remain available until expended.''.
       (b) Conforming Amendments.--The analysis for subchapter I 
     of chapter 1 of title 23, United States Code is amended by 
     inserting after the item relating to section 149 the 
     following:

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

     SEC. 1406. PURCHASES OF EQUIPMENT.

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

     ``Sec. 152. Purchases of equipment

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

``152. Purchases of equipment.''.

     SEC. 1407. WORKZONE SAFETY.

       Section 358(b) of the National Highway System Designation 
     Act of 1995 (109 Stat. 625) is amended by adding at the end 
     the following:
       ``(7) Recommending all federally-assisted projects in 
     excess of $15,000,000 to enter into contracts only with work 
     zone safety services contractors, traffic control 
     contractors, and trench safety and shoring contractors that 
     carry general liability insurance in an amount not less than 
     $15,000,000.
       ``(8) Recommending federally-assisted projects the costs of 
     which exceed $15,000,000 to include work zone intelligent 
     transportation systems that are--
       ``(A) provided by a qualified vendor; and
       ``(B) monitored continuously.
       ``(9) Recommending federally-assisted projects to fully 
     fund not less than 5 percent of project costs for work zone 
     safety and temporary traffic control measures, in addition to 
     the cost of the project, which measures shall be provided by 
     a qualified work zone safety or traffic control provider.
       ``(10)(A) Recommending federally-assisted projects to 
     implement or accommodate the use of a device capable of--
       ``(i) automatically capturing images of, measuring the 
     speed of, and relating to, multiple vehicles in multiple 
     lanes simultaneously; and
       ``(ii) correlating measured speeds to capture images of 
     specific identified vehicles traveling in excess of posted 
     speed limits in road work zones and construction areas.
       ``(B) Recommending appropriate measures to protect public 
     security and privacy, including--
       ``(i) notice to drivers of the use of the devices described 
     in subparagraph (A); and
       ``(ii) with respect to the information generated by the 
     devices described in subparagraph (A)--
       ``(I) limitations on the number of, and authorization 
     process relating to, individuals that may access the 
     information;
       ``(II) limitations on the use, disclosure, and retention of 
     the information; and
       ``(III) any measures necessary to ensure that the 
     information is accessed only by an individual that is 
     authorized to access the information.
       ``(11) Ensuring that any recommendation made under any of 
     paragraphs (7) through (10) provides for an exemption for 
     applicability to a State, with respect to a project or class 
     of projects--
       ``(A) to the extent that a State notifies the Secretary in 
     writing that safety is not expected to be adversely affected 
     by nonapplication of the recommendation to the project or 
     class of projects; or
       ``(B) in any case in which the State has in effect a law 
     that prohibits a project or class of projects (including a 
     device or activity to be installed or carried out under such 
     a project).''.

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

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

[[Page 10572]]



     SEC. 1409. OPEN CONTAINER REQUIREMENTS.

       Section 154 of title 23, United States Code, is amended by 
     striking subsection (c) and inserting the following:
       ``(c) Transfer of Funds.--
       ``(1) In general.--The Secretary shall withhold the 
     applicable percentage for the fiscal year of the amount 
     required to be apportioned for Federal-aid highways to any 
     State under each of paragraphs (1), (3), and (4) of section 
     104(b), if a State has not enacted or is not enforcing a 
     provision described in subsection (b), as follows:

The applicable percentage is:
2 percent.r 2008.......................................................
2 percent.r 2009.......................................................
2 percent.r 2010.......................................................
2 percent.r 2011 and each subsequent fiscal year.......................
       ``(2) Restoration.--If (during the 4-year period beginning 
     on the date the apportionment for any State is reduced in 
     accordance with this subsection) the Secretary determines 
     that the State has enacted and is enforcing a provision 
     described in subsection (b), the apportionment of the State 
     shall be increased by an amount equal to the amount of the 
     reduction made during the 4-year period.''.

     SEC. 1410. 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 knowingly sells a traffic signal 
     preemption transmitter in or affecting interstate or foreign 
     commerce to a person who is not acting on behalf of a public 
     agency or private corporation authorized by law to provide 
     fire protection, law enforcement, emergency medical services, 
     transit services, maintenance, or other services for a 
     Federal, State, or local government entity, shall, 
     notwithstanding section 3571(b), be fined not more than 
     $10,000, imprisoned not more than 1 year, or both.
       ``(2) Use.--A person who makes unauthorized use 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 mechanism 
     that can change or alter a traffic signal's phase time or 
     sequence.
       ``(2) Unauthorized use.--
       ``(A) In general.--The term `unauthorized use' means use of 
     a traffic signal preemption transmitter by a person who is 
     not acting on behalf of a public agency or private 
     corporation authorized by law to provide fire protection, law 
     enforcement, emergency medical services, transit services, 
     maintenance, or other services for a Federal, State, or local 
     government entity.
       ``(B) Exception.--The term `unauthorized use' does not 
     apply to use of a traffic signal preemption transmitter for 
     classroom or instructional purposes.''.
       (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. 1411. PRESIDENTIAL COMMISSION ON ALCOHOL-IMPAIRED 
                   DRIVING.

       (a) Findings.--Congress finds that--
       (1) there has been considerable progress over the past 25 
     years in reducing the number and rate of alcohol-related 
     highway fatalities;
       (2) the National Highway Traffic Safety Administration 
     projects that fatalities in alcohol-related crashes declined 
     in 2004 for the second year in a row;
       (3) in spite of this progress, an estimated 16,654 
     Americans died in 2004, in alcohol-related crashes;
       (4) these fatalities comprise 39 percent of the annual 
     total of highway fatalities;
       (5) about 250,000 are injured each year in alcohol-related 
     crashes;
       (6) the past 2 years of decreasing alcohol-related 
     fatalities follows a 3-year increase;
       (7) drunk driving is the Nation's most frequently committed 
     violent crime;
       (8) the annual cost of alcohol-related crashes is over 
     $100,000,000,000, including $9,000,000,000 in costs to 
     employers;
       (9) a Presidential Commission on Drunk Driving in 1982 and 
     1983 helped to lead to substantial progress on this issue; 
     and
       (10) these facts point to the need to renew the national 
     commitment to preventing these deaths and injuries.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that, in an effort to further change the culture of alcohol 
     impaired driving on our Nation's highways, the President 
     should consider establishing a Presidential Commission on 
     Alcohol-Impaired Driving--
       (1) comprised of--
       (A) representatives of State and local governments, 
     including state legislators;
       (B) law enforcement;
       (C) traffic safety experts, including researchers;
       (D) victims of alcohol-related crashes;
       (E) affected industries, including the alcohol, insurance, 
     and auto industries;
       (F) the business community;
       (G) labor;
       (H) the medical community;
       (I) public health; and
       (J) Members of Congress; and
       (2) that not later than September 30, 2006, would--
       (A) conduct a full examination of alcohol-impaired driving 
     issues; and
       (B) make recommendations for a broad range of policy and 
     program changes that would serve to further reduce the level 
     of deaths and injuries caused by drunk driving.

     SEC. 1412. SENSE OF THE SENATE IN SUPPORT OF INCREASED PUBLIC 
                   AWARENESS OF BLOOD ALCOHOL CONCENTRATION LEVELS 
                   AND THE DANGERS OF DRINKING AND DRIVING.

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

     SEC. 1413. GRANT PROGRAM FOR COMMERCIAL DRIVER TRAINING.

       (a) Establishment.--The Secretary of Transportation shall 
     establish a program for making grants to commercial driver 
     training schools and programs for the purpose of providing 
     financial assistance to entry level drivers of commercial 
     vehicles (as defined in section 31301 of title 49, United 
     States Code).
       (b) Federal Share.--The Federal share of the cost for which 
     a grant is made under this section shall be 80 percent.
       (c) Funding.--There are authorized to be appropriated from 
     the Highway Trust Fund (other than the Mass Transit Account) 
     for the purpose of carrying out this section $5,000,000 for 
     each of the fiscal years 2006 through 2009.

             Subtitle E--Environmental Planning and Review

                   CHAPTER 1--TRANSPORTATION PLANNING

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

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

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

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

[[Page 10573]]

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

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

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

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

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

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

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

     SEC. 1505. PROJECT MITIGATION.

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

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

       ``(a) Establishment.--A State should establish a habitat, 
     streams, and wetlands mitigation fund (referred to in this 
     section as a `State fund').
       ``(b) Purpose.--The purpose of a State fund is to encourage 
     efforts for habitat, streams, and wetlands mitigation in 
     advance of or in conjunction with highway or transit projects 
     to--
       ``(1) ensure that the best habitat, streams, and wetland 
     mitigation sites now available are used; and
       ``(2) accelerate transportation project delivery by making 
     high-quality habitat, streams, and wetland mitigation credits 
     available when needed.
       ``(c) Funds.--A State may deposit into a State fund part of 
     the funds apportioned to the State under--
       ``(1) section 104(b)(1) for the National Highway System; 
     and
       ``(2) section 104(b)(3) for the surface transportation 
     program.
       ``(d) Use.--
       ``(1) In general.--Amounts deposited in a State fund shall 
     be used (in a manner consistent with this section) for 
     habitat, streams, or wetlands mitigation related to 1 or more 
     projects funded under this title, including a project under 
     the transportation improvement program of the State developed 
     under section 135(f).
       ``(2) Endangered species.--In carrying out this section, a 
     State and cooperating agency shall give consideration to 
     mitigation projects, on-site or off-site, that restore and 
     preserve the best available sites to conserve biodiversity 
     and habitat for--
       ``(A) Federal or State listed threatened or endangered 
     species of plants and animals; and
       ``(B) plant or animal species warranting listing as 
     threatened or endangered, as determined by the Secretary of 
     the Interior in accordance with section 4(b)(3)(B) of the 
     Endangered Species Act of 1973 (16 U.S.C. 1533(b)(3)(B)).
       ``(3) Mitigation in closed basins.--
       ``(A) In general.--A State may use amounts deposited in the 
     State fund for projects to protect existing roadways from 
     anticipated flooding of a closed basin lake, including--
       ``(i) construction--

       ``(I) necessary for the continuation of roadway services 
     and the impoundment of water, as the State determines to be 
     appropriate; or
       ``(II) for a grade raise to permanently restore a roadway 
     the use of which is lost or reduced, or could be lost or 
     reduced, as a result of an actual or predicted water level 
     that is within 3 feet of causing inundation of the roadway in 
     a closed lake basin;

[[Page 10574]]

       ``(ii) monitoring, studies, evaluations, design, or 
     preliminary engineering relating to construction; and
       ``(iii) monitoring and evaluations relating to proposed 
     construction.
       ``(B) Reimbursement.--The Secretary may permit a State that 
     expends funds under subparagraph (A) to be reimbursed for the 
     expenditures through the use of amounts made available under 
     section 125(c)(1).
       ``(e) Consistency With Applicable Requirements.--
     Contributions from the State fund to mitigation efforts may 
     occur in advance of project construction only if the efforts 
     are consistent with all applicable requirements of Federal 
     law (including regulations).''.
       (d) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code, is amended by 
     striking the item relating to section 155 and inserting the 
     following:

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

         CHAPTER 2--TRANSPORTATION PROJECT DEVELOPMENT PROCESS

     SEC. 1511. TRANSPORTATION PROJECT DEVELOPMENT PROCESS.

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

     ``Sec. 326. Transportation project development process

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

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

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

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

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

       ``(I) the responsibilities of cooperating agencies under 
     applicable laws;
       ``(II) resources available to the cooperating agencies;
       ``(III) overall size and complexity of a project;
       ``(IV) the overall schedule for and cost of a project; and

[[Page 10575]]

       ``(V) the sensitivity of the natural and historic resources 
     that could be affected by the project.

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

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

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

[[Page 10576]]

       ``(B) Basis for information.--Information about resources 
     in the project area may be based on existing data sources, 
     including geographic information systems mapping.
       ``(3) Cooperating agency responsibilities.--
       ``(A) In general.--Based on information received from the 
     lead agency, cooperating agencies shall promptly identify to 
     the lead agency any major issues of concern regarding the 
     potential environmental or socioeconomic impacts of a 
     project.
       ``(B) Major issues of concern.--A major issue of concern 
     referred to in subparagraph (A) may include any issue that 
     could substantially delay or prevent an agency from granting 
     a permit or other approval that is needed for a project, as 
     determined by a cooperating agency.
       ``(4) Issue resolution.--On identification of a major issue 
     of concern under paragraph (3), or at any time upon the 
     request of a project sponsor or the Governor of a State, the 
     lead agency shall promptly convene a meeting with 
     representatives of each of the relevant cooperating agencies, 
     the project sponsor, and the Governor to address and resolve 
     the issue.
       ``(5) Notification.--If a resolution of a major issue of 
     concern under paragraph (4) cannot be achieved by the date 
     that is 30 days after the date on which a meeting under that 
     paragraph is convened, the lead agency shall provide 
     notification of the failure to resolve the major issue of 
     concern to--
       ``(A) the heads of all cooperating agencies;
       ``(B) the project sponsor;
       ``(C) the Governor involved;
       ``(D) the Committee on Environment and Public Works of the 
     Senate;
       ``(E) the Committee on Transportation and Infrastructure of 
     the House of Representatives; and
       ``(F) the Council on Environmental Quality.
       ``(i) Performance Measurement.--
       ``(1) Progress reports.--The Secretary shall establish a 
     program to measure and report on progress toward improving 
     and expediting the planning and environmental review process.
       ``(2) Minimum requirements.--The program shall include, at 
     a minimum--
       ``(A) the establishment of criteria for measuring 
     consideration of--
       ``(i) State and metropolitan planning, project planning, 
     and design criteria; and
       ``(ii) environmental processing times and costs;
       ``(B) the collection of data to assess performance based on 
     the established criteria; and
       ``(C) the annual reporting of the results of the 
     performance measurement studies.
       ``(3) Involvement of the public and cooperating agencies.--
       ``(A) In general.--The Secretary shall biennially conduct a 
     survey of agencies participating in the environmental review 
     process under this section to assess the expectations and 
     experiences of each surveyed agency with regard to the 
     planning and environmental review process for projects 
     reviewed under this section.
       ``(B) Public participation.--In conducting the survey, the 
     Secretary shall solicit comments from the public.
       ``(j) Assistance to Affected Federal and State Agencies.--
       ``(1) In general.--The Secretary may approve a request by a 
     State or recipient to provide funds made available under this 
     title for a highway project, or made available under chapter 
     53 of title 49 for a mass transit project, to agencies 
     participating in the coordinated environmental review process 
     established under this section in order to provide the 
     resources necessary to meet any time limits established under 
     this section.
       ``(2) Amounts.--Such requests under paragraph (1) shall be 
     approved only--
       ``(A) for such additional amounts as the Secretary 
     determines are necessary for the affected Federal and State 
     agencies to meet the time limits for environmental review; 
     and
       ``(B) if those time limits are less than the customary time 
     necessary for that review.
       ``(k) Judicial Review and Savings Clause.--
       ``(1) Judicial review.--Nothing in this section shall 
     affect the reviewability of any final Federal agency action 
     in any United States district court or State court.
       ``(2) Savings clause.--Nothing in this section shall 
     affect--
       ``(A) the applicability of the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.) or any other 
     Federal environmental statute; or
       ``(B) the responsibility of any Federal officer to comply 
     with or enforce such a statute.''.
       (b) Conforming Amendments.--
       (1) The analysis for chapter 3 of title 23, United States 
     Code, is amended by inserting after the item relating to 
     section 325 (as added by section 1203(f)) the following:

``326. Transportation project development process.''.
       (2) Section 1309 of the Transportation Equity Act for the 
     21st Century (112 Stat. 232) is repealed.
       (c) Existing Environmental Review Process.--Nothing in this 
     section affects any existing State environmental review 
     process, program, agreement, or funding arrangement approved 
     by the Secretary under section 1309 of the Transportation 
     Equity Act for the 21st Century (112 Stat. 232; 23 U.S.C. 109 
     note).

     SEC. 1512. ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL 
                   EXCLUSIONS.

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

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

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

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

     SEC. 1513. SURFACE TRANSPORTATION PROJECT DELIVERY PILOT 
                   PROGRAM.

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

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

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

       ``(I) responsibility for any conformity determination 
     required under section 176 of the Clean Air Act (42 U.S.C. 
     7506); or

[[Page 10577]]

       ``(II) any responsibility imposed on the Secretary by 
     section 134 or 135.

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

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

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

       (a) Programs and Projects With de Minimis Impacts.--
       (1) Title 23.--Section 138 of title 23, United States Code, 
     is amended--
       (A) in the first sentence, by striking ``It is hereby'' and 
     inserting the following:
       ``(a) Declaration of Policy.--It is''; and
       (B) by adding at the end the following:
       ``(b) De Minimis Impacts.--
       ``(1) Requirements.--
       ``(A) In general.--The requirements of this section shall 
     be considered to be satisfied with respect to an area 
     described in paragraph (2) or (3) if the Secretary 
     determines, in accordance with this subsection, that a 
     transportation program or project will have a de minimis 
     impact on the area.
       ``(B) Criteria.--In making any determination under this 
     subsection, the Secretary shall consider to be part of a 
     transportation program or project any avoidance, 
     minimization, mitigation, or enhancement measures that are 
     required to be implemented as a condition of approval of the 
     transportation program or project.
       ``(2) Historic sites.--With respect to historic sites, the 
     Secretary may make a finding of de minimis impact only if--
       ``(A) the Secretary has determined, in accordance with the 
     consultation process required under section 106 of the 
     National Historic Preservation Act (16 U.S.C. 470f), that--
       ``(i) the transportation program or project will have no 
     adverse effect on the historic site; or
       ``(ii) there will be no historic properties affected by the 
     transportation program or project;
       ``(B) the finding of the Secretary has received written 
     concurrence from the applicable State historic preservation 
     officer or tribal historic preservation officer (and from the 
     Advisory Council on Historic Preservation, if participating 
     in the consultation); and
       ``(C) the finding of the Secretary has been developed in 
     consultation with parties consulting as part of the process 
     referred to in subparagraph (A).
       ``(3) Parks, recreation areas, and wildlife and waterfowl 
     refuges.--With respect to parks, recreation areas, and 
     wildlife or waterfowl refuges, the Secretary may make a 
     finding of de minimis impact only if--
       ``(A) the Secretary has determined, in accordance with the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) (including public notice and opportunity for public 
     review and comment), that the transportation program or 
     project will not adversely affect the activities, features, 
     and attributes of the park, recreation area, or wildlife or 
     waterfowl refuge eligible for protection under this section; 
     and
       ``(B) the finding of the Secretary has received concurrence 
     from the officials with jurisdiction over the park, 
     recreation area, or wildlife or waterfowl refuge.''.
       (2) Title 49.--Section 303 of title 49, United States Code, 
     is amended--
       (A) by striking ``(c) The Secretary'' and inserting the 
     following:
       ``(c) Approval of Programs and Projects.--Subject to 
     subsection (d), the Secretary''; and

[[Page 10578]]

       (B) by adding at the end the following:
       ``(d) De Minimis Impacts.--
       ``(1) Requirements.--
       ``(A) In general.--The requirements of this section shall 
     be considered to be satisfied with respect to an area 
     described in paragraph (2) or (3) if the Secretary 
     determines, in accordance with this subsection, that a 
     transportation program or project will have a de minimis 
     impact on the area.
       ``(B) Criteria.--In making any determination under this 
     subsection, the Secretary shall consider to be part of a 
     transportation program or project any avoidance, 
     minimization, mitigation, or enhancement measures that are 
     required to be implemented as a condition of approval of the 
     transportation program or project.
       ``(2) Historic sites.--With respect to historic sites, the 
     Secretary may make a finding of de minimis impact only if--
       ``(A) the Secretary has determined, in accordance with the 
     consultation process required under section 106 of the 
     National Historic Preservation Act (16 U.S.C. 470f), that--
       ``(i) the transportation program or project will have no 
     adverse effect on the historic site; or
       ``(ii) there will be no historic properties affected by the 
     transportation program or project;
       ``(B) the finding of the Secretary has received written 
     concurrence from the applicable State historic preservation 
     officer or tribal historic preservation officer (and from the 
     Advisory Council on Historic Preservation, if participating 
     in the consultation); and
       ``(C) the finding of the Secretary has been developed in 
     consultation with parties consulting as part of the process 
     referred to in subparagraph (A).
       ``(3) Parks, recreation areas, and wildlife and waterfowl 
     refuges.--With respect to parks, recreation areas, and 
     wildlife or waterfowl refuges, the Secretary may make a 
     finding of de minimis impact only if--
       ``(A) the Secretary has determined, in accordance with the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) (including public notice and opportunity for public 
     review and comment), that the transportation program or 
     project will not adversely affect the activities, features, 
     and attributes of the park, recreation area, or wildlife or 
     waterfowl refuge eligible for protection under this section; 
     and
       ``(B) the finding of the Secretary has received concurrence 
     from the officials with jurisdiction over the park, 
     recreation area, or wildlife or waterfowl refuge.''.
       (b) Clarification of Existing Standards.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall (in consultation 
     with affected agencies and interested parties) promulgate 
     regulations that clarify the factors to be considered and the 
     standards to be applied in determining the prudence and 
     feasibility of alternatives under section 138 of title 23 and 
     section 303 of title 49, United States Code.
       (2) Requirements.--The regulations--
       (A) shall clarify the application of the legal standards to 
     a variety of different types of transportation programs and 
     projects depending on the circumstances of each case; and
       (B) may include, as appropriate, examples to facilitate 
     clear and consistent interpretation by agency decisionmakers.
       (c) Implementation Study.--
       (1) In general.--The Secretary shall--
       (A) conduct a study on the implementation of this section 
     and the amendments made by this section; and
       (B) commission an independent review of the study plan and 
     methodology, and any associated conclusions, by the 
     Transportation Research Board of the National Academy of 
     Sciences.
       (2) Components.--In conducting the study, the Secretary 
     shall evaluate--
       (A) the processes developed under this section and the 
     amendments made by this section and the efficiencies that may 
     result;
       (B) the post-construction effectiveness of impact 
     mitigation and avoidance commitments adopted as part of 
     projects conducted under this section and the amendments made 
     by this section; and
       (C) the quantity of projects with impacts that are 
     considered de minimis under this section and the amendments 
     made by this section, including information on the location, 
     size, and cost of the projects.
       (3) Report requirement.--The Secretary shall prepare--
       (A) not earlier than the date that is 3 years after the 
     date of enactment of this Act, a report on the results of the 
     study conducted under this subsection; and
       (B) not later than March 1, 2010, an update on the report 
     required under subparagraph (A).
       (4) Report recipients.--The Secretary shall--
       (A) submit the report, review of the report, and update 
     required under paragraph (3) to--
       (i) the appropriate committees of Congress;
       (ii) the Secretary of the Interior; and
       (iii) the Advisory Council on Historic Preservation; and
       (B) make the report and update available to the public.

     SEC. 1515. REGULATIONS.

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

                        CHAPTER 3--MISCELLANEOUS

     SEC. 1521. CRITICAL REAL PROPERTY ACQUISITION.

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

     SEC. 1522. PLANNING CAPACITY BUILDING INITIATIVE.

       Section 104 of title 23, United States Code, is amended by 
     adding at the end the following:
       ``(m) Planning Capacity Building Initiative.--
       ``(1) In general.--The Secretary shall carry out a planning 
     capacity building initiative to support enhancements in 
     transportation planning to--
       ``(A) strengthen the processes and products of metropolitan 
     and statewide transportation planning under this title;
       ``(B) enhance tribal capacity to conduct joint 
     transportation planning under chapter 2;
       ``(C) participate in the metropolitan and statewide 
     transportation planning programs under this title; and
       ``(D) increase the knowledge and skill level of 
     participants in metropolitan and statewide transportation.
       ``(2) Priority.--The Secretary shall give priority to 
     planning practices and processes that support--
       ``(A) the transportation elements of homeland security 
     planning, including--
       ``(i) training and best practices relating to emergency 
     evacuation;
       ``(ii) developing materials to assist areas in coordinating 
     emergency management and transportation officials; and
       ``(iii) developing training on how planning organizations 
     may examine security issues;
       ``(B) performance-based planning, including--
       ``(i) data and data analysis technologies to be shared with 
     States, metropolitan planning organizations, local 
     governments, and nongovernmental organizations that--

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

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

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

       ``(C) safety planning, including--
       ``(i) development of State strategic safety plans 
     consistent with section 148;
       ``(ii) incorporation of work zone safety into planning; and
       ``(iii) training in the development of data systems 
     relating to highway safety;
       ``(D) operations planning, including--
       ``(i) developing training of the integration of 
     transportation system operations and management into the 
     transportation planning process; and
       ``(ii) training and best practices relating to regional 
     concepts of operations;
       ``(E) freight planning, including--
       ``(i) modeling of freight at a regional and statewide 
     level; and
       ``(ii) techniques for engaging the freight community with 
     the planning process;
       ``(F) air quality planning, including--
       ``(i) assisting new and existing nonattainment and 
     maintenance areas in developing the technical capacity to 
     perform air quality conformity analysis;

[[Page 10579]]

       ``(ii) providing training on areas such as modeling and 
     data collection to support air quality planning and analysis;
       ``(iii) developing concepts and techniques to assist areas 
     in meeting air quality performance timeframes; and
       ``(iv) developing materials to explain air quality issues 
     to decisionmakers and the public; and
       ``(G) integration of environment and planning.
       ``(3) Use of funds.--The Secretary shall use amounts made 
     available under paragraph (4) to make grants to, or enter 
     into contracts, cooperative agreements, and other 
     transactions with, a Federal agency, State agency, local 
     agency, federally recognized Indian tribal government or 
     tribal consortium, authority, association, nonprofit or for-
     profit corporation, or institution of higher education for 
     research, program development, information collection and 
     dissemination, and technical assistance.
       ``(4) Set-aside.--
       ``(A) In general.--On October 1 of each fiscal year, of the 
     funds made available under subsection (a), the Secretary 
     shall set aside $3,754,515 to carry out this subsection.
       ``(B) Federal share.--The Federal share of the cost of an 
     activity carried out using funds made available under 
     subparagraph (A) shall be 100 percent.
       ``(C) Availability.--Funds made available under 
     subparagraph (A) shall remain available until expended.''.

     SEC. 1523. 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 $9,386,289 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.''.

     SEC. 1524. 14TH AMENDMENT HIGHWAY AND 3RD INFANTRY DIVISION 
                   HIGHWAY.

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

                        Subtitle F--Environment

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

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

[[Page 10580]]



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

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

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

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

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

     SEC. 1602. NATIONAL SCENIC BYWAYS PROGRAM.

       (a) In General.--Section 162 of title 23, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``the roads as'' and all 
     that follows and inserting ``the roads as--
       ``(A) National Scenic Byways;
       ``(B) All-American Roads; or
       ``(C) America's Byways.'';
       (B) in paragraph (3)--
       (i) by striking ``To be considered'' and inserting the 
     following:
       ``(A) In general.--To be considered'';
       (ii) in subparagraph (A) (as designated by clause (i))--

       (I) by inserting ``, an Indian tribe, '' after ``nominated 
     by a State''; and
       (II) by inserting ``, an Indian scenic byway,'' after 
     ``designated as a State scenic byway''; and

       (iii) by adding at the end the following:
       ``(B) Nomination by indian tribes.--An Indian tribe may 
     nominate a road as a National Scenic Byway under subparagraph 
     (A) only if a Federal land management agency (other than the 
     Bureau of Indian Affairs), a State, or a political 
     subdivision of a State does not have--
       ``(i) jurisdiction over the road; or
       ``(ii) responsibility for managing the road.
       ``(C) Safety.--Indian tribes shall maintain the safety and 
     quality of roads nominated by the Indian tribe under 
     subparagraph (A).''; and
       (C) by adding at the end the following:
       ``(4) Reciprocal notification.--States, Federal land 
     management agencies, and Indian tribes shall notify each 
     other regarding nominations under this subsection for roads 
     that--
       ``(A) are within the jurisdictional boundary of the State, 
     Federal land management agency, or Indian tribe; or
       ``(B) directly connect to roads for which the State, 
     Federal land management agency, or Indian tribe is 
     responsible.'';
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) by inserting ``and Indian tribes'' after ``provide 
     technical assistance to States'';
       (ii) in subparagraph (A), by striking ``designated as'' and 
     all that follows and inserting ``designated as--
       ``(i) National Scenic Byways;
       ``(ii) All-American Roads;
       ``(iii) America's Byways;
       ``(iv) State scenic byways; or
       ``(v) Indian scenic byways; and''; and
       (iii) in subparagraph (B), by inserting ``or Indian'' after 
     ``State'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``Byway or All-
     American Road'' and inserting ``Byway, All-American Road, or 
     1 of America's Byways'';
       (ii) in subparagraph (B)--

       (I) by striking ``State-designated'' and inserting ``State 
     or Indian''; and
       (II) by striking ``designation as a'' and all that follows 
     and inserting ``designation as--

       ``(i) a National Scenic Byway;
       ``(ii) an All-American Road; or
       ``(iii) 1 of America's Byways; and''; and
       (iii) in subparagraph (C), by inserting ``or Indian'' after 
     ``State'';
       (3) in subsection (c)--
       (A) in paragraph (1), by inserting ``or Indian'' after 
     ``State'';
       (B) in paragraph (3)--
       (i) by inserting ``Indian scenic byway,'' after 
     ``improvements to a State scenic byway,''; and
       (ii) by inserting ``Indian scenic byway,'' after 
     ``designation as a State scenic byway,''; and
       (C) in paragraph (4), by striking ``passing lane,''; and
       (4) in subsection (e), by inserting ``or Indian tribe'' 
     after ``State''.
       (b) Research, Technical Assistance, Marketing, and 
     Promotion.--Section 162 of title 23, United States Code, is 
     amended--
       (1) by redesignating subsections (d), (e), and (f) as 
     subsections (e), (f), and (g), respectively;
       (2) by inserting after subsection (c) the following:
       ``(d) Research, Technical Assistance, Marketing, and 
     Promotion.--
       ``(1) In general.--The Secretary may carry out technical 
     assistance, marketing, market research, and promotion with 
     respect to State Scenic Byways, National Scenic Byways, All-
     American Roads, and America's Byways.
       ``(2) Cooperation, grants, and contracts.--The Secretary 
     may make grants to, or enter into contracts, cooperative 
     agreements, and other transactions with, any Federal agency, 
     State agency, authority, association, institution, for-profit 
     or nonprofit corporation, organization, or person, to carry 
     out projects and activities under this subsection.
       ``(3) Funds.--The Secretary may use not more than 
     $1,877,258 for each fiscal year of funds made available for 
     the National Scenic Byways Program to carry out projects and 
     activities under this subsection.
       ``(4) Priority.--The Secretary shall give priority under 
     this subsection to partnerships that leverage Federal funds 
     for research, technical assistance, marketing and 
     promotion.''; and
       (3) in subsection (g) (as redesignated by paragraph (1)), 
     by striking ``80 percent'' and inserting ``the share 
     applicable under section 120, as adjusted under subsection 
     (d) of that section''.

     SEC. 1603. RECREATIONAL TRAILS PROGRAM.

       (a) Recreational Trails Program Formula.--Section 104(h)(1) 
     of title 23, United States Code, is amended--
       (1) by striking ``Whenever'' and inserting the following:
       ``(A) In general.--In any case in which'';
       (2) by striking ``research and technical assistance under 
     the recreational trails program and for administration of the 
     National Recreational Trails Advisory Committee'' and 
     inserting ``research, technical assistance, and training 
     under the recreational trails program''; and
       (3) by striking ``The Secretary'' and inserting the 
     following:
       ``(B) Contracts and agreements.--The Secretary''.
       (b) Recreational Trails Program Administration.--Section 
     206 of title 23, United States Code, is amended--
       (1) in subsection (d)--
       (A) by striking paragraph (2) and inserting the following:
       ``(2) Permissible uses.--Permissible uses of funds 
     apportioned to a State for a fiscal year to carry out this 
     section include--
       ``(A) maintenance and restoration of recreational trails;
       ``(B) development and rehabilitation of trailside and 
     trailhead facilities and trail linkages for recreational 
     trails;
       ``(C) purchase and lease of recreational trail construction 
     and maintenance equipment;
       ``(D) construction of new recreational trails, except that, 
     in the case of new recreational trails crossing Federal land, 
     construction of the trails shall be--
       ``(i) permissible under other law;
       ``(ii) necessary and recommended by a statewide 
     comprehensive outdoor recreation plan that is--

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

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

[[Page 10581]]

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

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

     SEC. 1604. EXEMPTION OF INTERSTATE SYSTEM.

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

     SEC. 1605. STANDARDS.

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

     SEC. 1606. USE OF HIGH OCCUPANCY VEHICLE LANES.

       Section 102 of title 23, United States Code, is amended by 
     striking subsection (a) and inserting the following:
       ``(a) High Occupancy Vehicle Lane Passenger Requirements.--
       ``(1) Definitions.--In this subsection:
       ``(A) Responsible agency.--The term `responsible agency' 
     means--
       ``(i) a State transportation department;
       ``(ii) a local agency in a State that is responsible for 
     transportation matters; and
       ``(iii) a public authority, or a public or private entity 
     designated by a State, to collect a toll from motor vehicles 
     at an eligible toll facility.
       ``(B) Seriously degraded.--The term `seriously degraded', 
     with respect to a high occupancy vehicle lane, means, in the 
     case of a high occupancy vehicle lane, the minimum average 
     operating speed, performance threshold, and associated time 
     period of the high occupancy vehicle lane, calculated and 
     determined jointly by all applicable responsible agencies and 
     based on conditions unique to the roadway, are 
     unsatisfactory.
       ``(2) Requirements.--
       ``(A) In general.--Subject to subparagraph (B), for each 
     State, 1 or more responsible agencies shall establish the 
     occupancy requirements of vehicles operating on high 
     occupancy vehicle lanes.
       ``(B) Minimum number of occupants.--Except as provided in 
     paragraph (3), an occupancy requirement established under 
     subparagraph (A) shall--
       ``(i) require at least 2 occupants per vehicle for a 
     vehicle operating on a high occupancy vehicle lane; and
       ``(ii) in the case of a high occupancy vehicle lane that 
     traverses an adjacent State, be established in consultation 
     with the adjacent State.
       ``(3) Exceptions to hov occupancy requirements.--
       ``(A) Motorcycles.--For the purpose of this subsection, a 
     motorcycle--
       ``(i) shall not be considered to be a single occupant 
     vehicle; and
       ``(ii) shall be allowed to use a high occupancy vehicle 
     lane unless a responsible agency--

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

       ``(II) restricts that the use of the high occupancy vehicle 
     lane by motorcycles.

       ``(B) Low emission and energy-efficient vehicles.--
       ``(i) Definition of low emission and energy-efficient 
     vehicle.--In this subparagraph, the term `low emission and 
     energy-efficient vehicle' means a vehicle that--

       ``(I) meets Tier II emission levels established in 
     regulations promulgated by the Administrator of the 
     Environmental Protection Agency under section 202(i) of the 
     Clean Air Act (42 U.S.C. 7521(i)) for that make and model 
     year; and
       ``(I)(aa) is certified by the Administrator of the 
     Environmental Protection Agency, in consultation with the 
     manufacturer, to have achieved not less than a 50-percent 
     increase in city fuel economy or not less than a 25-percent 
     increase in combined city-highway fuel economy relative to a 
     comparable vehicle that is an internal combustion gasoline 
     fueled vehicle (other than a vehicle that has propulsion 
     energy from onboard hybrid sources); or
       ``(bb) is a dedicated alternative fueled vehicle under 
     section 301 of the Energy Policy Act of 1992 (42 U.S.C. 
     13211).

       ``(ii) Comparable vehicle determination.--Not later than 
     180 days after the date of enactment of the Safe, Affordable, 
     Flexible, and Efficient Transportation Equity Act of 2005, 
     the Administrator of the Environmental Protection Agency, in 
     accordance with section 32908(b) of title 49, United States 
     Code, shall establish guidelines and procedures for making 
     the vehicle comparisons and performance calculations 
     described in clause (i)(I)(aa).
       ``(iii) HOV lane performance.--

       ``(I) In general.--The responsible agency may not permit 
     qualifying low emission and energy-efficient vehicles that do 
     not meet applicable occupancy requirements (as determined by 
     the responsible agency) to use high occupancy vehicle lanes 
     if the performance of the lanes is seriously degraded.
       ``(II) Management.--In managing the use of high occupancy 
     vehicle lanes by low emission and energy efficient vehicles 
     that do not meet applicable occupancy requirements, the 
     responsible agency may increase the percentages described in 
     clause (i)(I)(aa).

       ``(iv) Exemption for low emission and energy-efficient 
     vehicles.--A responsible agency may permit qualifying low 
     emission and energy-efficient vehicles that do not meet 
     applicable occupancy requirements (as determined by

[[Page 10582]]

     the responsible agency) to use high occupancy vehicle lanes 
     if the responsible agency--

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

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

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

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

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

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

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

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

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

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

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

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

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

     SEC. 1607. BICYCLE TRANSPORTATION AND PEDESTRIAN WALKWAYS.

       (a) In General.--Section 217 of title 23, United States 
     Code, is amended--
       (1) in subsection (a), by inserting ``pedestrian and'' 
     after ``safe'';
       (2) in subsection (e), by striking ``bicycles'' each place 
     it appears and inserting ``pedestrians or bicyclists'';
       (3) by striking subsection (f) and inserting the following:
       ``(f) Federal Share.--The Federal share of the construction 
     of bicycle transportation facilities and pedestrian walkways, 
     and for carrying out nonconstruction projects relating to 
     safe pedestrian and bicycle use, shall be determined in 
     accordance with section 120(b).'';
       (4) by redesignating subsection (j) as subsection (k);
       (5) by inserting after subsection (i) the following:
       ``(j) Bicycle and Pedestrian Safety Grants.--
       ``(1) In general.--The Secretary shall select and make 
     grants to a national, nonprofit organization engaged in 
     promoting bicycle and pedestrian safety--
       ``(A) to operate a national bicycle and pedestrian 
     clearinghouse;
       ``(B) to develop information and educational programs 
     regarding walking and bicycling; and
       ``(C) to disseminate techniques and strategies for 
     improving bicycle and pedestrian safety.
       ``(2) Funding.--The Secretary may use funds set aside under 
     section 104(n) to carry out this subsection.
       ``(3) Applicability of title 23.--Funds authorized to be 
     appropriated to carry out this subsection shall be available 
     for obligation in the same manner as if the funds were 
     apportioned under section 104, except that the funds shall 
     remain available until expended.''; and
       (6) in subsection (k) (as redesignated by paragraph (4))--
       (A) by redesignating paragraph (4) as paragraph (5); and
       (B) by inserting after paragraph (3) the following:
       ``(4) Shared use path.--The term `shared use path' means a 
     multiuse trail or other path that is--
       ``(A) physically separated from motorized vehicular traffic 
     by an open space or barrier, either within a highway right-
     of-way or within an independent right-of-way; and
       ``(B) usable for transportation purposes (including by 
     pedestrians, bicyclists, skaters, equestrians, and other 
     nonmotorized users).''.
       (b) Reservation of Funds.--Section 104 of title 23, United 
     States Code (as amended by section 1522), is amended by 
     adding at the end the following:
       ``(n) Bicycle and Pedestrian Safety Grants.--On October 1 
     of each of fiscal years 2005 through 2009, the Secretary, 
     after making the deductions authorized by subsections (a) and 
     (f), shall set aside $469,314 of the remaining funds 
     apportioned under subsection (b)(3) for use in carrying out 
     the bicycle and pedestrian safety grant program under section 
     217.''.

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

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

     SEC. 1609. TOLL PROGRAMS.

       (a) Interstate System Reconstruction and Rehabilitation 
     Pilot Program.--Section 1216(b) of the Transportation Equity 
     Act for the 21st Century (23 U.S.C. 129 note; 112 Stat. 
     212)--
       (1) is amended--
       (A) in paragraph (1)--
       (i) by striking ``The Secretary'' and inserting 
     ``Notwithstanding section 301, the Secretary''; and
       (ii) by striking ``that could not otherwise be adequately 
     maintained or functionally improved without the collection of 
     tolls'';
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Limitation.--The Secretary may permit the collection 
     of tolls under this subsection on 1 facility in the State of 
     Virginia.'';
       (C) in paragraph (3), by striking subparagraph (C) and 
     inserting the following:
       ``(C) An analysis demonstrating that financing the 
     reconstruction or rehabilitation of the facility with the 
     collection of tolls under this pilot program is the most 
     efficient, economical, or expeditious way to advance the 
     project.''; and
       (D) in paragraph (4)--
       (i) by striking subparagraph (A) and inserting the 
     following:
       ``(A) the State's analysis showing that financing the 
     reconstruction or rehabilitation of a facility with the 
     collection of tolls under the pilot

[[Page 10583]]

     program is the most efficient, economical, or expeditious way 
     to advance the project;'';
       (ii) by striking subparagraph (B) and inserting the 
     following:
       ``(B) the facility needs reconstruction or rehabilitation, 
     including major work that may require replacing sections of 
     the existing facility on new alignment;'';
       (iii) by striking subparagraph (C); and
       (iv) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D), respectively;
       (2) is redesignated as subsection (d) of section 129 of 
     title 23, United States Code, and moved to appear at the end 
     of that section; and
       (3) by striking ``of title 23, United States Code'' each 
     place it appears.
       (b) Fast and Sensible Toll (FAST) Lanes Program.--Section 
     129 of title 23, United States Code (as amended by subsection 
     (a)(2)), is amended by adding at the end the following:
       ``(e) Fast and Sensible Toll (FAST) Lanes Program.--
       ``(1) Definitions.--In this subsection:
       ``(A) Eligible toll facility.--The term `eligible toll 
     facility' includes--
       ``(i) a facility in existence on the date of enactment of 
     this subsection that collects tolls;
       ``(ii) a facility in existence on the date of enactment of 
     this subsection that serves high occupancy vehicles;
       ``(iii) a facility modified or constructed after the date 
     of enactment of this subsection to create additional tolled 
     capacity (including a facility constructed by a private 
     entity or using private funds); and
       ``(iv) in the case of a new lane added to a previously non-
     tolled facility, only the new lane.
       ``(B) Nonattainment area.--The term `nonattainment area' 
     has the meaning given the term in section 171 of the Clean 
     Air Act (42 U.S.C. 7501).
       ``(2) Establishment.--Notwithstanding sections 129 and 301, 
     the Secretary shall permit a State, public authority, or a 
     public or private entity designated by a State, to collect a 
     toll from motor vehicles at an eligible toll facility for any 
     highway, bridge, or tunnel, including facilities on the 
     Interstate System--
       ``(A) to manage high levels of congestion;
       ``(B) to reduce emissions in a nonattainment area or 
     maintenance area; or
       ``(C) to finance the expansion of a highway, for the 
     purpose of reducing traffic congestion, by constructing 1 or 
     more additional lanes (including bridge, tunnel, support, and 
     other structures necessary for that construction) on the 
     Interstate System.
       ``(3) Limitation on use of revenues.--
       ``(A) Use.--
       ``(i) In general.--Toll revenues received under paragraph 
     (2) shall be used by a State, public authority, or private 
     entity designated by a State, for--

       ``(I) debt service for debt incurred on 1 or more highway 
     or transit projects carried out under this title or title 49;
       ``(II) a reasonable return on investment of any private 
     financing;
       ``(III) the costs necessary for proper operation and 
     maintenance of any facilities under paragraph (2) (including 
     reconstruction, resurfacing, restoration, and 
     rehabilitation); or
       ``(IV) if the State, public authority, or private entity 
     annually certifies that the tolled facility is being 
     adequately operated and maintained, any other purpose 
     relating to a highway or transit project carried out under 
     this title or title 49.

       ``(B) Requirements.--
       ``(i) Variable price requirement.--A facility that charges 
     tolls under this subsection may establish a toll that varies 
     in price according to time of day or level of traffic, as 
     appropriate to manage congestion or improve air quality.
       ``(ii) HOV variable pricing requirement.--The Secretary 
     shall require, for each high occupancy vehicle facility that 
     charges tolls under this subsection, that the tolls vary in 
     price according to time of day or level of traffic, as 
     appropriate to manage congestion or improve air quality.
       ``(iii) HOV passenger requirements.--In addition to the 
     exceptions to the high occupancy vehicle passenger 
     requirements established under section 102(a)(2), a State may 
     permit motor vehicles with fewer than 2 occupants to operate 
     in high occupancy vehicle lanes as part of a variable toll 
     pricing program established under this subsection.
       ``(C) Agreement.--
       ``(i) In general.--Before the Secretary may permit a 
     facility to charge tolls under this subsection, the Secretary 
     and the applicable State, public authority, or private entity 
     designated by a State shall enter into an agreement for each 
     facility incorporating the conditions described in 
     subparagraphs (A) and (B).
       ``(ii) Termination.--An agreement under clause (i) shall 
     terminate with respect to a facility upon the decision of the 
     State, public authority, or private entity designated by a 
     State to discontinue the variable tolling program under this 
     subsection for the facility.
       ``(iii) Debt.--

       ``(I) In general.--If there is any debt outstanding on a 
     facility at the time at which the decision is made to 
     discontinue the program under this subsection with respect to 
     the facility, the facility may continue to charge tolls in 
     accordance with the terms of the agreement until such time as 
     the debt is retired.
       ``(II) Notice.--On retirement of the debt of a tolled 
     facility, the applicable State, public authority, or private 
     entity designated by a State shall provide notice to the 
     public of that retirement.

       ``(D) Limitation on federal share.--The Federal share of 
     the cost of a project on a facility tolled under this 
     subsection, including a project to install the toll 
     collection facility shall be a percentage, not to exceed 80 
     percent, determined by the applicable State.
       ``(4) Eligibility.--To be eligible to participate in the 
     program under this subsection, a State, public authority, or 
     private entity designated by a State shall provide to the 
     Secretary--
       ``(A) a description of the congestion or air quality 
     problems sought to be addressed under the program;
       ``(B) a description of--
       ``(i) the goals sought to be achieved under the program; 
     and
       ``(ii) the performance measures that would be used to gauge 
     the success made toward reaching those goals; and
       ``(C) such other information as the Secretary may require.
       ``(5) Automation.--Fees collected from motorists using a 
     FAST lane shall be collected only through the use of noncash 
     electronic technology that optimizes the free flow of traffic 
     on the tolled facility.
       ``(6) Interoperability.--
       ``(A) Rule.--
       ``(i) In general.--Not later than 180 days after the date 
     of enactment of this paragraph, the Secretary shall 
     promulgate a final rule specifying requirements, standards, 
     or performance specifications for automated toll collection 
     systems implemented under this section.
       ``(ii) Development.--In developing that rule, which shall 
     be designed to maximize the interoperability of electronic 
     collection systems, the Secretary shall, to the maximum 
     extent practicable--

       ``(I) seek to accelerate progress toward the national goal 
     of achieving a nationwide interoperable electronic toll 
     collection system;
       ``(II) take into account the use of noncash electronic 
     technology currently deployed within an appropriate 
     geographical area of travel and the noncash electronic 
     technology likely to be in use within the next 5 years; and
       ``(III) seek to minimize additional costs and maximize 
     convenience to users of toll facility and to the toll 
     facility owner or operator.

       ``(B) Future modifications.--As the state of technology 
     progresses, the Secretary shall modify the rule promulgated 
     under subparagraph (A), as appropriate.
       ``(7) Reporting.--
       ``(A) In general.--The Secretary, in cooperation with State 
     and local agencies and other program participants and with 
     opportunity for public comment, shall--
       ``(i) develop and publish performance goals for each FAST 
     lane project;
       ``(ii) establish a program for regular monitoring and 
     reporting on the achievement of performance goals, 
     including--

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

       ``(B) Reports to congress.--The Secretary shall submit to 
     the Committee on Environment and Public Works of the Senate 
     and the Committee on Transportation and Infrastructure of the 
     House of Representatives--
       ``(i) not later than 1 year after the date of enactment of 
     this subsection, and annually thereafter, a report that 
     describes in detail the uses of funds under this subsection 
     in accordance with paragraph (8)(D); and
       ``(ii) not later than 3 years after the date of enactment 
     of this subsection, and every 3 years thereafter, a report 
     that describes any success of the program under this 
     subsection in meeting congestion reduction and other 
     performance goals established for FAST lane programs.
       ``(8) Funding.--
       ``(A) Authorization of appropriations.--There is authorized 
     to be appropriated from the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out pre-implementation 
     studies and post-implementation evaluations of projects 
     planned or implemented under this subsection $10,324,918 for 
     each of fiscal years 2005 through 2009.
       ``(B) Availability.--Funds allocated by the Secretary to a 
     State under this subsection shall remain available for 
     obligation by the State for a period of 3 years after the 
     last day of the fiscal year for which the funds were 
     authorized.
       ``(C) Contract authority.--Funds authorized to be 
     appropriated under this paragraph shall be available for 
     obligation in the same manner as if the funds were 
     apportioned under this chapter, except that the Federal share 
     of the cost of any project carried out under this subsection 
     and the availability of funds authorized by this paragraph 
     shall be determined in accordance with this subsection.
       ``(D) Program promotion.--Notwithstanding any other 
     provision of this section, the Secretary shall use an amount 
     not to exceed 2 percent of the funds made available under 
     subparagraph (A)--
       ``(i) to make grants to promote the purposes of the program 
     under this subsection;
       ``(ii) to provide technical support to State and local 
     governments or other public or private entities involved in 
     implementing or considering FAST lane programs; and
       ``(iii) to conduct research on variable pricing that will 
     support State or local efforts to initiate those pricing 
     requirements.
       ``(E) Effect on other apportionments and allocations.--
     Revenues collected from tolls established under this 
     subsection shall not be

[[Page 10584]]

      taken into account in determining the apportionments and 
     allocations that any State or transportation district within 
     a State shall be entitled to receive under or in accordance 
     with this chapter.
       ``(9) Compliance.--The Secretary shall ensure that any 
     project or activity carried out under this section complies 
     with requirements under section 106 of this title and section 
     307 of title 49.
       ``(10) Voluntary use.--Nothing in this subsection requires 
     any highway user to use a FAST lane.
       ``(11) Environmental requirements.--Nothing in this 
     subsection affects any environmental requirement applicable 
     to the construction or operation of an eligible toll facility 
     under this title or any other provision of law.''.
       (c) Conforming Amendments.--
       (1) In general.--Section 1012 of the Intermodal Surface 
     Transportation Efficiency Act (23 U.S.C. 149 note; 105 Stat. 
     1938; 112 Stat. 211) is amended by striking subsection (b).
       (2) Continuation of program.--Notwithstanding the amendment 
     made by paragraph (1), the Secretary shall monitor and allow 
     any value pricing program established under a cooperative 
     agreement in effect on the day before the date of enactment 
     of this Act to continue.

     SEC. 1610. FEDERAL REFERENCE METHOD.

       (a) In General.--Section 6102 of the Transportation Equity 
     Act for the 21st Century (42 U.S.C. 7407 note; 112 Stat. 464) 
     is amended by striking subsection (e) and inserting the 
     following:
       ``(e) Field Study.--Not later than 2 years after the date 
     of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005, the 
     Administrator shall--
       ``(1) conduct a field study of the ability of the 
     PM2.5 Federal Reference Method to differentiate 
     those particles that are larger than 2.5 micrometers in 
     diameter;
       ``(2) develop a Federal reference method to measure 
     directly particles that are larger than 2.5 micrometers in 
     diameter without reliance on subtracting from coarse particle 
     measurements those particles that are equal to or smaller 
     than 2.5 micrometers in diameter;
       ``(3) develop a method of measuring the composition of 
     coarse particles; and
       ``(4) submit a report on the study and responsibilities of 
     the Administrator under paragraphs (1) through (3) to--
       ``(A) the Committee on Commerce of the House of 
     Representatives; and
       ``(B) the Committee on Environment and Public Works of the 
     Senate.''.

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

       (a) In General.--Section 104(b)(2) of title 23, United 
     States Code, is amended--
       (1) in subparagraph (B)--
       (A) in the matter preceding clause (i), by striking ``ozone 
     or carbon monoxide'' and inserting ``ozone, carbon monoxide, 
     or fine particulate matter (PM2.5)'';
       (B) by striking clause (i) and inserting the following:
       ``(i) 1.0, if at the time of apportionment, the area is a 
     maintenance area;'';
       (C) in clause (vi), by striking ``or'' after the semicolon; 
     and
       (D) in clause (vii)--
       (i) by striking ``area as described in section 149(b) for 
     ozone,'' and inserting ``area for ozone (as described in 
     section 149(b) or for PM-2.5''; and
       (ii) by striking the period at the end and inserting a 
     semicolon;
       (2) by adding at the end the following:
       ``(viii) 1.0 if, at the time of apportionment, any county 
     that is not designated as a nonattainment or maintenance area 
     under the 1-hour ozone standard is designated as 
     nonattainment under the 8-hour ozone standard; or
       ``(ix) 1.2 if, at the time of apportionment, the area is 
     not a nonattainment or maintenance area as described in 
     section 149(b) for ozone or carbon monoxide, but is an area 
     designated nonattainment under the PM-2.5 standard.'';
       (3) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Additional adjustment for carbon monoxide areas.--If, 
     in addition to being designated as a nonattainment or 
     maintenance area for ozone as described in section 149(b), 
     any county within the area was also classified under subpart 
     3 of part D of title I of the Clean Air Act (42 U.S.C. 7512 
     et seq.) as a nonattainment or maintenance area described in 
     section 149(b) for carbon monoxide, the weighted 
     nonattainment or maintenance area population of the county, 
     as determined under clauses (i) through (vi) or clause (viii) 
     of subparagraph (B), shall be further multiplied by a factor 
     of 1.2.'';
       (4) by redesignating subparagraph (D) and (E) as 
     subparagraphs (E) and (F) respectively; and
       (5) by inserting after subparagraph (C) the following:
       ``(D) Additional adjustment for pm 2.5 areas.--If, in 
     addition to being designated as a nonattainment or 
     maintenance area for ozone or carbon monoxide, or both as 
     described in section 149(b), any county within the area was 
     also designated under the PM-2.5 standard as a nonattainment 
     or maintenance area, the weighted nonattainment or 
     maintenance area population of those counties shall be 
     further multiplied by a factor of 1.2.''.
       (b) Conforming Amendment.--Section 149(c)(2) of title 23, 
     United States Code, is amended by striking ``104(b)(2)(D)'' 
     and inserting ``104(b)(2)(E)''.

     SEC. 1612. ADDITION TO CMAQ-ELIGIBLE PROJECTS.

       (a) Eligible Projects.--Section 149(b) of title 23, United 
     States Code, is amended--
       (1) in paragraph (4), by striking ``or'' at the end;
       (2) in paragraph (5), by striking the period at the end and 
     inserting 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;
       ``(7) if the project or program involves the purchase of 
     integrated, interoperable emergency communications equipment; 
     or
       ``(8) if the project or program is for--
       ``(A) diesel retrofit technologies that are--
       ``(i) for motor vehicles (as defined in section 216 of the 
     Clean Air Act (42 U.S.C. 7550)); or
       ``(ii) published in the list under subsection (f)(5) for 
     non-road vehicles and non-road engines (as defined in section 
     216 of the Clean Air Act (42 U.S.C. 7550)) that are used in 
     construction projects that are--

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

       ``(B) outreach activities that are designed to provide 
     information and technical assistance to the owners and 
     operators of diesel equipment and vehicles regarding the 
     emission reduction strategy.''.
       (b) States Receiving Minimum Apportionment.--Section 149(c) 
     of title 23, United States Code, is amended--
       (1) in paragraph (1), by striking ``for any project 
     eligible under the surface transportation program under 
     section 133.'' and inserting the following: ``for any project 
     in the State that--
       ``(A) would otherwise be eligible under this section as if 
     the project were carried out in a nonattainment or 
     maintenance area; or
       ``(B) is eligible under the surface transportation program 
     under section 133.''; and
       (2) in paragraph (2), by striking ``for any project in the 
     State eligible under section 133.'' and inserting the 
     following: ``for any project in the State that--
       ``(A) would otherwise be eligible under this section as if 
     the project were carried out in a nonattainment or 
     maintenance area; or
       ``(B) is eligible under the surface transportation program 
     under section 133.''.
       (c) Responsibility of States.--Section 149 of title 23, 
     United States Code, is amended by adding at the end the 
     following:
       ``(f) Cost-Effective Emission Reduction Strategies.--
       ``(1) Definitions.--In this subsection:
       ``(A) Administrator.--The term `Administrator' means the 
     Administrator of the Environmental Protection Agency.
       ``(B) Cmaq resources.--The term `CMAQ resources' means 
     resources available to a State to carry out the congestion 
     mitigation and air quality improvement program under this 
     section.
       ``(C) Diesel retrofit technology.--The term `diesel 
     retrofit technology' means a replacement, repowering, 
     rebuilding, after treatment, or other technology, as 
     determined by the Administrator.
       ``(2) Emission reduction strategies.--Each State shall 
     develop, implement, and periodically revise emission 
     reduction strategies comprised of any methods determined to 
     be appropriate by the State that are consistent with section 
     209 of the Clean Air Act (42 U.S.C. 7542) for engines and 
     vehicles that are used in construction projects that are--
       ``(A) located in nonattainment areas for ozone, 
     PM10, or PM2.5 (as defined under the 
     Clean Air Act (42 U.S.C. 7401 et seq.)); and
       ``(B) funded, in whole or in part, under this title.
       ``(3) State considerations.--In developing emission 
     reduction strategies, each State--
       ``(A) may include any means to reduce emissions that are 
     determined to be appropriate by the State; but
       ``(B) shall--
       ``(i) consider guidance issued by the Administrator under 
     paragraph (5);
       ``(ii) limit technologies to those identified by the 
     Administrator under paragraph (5);
       ``(iii) provide contractors with guidance and technical 
     assistance regarding the implementation of emission reduction 
     strategies;
       ``(iv) give special consideration to small businesses that 
     participate in projects funded under this title;
       ``(v) place priority on the use of--

       ``(I) diesel retrofit technologies and activities;
       ``(II) cost-effective strategies;
       ``(III) financial incentives using CMAQ resources and State 
     resources; and
       ``(IV) strategies that maximize health benefits; and

       ``(vi) not include any activities prohibited by paragraph 
     (4).
       ``(4) State limitations.--Emission reduction strategies may 
     not--
       ``(A) authorize or recommend the use of bans on equipment 
     or vehicle use during specified periods of a day;
       ``(B) authorize or recommend the use of contract procedures 
     that would require retrofit activities, unless funds are made 
     available by the State under this section or other State 
     authority to offset the cost of those activities; or
       ``(C) authorize the use of contract procedures that would 
     discriminate between bidders on the basis of a bidder's 
     existing equipment or existing vehicle emission technology.

[[Page 10585]]

       ``(5) Emission reduction strategy guidance.--The 
     Administrator, in consultation with the Secretary, shall 
     publish a nonbinding list of emission reduction strategies 
     and supporting technical information for--
       ``(A) diesel emission reduction technologies certified or 
     verified by the Administrator, the California Air Resources 
     Board, or any other entity recognized by the Administrator 
     for the same purpose;
       ``(B) diesel emission reduction technologies identified by 
     the Administrator as having an application and approvable 
     test plan for verification by the Administrator or the 
     California Air Resources board that is submitted not later 
     that 18 months of the date of enactment of this Act;
       ``(C) available information regarding the emission 
     reduction effectiveness and cost effectiveness of 
     technologies identified in this paragraph, taking into 
     consideration health effects;
       ``(D) options and recommendations for the structure and 
     content of emission reduction strategies including--
       ``(i) emission reduction performance criteria;
       ``(ii) financial incentives that use CMAQ resources and 
     State resources;
       ``(iii) procedures to facilitate access by contractors to 
     financial incentives;
       ``(iv) contract incentives, allowances, and procedures;
       ``(v) methods of voluntary emission reductions; and
       ``(vi) other means that may be employed to reduce emissions 
     from construction activities; and
       ``(6) Priority.--States and metropolitan planning 
     organizations shall give priority in distributing funds 
     received for congestion management and air quality projects 
     and programs to finance of diesel retrofit and cost-effective 
     emission reduction activities identified by States in the 
     emission reduction strategies developed under this 
     subsection.
       ``(7) No effect on authority or restrictions.--Nothing in 
     this subsection modifies any authority or restriction 
     established under the Clean Air Act (42 U.S.C. 7401 et 
     seq.).''.
       (d) Availability of Funds for the State of Maine.--In 
     addition to other eligible uses, the State of Maine may use 
     funds apportioned under section 104(b)(2) to support, through 
     September 30, 2009, the operation of passenger rail service 
     between Boston, Massachusetts, and Portland, Maine.
       (e) Responsibility of the State of Montana.--In addition to 
     other eligible uses, the State of Montana may use funds 
     apportioned under section 104(b)(2) for the operation of 
     public transit activities that serve a nonattainment or 
     maintenance area.

     SEC. 1613. IMPROVED INTERAGENCY CONSULTATION.

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

     SEC. 1614. EVALUATION AND ASSESSMENT OF CMAQ PROJECTS.

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

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

       (a) Metropolitan Planning.--
       (1) Development of long-range transportation plan.--Section 
     134(g)(1) of title 23, United States Code, is amended by 
     striking ``periodically, according to a schedule that the 
     Secretary determines to be appropriate,'' and inserting 
     ``every 4 years (or more frequently, in a case in which the 
     metropolitan planning organization elects to update a 
     transportation plan more frequently) in areas designated as 
     nonattainment, as defined in section 107(d) of the Clean Air 
     Act (42 U.S.C. 7407(d)), and in areas that were nonattainment 
     that have been redesignated to attainment in accordance with 
     section 107(d)(3) of that Act (42 U.S.C. 7407(d)(3)), with a 
     maintenance plan under section 175A of that Act (42 U.S.C. 
     7505a), or every 5 years (or more frequently, in a case in 
     which the metropolitan planning organization elects to update 
     a transportation plan more frequently) in areas designated as 
     attainment (as defined in section 107(d) of that Act (42 
     U.S.C. 7407(d))),''.
       (2) Metropolitan transportation improvement program.--
     Section 134(h) of title 23, United States Code, is amended--
       (A) in paragraph (1)(D), by striking ``2 years'' and 
     inserting ``4 years''; and
       (B) in paragraph (2)(A), by striking ``3-year'' and 
     inserting ``4-year''.
       (3) Statewide transportation improvement program.--Section 
     135(f)(1)(A) of title 23, United States Code, is amended by 
     inserting after ``program'' the following: ``(which program 
     shall cover a period of 4 years and be updated every 4 
     years)''.
       (4) Final regulations.--Not later than 18 months after the 
     date of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005, the Secretary 
     shall promulgate regulations that are consistent with the 
     amendments made by this subsection.
       (b) Synchronized Conformity Determination.--Section 176(c) 
     of the Clean Air Act (42 U.S.C. 7506(c)) is amended--
       (1) in paragraph (2)--
       (A) by striking ``(2) Any transportation plan'' and 
     inserting the following:
       ``(2) Transportation plans and programs.--Any 
     transportation plan'';
       (B) in subparagraph (C)(iii), by striking the period at the 
     end and inserting a semicolon;
       (C) in subparagraph (D)--
       (i) by striking ``Any project'' and inserting ``any 
     transportation project''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (D) by adding at the end the following:
       ``(E) the appropriate metropolitan planning organization 
     shall redetermine conformity of existing transportation plans 
     and programs not later than 2 years after the date on which 
     the Administrator--
       ``(i) finds a motor vehicle emissions budget to be adequate 
     in accordance with section 93.118(e)(4) of title 40, Code of 
     Federal Regulations (as in effect on October 1, 2004);
       ``(ii) approves an implementation plan that establishes a 
     motor vehicle emissions budget, if that budget has not yet 
     been used in a conformity determination prior to approval; or
       ``(iii) promulgates an implementation plan that establishes 
     or revises a motor vehicle emissions budget.'';
       (2) in paragraph (4)(B)(ii), by striking ``but in no case 
     shall such determinations for transportation plans and 
     programs be less frequent than every 3 years; and'' and 
     inserting ``but the frequency for making conformity 
     determinations on updated transportation plans and programs 
     shall be every 4 years, except in a case in which--

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

       (3) in paragraph (4)(B)--
       (A) in clause (ii), by striking ``and'' at the end;
       (B) in clause (iii), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(iv) address the effects of the most recent population, 
     economic, employment, travel, transit ridership, congestion, 
     and induced travel demand information in the development and 
     application of the latest travel and emissions models.''; and
       (4) by adding at the end the following:
       ``(7) Conformity horizon for transportation plans.--
       ``(A) In general.--For the purposes of this section, a 
     transportation plan in a nonattainment or maintenance area 
     shall be considered to be a transportation plan or a portion 
     of a transportation plan that extends for the longest of the 
     following periods:
       ``(i) The first 10-year period of any such transportation 
     plan.
       ``(ii) The latest year in the implementation plan 
     applicable to the area that contains a motor vehicle emission 
     budget.
       ``(iii) The year after the completion date of a regionally 
     significant project, if the project requires approval before 
     the subsequent conformity determination.
       ``(B) Exception.--In a case in which an area has a revision 
     to an implementation plan under section 175A(b) and the 
     Administrator has found the motor vehicle emissions budgets 
     from that revision to be adequate in accordance with section 
     93.118(e)(4) of title 40, Code of Federal Regulations (as in 
     effect on October 1, 2004), or has approved the revision, the 
     transportation plan shall be considered to be a 
     transportation plan or portion of a transportation plan that 
     extends through the last year of the implementation plan 
     required under section 175A(b).
       ``(8) Definitions.--In this subsection:
       ``(A) Regionally significant project.--
       ``(i) In general.--The term `regionally significant 
     project' means a transportation project that is on a facility 
     that serves a regional transportation need, including--

       ``(I) access to and from the area outside of the region;
       ``(II) access to and from major planned developments, 
     including new retail malls, sports complexes, or 
     transportation terminals; and
       ``(III) most transportation terminals.

       ``(ii) Principal arterials and fixed guideways.--The term 
     `regionally significant project' includes, at a minimum--

[[Page 10586]]

       ``(I) all principal arterial highways; and
       ``(II) all fixed guideway transit facilities that offer an 
     alternative to regional highway travel.

       ``(iii) Additional projects.--The interagency consultation 
     process and procedures described in section 93.105(c) of 
     title 40, Code of Federal Regulations (as in effect on 
     October 1, 2004), shall be used to make determinations as to 
     whether minor arterial highways and other transportation 
     projects should be considered `regionally significant 
     projects'.
       ``(iv) Exclusions.--The term `regionally significant 
     project' does not include any project of a type listed in 
     sections 93.126 or 127 of title 40, Code of Federal 
     Regulations (as in effect on October 1, 2004).
       ``(B) Significant revision.--The term `significant 
     revision' means--
       ``(i) with respect to a regionally significant project, a 
     significant change in design concept or scope to the project; 
     and
       ``(ii) with respect to any other kind of project, a change 
     that converts a project that is not a regionally significant 
     project into a regionally significant project.
       ``(C) Transportation project.--The term `transportation 
     project' includes only a project that is--
       ``(i) a regionally significant project; or
       ``(ii) a project that makes a significant revision to an 
     existing project.''.

     SEC. 1616. TRANSITION TO NEW AIR QUALITY STANDARDS.

       Section 176(c) of the Clean Air Act (42 U.S.C. 7506(c)) is 
     amended by striking paragraph (3) and inserting the 
     following:
       ``(3) Methods of conformity determination before budget is 
     available.--
       ``(A) In general.--Until such time as a motor vehicle 
     emission budget from an implementation plan submitted for a 
     national ambient air quality standard is determined to be 
     adequate in accordance with section 93.118(e)(4) of title 40, 
     Code of Federal Regulations (as in effect on October 1, 
     2004), or the submitted implementation plan is approved, 
     conformity of such a plan, program, or project shall be 
     demonstrated, in accordance with clauses (i) and (ii) and as 
     selected through the consultation process required under 
     paragraph (4)(D)(i), with--
       ``(i) a motor vehicle emission budget that has been found 
     adequate in accordance with section 93.118(e)(4) of title 40, 
     Code of Federal Regulations (as in effect on October 1, 
     2004), or that has been approved, from an implementation plan 
     for the most recent prior applicable national ambient air 
     quality standard addressing the same pollutant; or
       ``(ii) other such tests as the Administrator shall 
     determine to ensure that--

       ``(I) the transportation plan or program--

       ``(aa) is consistent with the most recent estimates of 
     mobile source emissions;
       ``(bb) provides for the expeditious implementation of 
     transportation control measures in the applicable 
     implementation plan; and
       ``(cc) with respect to an ozone or carbon monoxide 
     nonattainment area, contributes to annual emissions 
     reductions consistent with sections 182(b)(1) and 187(a)(7); 
     and

       ``(II) the transportation project--

       ``(aa) comes from a conforming transportation plan and 
     program described in this subparagraph; and
       ``(bb) in a carbon monoxide nonattainment area, eliminates 
     or reduces the severity and number of violations of the 
     carbon monoxide standards in the area substantially affected 
     by the project.
       ``(B) Determination for a transportation project in a 
     carbon monoxide nonattainment area.--A determination under 
     subparagraph (A)(ii)(II)(bb) may be made as part of either 
     the conformity determination for the transportation program 
     or for the individual transportation project taken as a whole 
     during the environmental review phase of transportation 
     project development.''.

     SEC. 1617. REDUCED BARRIERS TO AIR QUALITY IMPROVEMENTS.

       Section 176(c) of the Clean Air Act (42 U.S.C. 7506(c)) (as 
     amended by section 1615(b)(4)) is amended--
       (1) by redesignating paragraph (8) as paragraph (9); and
       (2) by inserting after paragraph (7) the following:
       ``(8) Substitution for transportation control measures.--
       ``(A) In general.--Transportation control measures that are 
     specified in an implementation plan may be replaced or added 
     to the implementation plan with alternate or additional 
     transportation control measures if--
       ``(i) the substitute measures achieve equivalent or greater 
     emissions reductions than the control measure to be replaced, 
     as demonstrated with an analysis that is consistent with the 
     current methodology used for evaluating the replaced control 
     measure in the implementation plan;
       ``(ii) the substitute control measures are implemented--

       ``(I) in accordance with a schedule that is consistent with 
     the schedule provided for control measures in the 
     implementation plan; or
       ``(II) if the implementation plan date for implementation 
     of the control measure to be replaced has passed, as soon as 
     practicable after the implementation plan date but not later 
     than the date on which emission reductions are necessary to 
     achieve the purpose of the implementation plan;

       ``(iii) the substitute and additional control measures are 
     accompanied with evidence of adequate personnel, funding, and 
     authority under State or local law to implement, monitor, and 
     enforce the control measures;
       ``(iv) the substitute and additional control measures were 
     developed through a collaborative process that included--

       ``(I) participation by representatives of all affected 
     jurisdictions (including local air pollution control 
     agencies, the State air pollution control agency, and State 
     and local transportation agencies);
       ``(II) consultation with the Administrator; and
       ``(III) reasonable public notice and opportunity for 
     comment; and

       ``(v) the metropolitan planning organization, State air 
     pollution control agency, and the Administrator concur with 
     the equivalency of the substitute or additional control 
     measures.
       ``(B) Adoption.--After carrying out subparagraph (A), a 
     State shall adopt the substitute or additional transportation 
     control measure in the applicable implementation plan.
       ``(C) No requirement for express permission.--The 
     substitution or addition of a transportation control measure 
     in accordance with this paragraph shall not be contingent on 
     there being any provision in the implementation plan that 
     expressly permits such a substitution or addition.
       ``(D) No requirement for new conformity determination.--The 
     substitution or addition of a transportation control measure 
     in accordance with this paragraph shall not require--
       ``(i) a new conformity determination for the transportation 
     plan; or
       ``(ii) a revision of the implementation plan.
       ``(E) Continuation of control measure being replaced.--A 
     control measure that is being replaced by a substitute 
     control measure under this paragraph shall remain in effect 
     until the substitute control measure is adopted by the State 
     pursuant to subparagraph (B).
       ``(F) Effect of adoption.--Adoption of a substitute control 
     measure shall constitute rescission of the previously 
     applicable control measure.''.

     SEC. 1618. AIR QUALITY MONITORING DATA INFLUENCED BY 
                   EXCEPTIONAL EVENTS.

       (a) In General.--Section 319 of the Clean Air Act (42 
     U.S.C. 7619) is amended--
       (1) by striking the section heading and all that follows 
     through ``after notice and opportunity for public hearing'' 
     and inserting the following:

     ``SEC. 319. AIR QUALITY MONITORING.

       ``(a) In General.--After notice and opportunity for public 
     hearing''; and
       (2) by adding at the end the following:
       ``(b) Air Quality Monitoring Data Influenced by Exceptional 
     Events.--
       ``(1) Definition of exceptional event.--In this section:
       ``(A) In general.--The term `exceptional event' means an 
     event that--
       ``(i) affects air quality;
       ``(ii) is not reasonably controllable or preventable;
       ``(iii) is--

       ``(I) a natural event; or
       ``(II) an event caused by human activity that is unlikely 
     to recur at a particular location; and

       ``(iv) is determined by the Administrator through the 
     process established in the regulations promulgated under 
     paragraph (2) to be an exceptional event.
       ``(B) Exclusions.--The term `exceptional event' does not 
     include--
       ``(i) stagnation of air masses or meteorological 
     inversions;
       ``(ii) a meteorological event involving high temperatures 
     or lack of precipitation; or
       ``(iii) air pollution relating to source noncompliance.
       ``(2) Regulations.--
       ``(A) Proposed regulations.--Not later than March 1, 2006, 
     after consultation with Federal land managers and State air 
     pollution control agencies, the Administrator shall publish 
     in the Federal Register proposed regulations governing the 
     review and handling of air quality monitoring data influenced 
     by exceptional events.
       ``(B) Final regulations.--Not later than 1 year after the 
     date on which the Administrator publishes proposed 
     regulations under subparagraph (A), and after providing an 
     opportunity for interested persons to make oral presentations 
     of views, data, and arguments regarding the proposed 
     regulations, the Administrator shall promulgate final 
     regulations governing the review and handling or air quality 
     monitoring data influenced by an exceptional event that are 
     consistent with paragraph (3).
       ``(3) Principles and requirements.--
       ``(A) Principles.--In promulgating regulations under this 
     section, the Administrator shall follow--
       ``(i) the principle that protection of public health is the 
     highest priority;
       ``(ii) the principle that timely information should be 
     provided to the public in any case in which the air quality 
     is unhealthy;
       ``(iii) the principle that all ambient air quality data 
     should be included in a timely manner, an appropriate Federal 
     air quality database that is accessible to the public;
       ``(iv) the principle that each State must take necessary 
     measures to safeguard public health regardless of the source 
     of the air pollution; and
       ``(v) the principle that air quality data should be 
     carefully screened to ensure that events not likely to recur 
     are represented accurately in all monitoring data and 
     analyses.
       ``(B) Requirements.--Regulations promulgated under this 
     section shall, at a minimum, provide that--

[[Page 10587]]

       ``(i) the occurrence of an exceptional event must be 
     demonstrated by reliable, accurate data that is promptly 
     produced and provided by Federal, State, or local government 
     agencies;
       ``(ii) a clear causal relationship must exist between the 
     measured exceedances of a national ambient air quality 
     standard and the exceptional event to demonstrate that the 
     exceptional event caused a specific air pollution 
     concentration at a particular air quality monitoring 
     location;
       ``(iii) there is a public process for determining whether 
     an event is exceptional; and
       ``(iv) there are criteria and procedures for the Governor 
     of a State to petition the Administrator to exclude air 
     quality monitoring data that is directly due to exceptional 
     events from use in determinations by the Environmental 
     Protection Agency with respect to exceedances or violations 
     of the national ambient air quality standards.
       ``(4) Interim provision.--Until the effective date of a 
     regulation promulgated under paragraph (2), the following 
     guidance issued by the Administrator shall continue to apply:
       ``(A) Guidance on the identification and use of air quality 
     data affected by exceptional events (July 1986).
       ``(B) Areas affected by PM-10 natural events, May 30, 1996.
       ``(C) Appendices I, K, and N to part 50 of title 40, Code 
     of Federal Regulations.''.

     SEC. 1619. CONFORMING AMENDMENTS.

       Section 176(c)(4) of the Clean Air Act (42 U.S.C. 
     7506(c)(4) is amended--
       (1) by redesignating subparagraphs (B) through (D) as 
     subparagraphs (D) through (F), respectively;
       (2) by striking ``(4)(A) No later than one year after the 
     date of enactment of the Clean Air Act Amendments of 1990, 
     the Administrator shall promulgate'' and inserting the 
     following:
       ``(4) Criteria and procedures for determining conformity.--
       ``(A) In general.--The Administrator shall promulgate, and 
     periodically update,'';
       (3) in subparagraph (A)--
       (A) in the second sentence, by striking ``No later than one 
     year after such date of enactment, the Administrator, with 
     the concurrence of the Secretary of Transportation, shall 
     promulgate'' and inserting the following:
       ``(B) Transportation plans, programs, and projects.--The 
     Administrator, with the concurrence of the Secretary of 
     Transportation, shall promulgate, and periodically update,''; 
     and
       (B) in the third sentence, by striking ``A suit'' and 
     inserting the following:
       ``(C) Civil action to compel promulgation.--A civil 
     action''; and
       (4) by striking subparagraph (E) (as redesignated by 
     paragraph (1)) and inserting the following:
       ``(E) Inclusion of criteria and procedures in sip.--Not 
     later than 2 years after the date of enactment of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2005, the procedures under subparagraph (A) shall 
     include a requirement that each State include in the State 
     implementation plan criteria and procedures for consultation 
     in accordance with the Administrator's criteria and 
     procedures for consultation required by subparagraph 
     (D)(i).''.

     SEC. 1620. HIGHWAY STORMWATER DISCHARGE MITIGATION PROGRAM.

       (a) Highway Stormwater Mitigation Projects.--Section 133(d) 
     of title 23, United States Code (as amended by section 
     1401(a)(2)(B)), is amended by adding at the end the 
     following:
       ``(5) Highway stormwater discharge mitigation projects.--Of 
     the amount apportioned to a State under section 104(b)(3) for 
     a fiscal year, 2 percent shall be available only for projects 
     and activities carried out under section 167.''.
       (b) Highway Stormwater Discharge Mitigation Program.--
     Subchapter I of chapter 1 of title 23, United States Code (as 
     amended by section 1601(a)), is amended by adding at the end 
     the following:

     ``Sec. 167. Highway stormwater discharge mitigation program

       ``(a) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Environmental Protection Agency.
       ``(2) Eligible mitigation project.--The term `eligible 
     mitigation project' means a practice or technique that--
       ``(A) improves stormwater discharge water quality;
       ``(B) attains preconstruction hydrology;
       ``(C) promotes infiltration of stormwater into groundwater;
       ``(D) recharges groundwater;
       ``(E) minimizes stream bank erosion;
       ``(F) promotes natural filters;
       ``(G) otherwise mitigates water quality impacts of highway 
     stormwater discharges, improves surface water quality, or 
     enhances groundwater recharge; or
       ``(H) reduces flooding caused by highway stormwater 
     discharge.
       ``(3) Federal-aid highway and associated facility.--The 
     term `Federal-aid highway and associated facility' means--
       ``(A) a Federal-aid highway; or
       ``(B) a facility or land owned by a State (or political 
     subdivision of a State) that is directly associated with the 
     Federal-aid highway.
       ``(4) Highway stormwater discharge.--The term `highway 
     stormwater discharge' means stormwater discharge from a 
     Federal-aid highway, or a Federal-aid highway and associated 
     facility, that was constructed before the date of enactment 
     of this section.
       ``(5) Highway stormwater discharge mitigation.--The term 
     `highway stormwater discharge mitigation' means--
       ``(A) the reduction of water quality impacts of stormwater 
     discharges from Federal-aid highways or Federal-aid highways 
     and associated facilities; or
       ``(B) the enhancement of groundwater recharge from 
     stormwater discharges from Federal-aid highways or Federal-
     aid highways and associated facilities.
       ``(6) Program.--The term `program' means the highway 
     stormwater discharge mitigation program established under 
     subsection (b).
       ``(b) Establishment.--The Secretary shall establish a 
     highway stormwater discharge mitigation program--
       ``(1) to improve the quality of stormwater discharge from 
     Federal-aid highways or Federal-aid highways and associated 
     facilities; and
       ``(2) to enhance groundwater recharge.
       ``(c) Priority of Projects.--For projects funded from the 
     allocation under section 133(d)(6), a State shall give 
     priority to projects sponsored by a State or local government 
     that assist the State or local government in complying with 
     the Federal Water Pollution Control Act (33 U.S.C. 1251 et 
     seq.).
       ``(d) Guidance.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this section, the Secretary, in consultation 
     with the Administrator, shall issue guidance to assist States 
     in carrying out this section.
       ``(2) Requirements for guidance.--The guidance issued under 
     paragraph (1) shall include information concerning innovative 
     technologies and nonstructural best management practices to 
     mitigate highway stormwater discharges.''.
       (c) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1601(b), is amended by inserting after the item 
     relating to section 166 the following:

``167. Highway stormwater discharge mitigation program.''.

     SEC. 1621. FEDERAL PROCUREMENT OF RECYCLED COOLANT.

       (a) In General.--Not later than 90 days after the date of 
     enactment of this Act, the President shall conduct a review 
     of Federal procurement policy of off-site recycled coolant.
       (b) Elements.--In conducting the review under subsection 
     (a), the President shall consider recycled coolant produced 
     from processes that--
       (1) are energy efficient;
       (2) generate no hazardous waste (as defined in section 1004 
     of the Solid Waste Disposal Act (42 U.S.C. 6903));
       (3) produce no emissions of air pollutants;
       (4) present lower health and safety risks to employees at a 
     plant or facility; and
       (5) recover at least 97 percent of the glycols from used 
     antifreeze feedstock.

     SEC. 1622. CLEAN SCHOOL BUS PROGRAM.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Alternative fuel.--The term ``alternative fuel'' 
     means--
       (A) liquefied natural gas, compressed natural gas, 
     liquefied petroleum gas, hydrogen, or propane;
       (B) methanol or ethanol at no less than 85 percent by 
     volume; or
       (C) biodiesel conforming with standards published by the 
     American Society for Testing and Materials as of the date of 
     enactment of this Act.
       (3) Clean school bus.--The term ``clean school bus'' means 
     a school bus with a gross vehicle weight of greater than 
     14,000 pounds that--
       (A) is powered by a heavy duty engine; and
       (B) is operated solely on an alternative fuel or ultra-low 
     sulfur diesel fuel.
       (4) Eligible recipient.--
       (A) In general.--Subject to subparagraph (B), the term 
     ``eligible recipient'' means--
       (i) 1 or more local or State governmental entities 
     responsible for--

       (I) providing school bus service to 1 or more public school 
     systems; or
       (II) the purchase of school buses;

       (ii) 1 or more contracting entities that provide school bus 
     service to 1 or more public school systems; or
       (iii) a nonprofit school transportation association.
       (B) Special requirements.--In the case of eligible 
     recipients identified under clauses (ii) and (iii), the 
     Administrator shall establish timely and appropriate 
     requirements for notice and may establish timely and 
     appropriate requirements for approval by the public school 
     systems that would be served by buses purchased or retrofit 
     using grant funds made available under this section.
       (5) Retrofit technology.--The term ``retrofit technology'' 
     means a particulate filter or other emissions control 
     equipment that is verified or certified by the Administrator 
     or the California Air Resources Board as an effective 
     emission reduction technology when installed on an existing 
     school bus.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (7) Ultra-low sulfur diesel fuel.--The term ``ultra-low 
     sulfur diesel fuel'' means diesel fuel that contains sulfur 
     at not more than 15 parts per million.
       (b) Program for Retrofit or Replacement of Certain Existing 
     School Buses With Clean School Buses.--

[[Page 10588]]

       (1) Establishment.--
       (A) In general.--The Administrator, in consultation with 
     the Secretary and other appropriate Federal departments and 
     agencies, shall establish a program for awarding grants on a 
     competitive basis to eligible recipients for the replacement, 
     retrofit (including repowering, aftertreatment, and 
     remanufactured engines) of, or purchase of alternative fuels 
     for, certain existing school buses.
       (B) Balancing.--In awarding grants under this section, the 
     Administrator shall, to the maximum extent practicable, 
     achieve an appropriate balance between awarding grants--
       (i) to replace school buses;
       (ii) to install retrofit technologies; and
       (iii) to purchase and use alternative fuel.
       (2) Priority of grant applications.--
       (A) Replacement.--In the case of grant applications to 
     replace school buses, the Administrator shall give priority 
     to applicants that propose to replace school buses 
     manufactured before model year 1977.
       (B) Retrofitting.--In the case of grant applications to 
     retrofit school buses, the Administrator shall give priority 
     to applicants that propose to retrofit school buses 
     manufactured in or after model year 1991.
       (3) Use of school bus fleet.--
       (A) In general.--All school buses acquired or retrofitted 
     with funds provided under this section shall be operated as 
     part of the school bus fleet for which the grant was made for 
     not less than 5 years.
       (B) Maintenance, operation, and fueling.--New school buses 
     and retrofit technology shall be maintained, operated, and 
     fueled according to manufacturer recommendations or State 
     requirements.
       (4) Retrofit grants.--The Administrator may award grants 
     for up to 100 percent of the retrofit technologies and 
     installation costs.
       (5) Replacement grants.--
       (A) Eligibility for 50 percent grants.--The Administrator 
     may award grants for replacement of school buses in the 
     amount of up to \1/2\ of the acquisition costs (including 
     fueling infrastructure) for --
       (i) clean school buses with engines manufactured in model 
     year 2005 or 2006 that emit not more than--

       (I) 1.8 grams per brake horsepower-hour of non-methane 
     hydrocarbons and oxides of nitrogen; and
       (II) .01 grams per brake horsepower-hour of particulate 
     matter; or

       (ii) clean school buses with engines manufactured in model 
     year 2007, 2008, or 2009 that satisfy regulatory requirements 
     established by the Administrator for emissions of oxides of 
     nitrogen and particulate matter to be applicable for school 
     buses manufactured in model year 2010.
       (B) Eligibility for 25 percent grants.--The Administrator 
     may award grants for replacement of school buses in the 
     amount of up to \1/4\ of the acquisition costs (including 
     fueling infrastructure) for --
       (i) clean school buses with engines manufactured in model 
     year 2005 or 2006 that emit not more than--

       (I) 2.5 grams per brake horsepower-hour of non-methane 
     hydrocarbons and oxides of nitrogen; and
       (II) .01 grams per brake horsepower-hour of particulate 
     matter; or

       (ii) clean school buses with engines manufactured in model 
     year 2007 or thereafter that satisfy regulatory requirements 
     established by the Administrator for emissions of oxides of 
     nitrogen and particulate matter from school buses 
     manufactured in that model year.
       (6) Ultra-low sulfur diesel fuel.--
       (A) In general.--In the case of a grant recipient receiving 
     a grant for the acquisition of ultra-low sulfur diesel fuel 
     school buses with engines manufactured in model year 2005 or 
     2006, the grant recipient shall provide, to the satisfaction 
     of the Administrator--
       (i) documentation that diesel fuel containing sulfur at not 
     more than 15 parts per million is available for carrying out 
     the purposes of the grant; and
       (ii) a commitment by the applicant to use that fuel in 
     carrying out the purposes of the grant.
       (7) Deployment and distribution.--The Administrator shall, 
     to the maximum extent practicable--
       (A) achieve nationwide deployment of clean school buses 
     through the program under this section; and
       (B) ensure a broad geographic distribution of grant awards, 
     with no State receiving more than 10 percent of the grant 
     funding made available under this section during a fiscal 
     year.
       (8) Annual report.--
       (A) In general.--Not later than January 31 of each year, 
     the Administrator shall submit to Congress a report that--
       (i) evaluates the implementation of this section; and
       (ii) describes--

       (I) the total number of grant applications received;
       (II) the number and types of alternative fuel school buses, 
     ultra-low sulfur diesel fuel school buses, and retrofitted 
     buses requested in grant applications;
       (III) grants awarded and the criteria used to select the 
     grant recipients;
       (IV) certified engine emission levels of all buses 
     purchased or retrofitted under this section;
       (V) an evaluation of the in-use emission level of buses 
     purchased or retrofitted under this section; and
       (VI) any other information the Administrator considers 
     appropriate.

       (c) Education.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator shall develop an 
     education outreach program to promote and explain the grant 
     program.
       (2) Coordination with stakeholders.--The outreach program 
     shall be designed and conducted in conjunction with national 
     school bus transportation associations and other 
     stakeholders.
       (3) Components.--The outreach program shall--
       (A) inform potential grant recipients on the process of 
     applying for grants;
       (B) describe the available technologies and the benefits of 
     the technologies;
       (C) explain the benefits of participating in the grant 
     program; and
       (D) include, as appropriate, information from the annual 
     report required under subsection (b)(8).
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Administrator to carry out this 
     section, to remain available until expended--
       (1) $55,000,000 for each of fiscal years 2006 and 2007; and
       (2) such sums as are necessary for each of fiscal years 
     2008, 2009, and 2010.

     SEC. 1623. CONSERVE BY BICYCLING PROGRAM.

       (a) Definitions.--In this section:
       (1) Program.--The term ``program'' means the Conserve by 
     Bicycling Program established by subsection (b).
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.
       (b) Establishment.--There is established within the 
     Department of Transportation a program to be known as the 
     ``Conserve by Bicycling Program''.
       (c) Projects.--
       (1) In general.--In carrying out the program, the Secretary 
     shall establish not more than 10 pilot projects that are--
       (A) dispersed geographically throughout the United States; 
     and
       (B) designed to conserve energy resources by encouraging 
     the use of bicycles in place of motor vehicles.
       (2) Requirements.--A pilot project described in paragraph 
     (1) shall--
       (A) use education and marketing to convert motor vehicle 
     trips to bicycle trips;
       (B) document project results and energy savings (in 
     estimated units of energy conserved);
       (C) facilitate partnerships among interested parties in at 
     least 2 of the fields of--
       (i) transportation;
       (ii) law enforcement;
       (iii) education;
       (iv) public health;
       (v) environment; and
       (vi) energy;
       (D) maximize bicycle facility investments;
       (E) demonstrate methods that may be used in other regions 
     of the United States; and
       (F) facilitate the continuation of ongoing programs that 
     are sustained by local resources.
       (3) Cost sharing.--At least 20 percent of the cost of each 
     pilot project described in paragraph (1) shall be provided 
     from State or local sources.
       (d) Energy and Bicycling Research Study.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall enter into a 
     contract with the National Academy of Sciences for, and the 
     National Academy of Sciences shall conduct and submit to 
     Congress a report on, a study on the feasibility of 
     converting motor vehicle trips to bicycle trips.
       (2) Components.--The study shall--
       (A) document the results or progress of the pilot projects 
     under subsection (b);
       (B) determine the type and duration of motor vehicle trips 
     that people in the United States may feasibly make by 
     bicycle, taking into consideration factors such as--
       (i) weather;
       (ii) land use and traffic patterns;
       (iii) the carrying capacity of bicycles; and
       (iv) bicycle infrastructure;
       (C) determine any energy savings that would result from the 
     conversion of motor vehicle trips to bicycle trips;
       (D) include a cost-benefit analysis of bicycle 
     infrastructure investments; and
       (E) include a description of any factors that would 
     encourage more motor vehicle trips to be replaced with 
     bicycle trips.

                         Subtitle G--Operations

     SEC. 1701. TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS.

       (a) Surface Transportation Program Eligibility.--Section 
     133(b) of title 23, United States Code (as amended by section 
     1601(a)(2)), is amended by adding at the end the following:
       ``(16) Regional transportation operations collaboration and 
     coordination activities that are associated with regional 
     improvements, such as traffic incident management, technology 
     deployment, emergency management and response, traveler 
     information, and regional congestion relief.
       ``(17) Rush hour congestion relief.--
       ``(A) In general.--Subject to subparagraph (B), a State may 
     spend the funds apportioned under this section to reduce 
     traffic delays caused by motor vehicle accidents and 
     breakdowns on highways during peak driving times.
       ``(B) Use of funds.--A State, metropolitan planning 
     organization, or local government may use the funds under 
     subparagraph (A)--
       ``(i) to develop a region-wide coordinated plan to mitigate 
     traffic delays caused by motor vehicle accidents and 
     breakdowns;

[[Page 10589]]

       ``(ii) to purchase or lease telecommunications equipment 
     for first responders;
       ``(iii) to purchase or lease towing and recovery services;
       ``(iv) to pay contractors for towing and recovery;
       ``(v) to rent vehicle storage areas adjacent to roadways;
       ``(vi) to fund service patrols, equipment, and operations;
       ``(vii) to purchase incident detection equipment;
       ``(viii) to carry out training.''.
       (b) Congestion Mitigation and Air Quality Improvement 
     Program Eligibility.--Section 149(b)(5) of title 23, United 
     States Code, is amended by inserting ``improve transportation 
     systems management and operations,'' after 
     ``intersections,''.
       (c) Transportation Systems Management and Operations.--
       (1) In general.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1620(b)), is 
     amended by adding at the end the following:

     ``Sec. 168. Transportation systems management and operations

       ``(a) In General.--The Secretary shall carry out a 
     transportation systems management and operations program to--
       ``(1) ensure efficient and effective management and 
     operation of transportation systems through collaboration, 
     coordination, and real-time information sharing at a regional 
     and Statewide level among--
       ``(A) managers and operators of major modes of 
     transportation;
       ``(B) public safety officials; and
       ``(C) the general public; and
       ``(2) manage and operate transportation systems in a 
     coordinated manner to preserve the capacity and maximize the 
     performance of transportation facilities for travelers and 
     carriers.
       ``(b) Authorized Activities.--
       ``(1) In general.--In carrying out the program under 
     subsection (a), the Secretary may carry out activities to--
       ``(A) encourage managers and operators of major modes of 
     transportation, public safety officials, and transportation 
     planners in urbanized areas that are responsible for 
     conducting the day-to-day management, operations, public 
     safety, and planning of transportation facilities and 
     services to collaborate on and coordinate, on a regional 
     level and in a continuous and sustained manner, improved 
     transportation systems management and operations; and
       ``(B) encourage States to--
       ``(i) establish a system of basic real-time monitoring for 
     the surface transportation system; and
       ``(ii) provide the means to share the data gathered under 
     clause (i) among--

       ``(I) highway, transit, and public safety agencies;
       ``(II) jurisdictions (including States, cities, counties, 
     and metropolitan planning organizations);
       ``(III) private-sector entities; and
       ``(IV) the general public.

       ``(2) Activities.--Activities to be carried out under 
     paragraph (1) include--
       ``(A) developing a regional concept of operations that 
     defines a regional strategy shared by all transportation and 
     public safety participants with respect to the manner in 
     which the transportation systems of the region should be 
     managed, operated, and measured;
       ``(B) the sharing of information among operators, service 
     providers, public safety officials, and the general public; 
     and
       ``(C) guiding, in a regionally-coordinated manner and in a 
     manner consistent with and integrated into the metropolitan 
     and statewide transportation planning processes and regional 
     intelligent transportation system architecture, the 
     implementation of regional transportation system management 
     and operations initiatives, including--
       ``(i) emergency evacuation and response;
       ``(ii) traffic incident management;
       ``(iii) technology deployment; and
       ``(iv) traveler information systems delivery.
       ``(c) Cooperation.--In carrying out the program under 
     subsection (a), the Secretary may assist and cooperate with 
     other Federal agencies, State and local governments, 
     metropolitan planning organizations, private industry, and 
     other interested parties to improve regional collaboration 
     and real-time information sharing between managers and 
     operators of major modes of transportation, public safety 
     officials, emergency managers, and the general public to 
     increase the security, safety, and reliability of Federal-aid 
     highways.
       ``(d) Guidance; Regulations.--
       ``(1) In general.--In carrying out the program under 
     subsection (a), the Secretary may issue guidance or 
     promulgate regulations for the procurement of transportation 
     system management and operations facilities, equipment, and 
     services, including--
       ``(A) equipment procured in preparation for natural 
     disasters, disasters caused by human activity, and 
     emergencies;
       ``(B) system hardware;
       ``(C) software; and
       ``(D) software integration services.
       ``(2) Considerations.--In developing the guidance or 
     regulations under paragraph (1), the Secretary may consider 
     innovative procurement methods that support the timely and 
     streamlined execution of transportation system management and 
     operations programs and projects.
       ``(3) Financial assistance.--The Secretary may authorize 
     the use of funds made available under section 104(b)(3) to 
     provide assistance for regional operations collaboration and 
     coordination activities that are associated with regional 
     improvements, such as--
       ``(A) traffic incident management;
       ``(B) technology deployment;
       ``(C) emergency management and response;
       ``(D) traveler information; and
       ``(E) congestion relief.''.
       (2) Conforming amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1620(c)), is amended by adding at the end:

``168. Transportation systems management and operations.''.

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

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1701(c)(1)), is 
     amended by adding at the end the following:

     ``Sec. 169. Real-time system management information program

       ``(a) In General.--The Secretary shall carry out a real-
     time system management information program to--
       ``(1) provide a nationwide system of basic real-time 
     information for managing and operating the surface 
     transportation system;
       ``(2)(A) identify long-range real-time highway and transit 
     monitoring needs; and
       ``(B) develop plans and strategies for meeting those needs;
       ``(3) provide the capability and means to share the basic 
     real-time information with State and local governments and 
     the traveling public; and
       ``(4) provide the nationwide capability to monitor, in 
     real-time, the traffic and travel conditions of major 
     highways in the United States, and to share that information 
     with State and local governments and the traveling public, 
     to--
       ``(A) improve the security of the surface transportation 
     system;
       ``(B) address congestion problems;
       ``(C) support improved response to weather events; and
       ``(D) facilitate the distribution of national and regional 
     traveler information.
       ``(b) Data Exchange Formats.--Not later than 1 year after 
     the date of enactment of this section, the Secretary shall 
     establish data exchange formats to ensure that the data 
     provided by highway and transit monitoring systems (including 
     statewide incident reporting systems) can readily be 
     exchanged between jurisdictions to facilitate the nationwide 
     availability of information on traffic and travel conditions.
       ``(c) Statewide Incident Reporting System.--Not later than 
     2 years after the date of enactment of this section, or not 
     later than 5 years after the date of enactment of this 
     section if the Secretary determines that adequate real-time 
     communications capability will not be available within 2 
     years after the date of enactment of this section, each State 
     shall establish a statewide incident reporting system to 
     facilitate the real-time electronic reporting of highway and 
     transit incidents to a central location for use in--
       ``(1) monitoring an incident;
       ``(2) providing accurate traveler information on the 
     incident; and
       ``(3) responding to the incident as appropriate.
       ``(d) Regional ITS Architecture.--
       ``(1) In general.--In developing or updating regional 
     intelligent transportation system architectures under section 
     940.9 of title 23, Code of Federal Regulations (or any 
     successor regulation), States and local governments shall 
     address--
       ``(A) the real-time highway and transit information needs 
     of the State or local government, including coverage, 
     monitoring systems, data fusion and archiving, and methods of 
     exchanging or sharing information; and
       ``(B) the systems needed to meet those needs.
       ``(2) Data exchange formats.--In developing or updating 
     regional intelligent transportation system architectures, 
     States and local governments are encouraged to incorporate 
     the data exchange formats developed by the Secretary under 
     subsection (b) to ensure that the data provided by highway 
     and transit monitoring systems can readily be--
       ``(A) exchanged between jurisdictions; and
       ``(B) shared with the traveling public.
       ``(e) Eligible Funding.--Subject to project approval by the 
     Secretary, a State may--
       ``(1) use funds available to the State under section 505(a) 
     to carry out activities relating to the planning of real-time 
     monitoring elements; and
       ``(2) use funds apportioned to the State under paragraphs 
     (1) and (3) of section 104(b) to carry out activities 
     relating to the planning and deployment of real-time 
     monitoring elements.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1701(c)(2)), is amended adding at the end the 
     following:

``169. Real-time system management information program.''.

     SEC. 1703. CONTRACTING FOR ENGINEERING AND DESIGN SERVICES.

       Section 112(b)(2) of title 23, United States Code, is 
     amended--
       (1) in subparagraph (A), by striking ``title 40'' and all 
     that follows through the period and inserting ``title 40.'';
       (2) by striking subparagraph (B);
       (3) by redesignating subparagraphs (C) through (F) as 
     subparagraphs (B) through (E), respectively; and
       (4) by striking subparagraph (G).

[[Page 10590]]



     SEC. 1704. DESIGNATION OF TRANSPORTATION MANAGEMENT AREAS.

       (a) Funding.--Section 134(d)(3)(C)(ii) of title 23, United 
     States Code, is amended by striking subclause (II) and 
     inserting the following:

       ``(II) Funding.--In addition to funds made available to the 
     metropolitan planning organization for the Lake Tahoe Region 
     under this title and chapter 53 of title 49, 1 percent of all 
     funds distributed under section 202 shall be used to carry 
     out the transportation planning process for the Lake Tahoe 
     region under this subparagraph.''.

       (b) Special Designation.--For the purpose of any applicable 
     program under title 23, United States Code, the city of 
     Norman, Oklahoma, shall be considered to be part of the 
     Oklahoma City urbanized area.

                  Subtitle H--Federal-Aid Stewardship

     SEC. 1801. FUTURE INTERSTATE SYSTEM ROUTES.

       Section 103(c)(4)(B) of title 23, United States Code, is 
     amended--
       (1) in clause (ii), by striking ``12'' and inserting 
     ``20''; and
       (2) in clause (iii)--
       (A) in subclause (I), by striking ``in the agreement 
     between the Secretary and the State or States''; and
       (B) by adding at the end the following:

       ``(III) Existing agreements.--An agreement described in 
     clause (ii) that is entered into before the date of enactment 
     of this subparagraph shall be deemed to include the 20-year 
     time limitation described in that clause, regardless of any 
     earlier construction completion date in the agreement.''.

     SEC. 1802. STEWARDSHIP AND OVERSIGHT.

       (a) In General.--Section 106 of title 23, United States 
     Code, is amended--
       (1) by striking subsection (e) and inserting the following:
       ``(e) Value Engineering Analysis.--
       ``(1) Definition of value engineering analysis.--
       ``(A) In general.--In this subsection, the term `value 
     engineering analysis' means a systematic process of review 
     and analysis of a project, during the concept and design 
     phases, by a multidisciplined team of persons not involved in 
     the project, that is conducted to provide recommendations 
     such as those described in subparagraph (B) for--
       ``(i) providing the needed functions safely, reliably, and 
     at the lowest overall cost;
       ``(ii) improving the value and quality of the project; and
       ``(iii) reducing the time to complete the project.
       ``(B) Inclusions.--The recommendations referred to in 
     subparagraph (A) include, with respect to a project--
       ``(i) combining or eliminating otherwise inefficient use of 
     costly parts of the original proposed design for the project; 
     and
       ``(ii) completely redesigning the project using different 
     technologies, materials, or methods so as to accomplish the 
     original purpose of the project.
       ``(2) Analysis.--The State shall provide a value 
     engineering analysis or other cost-reduction analysis for--
       ``(A) each project on the Federal-Aid System with an 
     estimated total cost of $25,000,000 or more;
       ``(B) a bridge project with an estimated total cost of 
     $20,000,000 or more; and
       ``(C) any other project the Secretary determines to be 
     appropriate.
       ``(3) Major projects.--The Secretary may require more than 
     1 analysis described in paragraph (2) for a major project 
     described in subsection (h).
       ``(4) Requirements.--Analyses described in paragraph (1) 
     for a bridge project shall--
       ``(A) include bridge substructure requirements based on 
     construction material; and
       ``(B) be evaluated--
       ``(i) on engineering and economic bases, taking into 
     consideration acceptable designs for bridges; and
       ``(ii) using an analysis of life-cycle costs and duration 
     of project construction.''; and
       (2) by striking subsections (g) and (h) and inserting the 
     following:
       ``(g) Oversight Program.--
       ``(1) Program.--
       ``(A) In general.--The Secretary shall establish an 
     oversight program to monitor the effective and efficient use 
     of funds made available under this title.
       ``(B) Minimum requirements.--At a minimum, the program 
     shall monitor and respond to all areas relating to financial 
     integrity and project delivery.
       ``(2) Financial integrity.--
       ``(A) Financial management systems.--
       ``(i) In general.--The Secretary shall perform annual 
     reviews of the financial management systems of State 
     transportation departments that affect projects approved 
     under subsection (a).
       ``(ii) Review areas.--In carrying out clause (i), the 
     Secretary shall use risk assessment procedures to identify 
     areas to be reviewed.
       ``(B) Project costs.--The Secretary shall--
       ``(i) develop minimum standards for estimating project 
     costs; and
       ``(ii) periodically evaluate practices of the States for--

       ``(I) estimating project costs;
       ``(II) awarding contracts; and
       ``(III) reducing project costs.

       ``(C) Responsibility of the states.--
       ``(i) In general.--Each State shall be responsible for 
     ensuring that subrecipients of Federal funds within the State 
     under this section have--

       ``(I) sufficient accounting controls to properly manage the 
     Federal funds; and
       ``(II) adequate project delivery systems for projects 
     approved under this section.

       ``(ii) Review by secretary.--The Secretary shall 
     periodically review monitoring by the States of those 
     subrecipients.
       ``(3) Project delivery.--The Secretary shall--
       ``(A) perform annual reviews of the project delivery system 
     of each State, including analysis of 1 or more activities 
     that are involved in the life cycle of a project; and
       ``(B) employ risk assessment procedures to identify areas 
     to be reviewed.
       ``(4) Specific oversight responsibilities.--Nothing in this 
     section discharges or otherwise affects any oversight 
     responsibility of the Secretary--
       ``(A) specifically provided for under this title or other 
     Federal law; or
       ``(B) for the design and construction of all Appalachian 
     development highways under section 14501 of title 40 or 
     section 170 of this title.
       ``(h) Major Projects.--
       ``(1) In general.--Notwithstanding any other provision of 
     this section, a recipient of Federal financial assistance for 
     a project under this title with an estimated total cost of 
     $1,000,000,000 or more, and recipients for such other 
     projects as may be identified by the Secretary, shall submit 
     to the Secretary for each project--
       ``(A) a project management plan; and
       ``(B) an annual financial plan.
       ``(2) Project management plan.--A project management plan 
     shall document--
       ``(A) the procedures and processes that are in effect to 
     provide timely information to the project decisionmakers to 
     effectively manage the scope, costs, schedules, and quality 
     of, and the Federal requirements applicable to, the project; 
     and
       ``(B) the role of the agency leadership and management team 
     in the delivery of the project.
       ``(3) Financial plan.--A financial plan shall--
       ``(A) be based on detailed estimates of the cost to 
     complete the project; and
       ``(B) provide for the annual submission of updates to the 
     Secretary that are based on reasonable assumptions, as 
     determined by the Secretary, of future increases in the cost 
     to complete the project.
       ``(i) Other Projects.--A recipient of Federal financial 
     assistance for a project under this title that receives 
     $100,000,000 or more in Federal assistance for the project, 
     and that is not covered by subsection (h), shall prepare, and 
     make available to the Secretary at the request of the 
     Secretary, an annual financial plan for the project.''.
       (b) Conforming Amendments.--
       (1) Section 114(a) of title 23, United States Code, is 
     amended--
       (A) in the first sentence by striking ``highways or 
     portions of highways located on a Federal-aid system'' and 
     inserting ``Federal-aid highway or a portion of a Federal-aid 
     highway''; and
       (B) by striking the second sentence and inserting ``The 
     Secretary shall have the right to conduct such inspections 
     and take such corrective action as the Secretary determines 
     to be appropriate.''.
       (2) Section 117 of title 23, United States Code, is 
     amended--
       (A) by striking subsection (d); and
       (B) by redesignating subsections (e) through (h) as 
     subsections (d) through (g), respectively.

     SEC. 1803. REVISION OF REGULATIONS.

       Section 112(b)(3) of title 23, United States Code, is 
     amended--
       (1) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (2) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Qualified projects.--A qualified project referred to 
     in subparagraph (A) is a project under this chapter 
     (including intermodal projects) for which the Secretary has 
     approved the use of design-build contracting under criteria 
     specified in regulations promulgated by the Secretary.
       ``(D) Regulatory process.--Not later than 90 days after the 
     date of enactment of the Safe, Affordable, Flexible, and 
     Efficient Transportation Equity Act of 2005, the Secretary 
     shall promulgate revised regulations under section 1307(c) of 
     the Transportation Equity Act for 21st Century (23 U.S.C. 112 
     note; 112 Stat. 230) that--
       ``(i) do not preclude State transportation departments or 
     local transportation agencies from--

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

     prior to compliance with section 102 of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4332);
       ``(ii) require that the State transportation department or 
     local transportation agency receive concurrence from the 
     Secretary before carrying out an activity under clause (i); 
     and
       ``(iii) preclude the design-build contractor from 
     proceeding with final design or construction of any permanent 
     improvement prior to completion of the process under section 
     102 of the National Environmental Policy Act of 1969 (42 
     U.S.C. 4332).''.

     SEC. 1804. PROGRAM EFFICIENCIES--FINANCE.

       (a) Advance Construction.--Section 115 of title 23, United 
     States Code, is amended--
       (1) by redesignating subsection (c) as subsection (d);

[[Page 10591]]

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

     SEC. 1805. SET-ASIDES FOR INTERSTATE DISCRETIONARY PROJECTS.

       Section 118(c)(1) of title 23, United States Code, is 
     amended--
       (1) by striking ``$50,000,000'' and all that follows 
     through ``2003'' and inserting ``$93,862,893 for each of 
     fiscal years 2005 through 2009''; and
       (2) by striking ``Transportation Equity Act for the 21st 
     Century'' and inserting ``Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005''.

     SEC. 1806. FEDERAL LANDS HIGHWAYS PROGRAM.

       (a) Federal Share Payable.--
       (1) In general.--Section 120(k) of title 23, United States 
     Code, is amended--
       (A) by striking ``Federal-aid highway''; and
       (B) by striking ``section 104'' and inserting ``this title 
     or chapter 53 of title 49''.
       (2) Technical references.--Section 120(l) of title 23, 
     United States Code, is amended by striking ``section 104'' 
     and inserting ``this title or chapter 53 of title 49''.
       (b) Payments to Federal Agencies for Federal-Aid 
     Projects.--Section 132 of title 23, United States Code, is 
     amended--
       (1) by striking the first 2 sentences and inserting the 
     following:
       ``(a) In General.--In a case in which a proposed Federal-
     aid project is to be undertaken by a Federal agency in 
     accordance with an agreement between a State and the Federal 
     agency, the State may--
       ``(1) direct the Secretary to transfer the funds for the 
     Federal share of the project directly to the Federal agency; 
     or
       ``(2) make such deposit with, or payment to, the Federal 
     agency as is required to meet the obligation of the State 
     under the agreement for the work undertaken or to be 
     undertaken by the Federal agency.
       ``(b) Reimbursement.--On execution of a project agreement 
     with a State described in subsection (a), the Secretary may 
     reimburse the State, using any available funds, for the 
     estimated Federal share under this title of the obligation of 
     the State deposited or paid under subsection (a)(2).''; and
       (2) in the last sentence, by striking ``Any sums'' and 
     inserting the following:
       ``(c) Recovery and Crediting of Funds.--Any sums''.
       (c) Allocations.--Section 202 of title 23, United States 
     Code, is amended--
       (1) in subsection (a), by striking ``(a) On October 1'' and 
     all that follows through ``Such allocation'' and inserting 
     the following:
       ``(a) Allocation Based on Need.--
       ``(1) In general.--On October 1 of each fiscal year, the 
     Secretary shall allocate sums authorized to be appropriated 
     for the fiscal year for forest development roads and trails 
     according to the relative needs of the various national 
     forests and grasslands.
       ``(2) Planning.--The allocation under paragraph (1)'';
       (2) by striking subsection (b) and inserting the following:
       ``(b) Allocation for Public Lands Highways.--
       ``(1) Public lands highways.--
       ``(A) In general.--On October 1 of each fiscal year, the 
     Secretary shall allocate 33\1/3\ percent of the sums 
     authorized to be appropriated for that fiscal year for public 
     lands highways among those States having unappropriated or 
     unreserved public lands, or nontaxable Indian lands or other 
     Federal reservations, on the basis of need in the States, 
     respectively, as determined by the Secretary, on application 
     of the State transportation departments of the respective 
     States.
       ``(B) Preference.--In making the allocation under 
     subparagraph (A), the Secretary shall give preference to 
     those projects that are significantly impacted by Federal 
     land and resource management activities that are proposed by 
     a State that contains at least 3 percent of the total public 
     land in the United States.
       ``(2) Forest highways.--
       ``(A) In general.--On October 1 of each fiscal year, the 
     Secretary shall allocate 66\2/3\ percent of the funds 
     authorized to be appropriated for public lands highways for 
     forest highways in accordance with section 134 of the 
     Federal-Aid Highway Act of 1987 (23 U.S.C. 202 note; 101 
     Stat. 173).
       ``(B) Public access to and within national forest system.--
     In making the allocation under subparagraph (A), the 
     Secretary shall give equal consideration to projects that 
     provide access to and within the National Forest System, as 
     identified by the Secretary of Agriculture through--
       ``(i) renewable resource and land use planning; and
       ``(ii) assessments of the impact of that planning on 
     transportation facilities.'';
       (3) in subsection (c)--
       (A) by striking ``(c) On'' and inserting the following:
       ``(c) Park Roads and Parkways.--
       ``(1) In general.--On''; and
       (B) by adding at the end the following:
       ``(2) Priority.--
       ``(A) Definition of qualifying national park.--In this 
     paragraph, the term ``qualifying national park'' means a 
     National Park that is used more than 1,000,000 recreational 
     visitor days per year, based on an average of the 3 most 
     recent years of available data from the National Park 
     Service.
       ``(B) Priority.--Notwithstanding any other provision of 
     law, with respect to funds authorized for park roads and 
     parkways, the Secretary shall give priority in the allocation 
     of funds to projects for highways that--
       ``(i) are located in, or provide access to, a qualifying 
     National Park; and
       ``(ii) were initially constructed before 1940.
       ``(C) Priority conflicts.--If there is a conflict between 
     projects described in subparagraph (B), the Secretary shall 
     give highest priority to projects that--
       ``(i) are in, or that provide access to, parks that are 
     adjacent to a National Park of a foreign country; or
       ``(ii) are located in more than 1 State;'';
       (4) in subsection (d)--
       (A) in paragraph (1)--
       (i) in the paragraph heading, by striking ``1999'' and 
     inserting ``2005''; and
       (ii) by striking ``1999'' and inserting ``2005'';
       (B) in paragraph (2)--
       (i) in the paragraph heading, by striking ``2000'' and 
     inserting ``2005'';
       (ii) in subparagraphs (A), (B), and (D), by striking 
     ``2000'' each place it appears and inserting ``2005'';
       (iii) in subparagraph (B), by striking ``1999'' each place 
     it appears and inserting ``2005''; and
       (iv) by adding at the end the following:
       ``(E) Transferred funds.--
       ``(i) In general.--Not later than 30 days after the date on 
     which funds are made available to the Secretary of the 
     Interior under this paragraph, the funds shall be distributed 
     to, and available for immediate use by, the eligible Indian 
     tribes, in accordance with the formula for distribution of 
     funds under the Indian reservation roads program.
       ``(ii) Use of funds.--Notwithstanding any other provision 
     of this section, funds available to Indian tribes for Indian 
     reservation roads shall be expended on projects identified in 
     a transportation improvement program approved by the 
     Secretary.'';
       (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

[[Page 10592]]

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

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

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

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

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

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

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

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

       ``(B) Funding.--
       ``(i) Authorization of appropriations.--In addition to any 
     other funds made available for Indian reservation roads for 
     each fiscal year, there is authorized to be appropriated from 
     the Highway Trust Fund (other than the Mass Transit Account) 
     $14,079,433 for each of fiscal years 2005 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 after approval of 
     applicable plans, specifications, and estimates in accordance 
     with this title.''; 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 approve plans, specifications, and estimates 
     and 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 2005 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 allocated for Indian 
     reservation roads from the Highway Trust Fund, not more than 
     25 percent may be expended for the purpose of maintenance, 
     excluding road sealing, and shall not be subject to any 
     limitation. The Bureau of Indian Affairs shall continue to 
     retain primary responsibility, including annual funding 
     request responsibility, for road maintenance programs on 
     Indian reservations. The Secretary shall ensure that funding 
     made available under this subsection for maintenance of 
     Indian reservation roads for each fiscal year is 
     supplementary to and not in lieu of any obligation of funds 
     by the Bureau of Indian Affairs for road maintenance programs 
     on Indian reservations.''.
       (f) Safety.--
       (1) Allocations.--Section 202 of title 23, United States 
     Code (as amended by subsection (c)(5)), is amended by adding 
     at the end the following:
       ``(g) Safety.--Subject to paragraph (2), on October 1 of 
     each fiscal year, the Secretary shall allocate the sums 
     authorized to be appropriated for the fiscal year for safety 
     as follows:
       ``(1) 12 percent to the Bureau of Reclamation.
       ``(2) 18 percent to the Bureau of Indian Affairs.
       ``(3) 17 percent to the Bureau of Land Management.
       ``(4) 17 percent to the Forest Service.
       ``(5) 7 percent to the United States Fish and Wildlife 
     Service.

[[Page 10593]]

       ``(6) 17 percent to the National Park Service.
       ``(7) 12 percent to the Corps of Engineers.''.
       (2) Availability of funds.--Section 203 of title 23, United 
     States Code, is amended by inserting ``safety projects or 
     activities,'' after ``refuge roads,'' each place it appears.
       (3) Use of funding.--Section 204 of title 23, United States 
     Code, is amended by adding at the end the following:
       ``(l) Safety Activities.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, funds made available for safety under this title 
     shall be used by the Secretary and the head of the 
     appropriate Federal land management agency only to pay the 
     costs of carrying out--
       ``(A) transportation safety improvement activities;
       ``(B) activities to eliminate high-accident locations;
       ``(C) projects to implement protective measures at, or 
     eliminate, at-grade railway-highway crossings;
       ``(D) collection of safety information;
       ``(E) transportation planning projects or activities;
       ``(F) bridge inspection;
       ``(G) development and operation of safety management 
     systems;
       ``(H) highway safety education programs; and
       ``(I) other eligible safety projects and activities 
     authorized under chapter 4.
       ``(2) Contracts.--In carrying out paragraph (1), the 
     Secretary and the Secretary of the appropriate Federal land 
     management agency may enter into contracts or agreements 
     with--
       ``(A) a State;
       ``(B) a political subdivision of a State; or
       ``(C) an Indian tribe.
       ``(3) Exception.--The cost sharing requirements under the 
     Federal Water Project Recreation Act (16 U.S.C. 460l-12 et 
     seq.) shall not apply to funds made available to the Bureau 
     of Reclamation under this subsection.''.
       (g) Recreation Roads.--
       (1) Authorizations.--Section 201 of title 23, United States 
     Code, is amended in the first sentence by inserting 
     ``recreation roads,'' after ``public lands highways,''.
       (2) Allocations.--Section 202 of title 23, United States 
     Code (as amended by subsection (f)(1)), is amended by adding 
     at the end the following:
       ``(h) Recreation Roads.--
       ``(1) In general.--Subject to paragraphs (2) and (3), on 
     October 1 of each fiscal year, the Secretary, after 
     completing the transfer under subsection 204(i), shall 
     allocate the sums authorized to be appropriated for the 
     fiscal year for recreation roads as follows:
       ``(A) 8 percent to the Bureau of Reclamation.
       ``(B) 9 percent to the Corps of Engineers.
       ``(C) 13 percent to the Bureau of Land Management.
       ``(D) 70 percent to the Forest Service.
       ``(2) Allocation within agencies.--Recreation road funds 
     allocated to a Federal agency under paragraph (1) shall be 
     allocated for projects and activities of the Federal agency 
     according to the relative needs of each area served by 
     recreation roads under the jurisdiction of the Federal 
     agency, as indicated in the approved transportation 
     improvement program for each Federal agency.''.
       (3) Availability of funds.--Section 203 of title 23, United 
     States Code, is amended--
       (A) in the first sentence, by inserting ``recreation 
     roads,'' after ``Indian reservation roads,''; and
       (B) in the fourth sentence, by inserting ``, recreation 
     roads,'' after ``Indian roads''.
       (4) Use of funding.--Section 204 of title 23, United States 
     Code (as amended by subsection (e)(3)), is amended by adding 
     at the end the following:
       ``(m) Recreation Roads.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, funds made available for recreation roads under 
     this title shall be used by the Secretary and the Secretary 
     of the appropriate Federal land management agency only to pay 
     the cost of--
       ``(A) maintenance or improvements of existing recreation 
     roads;
       ``(B) maintenance and improvements of eligible projects 
     described in paragraph (1), (2), (3), (5), or (6) of 
     subsection (h) that are located in or adjacent to Federal 
     land under the jurisdiction of--
       ``(i) the Department of Agriculture; or
       ``(ii) the Department of the Interior;
       ``(C) transportation planning and administrative activities 
     associated with those maintenance and improvements; and
       ``(D) the non-Federal share of the cost of any project 
     funded under this title or chapter 53 of title 49 that 
     provides access to or within Federal land described in 
     subparagraph (B).
       ``(2) Contracts.--In carrying out paragraph (1), the 
     Secretary and the Secretary of the appropriate Federal land 
     management agency may enter into contracts or agreements 
     with--
       ``(A) a State;
       ``(B) a political subdivision of a State; or
       ``(C) an Indian tribe.
       ``(3) New roads.--No funds made available under this 
     section shall be used to pay the cost of the design or 
     construction of new recreation roads.
       ``(4) Compliance with other environmental laws.--A 
     maintenance or improvement project that is funded under this 
     subsection, and that is consistent with or has been 
     identified in a land use plan for an area under the 
     jurisdiction of a Federal agency, shall not require any 
     additional environmental reviews or assessments under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) if--
       ``(A) the Federal agency that promulgated the land use plan 
     analyzed the specific proposal for the maintenance or 
     improvement project under that Act; and
       ``(B) as of the date on which the funds are to be expended, 
     there are--
       ``(i) no significant changes to the proposal bearing on 
     environmental concerns; and
       ``(ii) no significant new information.
       ``(5) Exception.--The cost sharing requirements under the 
     Federal Water Project Recreation Act (16 U.S.C. 460l-12 et 
     seq.) shall not apply to funds made available to the Bureau 
     of Reclamation under this subsection.''.
       (h) Conforming Amendments.--
       (1) Sections 120(e) and 125(e) of title 23, United States 
     Code, are amended by striking ``public lands highways,'' each 
     place it appears and inserting ``public lands highways, 
     recreation roads,''.
       (2) Sections 120(e), 125(e), 201, 202(a), and 203 of title 
     23, United States Code, are amended by striking ``forest 
     development roads'' each place it appears and inserting 
     ``National Forest System roads''.
       (3) Section 202(e) of title 23, United States Code, is 
     amended by striking ``Refuge System,'' and inserting ``Refuge 
     System and the various national fish hatcheries,''.
       (4) Section 204 of title 23, United States Code, is 
     amended--
       (A) in subsection (a)(1), by striking ``public lands 
     highways,'' and inserting ``public lands highways, recreation 
     roads, forest highways,''; and
       (B) in subsection (i), by striking ``public lands 
     highways'' each place it appears and inserting ``public lands 
     highways, recreation roads, and forest highways''.
       (5) Section 205 of title 23, United States Code, is 
     amended--
       (A) by striking the section heading and inserting the 
     following:

     ``Sec. 205. National Forest System roads and trails'';

     and
       (B) in subsections (a) and (d), by striking ``forest 
     development roads'' each place it appears and inserting 
     ``National Forest System roads''.
       (6) The analysis for chapter 2 of title 23, United States 
     Code, is amended by striking the item relating to section 205 
     and inserting the following:

``205. National Forest System roads and trails.''.
       (7) Section 217(c) of title 23, United States Code, is 
     amended by inserting ``refuge roads,'' after ``Indian 
     reservation roads,''.

     SEC. 1807. HIGHWAY BRIDGE PROGRAM.

       (a) In General.--Section 144 of title 23, United States 
     Code, is amended--
       (1) by striking the section heading and all that follows 
     through subsection (a) and inserting the following:

     ``Sec. 144. Highway bridge program

       ``(a) Congressional Statement.--Congress finds and declares 
     that it is in the vital interest of the United States that a 
     highway bridge program be established to enable States to 
     improve the condition of their bridges through replacement, 
     rehabilitation, and systematic preventative maintenance on 
     highway bridges over waterways, other topographical barriers, 
     other highways, or railroads at any time at which the States 
     and the Secretary determine that a bridge is unsafe because 
     of structural deficiencies, physical deterioration, or 
     functional obsolescence.'';
       (2) by striking subsection (d) and inserting the following:
       ``(d) Participation in Program.--
       ``(1) In general.--On application by a State to the 
     Secretary for assistance in replacing or rehabilitating a 
     highway bridge that has been determined to be eligible for 
     replacement or rehabilitation under subsection (b) or (c), 
     the Secretary may approve Federal participation in--
       ``(A) replacing the bridge with a comparable bridge; or
       ``(B) rehabilitating the bridge.
       ``(2) Specific kinds of rehabilitation.--On application by 
     a State to the Secretary for assistance in painting, seismic 
     retrofit, or preventative maintenance of, or installation of 
     scour countermeasures or applying calcium magnesium acetate, 
     sodium acetate/formate, or other environmentally acceptable, 
     minimally corrosive anti-icing and de-icing compositions to, 
     the structure of a highway bridge, the Secretary may approve 
     Federal participation in the painting, seismic retrofit, or 
     preventative maintenance of, or installation of scour 
     countermeasures or application of acetate or sodium acetate/
     formate or such anti-icing or de-icing composition to, the 
     structure.
       ``(3) Eligibility.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall determine the eligibility of highway 
     bridges for replacement or rehabilitation for each State 
     based on the number of unsafe highway bridges in the State.
       ``(B) Preventative maintenance.--A State may carry out a 
     project for preventative maintenance on a bridge, seismic 
     retrofit of a bridge, or installation of scour 
     countermeasures to a bridge under this section without regard 
     to whether the bridge is eligible for replacement or 
     rehabilitation under this section.'';
       (3) in subsection (e)--
       (A) in the third sentence, by striking ``square footage'' 
     and inserting ``area'';
       (B) in the fourth sentence--
       (i) by striking ``by the total cost of any highway bridges 
     constructed under subsection (m) in

[[Page 10594]]

     such State, relating to replacement of destroyed bridges and 
     ferryboat services, and,''; and
       (ii) by striking ``1997'' and inserting ``2003''; and
       (C) in the seventh sentence, by striking ``the Federal-aid 
     primary system'' and inserting ``Federal-aid highways'';
       (4) by striking subsections (f) and (g) and inserting the 
     following:
       ``(f) Set Asides.--
       ``(1) Discretionary bridge program.--
       ``(A) In general.--Of the amounts authorized to be 
     appropriated to carry out the bridge program under this 
     section for each of fiscal years 2005 through 2009, all but 
     $140,794,340 shall be apportioned as provided in subsection 
     (e).
       ``(B) Availability.--The $140,794,340 referred to in 
     subparagraph (A) shall be available at the discretion of the 
     Secretary, except that not to exceed $23,465,723 of that 
     amount shall be available only for projects for the seismic 
     retrofit of bridges.
       ``(C) Set asides.--For fiscal year 2005, the Secretary 
     shall provide--
       ``(i) $46,931,446 to the State of Nevada for construction 
     of a replacement of the federally-owned bridge over the 
     Hoover Dam in the Lake Mead National Recreation Area;
       ``(ii) $46,931,446 to the State of Missouri for 
     construction of a structure over the Mississippi River to 
     connect the city of St. Louis, Missouri, to the State of 
     Illinois; and
       ``(iii) not less than 40 percent of the amount made 
     available under subparagraph (B) for the fiscal year for the 
     seismic retrofit of bridges for multilane, suspension bridges 
     that--

       ``(I) were open to traffic prior to 1940; and
       ``(II) are located in high-seismic zones.''.

       ``(2) Off-system bridges.--
       ``(A) In general.--Not less than 15 percent of the amount 
     apportioned to each State in each of fiscal years 2005 
     through 2009 shall be expended for projects to replace, 
     rehabilitate, perform systematic preventative maintenance or 
     seismic retrofit, or apply calcium magnesium acetate, sodium 
     acetate/formate, or other environmentally acceptable, 
     minimally corrosive anti-icing and de-icing compositions or 
     install scour countermeasures to highway bridges located on 
     public roads, other than those on a Federal-aid highway, or 
     to complete the Warwick Intermodal Station (including the 
     construction of a people mover between the Station and the 
     T.F. Green Airport).
       ``(B) Reduction of expenditures.--The Secretary, after 
     consultation with State and local officials, may, with 
     respect to the State, reduce the requirement for expenditure 
     for bridges not on a Federal-aid highway if the Secretary 
     determines that the State has inadequate needs to justify the 
     expenditure.
       ``(C) Pilot program.--Not less than 20 percent of the 
     amount apportioned to the States of Colorado, _________, and 
     _________, for each of fiscal years 2005 through 2009 shall 
     be expended for off-system bridge pilot projects.'';
       (5) in subsection (i)--
       (A) in paragraph (3), by striking ``and'';
       (B) in paragraph (4), by striking the period at the end and 
     inserting ``; and'';
       (C) by striking ``Such reports'' and all that follows 
     through ``to Congress.''; and
       (D) by adding at the end the following:
       ``(5) biennially submit such reports as are required under 
     this subsection to the appropriate committees of Congress 
     simultaneously with the report required by section 502(g).'';
       (6) in the first sentence of subsection (n), by striking 
     ``all standards'' and inserting ``all general engineering 
     standards'';
       (7) in subsection (o)--
       (A) in paragraph (3)--
       (i) by striking ``title (including this section)'' and 
     inserting ``section''; and
       (ii) by inserting ``200 percent of'' after ``shall not 
     exceed''; and
       (B) in paragraph (4)(B)--
       (i) in the second sentence, by inserting ``200 percent of'' 
     after ``not to exceed''; and
       (ii) in the last sentence, by striking ``title'' and 
     inserting ``section'';
       (8) by redesignating subsections (h) through (q) as 
     subsections (g) through (p), respectively; and
       (9) by adding at the end the following:
       ``(q) Continuation of Annual Materials Report on New Bridge 
     Construction and Bridge Rehabilitation.--Not later than 1 
     year after the date of enactment of this subsection, and 
     annually thereafter, the Secretary shall publish in the 
     Federal Register a report describing construction materials 
     used in new Federal-aid bridge construction and bridge 
     rehabilitation projects.
       ``(r) Federal Share.--
       ``(1) In general.--Except as provided under paragraph (2), 
     the Federal share of the cost of a project payable from funds 
     made available to carry out this section shall be the share 
     applicable under section 120(b), as adjusted under section 
     120(d).
       ``(2) Interstate system.--The Federal share of the cost of 
     a project on the Interstate System payable from funds made 
     available to carry out this section shall be the share 
     applicable under section 120(a).''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code, is amended by 
     striking the item relating to section 144 and inserting the 
     following:

``144. Highway bridge program.''.

     SEC. 1808. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1702(a)), is 
     amended by adding at the end the following:

     ``Sec. 170. Appalachian development highway system

       ``(a) Apportionment.--
       ``(1) In general.--The Secretary shall apportion funds made 
     available under section 1101(7) of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2005 for 
     fiscal years 2005 through 2009 among States based on the 
     latest available estimate of the cost to construct highways 
     and access roads for the Appalachian development highway 
     system program prepared by the Appalachian Regional 
     Commission under section 14501 of title 40.
       ``(2) Availability.--Funds described in paragraph (1) shall 
     be available to construct highways and access roads under 
     chapter 145 of title 40.
       ``(b) Applicability of Title.--Funds made available under 
     section 1101(7) of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005 for the 
     Appalachian development highway system shall be available for 
     obligation in the same manner as if the funds were 
     apportioned under this chapter, except that--
       ``(1) the Federal share of the cost of any project under 
     this section shall be determined in accordance with subtitle 
     IV of title 40; and
       ``(2) the funds shall remain available until expended.''.
       (b) Conforming Amendments.--
       (1) Use of toll credits.--Section 120(j)(1) of title 23, 
     United States Code is amended by inserting ``and the 
     Appalachian development highway system program under subtitle 
     IV of title 40'' after ``(other than the emergency relief 
     program authorized by section 125''.
       (2) Analysis.--The analysis of chapter 1 of title 23, 
     United States Code (as amended by section 1702(b)), is 
     amended by adding at the end the following:

``170. Appalachian development highway system.''.

     SEC. 1809. MULTISTATE CORRIDOR PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by 1808(a)), is amended by 
     adding at the end the following:

     ``Sec. 171. Multistate corridor program

       ``(a) Establishment and Purpose.--The Secretary shall carry 
     out a program to--
       ``(1) support and encourage multistate transportation 
     planning and development;
       ``(2) facilitate transportation decisionmaking and 
     coordinate project delivery involving multistate corridors; 
     and
       ``(3) support the planning, development, and construction 
     of high priority corridors identified by section 1105(c) of 
     the Intermodal Surface Transportation Efficiency Act of 1991 
     (Public Law 102-240; 105 Stat. 2032).
       ``(b) Eligible Recipients.--A State transportation 
     department and a metropolitan planning organization may 
     receive and administer funds provided under this section.
       ``(c) Eligible Activities.--The Secretary shall make 
     allocations under this program for--
       ``(1) multistate highway and multimodal planning studies 
     and construction; and
       ``(2) coordinated planning, development, and construction 
     of high priority corridors identified by section 1105(c) of 
     the Intermodal Surface Transportation Efficiency Act of 1991 
     (Public Law 102-240; 105 Stat. 2032).
       ``(d) Other Provisions Regarding Eligibility.--
       ``(1) Studies.--All studies funded under this program shall 
     be consistent with the continuing, cooperative, and 
     comprehensive planning processes required by sections 134 and 
     135.
       ``(2) Construction.--All construction funded under this 
     program shall be consistent with section 133(b)(1).
       ``(e) Selection Criteria.--The Secretary shall select 
     studies and projects to be carried out under the program 
     based on--
       ``(1) the existence and significance of signed and binding 
     multijurisdictional agreements;
       ``(2) endorsement of the study or project by applicable 
     elected State and local representatives;
       ``(3) prospects for early completion of the study or 
     project; or
       ``(4) whether the projects to be studied or constructed are 
     located on corridors identified by section 1105(c) of the 
     Intermodal Surface Transportation Efficiency Act of 1991 
     (Public Law 102-240; 105 Stat. 2032).
       ``(f) Program Priorities.--In administering the program, 
     the Secretary shall--
       ``(1) encourage and enable States and other jurisdictions 
     to work together to develop plans for multimodal and 
     multijurisdictional transportation decisionmaking; and
       ``(2) give priority to studies or projects that emphasize 
     multimodal planning, including planning for operational 
     improvements that--
       ``(A) increase--
       ``(i) mobility;
       ``(ii) freight productivity;
       ``(iii) access to marine or inland ports;
       ``(iv) safety and security (including improvements to 
     emergency evacuation routes); and
       ``(v) reliability; and
       ``(B) enhance the environment.
       ``(g) Federal Share.--Except as provided in section 120, 
     the Federal share of the cost of a study or project carried 
     out under the program, using funds from all Federal sources, 
     shall be 80 percent.
       ``(h) Applicability.--Funds authorized to be appropriated 
     under section 1101(10) of the Safe, Accountable, Flexible, 
     and Efficient Transportation Equity Act of 2005 to carry out 
     this section shall be available for obligation in the same

[[Page 10595]]

     manner as if the funds were apportioned under this 
     chapter.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1809(b)) is amended by adding at the end the 
     following:

``171. Multistate corridor program.''.

     SEC. 1810. BORDER PLANNING, OPERATIONS, TECHNOLOGY, AND 
                   CAPACITY PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1809(a)), is 
     amended by adding at the end the following:

     ``Sec. 172. Border planning, operations, technology, and 
       capacity program

       ``(a) Definitions.--In this section:
       ``(1) Border state.--The term `border State' means any of 
     the States of Alaska, Arizona, California, Idaho, Maine, 
     Michigan, Minnesota, Montana, New Hampshire, New Mexico, New 
     York, North Dakota, Texas, Vermont, and Washington.
       ``(2) Program.--The term `program' means the border 
     planning, operations, technology, and capacity program 
     established under subsection (b).
       ``(b) Establishment and Purpose.--The Secretary shall 
     establish and carry out a border planning, operations, 
     technology, and capacity improvement program to support 
     coordination and improvement in bi-national transportation 
     planning, operations, efficiency, information exchange, 
     safety, and security at the international borders of the 
     United States with Canada and Mexico.
       ``(c) Eligible Activities.--
       ``(1) In general.--The Secretary shall make allocations 
     under the program for projects to carry out eligible 
     activities described in paragraph (2) at or near 
     international land borders in border States.
       ``(2) Eligible activities.--A border State may obligate 
     funds apportioned to the border State under this section 
     for--
       ``(A) highway and multimodal planning or environmental 
     studies;
       ``(B) cross-border port of entry and safety inspection 
     improvements, including operational enhancements and 
     technology applications;
       ``(C) technology and information exchange activities; and
       ``(D) right-of-way acquisition, design, and construction, 
     as needed--
       ``(i) to implement the enhancements or applications 
     described in subparagraphs (B) and (C);
       ``(ii) to decrease air pollution emissions from vehicles or 
     inspection facilities at border crossings; or
       ``(iii) to increase highway capacity at or near 
     international borders.
       ``(d) Other Provisions Regarding Eligibility.--
       ``(1) In general.--Each project funded under the program 
     shall be carried out in accordance with the continuing, 
     cooperative, and comprehensive planning processes required by 
     sections 134 and 135.
       ``(2) Regionally significant projects.--To be funded under 
     the program, a regionally significant project shall be 
     included on the applicable transportation plan and program 
     required by sections 134 and 135.
       ``(e) Program Priorities.--Border States shall give 
     priority to projects that emphasize--
       ``(1) multimodal planning;
       ``(2) improvements in infrastructure; and
       ``(3) operational improvements that--
       ``(A) increase safety, security, freight capacity, or 
     highway access to rail, marine, and air services; and
       ``(B) enhance the environment.
       ``(f) Mandatory Program.--
       ``(1) In general.--For each fiscal year, the Secretary 
     shall allocate among border States, in accordance with the 
     formula described in paragraph (2), funds to be used in 
     accordance with subsection (d).
       ``(2) Formula.--Subject to paragraph (3), the amount 
     allocated to a border State under this paragraph shall be 
     determined by the Secretary, as follows:
       ``(A) 25 percent in the ratio that--
       ``(i) the average annual weight of all cargo entering the 
     border State by commercial vehicle across the international 
     border with Canada or Mexico, as the case may be; bears to
       ``(ii) the average annual weight of all cargo entering all 
     border States by commercial vehicle across the international 
     borders with Canada and Mexico.
       ``(B) 25 percent in the ratio that--
       ``(i) the average trade value of all cargo imported into 
     the border State and all cargo exported from the border State 
     by commercial vehicle across the international border with 
     Canada or Mexico, as the case may be; bears to
       ``(ii) the average trade value of all cargo imported into 
     all border States and all cargo exported from all border 
     States by commercial vehicle across the international borders 
     with Canada and Mexico.
       ``(C) 25 percent in the ratio that--
       ``(i) the number of commercial vehicles annually entering 
     the border State across the international border with Canada 
     or Mexico, as the case may be; bears to
       ``(ii) the number of all commercial vehicles annually 
     entering all border States across the international borders 
     with Canada and Mexico.
       ``(D) 25 percent in the ratio that--
       ``(i) the number of passenger vehicles annually entering 
     the border State across the international border with Canada 
     or Mexico, as the case may be; bears to
       ``(ii) the number of all passenger vehicles annually 
     entering all border States across the international borders 
     with Canada and Mexico.
       ``(3) Data source.--
       ``(A) In general.--The data used by the Secretary in making 
     allocations under this subsection shall be based on the 
     Bureau of Transportation Statistics Transborder Surface 
     Freight Dataset (or other similar database).
       ``(B) Basis of calculation.--All formula calculations shall 
     be made using the average values for the most recent 5-year 
     period for which data are available.
       ``(4) Minimum allocation.--Notwithstanding paragraph (2), 
     for each fiscal year, each border State shall receive at 
     least \1/2\ of 1 percent of the funds made available for 
     allocation under this paragraph for the fiscal year.
       ``(g) Federal Share.--Except as provided in section 120, 
     the Federal share of the cost of a project carried out under 
     the program shall be 80 percent.
       ``(h) Obligation.--Funds made available under section 
     1101(11) of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2005 to carry out the program 
     shall be available for obligation in the same manner as if 
     the funds were apportioned under this chapter.
       ``(i) Information Exchange.--No individual project the 
     scope of work of which is limited to information exchange 
     shall receive an allocation under the program in an amount 
     that exceeds $500,000 for any fiscal year.
       ``(j) Projects in Canada or Mexico.--A project in Canada or 
     Mexico, proposed by a border State to directly and 
     predominantly facilitate cross-border vehicle and commercial 
     cargo movements at an international gateway or port of entry 
     into the border region of the State, may be constructed using 
     funds made available under the program if, before obligation 
     of those funds, Canada or Mexico, or the political 
     subdivision of Canada or Mexico that is responsible for the 
     operation of the facility to be constructed, provides 
     assurances satisfactory to the Secretary that any facility 
     constructed under this subsection will be--
       ``(1) constructed in accordance with standards equivalent 
     to applicable standards in the United States; and
       ``(2) properly maintained and used over the useful life of 
     the facility for the purpose for which the Secretary 
     allocated funds to the project.
       ``(k) Transfer of Funds to the General Services 
     Administration.--
       ``(1) State funds.--At the request of a border State, funds 
     made available under the program may be transferred to the 
     General Services Administration for the purpose of funding 1 
     or more specific projects if--
       ``(A) the Secretary determines, after consultation with the 
     State transportation department of the border State, that the 
     General Services Administration should carry out the project; 
     and
       ``(B) the General Services Administration agrees to accept 
     the transfer of, and to administer, those funds.
       ``(2) Non-federal share.--
       ``(A) In general.--A border State that makes a request 
     under paragraph (1) shall provide directly to the General 
     Services Administration, for each project covered by the 
     request, the non-Federal share of the cost of each project 
     described in subsection (f).
       ``(B) No augmentation of appropriations.--Funds provided by 
     a border State under subparagraph (A)--
       ``(i) shall not be considered to be an augmentation of the 
     appropriations made available to the General Services 
     Administration; and
       ``(ii) shall be--

       ``(I) administered in accordance with the procedures of the 
     General Services Administration; but
       ``(II) available for obligation in the same manner as if 
     the funds were apportioned under this chapter.

       ``(C) Obligation authority.--Obligation authority shall be 
     transferred to the General Services Administration in the 
     same manner and amount as the funds provided for projects 
     under subparagraph (A).
       ``(3) Direct transfer of authorized funds.--
       ``(A) In general.--In addition to allocations to States and 
     metropolitan planning organizations under subsection (c), the 
     Secretary may transfer funds made available to carry out this 
     section to the General Services Administration for 
     construction of transportation infrastructure projects at or 
     near the border in border States, if--
       ``(i) the Secretary determines that the transfer is 
     necessary to effectively carry out the purposes of this 
     program; and
       ``(ii) the General Services Administration agrees to accept 
     the transfer of, and to administer, those funds.
       ``(B) No augmentation of appropriations.--Funds transferred 
     by the Secretary under subparagraph (A)--
       ``(i) shall not be considered to be an augmentation of the 
     appropriations made available to the General Services 
     Administration; and
       ``(ii) shall be--

       ``(I) administered in accordance with the procedures of the 
     General Services Administration; but
       ``(II) available for obligation in the same manner as if 
     the funds were apportioned under this chapter.

       ``(C) Obligation authority.--Obligation authority shall be 
     transferred to the General Services Administration in the 
     same manner and amount as the funds transferred under 
     subparagraph (A).''.

[[Page 10596]]

       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1809(b)), is amended by adding at the end the 
     following:

``172. Border planning, operations, technology, and capacity 
              program.''.

     SEC. 1811. PUERTO RICO HIGHWAY PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1810(a)), is 
     amended by adding at the end the following:

     ``Sec. 173. Puerto Rico highway program

       ``(a) In General.--The Secretary shall allocate funds 
     authorized by section 1101(15) of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2005 for 
     each of fiscal years 2005 through 2009 to the Commonwealth of 
     Puerto Rico to carry out a highway program in the 
     Commonwealth.
       ``(b) Applicability of Title.--
       ``(1) In general.--Amounts made available by section 
     1101(15) of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2005 shall be available for 
     obligation in the same manner as if such funds were 
     apportioned under this chapter.
       ``(2) Limitation on obligations.--The amounts shall be 
     subject to any limitation on obligations for Federal-aid 
     highway and highway safety construction programs.
       ``(c) Treatment of Funds.--Amounts made available to carry 
     out this section for a fiscal year shall be administered as 
     follows:
       ``(1) Apportionment.--For the purpose of imposing any 
     penalty under this title or title 49, the amounts shall be 
     treated as being apportioned to Puerto Rico under sections 
     104(b) and 144, for each program funded under those sections 
     in an amount determined by multiplying--
       ``(A) the aggregate of the amounts for the fiscal year; by
       ``(B) the ratio that--
       ``(i) the amount of funds apportioned to Puerto Rico for 
     each such program for fiscal year 1997; bears to
       ``(ii) the total amount of funds apportioned to Puerto Rico 
     for all such programs for fiscal year 1997.
       ``(2) Penalty.--The amounts treated as being apportioned to 
     Puerto Rico under each section referred to in paragraph (1) 
     shall be deemed to be required to be apportioned to Puerto 
     Rico under that section for purposes of the imposition of any 
     penalty under this title and title 49.
       ``(3) Effect on allocations and apportionments.--Subject to 
     paragraph (2), nothing in this section affects any allocation 
     under section 105 and any apportionment under sections 104 
     and 144.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1810(b)), is amended by adding at the end the 
     following:

``173. Puerto Rico highway program.''.

     SEC. 1812. NATIONAL HISTORIC COVERED BRIDGE PRESERVATION.

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

     ``Sec. 174. National historic covered bridge preservation

       ``(a) Definition of Historic Covered Bridge.--In this 
     section, the term `historic covered bridge' means a covered 
     bridge that is listed or eligible for listing on the National 
     Register of Historic Places.
       ``(b) Historic Covered Bridge Preservation.--Subject to the 
     availability of appropriations, the Secretary shall--
       ``(1) collect and disseminate information on historic 
     covered bridges;
       ``(2) conduct educational programs relating to the history 
     and construction techniques of historic covered bridges;
       ``(3) conduct research on the history of historic covered 
     bridges; and
       ``(4) conduct research on, and study techniques for, 
     protecting historic covered bridges from rot, fire, natural 
     disasters, or weight-related damage.
       ``(c) Grants.--
       ``(1) In general.--Subject to the availability of 
     appropriations, the Secretary shall make a grant to a State 
     that submits an application to the Secretary that 
     demonstrates a need for assistance in carrying out 1 or more 
     historic covered bridge projects described in paragraph (2).
       ``(2) Eligible projects.--A grant under paragraph (1) may 
     be made for a project--
       ``(A) to rehabilitate or repair a historic covered bridge; 
     or
       ``(B) to preserve a historic covered bridge, including 
     through--
       ``(i) installation of a fire protection system, including a 
     fireproofing or fire detection system and sprinklers;
       ``(ii) installation of a system to prevent vandalism and 
     arson; or
       ``(iii) relocation of a bridge to a preservation site.
       ``(3) Authenticity requirements.--A grant under paragraph 
     (1) may be made for a project only if--
       ``(A) to the maximum extent practicable, the project--
       ``(i) is carried out in the most historically appropriate 
     manner; and
       ``(ii) preserves the existing structure of the historic 
     covered bridge; and
       ``(B) the project provides for the replacement of wooden 
     components with wooden components, unless the use of wood is 
     impracticable for safety reasons.
       ``(4) Federal share.--Except as provided in section 120, 
     the Federal share of the cost of a project carried out with a 
     grant under this subsection shall be 80 percent.
       ``(d) Funding.--There is authorized to be appropriated to 
     carry out this section $13,140,805 for each of fiscal years 
     2005 through 2009, to remain available until expended.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1811(b)), is amended by adding at the end the 
     following:

``174. National historic covered bridge preservation.''.

     SEC. 1813. TRANSPORTATION AND COMMUNITY AND SYSTEM 
                   PRESERVATION PROGRAM.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1812(a)), is 
     amended by adding at the end the following:

     ``Sec. 175. Transportation and community and system 
       preservation program

       ``(a) Establishment.--The Secretary shall establish a 
     comprehensive program to facilitate the planning, 
     development, and implementation of strategies by States, 
     metropolitan planning organizations, federally-recognized 
     Indian tribes, and local governments to integrate 
     transportation, community, and system preservation plans and 
     practices that address the goals described in subsection (b).
       ``(b) Goals.--The goals of the program are to--
       ``(1) improve the efficiency of the transportation system 
     in the United States;
       ``(2) reduce the impacts of transportation on the 
     environment;
       ``(3) reduce the need for costly future investments in 
     public infrastructure;
       ``(4) provide efficient access to jobs, services, and 
     centers of trade; and
       ``(5) examine development patterns, and to identify 
     strategies, to encourage private sector development patterns 
     that achieve the goals identified in paragraphs (1) through 
     (4).
       ``(c) Allocation of Funds for Implementation.--
       ``(1) In general.--The Secretary shall allocate funds made 
     available to carry out this subsection to States, 
     metropolitan planning organizations, and local governments to 
     carry out projects to address transportation efficiency and 
     community and system preservation.
       ``(2) Criteria.--In allocating funds made available to 
     carry out this subsection, the Secretary shall give priority 
     to applicants that--
       ``(A) have instituted preservation or development plans and 
     programs that--
       ``(i) meet the requirements of this title and chapter 53 of 
     title 49, United States Code; and
       ``(ii)(I) are coordinated with State and local adopted 
     preservation or development plans;
       ``(II) are intended to promote cost-effective and strategic 
     investments in transportation infrastructure that minimize 
     adverse impacts on the environment; or
       ``(III) are intended to promote innovative private sector 
     strategies.
       ``(B) have instituted other policies to integrate 
     transportation and community and system preservation 
     practices, such as--
       ``(i) spending policies that direct funds to high-growth 
     areas;
       ``(ii) urban growth boundaries to guide metropolitan 
     expansion;
       ``(iii) `green corridors' programs that provide access to 
     major highway corridors for areas targeted for efficient and 
     compact development; or
       ``(iv) other similar programs or policies as determined by 
     the Secretary;
       ``(C) have preservation or development policies that 
     include a mechanism for reducing potential impacts of 
     transportation activities on the environment;
       ``(D) examine ways to encourage private sector investments 
     that address the purposes of this section; and
       ``(E) propose projects for funding that address the 
     purposes described in subsection (b)(2).
       ``(3) Equitable distribution.--In allocating funds to carry 
     out this subsection, the Secretary shall ensure the equitable 
     distribution of funds to a diversity of populations and 
     geographic regions.
       ``(4) Use of allocated funds.--
       ``(A) In general.--An allocation of funds made available to 
     carry out this subsection shall be used by the recipient to 
     implement the projects proposed in the application to the 
     Secretary.
       ``(B) Types of projects.--The allocation of funds shall be 
     available for obligation for--
       ``(i) any project eligible for funding under this title or 
     chapter 53 of title 49, United States Code; or
       ``(ii) any other activity relating to transportation and 
     community and system preservation that the Secretary 
     determines to be appropriate, including corridor preservation 
     activities that are necessary to implement--

       ``(I) transit-oriented development plans;
       ``(II) traffic calming measures; or
       ``(III) other coordinated transportation and community and 
     system preservation practices.

       ``(d) Funding.--
       ``(1) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this section $46,931,447 for each of 
     fiscal years 2005 through 2009.
       ``(2) Contract authority.--Funds authorized under this 
     subsection shall be available for obligation in the same 
     manner as if the funds were apportioned under this 
     chapter.''.
       (b) Eligible Projects.--Section 133(b) of title 23, United 
     States Code (as amended by section 1701(a)), is amended by 
     adding at the end the following:

[[Page 10597]]

       ``(18) Transportation and community system preservation to 
     facilitate the planning, development, and implementation of 
     strategies of metropolitan planning organizations and local 
     governments to integrate transportation, community, and 
     system preservation plans and practices that address the 
     following:
       ``(A) Improvement of the efficiency of the transportation 
     system in the United States.
       ``(B) Reduction of the impacts of transportation on the 
     environment.
       ``(C) Reduction of the need for costly future investments 
     in public infrastructure.
       ``(D) Provision of efficient access to jobs, services, and 
     centers of trade.
       ``(E) Examination of development patterns, and 
     identification of strategies to encourage private sector 
     development patterns, that achieve the goals identified in 
     subparagraphs (A) through (D).
       ``(19) Projects relating to intersections, including 
     intersections--
       ``(A) that--
       ``(i) have disproportionately high accident rates;
       ``(ii) have high levels of congestion, as evidenced by--

       ``(I) interrupted traffic flow at the intersection; and
       ``(II) a level of service rating, issued by the 
     Transportation Research Board of the National Academy of 
     Sciences in accordance with the Highway Capacity Manual, that 
     is not better than `F' during peak travel hours; and

       ``(iii) are directly connected to or located on a Federal-
     aid highway; and
       ``(B) improvements that are approved in the regional plan 
     of the appropriate local metropolitan planning 
     organization.''.
       (c) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code (as amended by 
     section 1812(b)), is amended by adding at the end the 
     following:

``175. Transportation and community and system preservation pilot 
              program.''.

     SEC. 1814. PARKING PILOT PROGRAMS.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1813(a)), is 
     amended by adding at the end the following:

     ``Sec. 176. Parking pilot programs

       ``(a) Commercial Truck Parking Pilot Program.--
       ``(1) Establishment.--In cooperation with appropriate 
     State, regional, and local governments, the Secretary shall 
     establish a pilot program to address the shortage of long-
     term parking for drivers of commercial motor vehicles on the 
     National Highway System.
       ``(2) Allocation of funds.--
       ``(A) In general.--The Secretary shall allocate funds made 
     available under this subsection to States, metropolitan 
     planning organizations, and local governments.
       ``(B) Criteria.--In allocating funds under this subsection, 
     the Secretary shall give priority to an applicant that--
       ``(i) demonstrates a severe shortage of commercial vehicle 
     parking capacity on the corridor to be addressed;
       ``(ii) consults with affected State and local governments, 
     community groups, private providers of commercial vehicle 
     parking, and motorist and trucking organizations; and
       ``(iii) demonstrates that the project proposed by the 
     applicant is likely to have a positive effect on highway 
     safety, traffic congestion, or air quality.
       ``(3) Use of allocated funds.--
       ``(A) In general.--A recipient of funds allocated under 
     this subsection shall use the funds to carry out the project 
     proposed in the application submitted by the recipient to the 
     Secretary.
       ``(B) Types of projects.--Funds under this subsection shall 
     be available for obligation for projects that serve the 
     National Highway System, including--
       ``(i) construction of safety rest areas that include 
     parking for commercial motor vehicles;
       ``(ii) construction of commercial motor vehicle parking 
     facilities that are adjacent to commercial truck stops and 
     travel plazas;
       ``(iii) costs associated with the opening of facilities 
     (including inspection and weigh stations and park-and-ride 
     facilities) to provide commercial motor vehicle parking;
       ``(iv) projects that promote awareness of the availability 
     of public or private commercial motor vehicle parking on the 
     National Highway System, including parking in connection with 
     intelligent transportation systems and other systems;
       ``(v) construction of turnouts along the National Highway 
     System for commercial motor vehicles;
       ``(vi) capital improvements to public commercial motor 
     vehicle truck parking facilities closed on a seasonal basis 
     in order to allow the facilities to remain open year-around; 
     and
       ``(vii) improvements to the geometric design at 
     interchanges on the National Highway System to improve access 
     to commercial motor vehicle parking facilities.
       ``(4) Report.--Not later than 5 years after the date of 
     enactment of this section, the Secretary shall submit to 
     Congress a report on the results of the pilot program carried 
     out under this subsection.
       ``(5) Federal share.--The Federal share of the cost of a 
     project carried out under this subsection shall be consistent 
     with section 120.
       ``(6) Funding.--
       ``(A) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this subsection $9,386,289 for each of 
     fiscal years 2005 through 2009.
       ``(B) Contract authority.--Funds authorized under this 
     paragraph shall be available for obligation in the same 
     manner as if the funds were apportioned under this chapter.
       ``(b) Corridor and Fringe Parking Pilot Program.--
       ``(1) Establishment.--
       ``(A) In general.--In cooperation with appropriate State, 
     regional, and local governments, the Secretary shall carry 
     out a pilot program to provide corridor and fringe parking 
     facilities.
       ``(B) Primary function.--The primary function of a corridor 
     and fringe parking facility funded under this subsection 
     shall be to provide parking capacity to support car pooling, 
     van pooling, ride sharing, commuting, and high occupancy 
     vehicle travel.
       ``(C) Overnight parking.--A State may permit a facility 
     described in subparagraph (B) to be used for the overnight 
     parking of commercial vehicles if the use does not foreclose 
     or unduly limit the primary function of the facility 
     described in subparagraph (B).
       ``(2) Allocation of funds.--
       ``(A) In general.--The Secretary shall allocate funds made 
     available to carry out this subsection to States.
       ``(B) Criteria.--In allocating funds under this subsection, 
     the Secretary shall give priority to a State that--
       ``(i) demonstrates demand for corridor and fringe parking 
     on the corridor to be addressed;
       ``(ii) consults with affected metropolitan planning 
     organizations, local governments, community groups, and 
     providers of corridor and fringe parking; and
       ``(iii) demonstrates that the project proposed by the State 
     is likely to have a positive effect on ride sharing, traffic 
     congestion, or air quality.
       ``(3) Use of allocated funds.--
       ``(A) In general.--A recipient of funds allocated under 
     this subsection shall use the funds to carry out the project 
     proposed in the application submitted by the recipient to the 
     Secretary.
       ``(B) Types of projects.--Funds under this subsection shall 
     be available for obligation for projects that serve the 
     Federal-aid system, including--
       ``(i) construction of corridor and fringe parking 
     facilities;
       ``(ii) costs associated with the opening of facilities;
       ``(iii) projects that promote awareness of the availability 
     of corridor and fringe parking through the use of signage and 
     other means;
       ``(iv) capital improvements to corridor and fringe parking 
     facilities closed on a seasonal basis in order to allow the 
     facilities to remain open year-around; and
       ``(v) improvements to the geometric design on adjoining 
     roadways to facilitate access to, and egress from, corridor 
     and fringe parking facilities.
       ``(4) Report.--Not later than 5 years after the date of 
     enactment of this section, the Secretary shall submit to 
     Congress a report on the results of the pilot program carried 
     out under this subsection.
       ``(5) Federal share.--The Federal share of the cost of a 
     project carried out under this subsection shall be consistent 
     with section 120.
       ``(6) Funding.--
       ``(A) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out this subsection $9,386,289 for each of 
     fiscal years 2005 through 2009.
       ``(B) Contract authority.--Funds authorized under this 
     paragraph shall be available for obligation in the same 
     manner as if the funds were apportioned under this 
     chapter.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter I of title 23, United States Code (as amended by 
     section 1813(c)), is amended by adding at the end the 
     following:

``176. Parking pilot programs.''.

     SEC. 1815. INTERSTATE OASIS 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. 177. Interstate oasis program

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

[[Page 10598]]

     States Code (as amended by section 1814(b)), is amended by 
     adding at the end the following:

``177. Interstate oasis program.''.

     SEC. 1816. TRIBAL-STATE ROAD MAINTENANCE AGREEMENTS.

       Section 204 of title 23, United States Code (as amended by 
     section 1806(f)(4)), is amended by adding at the end the 
     following:
       ``(n) Tribal-State Road Maintenance Agreements.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, regulation, policy, or guideline, an Indian tribe and a 
     State may enter into a road maintenance agreement under which 
     an Indian tribe assumes the responsibilities of the State 
     for--
       ``(A) Indian reservation roads; and
       ``(B) roads providing access to Indian reservation roads.
       ``(2) Tribal-state agreements.--Agreements entered into 
     under paragraph (1)--
       ``(A) shall be negotiated between the State and the Indian 
     tribe; and
       ``(B) shall not require the approval of the Secretary.
       ``(3) Annual report.--Effective beginning with fiscal year 
     2005, the Secretary shall prepare and submit to Congress an 
     annual report that identifies--
       ``(A) the Indian tribes and States that have entered into 
     agreements under paragraph (1);
       ``(B) the number of miles of roads for which Indian tribes 
     have assumed maintenance responsibilities; and
       ``(C) the amount of funding transferred to Indian tribes 
     for the fiscal year under agreements entered into under 
     paragraph (1).''.

     SEC. 1817. NATIONAL FOREST SYSTEM ROADS.

       Section 205 of title 23, United States Code, is amended by 
     adding at the end the following:
       ``(e) Passages for Aquatic Species.--Of the amounts made 
     available for National Forest System roads, $14,079,433 for 
     each fiscal year shall be used by the Secretary of 
     Agriculture to pay the costs of facilitating the passage of 
     aquatic species beneath roads in the National Forest System, 
     including the costs of constructing, maintaining, replacing, 
     or removing culverts and bridges, as appropriate.''.

     SEC. 1818. TERRITORIAL HIGHWAY PROGRAM.

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

     ``Sec. 215. Territorial highway program

       ``(a) Definitions.--In this section:
       ``(1) Program.--The term `program' means the territorial 
     highway program established under subsection (b).
       ``(2) Territory.--The term `territory' means the any of the 
     following territories of the United States:
       ``(A) American Samoa.
       ``(B) The Commonwealth of the Northern Mariana Islands.
       ``(C) Guam.
       ``(D) The United States Virgin Islands.
       ``(b) Program.--
       ``(1) In general.--Recognizing the mutual benefits that 
     will accrue to the territories and the United States from the 
     improvement of highways in the territories, the Secretary may 
     carry out a program to assist each territorial government in 
     the construction and improvement of a system of arterial and 
     collector highways, and necessary inter-island connectors, 
     that is--
       ``(A) designated by the Governor or chief executive officer 
     of each territory; and
       ``(B) approved by the Secretary.
       ``(2) Federal share.--The Secretary shall provide Federal 
     financial assistance to territories under this section in 
     accordance with section 120(h).
       ``(c) Technical Assistance.--
       ``(1) In general.--To continue a long-range highway 
     development program, the Secretary may provide technical 
     assistance to the governments of the territories to enable 
     the territories to, on a continuing basis--
       ``(A) engage in highway planning;
       ``(B) conduct environmental evaluations;
       ``(C) administer right-of-way acquisition and relocation 
     assistance programs; and
       ``(D) design, construct, operate, and maintain a system of 
     arterial and collector highways, including necessary inter-
     island connectors.
       ``(2) Form and terms of assistance.--Technical assistance 
     provided under paragraph (1), and the terms for the sharing 
     of information among territories receiving the technical 
     assistance, shall be included in the agreement required by 
     subsection (e).
       ``(d) Nonapplicability of Certain Provisions.--
       ``(1) In general.--Except to the extent that provisions of 
     chapter 1 are determined by the Secretary to be inconsistent 
     with the needs of the territories and the intent of the 
     program, chapter 1 (other than provisions of chapter 1 
     relating to the apportionment and allocation of funds) shall 
     apply to funds authorized to be appropriated for the program.
       ``(2) Applicable provisions.--The specific sections of 
     chapter 1 that are applicable to each territory, and the 
     extent of the applicability of those section, shall be 
     identified in the agreement required by subsection (e).
       ``(e) Agreement.--
       ``(1) In general.--Except as provided in paragraph (3), 
     none of the funds made available for the program shall be 
     available for obligation or expenditure with respect to any 
     territory until the Governor or chief executive officer of 
     the territory enters into a new agreement with the Secretary 
     (which new agreement shall be entered into not later than 1 
     year after the date of enactment of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2005), 
     providing that the government of the territory shall--
       ``(A) implement the program in accordance with applicable 
     provisions of chapter 1 and subsection (d);
       ``(B) design and construct a system of arterial and 
     collector highways, including necessary inter-island 
     connectors, in accordance with standards that are--
       ``(i) appropriate for each territory; and
       ``(ii) approved by the Secretary;
       ``(C) provide for the maintenance of facilities constructed 
     or operated under this section in a condition to adequately 
     serve the needs of present and future traffic; and
       ``(D) implement standards for traffic operations and 
     uniform traffic control devices that are approved by the 
     Secretary.
       ``(2) Technical assistance.--The new agreement required by 
     paragraph (1) shall--
       ``(A) specify the kind of technical assistance to be 
     provided under the program;
       ``(B) include appropriate provisions regarding information 
     sharing among the territories; and
       ``(C) delineate the oversight role and responsibilities of 
     the territories and the Secretary.
       ``(3) Review and revision of agreement.--The new agreement 
     entered into under paragraph (1) shall be reevaluated and, as 
     necessary, revised, at least every 2 years.
       ``(4) Existing agreements.--With respect to an agreement 
     between the Secretary and the Governor or chief executive 
     officer of a territory that is in effect as of the date of 
     enactment of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2005--
       ``(A) the agreement shall continue in force until replaced 
     by a new agreement in accordance with paragraph (1); and
       ``(B) amounts made available for the program under the 
     agreement shall be available for obligation or expenditure so 
     long as the agreement, or a new agreement under paragraph 
     (1), is in effect.
       ``(f) Permissible Uses of Funds.--
       ``(1) In general.--Funds made available for the program may 
     be used only for the following projects and activities 
     carried out in a territory:
       ``(A) Eligible surface transportation program projects 
     described in section 133(b).
       ``(B) Cost-effective, preventive maintenance consistent 
     with section 116.
       ``(C) Ferry boats, terminal facilities, and approaches, in 
     accordance with subsections (b) and (c) of section 129.
       ``(D) Engineering and economic surveys and investigations 
     for the planning, and the financing, of future highway 
     programs.
       ``(E) Studies of the economy, safety, and convenience of 
     highway use.
       ``(F) The regulation and equitable taxation of highway use.
       ``(G) Such research and development as are necessary in 
     connection with the planning, design, and maintenance of the 
     highway system.
       ``(2) Prohibition on use of funds for routine 
     maintenance.--None of the funds made available for the 
     program shall be obligated or expended for routine 
     maintenance.
       ``(g) Location of Projects.--Territorial highway projects 
     (other than those described in paragraphs (1), (3), and (4) 
     of section 133(b)) may not be undertaken on roads 
     functionally classified as local.''.
       (b) Conforming Amendments.--
       (1) Eligible projects.--Section 103(b)(6) of title 23, 
     United States Code, is amended by striking subparagraph (P) 
     and inserting the following:
       ``(P) Projects eligible for assistance under the 
     territorial highway program under section 215.''.
       (2) Funding.--Section 104(b)(1)(A) of title 23, United 
     States Code, is amended by striking ``to the Virgin Islands, 
     Guam, American Samoa, and the Commonwealth of Northern 
     Mariana Islands'' and inserting ``for the territorial highway 
     program authorized under section 215''.
       (3) Analysis.--The analysis for chapter 2 of title 23, 
     United States Code, is amended by striking the item relating 
     to section 215 and inserting the following:

``215. Territorial highway program.''.

     SEC. 1819. HIGH-SPEED MAGNETIC LEVITATION SYSTEM DEPLOYMENT 
                   PROGRAM.

       (a) In General.--Section 322 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 322. High-speed magnetic levitation system deployment 
       program

       ``(a) Definitions.--In this section:
       ``(1) Eligible project costs.--
       ``(A) In general.--The term `eligible project costs' means 
     the capital cost of the fixed guideway infrastructure of a 
     MAGLEV project, including land, piers, guideways, propulsion 
     equipment and other components attached to guideways, power 
     distribution facilities (including substations), control and 
     communications facilities, access roads, and storage, repair, 
     and maintenance facilities.
       ``(B) Inclusion.--The term `eligible project costs' 
     includes the costs of preconstruction planning activities.
       ``(2) Full project costs.--The term `full project costs' 
     means the total capital costs of a MAGLEV project, including 
     eligible project costs and the costs of stations, vehicles, 
     and equipment.
       ``(3) Maglev.--
       ``(A) In general.--The term `MAGLEV' means transportation 
     systems in revenue service employing magnetic levitation that 
     would be capable of safe use by the public at a speed in 
     excess of 240 miles per hour.

[[Page 10599]]

       ``(B) Inclusion.--The term `MAGLEV' includes power, 
     control, and communication facilities required for the safe 
     operation of the vehicles within a system described in 
     subparagraph (A).
       ``(4) Secretary.--The term `Secretary' means the Secretary 
     of Transportation.
       ``(5) Special purpose entity.--The term `special purpose 
     entity' means a nonprofit entity that--
       ``(A) is not a State-designated authority; but
       ``(B) is eligible, as determined by the Governor of the 
     State in which the entity is located, to participate in the 
     program under this section.
       ``(6) Tea-21 criteria.--The term `TEA-21 criteria' means--
       ``(A) the criteria set forth in subsection (d) of this 
     section (as in effect on the day before the date of enactment 
     of the Safe, Affordable, Flexible, and Efficient 
     Transportation Equity Act of 2005), including applicable 
     regulations; and
       ``(B) with respect to subsection (e)(2), the criteria set 
     forth in subsection (d)(8) of this section (as so in effect).
       ``(b) Phase I--Preconstruction Planning.--
       ``(1) In general.--A State, State-designated authority, 
     multistate-designated authority, or special purpose entity 
     may apply to the Secretary for grants to conduct 
     preconstruction planning for proposed new MAGLEV projects, or 
     extensions to MAGLEV systems planned, studied, or deployed 
     under this or any other program.
       ``(2) Applications.--An application for a grant under this 
     subsection shall include a description of the proposed MAGLEV 
     project, including, at a minimum--
       ``(A) a description of the purpose and need for the 
     proposed MAGLEV project;
       ``(B) a description of the travel market to be served;
       ``(C) a description of the technology selected for the 
     MAGLEV project;
       ``(D) forecasts of ridership and revenues;
       ``(E) a description of preliminary engineering that is 
     sufficient to provide a reasonable estimate of the capital 
     cost of constructing, operating, and maintaining the project;
       ``(F) a realistic schedule for construction and equipment 
     for the project;
       ``(G) an environmental assessment;
       ``(H) a preliminary identification of the 1 or more 
     organizations that will construct and operate the project; 
     and
       ``(I) a cost-benefit analysis and tentative financial plan 
     for construction and operation of the project.
       ``(3) Deadline for applications.--The Secretary shall 
     establish an annual deadline for receipt of applications 
     under this subsection.
       ``(4) Evaluation.--The Secretary shall evaluate all 
     applications received by the annual deadline to determine 
     whether the applications meet criteria established by the 
     Secretary.
       ``(5) Selection.--The Secretary, except as otherwise 
     provided in this section, shall select for Federal support 
     for preconstruction planning any project that the Secretary 
     determines meets the criteria.
       ``(c) Phase II--Environmental Impact Studies.--
       ``(1) In general.--A State, State-designated authority, or 
     multistate-designated authority that has conducted (under 
     this section or any other provision of law) 1 or more studies 
     that address each of the requirements of subsection (b)(2) 
     may apply for Federal funding to assist in--
       ``(A) preparing an environmental impact statement or 
     similar analysis required under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.); and
       ``(B) planning for construction, operation, and maintenance 
     of a MAGLEV project.
       ``(2) Deadline for applications.--
       ``(A) In general.--The Secretary shall--
       ``(i) establish an annual deadline for receipt of Phase II 
     applications; and
       ``(ii) evaluate all applications received by that deadline 
     in accordance with criteria established under subparagraph 
     (B).
       ``(B) Criteria.--The Secretary shall establish criteria to 
     evaluate applications that include whether--
       ``(i) the technology selected is available for deployment 
     at the time of the application;
       ``(ii) operating revenues combined with known and dedicated 
     sources of other revenues in any year will exceed annual 
     operation and maintenance costs;
       ``(iii) over the life of the MAGLEV project, total project 
     benefits will exceed total project costs; and
       ``(iv) the proposed capital financing plan is realistic and 
     does not assume Federal assistance that is greater than the 
     maximums specified in clause (ii).
       ``(C) Projects selected.--If the Secretary determines that 
     a MAGLEV project meets the criteria established under 
     subparagraph (B), the Secretary shall--
       ``(i) select that project for Federal Phase II support; and
       ``(ii) publish in the Federal Register a notice of intent 
     to prepare an environmental impact statement or similar 
     analysis required under the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.).
       ``(d) Phase III--Deployment.--The State, State-designated 
     agency, multistate-designated agency, or special purpose 
     entity that is part of a public-private partnership (meeting 
     the TEA-21 criteria) sponsoring a MAGLEV project that has 
     completed a final environmental impact statement or similar 
     analysis required under the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.) for both the MAGLEV project 
     and the entire corridor of which the MAGLEV project is the 
     initial operating segment, and has completed planning studies 
     for the construction, operation, and maintenance of the 
     MAGLEV project, under this or any other program, may submit 
     an application to the Secretary for Federal funding of a 
     portion of the capital costs of planning, financing, 
     constructing, and equipping the preferred alternative 
     identified in the final environmental impact statement or 
     analysis.
       ``(e) Financial Assistance.--
       ``(1) In general.--The Secretary shall make available 
     financial assistance to pay the Federal share of the full 
     project costs of projects selected under this section.
       ``(2) Prevailing wage and certain tea-21 criteria.--
     Sections 5333(a) and the TEA-21 criteria, shall apply to 
     financial assistance made available under this section and 
     projects funded with that assistance.
       ``(3) Federal share.--
       ``(A) Phase i and phase ii.--For Phase I--preconstruction 
     planning and Phase II--environmental impact studies carried 
     out under subsections (b) and (c), respectively, the Federal 
     share of the costs of the planning and studies shall be not 
     more than \2/3\ of the full cost of the planning and studies.
       ``(B) Phase iii.--For Phase III--deployment projects 
     carried out under subsection (d), not more than \2/3\ of the 
     full capital cost of such a project shall be made available 
     from funds appropriated for this program.
       ``(4) Funding.--
       ``(A) Contract authority; authorization of 
     appropriations.--
       ``(i) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) for fiscal years 2005 through 2009 to carry out this 
     section--

       ``(I) $10,000,000 for Phase I--preconstruction planning 
     studies;
       ``(II) $20,000,000 for Phase II--environmental impact 
     studies; and
       ``(III) $60,000,000 for Phase III--deployment projects.

       ``(ii) Obligation authority.--Funds authorized by this 
     subparagraph shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter I, 
     except that--

       ``(I) the Federal share of the cost of the project shall be 
     in accordance with paragraph (2); and
       ``(II) the availability of the funds shall be in accordance 
     with subsection (f).

       ``(B) Noncontract authority authorization of 
     appropriations.--
       ``(i) Phase i.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out Phase I--preconstruction planning 
     studies under subsection (b)--

       ``(I) $6,000,000 for fiscal year 2005; and
       ``(II) $2,000,000 for each of fiscal years 2006 through 
     2009.

       ``(ii) Phase ii.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out Phase II--environmental impact studies 
     under subsection (c)--

       ``(I) $25,000,000 for fiscal year 2005;
       ``(II) $37,000,000 for fiscal year 2006;
       ``(III) $21,000,000 for fiscal year 2007; and
       ``(IV) $9,000,000 for each of fiscal years 2008 and 2009.

       ``(iii) Phase iii.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out Phase III--deployment projects under 
     subsection (d)--

       ``(I) $500,000,000 for fiscal year 2005;
       ``(II) $650,000,000 for fiscal year 2006;
       ``(III) $850,000,000 for fiscal year 2007;
       ``(IV) $850,000,000 for fiscal year 2008; and
       ``(V) $600,000,000 for fiscal year 2009.

       ``(iv) Program administration.--There are authorized to be 
     appropriated from the Highway Trust Fund (other than the Mass 
     Transit Account) to carry out administration of this 
     program--

       ``(I) $13,000,000 for fiscal year 2005;
       ``(II) $16,000,000 for fiscal year 2006;
       ``(III) $8,000,000 for fiscal year 2007; and
       ``(IV) $5,000,000 for each of fiscal years 2008 and 2009.

       ``(v) Research and development.--There is authorized to be 
     appropriated from the Highway Trust Fund (other than the Mass 
     Transit Account) to carry out research and development 
     activities to reduce MAGLEV deployment costs $4,000,000 for 
     each of fiscal years 2005 through 2009.
       ``(f) Availability of Funds.--Funds made available under 
     subsection (e) shall remain available until expended.
       ``(g) Other Federal Funds.--Funds made available to a State 
     to carry out the surface transportation program under section 
     133 and the congestion mitigation and air quality improvement 
     programs under section 149 may be used by any State to pay a 
     portion of the full project costs of an eligible project 
     selected under this section, without requirement for non-
     Federal funds.
       ``(h) Other Federal Funds.--A project selected for funding 
     under this section shall be eligible for other forms of 
     financial assistance provided by this title and title V of 
     the Railroad Revitalization and Regulatory Reform Act of 1976 
     (45 U.S.C. 821 et seq.), including loans, loan guarantees, 
     and lines of credit.
       ``(i) Mandatory Additional Selection.--
       ``(1) In general.--Subject to paragraph 2, in selecting 
     projects for preconstruction planning,

[[Page 10600]]

     deployment, and financial assistance, the Secretary may only 
     provide funds to MAGLEV projects that meet the criteria 
     established under subsection (b)(4).
       ``(2) Priority funding.--The Secretary shall give priority 
     funding to a MAGLEV project that--
       ``(A) has already met the TEA-21 criteria and has received 
     funding prior to the date of enactment of the Safe, 
     Affordable, Flexible, and Efficient Transportation Equity Act 
     of 2005 as a result of evaluation and contracting procedures 
     for MAGLEV transportation, to the extent that the project 
     continues to fulfill the requirements of this section;
       ``(B) to the maximum extent practicable, has met safety 
     guidelines established by the Secretary to protect the health 
     and safety of the public;
       ``(C) is based on designs that ensure the greatest life 
     cycle advantages for the project;
       ``(D) contains domestic content of at least 70 percent; and
       ``(E) is designed and developed through public/private 
     partnership entities and continues to meet the TEA-21 
     criteria relating to public/private partnerships.''.
       (b) Conforming Amendment.--The analysis for chapter 3 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 322 and inserting the following:

``322. High-speed magnetic levitation system deployment program.''.

     SEC. 1820. DONATIONS AND CREDITS.

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

     SEC. 1821. DISADVANTAGED BUSINESS ENTERPRISES.

       (a) General Rule.--Except to the extent that the Secretary 
     determines otherwise, not less than 10 percent of the amounts 
     made available for any program under titles I, II, and VI of 
     this Act shall be expended with small business concerns owned 
     and controlled by socially and economically disadvantaged 
     individuals.
       (b) Definitions.--In this section:
       (1) Small business concern.--
       (A) In general.--The term ``small business concern'' has 
     the meaning given the term under section 3 of the Small 
     Business Act (15 U.S.C. 632).
       (B) Exclusion.--The term ``small business concern'' does 
     not include any concern or group of concerns controlled by 
     the same socially and economically disadvantaged individual 
     or individuals that has average annual gross receipts over 
     the preceding 3 fiscal years in excess of $18,308,420, as 
     adjusted by the Secretary for inflation.
       (2) Socially and economically disadvantaged individuals.--
     The term ``socially and economically disadvantaged 
     individuals'' has the meaning given the term under section 
     8(d) of the Small Business Act (15 U.S.C. 637(d)) and 
     relevant subcontracting regulations promulgated under that 
     section, except that women shall be presumed to be socially 
     and economically disadvantaged individuals for the purposes 
     of this section.
       (c) Annual Listing of Disadvantaged Business Enterprises.--
     Each State shall annually survey and compile a list of the 
     small business concerns referred to in subsection (a) and the 
     location of such concerns in the State and notify the 
     Secretary, in writing, of the percentage of such concerns 
     which are controlled by women, by socially and economically 
     disadvantaged individuals (other than women), and by 
     individuals who are women and are otherwise socially and 
     economically disadvantaged individuals.
       (d) Uniform Certification.--The Secretary shall establish 
     minimum uniform criteria for State governments to use in 
     certifying whether a concern qualifies for purposes of this 
     section. Such minimum uniform criteria shall include on-site 
     visits, personal interviews, licenses, analysis of stock 
     ownership, listing of equipment, analysis of bonding 
     capacity, listing of work completed, resume of principal 
     owners, financial capacity, and type of work preferred.
       (e) Compliance With Court Orders.--Nothing in this section 
     limits the eligibility of an entity or person to receive 
     funds made available under titles I, III, and V of this Act, 
     if the entity or person is prevented, in whole or in part, 
     from complying with subsection (a) because a Federal court 
     issues a final order in which the court finds that the 
     requirement of subsection (a), or the program established 
     under subsection (a), is unconstitutional.

     SEC. 1822. [RESERVED.]

     SEC. 1823. PRIORITY FOR PEDESTRIAN AND BICYCLE FACILITY 
                   ENHANCEMENT PROJECTS.

       Section 133(e)(5) of title 23, United States Code, is 
     amended by adding at the end the following:
       ``(D) Priority for pedestrian and bicycle facility 
     enhancement projects.--The Secretary shall encourage States 
     to give priority to pedestrian and bicycle facility 
     enhancement projects that include a coordinated physical 
     activity or healthy lifestyles program.''.

     SEC. 1824. THE DELTA REGIONAL AUTHORITY.

       (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 or metropolitan planning organization may receive 
     and administer funds provided under the program.
       ``(c) Eligible Activities.--The Secretary shall make 
     allocations under the program for multistate highway 
     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 1 of 
     title 23, United States Code (as amended by section 1814(b)), 
     is amended by adding at the end the following:

``178. Delta Region transportation development program.''.

     SEC. 1825. 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 1105(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. 1826. AUTHORIZATION OF CONTRACT AUTHORITY FOR STATES 
                   WITH INDIAN RESERVATIONS.

       Section 1214(d)(5)(A) of the Transportation Equity Act for 
     the 21st Century (23 U.S.C. 202 note; 112 Stat. 206) is 
     amended by striking ``$1,500,000 for each of fiscal years 
     1998 through 2003'' and inserting ``$1,800,000 for each of 
     fiscal years 2005 through 2009''.

     SEC. 1827. VALUE PRICING PILOT PROGRAM.

       Section 1012(b)(1) of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (23 U.S.C.

[[Page 10601]]

     149 note; 105 Stat. 1938) is amended in the first sentence by 
     striking ``The Secretary'' and inserting ``For fiscal year 
     2005 and each fiscal year thereafter, the Secretary''.

     SEC. 1828. CREDIT TO STATE OF LOUISIANA FOR STATE MATCHING 
                   FUNDS.

       (a) In General.--The Secretary may provide a credit to the 
     State of Louisiana in an amount equal to the cost of any 
     planning, engineering, design, or construction work carried 
     out by the State on any project that the Secretary determines 
     is in accordance with the project numbered 202 under section 
     1602 of the Transportation Equity Act for the 21st Century 
     (Public Law 105-178; 112 Stat. 256).
       (b) Eligibility of Credit.--The credit shall be eligible 
     for use for any future payment relating to the completion of 
     a project described in subsection (a) that is required by the 
     State under title 23, United States Code.

     SEC. 1829. APPROVAL AND FUNDING FOR CERTAIN CONSTRUCTION 
                   PROJECTS.

       (a) In General.--Not later than 30 days after the date of 
     receipt by the Secretary of a construction authorization 
     request from the State transportation department for the 
     State of Georgia for project number STP-189-1(15)CT 3 in 
     Gwinnett County, Georgia, the Secretary shall--
       (1) approve the project; and
       (2) reserve such Federal funds available to the Secretary 
     as are necessary to carry out the project.
       (b) Conformity Determination.--
       (1) In general.--Approval, funding, and implementation of 
     the project referred to in subsection (a) shall not be 
     subject to the requirements of part 93 of title 40, Code of 
     Federal Regulations (or successor regulations).
       (2) Regional emissions.--Notwithstanding paragraph (1), all 
     subsequent regional emission analyses required by section 
     93.118 or 93.119 of title 40, Code of Federal Regulations (or 
     successor regulations), shall include the project.

     SEC. 1830. NOTICE REGARDING PARTICIPATION OF SMALL BUSINESS 
                   CONCERNS.

       The Secretary of Transportation shall notify each State or 
     political subdivision of a State to which the Secretary of 
     Transportation awards a grant or other Federal funds of the 
     criteria for participation by a small business concern in any 
     program or project that is funded, in whole or in part, by 
     the Federal Government under section 155 of the Small 
     Business Reauthorization and Manufacturing Assistance Act of 
     2004 (15 U.S.C. 567g).

     SEC. 1831. ALASKA WAY VIADUCT STUDY.

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

     SEC. 1832. BRIDGE CONSTRUCTION, NORTH DAKOTA.

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

     SEC. 1833. COMMUNITY ENHANCEMENT STUDY.

       (a) In General.--The Secretary shall conduct a study on--
       (1) the role of well-designed transportation projects in--
       (A) promoting economic development;
       (B) protecting public health, safety, and the environment; 
     and
       (C) enhancing the architectural design and planning of 
     communities; and
       (2) the positive economic, cultural, aesthetic, scenic, 
     architectural, and environmental benefits of those projects 
     for communities.
       (b) Contents.--The study shall address--
       (1) the degree to which well-designed transportation 
     projects--
       (A) have positive economic, cultural, aesthetic, scenic, 
     architectural, and environmental benefits for communities;
       (B) protect and contribute to improvements in public health 
     and safety; and
       (C) use inclusive public participation processes to achieve 
     quicker, more certain, and better results;
       (2) the degree to which positive results are achieved by 
     linking transportation, design, and the implementation of 
     community visions for the future; and
       (3) methods of facilitating the use of successful models or 
     best practices in transportation investment or development to 
     accomplish--
       (A) enhancement of community identity;
       (B) protection of public health and safety;
       (C) provision of a variety of choices in housing, shopping, 
     transportation, employment, and recreation;
       (D) preservation and enhancement of existing 
     infrastructure; and
       (E) creation of a greater sense of community through public 
     involvement.
       (c) Administration.--
       (1) In general.--To carry out this section, the Secretary 
     shall make a grant to, or enter into a cooperative agreement 
     or contract with, a national organization with expertise in 
     the design of a wide range of transportation and 
     infrastructure projects, including the design of buildings, 
     public facilities, and surrounding communities.
       (2) Federal share.--Notwithstanding section 1221(e)(2) of 
     the Transportation Equity Act for the 21st Century (23 U.S.C. 
     101 note), the Federal share of the cost of the study under 
     this section shall be 100 percent.
       (d) Report.--Not later than September 20, 2006, the 
     Secretary shall submit to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Environment and Public Works of the Senate a 
     report on the results of the study under this section.
       (e) Authorization.--Of the amounts made available to carry 
     out section 1221 of the Transportation Equity Act for the 
     21st Century (23 U.S.C. 101 note), $1,000,000 shall be 
     available for each of fiscal years 2005 and 2006 to carry out 
     this section.

     SEC. 1834. COMPREHENSIVE COASTAL EVACUATION PLAN.

       (a) In General.--The Secretary of Transportation and the 
     Secretary of Homeland Security (referred to in this section 
     as the ``Secretaries'') shall jointly develop a written 
     comprehensive plan for evacuation of the coastal areas of the 
     United States during any natural or man-made disaster that 
     affects coastal populations.
       (b) Consultation.--In developing the comprehensive plan, 
     the Secretaries shall consult with Federal, State, and local 
     transportation and emergency management officials that have 
     been involved with disaster related evacuations.
       (c) Contents.--The comprehensive plan shall--
       (1) consider, on a region-by-region basis, the extent to 
     which coastal areas may be affected by a disaster; and
       (2) address, at a minimum--
       (A) all practical modes of transportation available for 
     evacuations;
       (B) methods of communicating evacuation plans and preparing 
     citizens in advance of evacuations;
       (C) methods of coordinating communication with evacuees 
     during plan execution;
       (D) precise methods for mass evacuations caused by 
     disasters such as hurricanes, flash flooding, and tsunamis; 
     and
       (E) recommended policies, strategies, programs, and 
     activities that could improve disaster-related evacuations.
       (d) Report and Updates.--The Secretaries shall--
       (1) not later than October 1, 2006, submit to Congress the 
     written comprehensive plan; and
       (2) periodically thereafter, but not less often than every 
     5 years, update, and submit to Congress any revision to, the 
     plan.

     SEC. 1835. PRIORITY PROJECTS.

       Section 1602 of the Transportation Equity Act for the 21st 
     Century (112 Stat. 306) is amended in item 1349 of the table 
     contained in that section by inserting ``, and improvements 
     to streets and roads providing access to,'' after ``along''.

     SEC. 1836. TRANSPORTATION NEEDS, GRAYLING, MICHIGAN.

       Item number 820 in the table contained in section 1602 of 
     the Transportation Equity Act for the 21st Century (112 Stat. 
     287) is amended by striking ``Conduct'' and all that follows 
     through ``interchange'' and inserting ``Conduct a 
     transportation needs study and make improvements to I-75 
     interchanges in the Grayling area''.

     SEC. 1837. US-95 PROJECT, LAS VEGAS, NEVADA.

       Unless an agreement is reached between the Federal Highway 
     Administration, the State of Nevada, and the Sierra Club, the 
     State of Nevada may continue to completion construction of 
     the project entitled ``US-95 Project in Las Vegas, Nevada'', 
     as approved by the Federal Highway Administration on November 
     18, 1999, and selected in the record of decision dated 
     January 28, 2000, on June 30, 2005.

                   Subtitle I--Technical Corrections

     SEC. 1901. REPEAL OR UPDATE OF OBSOLETE TEXT.

       (a) Letting of Contracts.--Section 112 of title 23, United 
     States Code, is amended--
       (1) by striking subsection (f); and
       (2) by redesignating subsection (g) as subsection (f).

[[Page 10602]]

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

     SEC. 1902. CLARIFICATION OF DATE.

       Section 109(g) of title 23, United States Code, is amended 
     in the first sentence by striking ``The Secretary'' and all 
     that follows through ``of 1970'' and inserting ``Not later 
     than January 30, 1971, the Secretary shall issue''.

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

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

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

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

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

     SEC. 1904. INCLUSION OF BUY AMERICA REQUIREMENTS IN TITLE 23.

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

     ``Sec. 313. Buy America''.

       (b) Conforming Amendments.--
       (1) The analysis for chapter 3 of title 23, United States 
     Code, is amended by inserting after the item relating to 
     section 312 the following:

``313. Buy America.''.
       (2) Section 313 of title 23, United States Code (as added 
     by subsection (a)), is amended--
       (A) in subsection (a), by striking ``by this Act'' the 
     first place it appears and all that follows through ``of 
     1978'' and inserting ``to carry out the Surface 
     Transportation Assistance Act of 1982 (96 Stat. 2097) or this 
     title'';
       (B) in subsection (b), by redesignating paragraph (4) as 
     paragraph (3);
       (C) in subsection (d), by striking ``this Act,'' and all 
     that follows through ``Code, which'' and inserting ``the 
     Surface Transportation Assistance Act of 1982 (96 Stat. 2097) 
     or this title that'';
       (D) by striking subsection (e); and
       (E) by redesignating subsections (f) and (g) as subsections 
     (e) and (f), respectively.

     SEC. 1905. TECHNICAL AMENDMENTS TO NONDISCRIMINATION SECTION.

       Section 140 of title 23, United States Code, is amended--
       (1) in subsection (a)--
       (A) in the first sentence, by striking ``subsection (a) of 
     section 105 of this title'' and inserting ``section 135'';
       (B) in the second sentence, by striking ``He'' and 
     inserting ``The Secretary'';
       (C) in the third sentence, by striking ``where he considers 
     it necessary to assure'' and inserting ``if necessary to 
     ensure''; and
       (D) in the last sentence--
       (i) by striking ``him'' and inserting ``the Secretary'' and
       (ii) by striking ``he'' and inserting ``the Secretary'';
       (2) in subsection (b)--
       (A) in the first sentence, by striking ``highway 
     construction'' and inserting ``surface transportation''; and
       (B) in the second sentence--
       (i) by striking ``as he may deem necessary'' and inserting 
     ``as necessary''; and
       (ii) by striking ``not to exceed $2,500,000 for the 
     transition quarter ending September 30, 1976, and'';
       (3) in the second sentence of subsection (c)--
       (A) by striking ``subsection 104(b)(3) of this title'' and 
     inserting ``section 104(b)(3)''; and
       (B) by striking ``he may deem''; and
       (4) in the heading of subsection (d), by striking ``and 
     contracting''.

                   TITLE II--TRANSPORTATION RESEARCH

                          Subtitle A--Funding

     SEC. 2001. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--The following sums are authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account):
       (1) Surface transportation research.--
       (A) In general.--For carrying out sections 502, 503, 506, 
     507, 508, and 511 of title 23, United States Code--
       (i) $198,050,704 for fiscal year 2005;
       (ii) $201,805,220 for fiscal year 2006;
       (iii) $204,621,107 for fiscal year 2007;
       (iv) $206,498,365 for fiscal year 2008; and
       (v) $209,314,252 for fiscal year 2009.
       (B) Surface transportation-environmental cooperative 
     research program.--For each of fiscal years 2005 through 
     2009, the Secretary shall set aside $18,772,579 of the funds 
     authorized under subparagraph (A) to carry out the surface 
     transportation-environmental cooperative research program 
     under section 507 of title 23, United States Code.
       (2) Training and education.--For carrying out section 504 
     of title 23, United States Code--
       (A) $26,281,610 for fiscal year 2005;
       (B) $27,220,239 for fiscal year 2006;
       (C) $28,158,868 for fiscal year 2007;
       (D) $29,097,497 for fiscal year 2008; and
       (E) $30,036,126 for fiscal year 2009.
       (3) Bureau of transportation statistics.--For the Bureau of 
     Transportation Statistics to carry out section 111 of title 
     49, United States Code, $26,281,610 for each of fiscal years 
     2005 through 2009.
       (4) ITS standards, research, operational tests, and 
     development.--For carrying out sections 524, 525, 526, 527, 
     528, and 529 of title 23, United States Code--
       (A) $115,451,358 for fiscal year 2005;
       (B) $118,267,245 for fiscal year 2006;
       (C) $121,083,132 for fiscal year 2007;
       (D) $123,899,019 for fiscal year 2008; and
       (E) $126,714,906 for fiscal year 2009.
       (5) University transportation centers.--For carrying out 
     section 510 of title 23, United States Code $42,238,302 for 
     each of fiscal years 2005 through 2009.
       (b) Applicability of Title 23, United States Code.--Funds 
     authorized to be appropriated by subsection (a)--
       (1) shall be available for obligation in the same manner as 
     if the funds were apportioned under chapter 1 of title 23, 
     United States Code, except that the Federal share of the cost 
     of a project or activity carried out using the funds shall be 
     the share applicable under section 120(b) of title 23, United 
     States Code, as adjusted under subsection (d) of that section 
     (unless otherwise specified or otherwise determined by the 
     Secretary); and
       (2) shall remain available until expended.
       (c) Allocations.--
       (1) Surface transportation research.--Of the amounts made 
     available under subsection (a)(1)--
       (A) $25,342,981 for each of fiscal years 2005 through 2009 
     shall be available to carry out advanced, high-risk, long-
     term research under section 502(d) of title 23, United States 
     Code;
       (B) $10,000,000 for each of fiscal years 2005 through 2009 
     shall be available to carry out the long-term pavement 
     performance program under section 502(e) of that title;
       (C) $5,000,000 for each of fiscal years 2005 through 2009 
     shall be available to carry out the high-performance concrete 
     bridge research and technology transfer program under section 
     502(i) of that title, of which $750,000 for each fiscal year 
     shall be used by the Secretary to carry out demonstration 
     projects involving the use of ultra-high-performance concrete 
     with ductility;
       (D) $5,000,000 for each of fiscal years 2005 through 2009 
     shall be made available to carry out the high-performing 
     steel bridge research and technology transfer program under 
     section 502(k) of title 23, United States Code;
       (E) $5,000,000 for each of fiscal years 2005 through 2009 
     shall be made available to carry out research on asphalt used 
     in highway pavements;
       (F) $5,000,000 for each of fiscal years 2005 through 2009 
     shall be made available to carry out research on concrete 
     pavements;
       (G) $5,000,000 for each of fiscal years 2005 through 2009 
     shall be made available to carry out research on alternative 
     materials;
       (H) $3,000,000 for each of fiscal years 2005 through 2009 
     shall be made available to carry out research on aggregates 
     used in highway pavements, including alternative materials 
     used in highway drainage applications;
       (I) $3,000,000 for each of fiscal years 2005 through 2009 
     shall be made available for further development and 
     deployment of techniques to prevent and mitigate alkali 
     silica reactivity;
       (J) $1,500,000 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
       (K) $2,500,000 for each of fiscal years 2005 through 2009 
     shall be made available to carry out section 502(f)(3) of 
     title 23, United States Code.
       (2) Technology application program.--Of the amounts made 
     available under subsection (a)(1), $56,317,736 for each of 
     fiscal years 2005 through 2009 shall be available to carry 
     out section 503 of title 23, United States Code.
       (3) Training and education.--Of the amounts made available 
     under subsection (a)(2)--
       (A) $11,732,862 for fiscal year 2005, $12,202,176 for 
     fiscal year 2006, $12,671,491 for fiscal year 2007, 
     $13,140,805 for fiscal year 2008, and $13,610,119 for fiscal 
     year 2009 shall be available to carry out section 504(a) of 
     title 23, United States Code (relating to the National 
     Highway Institute);
       (B) $14,079,434 for each of fiscal years 2005 through 2009 
     shall be available to carry out section 504(b) of that title 
     (relating to local technical assistance); and
       (C) $2,815,887 for each of fiscal years 2005 through 2009 
     shall be available to carry out section 504(c)(2) of that 
     title (relating to the Eisenhower Transportation Fellowship 
     Program).
       (4) International highway transportation outreach 
     program.--Of the amounts made available under subsection 
     (a)(1), $469,314 for each of fiscal years 2005 through 2009 
     shall be available to carry out section 506 of title 23, 
     United States Code.
       (5) New strategic highway research program.--For each of 
     fiscal years 2005 through 2009, to carry out section 509 of 
     title 23, United States Code, the Secretary shall set aside--
       (A) $14,079,434 of the amounts made available to carry out 
     the interstate maintenance program under section 119 of title 
     23, United States Code, for the fiscal year;
       (B) $17,833,949 of the amounts made available for the 
     National Highway System under section

[[Page 10603]]

     101 of title 23, United States Code, for the fiscal year;
       (C) $12,202,176 of the amounts made available to carry out 
     the bridge program under section 144 of title 23, United 
     States Code, for the fiscal year;
       (D) $18,772,579 of the amounts made available to carry out 
     the surface transportation program under section 133 of title 
     23, United States Code, for the fiscal year;
       (E) $4,693,145 of the amounts made available to carry out 
     the congestion mitigation and air quality improvement program 
     under section 149 of title 23, United States Code, for the 
     fiscal year; and
       (F) $2,815,887 of the amounts made available to carry out 
     the highway safety improvement program under section 148 of 
     title 23, United States Code, for the fiscal year.
       (6) Commercial vehicle intelligent transportation system 
     infrastructure program.--Of the amounts made available under 
     subsection (a)(4), not less than $28,158,868 for each of 
     fiscal years 2005 through 2009 shall be available to carry 
     out section 527 of title 23, United States Code.
       (d) Transfers of Funds.--The Secretary may transfer--
       (1) to an amount made available under paragraphs (1), (2), 
     or (4) of subsection (c), not to exceed 10 percent of the 
     amount allocated for a fiscal year under any other of those 
     paragraphs; and
       (2) to an amount made available under subparagraphs (A), 
     (B), or (C) of subsection (c)(3), not to exceed 10 percent of 
     the amount allocated for a fiscal year under any other of 
     those subparagraphs.

     SEC. 2002. OBLIGATION CEILING.

       Notwithstanding any other provision of law, the total of 
     all obligations from amounts made available from the Highway 
     Trust Fund (other than the Mass Transit Account) by section 
     2001(a) shall not exceed--
       (1) $408,491,420 for fiscal year 2005;
       (2) $416,000,453 for fiscal year 2006;
       (3) $422,570,857 for fiscal year 2007;
       (4) $428,202,637 for fiscal year 2008; and
       (5) $434,773,037 for fiscal year 2009.

     SEC. 2003. NOTICE.

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

                  Subtitle B--Research and Technology

     SEC. 2101. RESEARCH AND TECHNOLOGY PROGRAM.

       (a) In General.--Chapter 5 of title 23, United States Code, 
     is amended to read as follows:

                  ``CHAPTER 5--RESEARCH AND TECHNOLOGY

                 ``SUBCHAPTER I--SURFACE TRANSPORTATION

``Sec.
``501. Definitions.
``502. Surface transportation research.
``503. Technology application program.
``504. Training and education.
``505. State planning and research.
``506. International highway transportation outreach program.
``507. Surface transportation-environmental cooperative research 
              program.
``508. Surface transportation research technology deployment and 
              strategic planning.
``509. New strategic highway research program.
``510. University transportation centers.
``511. Multistate corridor operations and management.
``512. Transportation analysis simulation system.

    ``SUBCHAPTER II--INTELLIGENT TRANSPORTATION SYSTEM RESEARCH AND 
                      TECHNICAL ASSISTANCE PROGRAM

``521. Finding.
``522. Goals and purposes.
``523. Definitions.
``524. General authorities and requirements.
``525. National ITS Program Plan.
``526. National ITS architecture and standards.
``527. Commercial vehicle intelligent transportation system 
              infrastructure program.
``528. Research and development.
``529. Use of funds.

                 ``SUBCHAPTER I--SURFACE TRANSPORTATION

     ``Sec. 501. Definitions

       ``In this subchapter:
       ``(1) Federal laboratory.--The term `Federal laboratory' 
     includes--
       ``(A) a Government-owned, Government-operated laboratory; 
     and
       ``(B) a Government-owned, contractor-operated laboratory.
       ``(2) Safety.--The term `safety' includes highway and 
     traffic safety systems, research, and development relating 
     to--
       ``(A) vehicle, highway, driver, passenger, bicyclist, and 
     pedestrian characteristics;
       ``(B) accident investigations;
       ``(C) integrated, interoperable emergency communications;
       ``(D) emergency medical care; and
       ``(E) transportation of the injured.

     ``Sec. 502. Surface transportation research

       ``(a) In General.--
       ``(1) Research, development, and technology transfer 
     activities.--The Secretary may carry out research, 
     development, and technology transfer activities with respect 
     to--
       ``(A) all phases of transportation planning and development 
     (including new technologies, construction, transportation 
     systems management and operations development, design, 
     maintenance, safety, security, financing, data collection and 
     analysis, demand forecasting, multimodal assessment, and 
     traffic conditions); and
       ``(B) the effect of State laws on the activities described 
     in subparagraph (A).
       ``(2) Tests and development.--The Secretary may test, 
     develop, or assist in testing and developing, any material, 
     invention, patented article, or process.
       ``(3) Cooperation, grants, and contracts.--
       ``(A) In general.--The Secretary may carry out this 
     section--
       ``(i) independently;
       ``(ii) in cooperation with--

       ``(I) any other Federal agency or instrumentality; and
       ``(II) any Federal laboratory; or

       ``(iii) by making grants to, or entering into contracts, 
     cooperative agreements, and other transactions with--

       ``(I) the National Academy of Sciences;
       ``(II) the American Association of State Highway and 
     Transportation Officials;
       ``(III) planning organizations;
       ``(IV) a Federal laboratory;
       ``(V) a State agency;
       ``(VI) an authority, association, institution, or 
     organization;
       ``(VII) a for-profit or nonprofit corporation;
       ``(VIII) a foreign country; or
       ``(IX) any other person.

       ``(B) Competition; review.--All parties entering into 
     contracts, cooperative agreements or other transactions with 
     the Secretary, or receiving grants, to perform research or 
     provide technical assistance under this section shall be 
     selected, to the maximum extent practicable and appropriate--
       ``(i) on a competitive basis; and
       ``(ii) on the basis of the results of peer review of 
     proposals submitted to the Secretary.
       ``(4) Technological innovation.--The programs and 
     activities carried out under this section shall be consistent 
     with the surface transportation research and technology 
     development strategic plan developed under section 508(c).
       ``(5) Funds.--
       ``(A) Special account.--In addition to other funds made 
     available to carry out this section, the Secretary shall use 
     such funds as may be deposited by any cooperating 
     organization or person in a special account of the Treasury 
     established for this purpose.
       ``(B) Use of funds.--The Secretary shall use funds made 
     available to carry out this section to develop, administer, 
     communicate, and promote the use of products of research, 
     development, and technology transfer programs under this 
     section.
       ``(b) Collaborative Research and Development.--
       ``(1) In general.--To encourage innovative solutions to 
     surface transportation problems and stimulate the deployment 
     of new technology, the Secretary may carry out, on a cost-
     shared basis, collaborative research and development with--
       ``(A) non-Federal entities (including State and local 
     governments, foreign governments, colleges and universities, 
     corporations, institutions, partnerships, sole 
     proprietorships, and trade associations that are incorporated 
     or established under the laws of any State); and
       ``(B) Federal laboratories.
       ``(2) Agreements.--In carrying out this subsection, the 
     Secretary may enter into cooperative research and development 
     agreements (as defined in section 12 of the Stevenson-Wydler 
     Technology Innovation Act of 1980 (15 U.S.C. 3710a)).
       ``(3) Federal share.--
       ``(A) In general.--The Federal share of the cost of 
     activities carried out under a cooperative research and 
     development agreement entered into under this subsection 
     shall not exceed 50 percent, except that if there is 
     substantial public interest or benefit, the Secretary may 
     approve a greater Federal share.
       ``(B) Non-federal share.--All costs directly incurred by 
     the non-Federal partners, including personnel, travel, and 
     hardware development costs, shall be credited toward the non-
     Federal share of the cost of the activities described in 
     subparagraph (A).
       ``(4) Use of technology.--The research, development, or use 
     of a technology under a cooperative research and development 
     agreement entered into under this subsection, including the 
     terms under which the technology may be licensed and the 
     resulting royalties may be distributed, shall be subject to 
     the Stevenson-Wydler Technology Innovation Act of 1980 (15 
     U.S.C. 3701 et seq.).
       ``(5) Waiver of advertising requirements.--Section 3709 of 
     the Revised Statutes (41

[[Page 10604]]

     U.S.C. 5) shall not apply to a contract or agreement entered 
     into under this chapter.
       ``(c) Contents of Research Program.--The Secretary shall 
     include as priority areas of effort within the surface 
     transportation research program--
       ``(1) the development of new technologies and methods in 
     materials, pavements, structures, design, and construction, 
     with the objectives of--
       ``(A)(i) increasing to 50 years the expected life of 
     pavements;
       ``(ii) increasing to 100 years the expected life of 
     bridges; and
       ``(iii) significantly increasing the durability of other 
     infrastructure;
       ``(B) lowering the life-cycle costs, including--
       ``(i) construction costs;
       ``(ii) maintenance costs;
       ``(iii) operations costs; and
       ``(vi) user costs.
       ``(2) the development, and testing for effectiveness, of 
     nondestructive evaluation technologies for civil 
     infrastructure using existing and new technologies;
       ``(3) the investigation of--
       ``(A) the application of current natural hazard mitigation 
     techniques to manmade hazards; and
       ``(B) the continuation of hazard mitigation research 
     combining manmade and natural hazards;
       ``(4) the improvement of safety--
       ``(A) at intersections;
       ``(B) with respect to accidents involving vehicles run off 
     the road; and
       ``(C) on rural roads;
       ``(5) the reduction of work zone incursions and improvement 
     of work zone safety;
       ``(6) the improvement of geometric design of roads for the 
     purpose of safety;
       ``(7) the examination of data collected through the 
     national bridge inventory conducted under section 144 using 
     the national bridge inspection standards established under 
     section 151, with the objectives of determining whether--
       ``(A) the most useful types of data are being collected; 
     and
       ``(B) any improvement could be made in the types of data 
     collected and the manner in which the data is collected, with 
     respect to bridges in the United States;
       ``(8) the improvement of the infrastructure investment 
     needs report described in subsection (g) through--
       ``(A) the study and implementation of new methods of 
     collecting better quality data, particularly with respect to 
     performance, congestion, and infrastructure conditions;
       ``(B) monitoring of the surface transportation system in a 
     system-wide manner, through the use of--
       ``(i) intelligent transportation system technologies of 
     traffic operations centers; and
       ``(ii) other new data collection technologies as sources of 
     better quality performance data;
       ``(C) the determination of the critical metrics that should 
     be used to determine the condition and performance of the 
     surface transportation system; and
       ``(D) the study and implementation of new methods of 
     statistical analysis and computer models to improve the 
     prediction of future infrastructure investment requirements;
       ``(9) the development of methods to improve the 
     determination of benefits from infrastructure improvements, 
     including--
       ``(A) more accurate calculations of benefit-to-cost ratios, 
     considering benefits and impacts throughout local and 
     regional transportation systems;
       ``(B) improvements in calculating life-cycle costs; and
       ``(C) valuation of assets;
       ``(10) the improvement of planning processes to better 
     predict outcomes of transportation projects, including the 
     application of computer simulations in the planning process 
     to predict outcomes of planning decisions;
       ``(11) the multimodal applications of Geographic 
     Information Systems and remote sensing, including such areas 
     of application as--
       ``(A) planning;
       ``(B) environmental decisionmaking and project delivery; 
     and
       ``(C) freight movement;
       ``(12) the development and application of methods of 
     providing revenues to the Highway Trust Fund with the 
     objective of offsetting potential reductions in fuel tax 
     receipts;
       ``(13) the development of tests and methods to determine 
     the benefits and costs to communities of major transportation 
     investments and projects;
       ``(14) the conduct of extreme weather research, including 
     research to--
       ``(A) reduce contraction and expansion damage;
       ``(B) reduce or repair road damage caused by freezing and 
     thawing;
       ``(C) improve deicing or snow removal techniques;
       ``(D) develop better methods to reduce the risk of thermal 
     collapse, including collapse from changes in underlying 
     permafrost;
       ``(E) improve concrete and asphalt installation in extreme 
     weather conditions; and
       ``(F) make other improvements to protect highway 
     infrastructure or enhance highway safety or performance;
       ``(15) the improvement of surface transportation planning;
       ``(16) environmental research;
       ``(17) transportation system management and operations; and
       ``(18) any other surface transportation research topics 
     that the Secretary determines, in accordance with the 
     strategic planning process under section 508, to be critical.
       ``(d) Advanced, High-Risk Research.--
       ``(1) In general.--The Secretary shall establish and carry 
     out, in accordance with the surface transportation research 
     and technology development strategic plan developed under 
     section 508(c) and research priority areas described in 
     subsection (c), an advanced research program that addresses 
     longer-term, higher-risk research with potentially dramatic 
     breakthroughs for improving the durability, efficiency, 
     environmental impact, productivity, and safety (including 
     bicycle and pedestrian safety) aspects of highway and 
     intermodal transportation systems.
       ``(2) Partnerships.--In carrying out the program, the 
     Secretary shall seek to develop partnerships with the public 
     and private sectors.
       ``(3) Report.--The Secretary shall include in the strategic 
     plan required under section 508(c) a description of each of 
     the projects, and the amount of funds expended for each 
     project, carried out under this subsection during the fiscal 
     year.
       ``(e) Long-Term Pavement Performance Program.--
       ``(1) Authority.--The Secretary shall continue, through 
     September 30, 2009, the long-term pavement performance 
     program tests, monitoring, and data analysis.
       ``(2) Grants, cooperative agreements, and contracts.--Under 
     the program, the Secretary shall make grants and enter into 
     cooperative agreements and contracts to--
       ``(A) monitor, material-test, and evaluate highway test 
     sections in existence as of the date of the grant, agreement, 
     or contract;
       ``(B) analyze the data obtained in carrying out 
     subparagraph (A); and
       ``(C) prepare products to fulfill program objectives and 
     meet future pavement technology needs.
       ``(3) Conclusion of program.--
       ``(A) Summary report.--The Secretary shall include in the 
     strategic plan required under section 508(c) a report on the 
     initial conclusions of the long-term pavement performance 
     program that includes--
       ``(i) an analysis of any research objectives that remain to 
     be achieved under the program;
       ``(ii) an analysis of other associated longer-term 
     expenditures under the program that are in the public 
     interest;
       ``(iii) a detailed plan regarding the storage, maintenance, 
     and user support of the database, information management 
     system, and materials reference library of the program;
       ``(iv) a schedule for continued implementation of the 
     necessary data collection and analysis and project plan under 
     the program; and
       ``(v) an estimate of the costs of carrying out each of the 
     activities described in clauses (i) through (iv) for each 
     fiscal year during which the program is carried out.
       ``(B) Deadline; usefulness of advances.--The Secretary 
     shall, to the maximum extent practicable--
       ``(i) ensure that the long-term pavement performance 
     program is concluded not later than September 30, 2009; and
       ``(ii) make such allowances as are necessary to ensure the 
     usefulness of the technological advances resulting from the 
     program.
       ``(f) Seismic Research.--The Secretary shall--
       ``(1) in consultation and cooperation with Federal agencies 
     participating in the National Earthquake Hazards Reduction 
     Program established by section 5 of the Earthquake Hazards 
     Reduction Act of 1977 (42 U.S.C. 7704), coordinate the 
     conduct of seismic research;
       ``(2) take such actions as are necessary to ensure that the 
     coordination of the research is consistent with--
       ``(A) planning and coordination activities of the Director 
     of the Federal Emergency Management Agency under section 
     5(b)(1) of that Act (42 U.S.C. 7704(b)(1)); and
       ``(B) the plan developed by the Director of the Federal 
     Emergency Management Agency under section 8(b) of that Act 
     (42 U.S.C. 7705b(b)); and
       ``(3) in cooperation with the Center for Civil Engineering 
     Research at the University of Nevada, Reno, and the National 
     Center for Earthquake Engineering Research at the University 
     of Buffalo, carry out a seismic research program--
       ``(A) to study the vulnerability of the Federal-aid highway 
     system and other surface transportation systems to seismic 
     activity;
       ``(B) to develop and implement cost-effective methods to 
     reduce the vulnerability; and
       ``(C) to conduct seismic research and upgrade earthquake 
     simulation facilities as necessary to carry out the program.
       ``(g) Infrastructure Investment Needs Report.--
       ``(1) In general.--Not later than July 31, 2005, and July 
     31 of every second year thereafter, the Secretary shall 
     submit to the Committee on Environment and Public Works of 
     the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives a report that 
     describes--
       ``(A) estimates of the future highway and bridge needs of 
     the United States; and
       ``(B) the backlog of current highway and bridge needs.
       ``(2) Comparison with prior reports.--Each report under 
     paragraph (1) shall provide the means, including all 
     necessary information, to relate and compare the conditions 
     and service measures used in the previous biennial reports.
       ``(h) Security Related Research and Technology Transfer 
     Activities.--

[[Page 10605]]

       ``(1) In general.--Not later than 180 days after the date 
     of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005, the Secretary, 
     in consultation with the Secretary of Homeland Security, with 
     key stakeholder input (including State transportation 
     departments) shall develop a 5-year strategic plan for 
     research and technology transfer and deployment activities 
     pertaining to the security aspects of highway infrastructure 
     and operations.
       ``(2) Components of plan.--The plan shall include--
       ``(A) an identification of which agencies are responsible 
     for the conduct of various research and technology transfer 
     activities;
       ``(B) a description of the manner in which those activities 
     will be coordinated; and
       ``(C) a description of the process to be used to ensure 
     that the advances derived from relevant activities supported 
     by the Federal Highway Administration are consistent with the 
     operational guidelines, policies, recommendations, and 
     regulations of the Department of Homeland Security; and
       ``(D) a systematic evaluation of the research that should 
     be conducted to address, at a minimum--
       ``(i) vulnerabilities of, and measures that may be taken to 
     improve, emergency response capabilities and evacuations;
       ``(ii) recommended upgrades of traffic management during 
     crises;
       ``(iii) integrated, interoperable emergency communications 
     among the public, the military, law enforcement, fire and 
     emergency medical services, and transportation agencies;
       ``(iv) protection of critical, security-related 
     infrastructure; and
       ``(v) structural reinforcement of key facilities.
       ``(3) Submission.--On completion of the plan under this 
     subsection, the Secretary shall submit to the Committee on 
     Environment and Public Works of the Senate and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives--
       ``(A) a copy of the plan developed under paragraph (1); and
       ``(B) a copy of a memorandum of understanding specifying 
     coordination strategies and assignment of responsibilities 
     covered by the plan that is signed by the Secretary and the 
     Secretary of Homeland Security.
       ``(i) High-Performance Concrete Bridge Research and 
     Technology Transfer Program.--In accordance with the 
     objectives described in subsection (c)(1) and the 
     requirements under sections 503(b)(4) and 504(b), the 
     Secretary shall carry out a program to demonstrate the 
     application of high-performance concrete in the construction 
     and rehabilitation of bridges.
       ``(j) Biobased Transportation Research.--There shall be 
     available from the Highway Trust Fund (other than the Mass 
     Transit Account) $12,000,000 for each of fiscal years 2005 
     through 2009 equally divided and available to carry out 
     biobased research of national importance at the National 
     Biodiesel Board and at research centers identified in section 
     9011 of Public Law 107-171.
       ``(k) High-Performing Steel Bridge Research and Technology 
     Transfer Program.--In accordance with the objectives 
     described in subsection (c)(1) and the requirements under 
     sections 503(b)(4) and 504(b), the Secretary shall carry out 
     a program to demonstrate the application of high-performing 
     steel in the construction and rehabilitation of bridges.

     ``Sec. 503. Technology application program

       ``(a) Technology Application Initiatives and Partnerships 
     Program.--
       ``(1) Establishment.--The Secretary, in consultation with 
     interested stakeholders, shall develop and administer a 
     national technology and innovation application initiatives 
     and partnerships program.
       ``(2) Purpose.--The purpose of the program shall be to 
     significantly accelerate the adoption of technology and 
     innovation by the surface transportation community.
       ``(3) Application goals.--
       ``(A) Establishment.--Not later than 180 days after the 
     date of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005, the Secretary, 
     in consultation with the Surface Transportation Research 
     Technology Advisory Committee, State transportation 
     departments, and other interested stakeholders, shall 
     establish, as part of the surface transportation research and 
     technology development strategic plan under section 508(c), 
     goals to carry out paragraph (1).
       ``(B) Design.--Each of the goals and the program developed 
     to achieve the goals shall be designed to provide tangible 
     benefits, with respect to transportation systems, in the 
     areas of efficiency, safety, reliability, service life, 
     environmental protection, and sustainability.
       ``(C) Strategies for achievement.--For each goal, the 
     Secretary, in cooperation with representatives of the 
     transportation community, such as States, local governments, 
     the private sector, and academia, shall use domestic and 
     international technology to develop strategies and 
     initiatives to achieve the goal, including technical 
     assistance in deploying technology and mechanisms for sharing 
     information among program participants.
       ``(4) Integration with other programs.--The Secretary shall 
     integrate activities carried out under this subsection with 
     the efforts of the Secretary to--
       ``(A) disseminate the results of research sponsored by the 
     Secretary; and
       ``(B) facilitate technology transfer.
       ``(5) Leveraging of federal resources.--In selecting 
     projects to be carried out under this subsection, the 
     Secretary shall give preference to projects that leverage 
     Federal funds with other significant public or private 
     resources.
       ``(6) Grants, cooperative agreements, and contracts.--Under 
     the program, the Secretary may make grants and enter into 
     cooperative agreements and contracts to foster alliances and 
     support efforts to stimulate advances in transportation 
     technology.
       ``(7) Reports.--The results and progress of activities 
     carried out under this section shall be published as part of 
     the annual transportation research report prepared by the 
     Secretary under section 508(c)(5).
       ``(8) Allocation.--To the extent appropriate to achieve the 
     goals established under paragraph (3), the Secretary may 
     further allocate funds made available to carry out this 
     section to States for use by those States.
       ``(b) Innovative Surface Transportation Infrastructure 
     Research and Construction Program.--
       ``(1) In general.--The Secretary shall establish and carry 
     out a program for the application of innovative material, 
     design, and construction technologies in the construction, 
     preservation, and rehabilitation of elements of surface 
     transportation infrastructure.
       ``(2) Goals.--The goals of the program shall include--
       ``(A) the development of new, cost-effective, and 
     innovative materials;
       ``(B) the reduction of maintenance costs and life-cycle 
     costs of elements of infrastructure, including the costs of 
     new construction, replacement, and rehabilitation;
       ``(C) the development of construction techniques to 
     increase safety and reduce construction time and traffic 
     congestion;
       ``(D) the development of engineering design criteria for 
     innovative products and materials for use in surface 
     transportation infrastructure;
       ``(E) the development of highway bridges and structures 
     that will withstand natural disasters and disasters caused by 
     human activity; and
       ``(F) the development of new, nondestructive technologies 
     and techniques for the evaluation of elements of 
     transportation infrastructure.
       ``(3) Grants, cooperative agreements, and contracts.--
       ``(A) In general.--Under the program, the Secretary shall 
     make grants to, and enter into cooperative agreements and 
     contracts with--
       ``(i) States, other Federal agencies, universities and 
     colleges, private sector entities, and nonprofit 
     organizations, to pay the Federal share of the cost of 
     research, development, and technology transfer concerning 
     innovative materials and methods; and
       ``(ii) States, to pay the Federal share of the cost of 
     repair, rehabilitation, replacement, and new construction of 
     elements of surface transportation infrastructure that 
     demonstrate the application of innovative materials and 
     methods.
       ``(B) Applications.--
       ``(i) In general.--To receive a grant under this 
     subsection, an entity described in subparagraph (A) shall 
     submit to the Secretary an application in such form and 
     containing such information as the Secretary may require.
       ``(ii) Approval.--The Secretary shall select and approve an 
     application based on whether the proposed project that is the 
     subject of the application would meet the goals described in 
     paragraph (2).
       ``(4) Technology and information transfer.--The Secretary 
     shall take such action as is necessary to--
       ``(A) ensure that the information and technology resulting 
     from research conducted under paragraph (3) is made available 
     to State and local transportation departments and other 
     interested parties, as specified by the Secretary; and
       ``(B) encourage the use of the information and technology.
       ``(5) Federal share.--The Federal share of the cost of a 
     project under this section shall be determined by the 
     Secretary.

     ``Sec. 504. Training and education

       ``(a) National Highway Institute.--
       ``(1) In general.--The Secretary shall--
       ``(A) operate, in the Federal Highway Administration, a 
     National Highway Institute (referred to in this subsection as 
     the `Institute'); and
       ``(B) administer, through the Institute, the authority 
     vested in the Secretary by this title or by any other law for 
     the development and conduct of education and training 
     programs relating to highways.
       ``(2) Duties of the institute.--In cooperation with State 
     transportation departments, industries in the United States, 
     and national or international entities, the Institute shall 
     develop and administer education and training programs of 
     instruction for--
       ``(A) Federal Highway Administration, State, and local 
     transportation agency employees;
       ``(B) regional, State, and metropolitan planning 
     organizations;
       ``(C) State and local police, public safety, and motor 
     vehicle employees; and
       ``(D) United States citizens and foreign nationals engaged 
     or to be engaged in surface transportation work of interest 
     to the United States.
       ``(3) Courses.--
       ``(A) In general.--The Institute shall--
       ``(i) develop or update existing courses in asset 
     management, including courses that include such components 
     as--

       ``(I) the determination of life-cycle costs;
       ``(II) the valuation of assets;
       ``(III) benefit-to-cost ratio calculations; and

[[Page 10606]]

       ``(IV) objective decisionmaking processes for project 
     selection; and

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

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

       ``(B) Additional courses.--In addition to the courses 
     developed under subparagraph (A), the Institute, in 
     consultation with State transportation departments, 
     metropolitan planning organizations, and the American 
     Association of State Highway and Transportation Officials, 
     may develop courses relating to technology, methods, 
     techniques, engineering, construction, safety, maintenance, 
     environmental mitigation and compliance, regulations, 
     management, inspection, and finance.
       ``(C) Revision of courses offered.--The Institute shall 
     periodically--
       ``(i) review the course inventory of the Institute; and
       ``(ii) revise or cease to offer courses based on course 
     content, applicability, and need.
       ``(4) Eligibility; federal share.--The funds apportioned to 
     a State under section 104(b)(3) for the surface 
     transportation program shall be available for expenditure by 
     the State transportation department for the payment of not to 
     exceed 80 percent of the cost of tuition and direct 
     educational expenses (excluding salaries) in connection with 
     the education and training of employees of State and local 
     transportation agencies in accordance with this subsection.
       ``(5) Federal responsibility.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     education and training of employees of Federal, State, and 
     local transportation (including highway) agencies authorized 
     under this subsection may be provided--
       ``(i) by the Secretary, at no cost to the States and local 
     governments, if the Secretary determines that provision at no 
     cost is in the public interest; or
       ``(ii) by the State, through grants, cooperative 
     agreements, and contracts with public and private agencies, 
     institutions, individuals, and the Institute.
       ``(B) Payment of full cost by private persons.--Private 
     agencies, international or foreign entities, and individuals 
     shall pay the full cost of any education and training 
     (including the cost of course development) received by the 
     agencies, entities, and individuals, unless the Secretary 
     determines that payment of a lesser amount of the cost is of 
     critical importance to the public interest.
       ``(6) Training fellowships; cooperation.--The Institute 
     may--
       ``(A) engage in training activities authorized under this 
     subsection, including the granting of training fellowships; 
     and
       ``(B) exercise the authority of the Institute independently 
     or in cooperation with any--
       ``(i) other Federal or State agency;
       ``(ii) association, authority, institution, or 
     organization;
       ``(iii) for-profit or nonprofit corporation;
       ``(iv) national or international entity;
       ``(v) foreign country; or
       ``(vi) person.
       ``(7) Collection of fees.--
       ``(A) In general.--In accordance with this subsection, the 
     Institute may assess and collect fees to defray the costs of 
     the Institute in developing or administering education and 
     training programs under this subsection.
       ``(B) Persons subject to fees.--Fees may be assessed and 
     collected under this subsection only with respect to--
       ``(i) persons and entities for whom education or training 
     programs are developed or administered under this subsection; 
     and
       ``(ii) persons and entities to whom education or training 
     is provided under this subsection.
       ``(C) Amount of fees.--The fees assessed and collected 
     under this subsection shall be established in a manner that 
     ensures that the liability of any person or entity for a fee 
     is reasonably based on the proportion of the costs referred 
     to in subparagraph (A) that relate to the person or entity.
       ``(D) Use.--All fees collected under this subsection shall 
     be used, without further appropriation, to defray costs 
     associated with the development or administration of 
     education and training programs authorized under this 
     subsection.
       ``(8) Relation to fees.--The funds made available to carry 
     out this subsection may be combined with or held separate 
     from the fees collected under--
       ``(A) paragraph (7);
       ``(B) memoranda of understanding;
       ``(C) regional compacts; and
       ``(D) other similar agreements.
       ``(b) Local Technical Assistance Program.--
       ``(1) Authority.--The Secretary shall carry out a local 
     technical assistance program that will provide access to 
     surface transportation technology to--
       ``(A) highway and transportation agencies in urbanized 
     areas;
       ``(B) highway and transportation agencies in rural areas;
       ``(C) contractors that perform work for the agencies; and
       ``(D) infrastructure security.
       ``(2) Grants, cooperative agreements, and contracts.--The 
     Secretary may make grants and enter into cooperative 
     agreements and contracts to provide education and training, 
     technical assistance, and related support services to--
       ``(A) assist rural, local transportation agencies and 
     tribal governments, and the consultants and construction 
     personnel working for the agencies and governments, to--
       ``(i) develop and expand expertise in road and 
     transportation areas (including pavement, bridge, concrete 
     structures, intermodal connections, safety management 
     systems, intelligent transportation systems, incident 
     response, operations, and traffic safety countermeasures);
       ``(ii) improve roads and bridges;
       ``(iii) enhance--

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

       ``(iv) deal effectively with special transportation-related 
     problems by preparing and providing training packages, 
     manuals, guidelines, and technical resource materials;
       ``(B) develop technical assistance for tourism and 
     recreational travel;
       ``(C) identify, package, and deliver transportation 
     technology and traffic safety information to local 
     jurisdictions to assist urban transportation agencies in 
     developing and expanding their ability to deal effectively 
     with transportation-related problems (particularly the 
     promotion of regional cooperation);
       ``(D) operate, in cooperation with State transportation 
     departments and universities--
       ``(i) local technical assistance program centers designated 
     to provide transportation technology transfer services to 
     rural areas and to urbanized areas; and
       ``(ii) local technical assistance program centers 
     designated to provide transportation technical assistance to 
     tribal governments; and
       ``(E) allow local transportation agencies and tribal 
     governments, in cooperation with the private sector, to 
     enhance new technology implementation.
       ``(c) Research Fellowships.--
       ``(1) General authority.--The Secretary, acting 
     independently or in cooperation with other Federal agencies 
     and instrumentalities, may make grants for research 
     fellowships for any purpose for which research is authorized 
     by this chapter.
       ``(2) Dwight david eisenhower transportation fellowship 
     program.--The Secretary shall establish and implement a 
     transportation research fellowship program, to be known as 
     the `Dwight David Eisenhower Transportation Fellowship 
     Program', for the purpose of attracting qualified students to 
     the field of transportation.

     ``Sec. 505. State planning and research

       ``(a) In General.--Two percent of the sums apportioned to a 
     State for fiscal year 2005 and each fiscal year thereafter 
     under sections 104 (other than subsections (f) and (h)) and 
     144 shall be available for expenditure by the State, in 
     consultation with the Secretary, only for--
       ``(1) the conduct of engineering and economic surveys and 
     investigations;
       ``(2) the planning of--
       ``(A) future highway programs and local public 
     transportation systems; and
       ``(B) the financing of those programs and systems, 
     including metropolitan and statewide planning under sections 
     134 and 135;
       ``(3) the development and implementation of management 
     systems under section 303;
       ``(4) the conduct of studies on--
       ``(A) the economy, safety, and convenience of surface 
     transportation systems; and
       ``(B) the desirable regulation and equitable taxation of 
     those systems;
       ``(5) research, development, and technology transfer 
     activities necessary in connection with the planning, design, 
     construction, management, and maintenance of highway, public 
     transportation, and intermodal transportation systems;
       ``(6) the conduct of studies, research, and training 
     relating to the engineering standards and construction 
     materials for surface transportation systems described in 
     paragraph (5) (including the evaluation and accreditation of 
     inspection and testing and the regulation of and charging for 
     the use of the standards and materials); and
       ``(7) the conduct of activities relating to the planning of 
     real-time monitoring elements.
       ``(b) Minimum Expenditures on Research, Development, and 
     Technology Transfer Activities.--
       ``(1) In general.--Subject to paragraph (2), not less than 
     25 percent of the funds subject to subsection (a) that are 
     apportioned to a State for a fiscal year shall be expended by 
     the State for research, development, and technology transfer 
     activities that--
       ``(A) are described in subsection (a); and
       ``(B) relate to highway, public transportation, and 
     intermodal transportation systems.
       ``(2) Waivers.--The Secretary may waive the application of 
     paragraph (1) with respect to a State for a fiscal year if--
       ``(A) the State certifies to the Secretary for the fiscal 
     year that total expenditures by the State for transportation 
     planning under sections 134 and 135 will exceed 75 percent of 
     the funds described in paragraph (1); and
       ``(B) the Secretary accepts the certification of the State.
       ``(3) Nonapplicability of assessment.--Funds expended under 
     paragraph (1) shall not be considered to be part of the 
     extramural budget of the agency for the purpose of section 9 
     of the Small Business Act (15 U.S.C. 638).

[[Page 10607]]

       ``(c) Federal Share.--The Federal share of the cost of a 
     project carried out using funds subject to subsection (a) 
     shall be the share applicable under section 120(b), as 
     adjusted under subsection (d) of that section.
       ``(d) Administration of Sums.--Funds subject to subsection 
     (a) shall be--
       ``(1) combined and administered by the Secretary as a 
     single fund; and
       ``(2) available for obligation for the period described in 
     section 118(b)(2).
       ``(e) Eligible Use of State Planning and Research Funds.--A 
     State, in coordination with the Secretary, may obligate funds 
     made available to carry out this section for any purpose 
     authorized under section 506(a).

     ``Sec. 506. International highway transportation outreach 
       program

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

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

       ``(a) In General.--The Secretary shall establish and carry 
     out a surface transportation-environmental cooperative 
     research program.
       ``(b) Contents.--The program carried out under this section 
     may include research--
       ``(1) to develop more accurate models for evaluating 
     transportation control measures and transportation system 
     designs that are appropriate for use by State and local 
     governments (including metropolitan planning organizations) 
     in designing implementation plans to meet Federal, State, and 
     local environmental requirements;
       ``(2) to improve understanding of the factors that 
     contribute to the demand for transportation;
       ``(3) to develop indicators of economic, social, and 
     environmental performance of transportation systems to 
     facilitate analysis of potential alternatives;
       ``(4) to meet additional priorities as determined by the 
     Secretary in the strategic planning process under section 
     508; and
       ``(5) to refine, through the conduct of workshops, 
     symposia, and panels, and in consultation with stakeholders 
     (including the Department of Energy, the Environmental 
     Protection Agency, and other appropriate Federal and State 
     agencies and associations) the scope and research emphases of 
     the program.
       ``(c) Program Administration.--The Secretary shall--
       ``(1) administer the program established under this 
     section; and
       ``(2) ensure, to the maximum extent practicable, that--
       ``(A) the best projects and researchers are selected to 
     conduct research in the priority areas described in 
     subsection (b)--
       ``(i) on the basis of merit of each submitted proposal; and
       ``(ii) through the use of open solicitations and selection 
     by a panel of appropriate experts;
       ``(B) a qualified, permanent core staff with the ability 
     and expertise to manage a large multiyear budget is used;
       ``(C) the stakeholders are involved in the governance of 
     the program, at the executive, overall program, and technical 
     levels, through the use of expert panels and committees; and
       ``(D) there is no duplication of research effort between 
     the program established under this section and the new 
     strategic highway research program established under section 
     509.
       ``(d) National Academy of Sciences.--The Secretary may make 
     grants to, and enter into cooperative agreements with, the 
     National Academy of Sciences to carry out such activities 
     relating to the research, technology, and technology transfer 
     activities described in subsections (b) and (c) as the 
     Secretary determines to be appropriate.

     ``Sec. 508. Surface transportation research technology 
       deployment and strategic planning

       ``(a) Planning.--
       ``(1) Establishment.--The Secretary shall--
       ``(A) establish, in accordance with section 306 of title 5, 
     a strategic planning process that--
       ``(i) enhances effective implementation of this section 
     through the establishment in accordance with paragraph (2) of 
     the Surface Transportation Research Technology Advisory 
     Committee; and
       ``(ii) focuses on surface transportation research funded 
     through paragraphs (1), (2), (4), and (5) of section 2001(a) 
     of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2005, taking into consideration 
     national surface transportation system needs and 
     intermodality requirements;
       ``(B) coordinate Federal surface transportation research, 
     technology development, and deployment activities;
       ``(C) at such intervals as are appropriate and practicable, 
     measure the results of those activities and the ways in which 
     the activities affect the performance of the surface 
     transportation systems of the United States; and
       ``(D) ensure, to the maximum extent practicable, that 
     planning and reporting activities carried out under this 
     section are coordinated with all other surface transportation 
     planning and reporting requirements.
       ``(2) Surface transportation research technology advisory 
     committee.--
       ``(A) Establishment.--Not later than 90 days after the date 
     of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005, the Secretary 
     shall establish a committee to be known as the `Surface 
     Transportation Research Technology Advisory Committee' 
     (referred to in this section as the `Committee').
       ``(B) Membership.--The Committee shall be composed of 12 
     members appointed by the Secretary--
       ``(i) each of which shall have expertise in a particular 
     area relating to Federal surface transportation programs, 
     including--

       ``(I) safety;
       ``(II) operations;
       ``(III) infrastructure (including pavements and 
     structures);
       ``(IV) planning and environment;
       ``(V) policy; and
       ``(VI) asset management; and

       ``(ii) of which--

       ``(I) 3 members shall be individuals representing the 
     Federal Government;
       ``(II) 3 members--

       ``(aa) shall be exceptionally qualified to serve on the 
     Committee, as determined by the Secretary, based on 
     education, training, and experience; and
       ``(bb) shall not be officers or employees of the United 
     States;

       ``(III) 3 members--

       ``(aa) shall represent the transportation industry 
     (including the pavement industry); and
       ``(bb) shall not be officers or employees of the United 
     States; and

       ``(IV) 3 members shall represent State transportation 
     departments from 3 different geographical regions of the 
     United States.

       ``(C) Meetings.--The advisory subcommittees shall meet on a 
     regular basis, but not less than twice each year.
       ``(D) Duties.--The Committee shall provide to the 
     Secretary, on a continuous basis, advice and guidance 
     relating to--
       ``(i) the determination of surface transportation research 
     priorities;
       ``(ii) the improvement of the research planning and 
     implementation process;
       ``(iii) the design and selection of research projects;
       ``(iv) the review of research results;
       ``(v) the planning and implementation of technology 
     transfer activities and

[[Page 10608]]

       ``(vi) the formulation of the surface transportation 
     research and technology deployment and deployment strategic 
     plan required under subsection (c).
       ``(E) Authorization of appropriations.--There is authorized 
     to be appropriated from the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out this paragraph 
     $187,726 for each fiscal year.
       ``(b) Implementation.--The Secretary shall--
       ``(1) provide for the integrated planning, coordination, 
     and consultation among the operating administrations of the 
     Department of Transportation, all other Federal agencies with 
     responsibility for surface transportation research and 
     technology development, State and local governments, 
     institutions of higher education, industry, and other private 
     and public sector organizations engaged in surface 
     transportation-related research and development activities; 
     and
       ``(2) ensure that the surface transportation research and 
     technology development programs of the Department do not 
     duplicate other Federal, State, or private sector research 
     and development programs.
       ``(c) Surface Transportation Research and Technology 
     Deployment Strategic Plan.--
       ``(1) In general.--After receiving, and based on, extensive 
     consultation and input from stakeholders representing the 
     transportation community and the Surface Transportation 
     Research Advisory Committee, the Secretary shall, not later 
     than 1 year after the date of enactment of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2005, complete, and shall periodically update 
     thereafter, a strategic plan for each of the core surface 
     transportation research areas, including--
       ``(A) safety;
       ``(B) operations;
       ``(C) infrastructure (including pavements and structures);
       ``(D) planning and environment;
       ``(E) policy; and
       ``(F) asset management.
       ``(2) Components.--The strategic plan shall specify--
       ``(A) surface transportation research objectives and 
     priorities;
       ``(B) specific surface transportation research projects to 
     be conducted;
       ``(C) recommended technology transfer activities to promote 
     the deployment of advances resulting from the surface 
     transportation research conducted; and
       ``(D) short- and long-term technology development and 
     deployment activities.
       ``(3) Review and submission of findings.--The Secretary 
     shall enter into a contract with the Transportation Research 
     Board of the National Academy of Sciences, on behalf of the 
     Research and Technology Coordinating Committee of the 
     National Research Council, under which--
       ``(A) the Transportation Research Board shall--
       ``(i) review the research and technology planning and 
     implementation process used by Federal Highway 
     Administration; and
       ``(ii) evaluate each of the strategic plans prepared under 
     this subsection--

       ``(I) to ensure that sufficient stakeholder input is being 
     solicited and considered throughout the preparation process; 
     and
       ``(II) to offer recommendations relevant to research 
     priorities, project selection, and deployment strategies; and

       ``(B) the Secretary shall ensure that the Research and 
     Technology Coordinating Committee, in a timely manner, 
     informs the Committee on Environment and Public Works of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives of the findings of the review 
     and evaluation under subparagraph (A).
       ``(4) Responses of secretary.--Not later than 60 days after 
     the date of completion of the strategic plan under this 
     subsection, the Secretary shall submit to the Committee on 
     Environment and Public Works of the Senate and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives written responses to each of the 
     recommendations of the Research and Technology Coordinating 
     Committee under paragraph (3)(A)(ii)(II).
       ``(d) Consistency With Government Performance and Results 
     Act of 1993.--The plans and reports developed under this 
     section shall be consistent with and incorporated as part of 
     the plans developed under section 306 of title 5 and sections 
     1115 and 1116 of title 31.

     ``Sec. 509. New strategic highway research program

       ``(a) In General.--The National Research Council shall 
     establish and carry out, through fiscal year 2009, a new 
     strategic highway research program.
       ``(b) Basis; Priorities.--With respect to the program 
     established under subsection (a)--
       ``(1) the program shall be based on--
       ``(A) National Research Council Special Report No. 260, 
     entitled `Strategic Highway Research'; and
       ``(B) the results of the detailed planning work 
     subsequently carried out to scope the research areas through 
     National Cooperative Research Program Project 20-58.
       ``(2) the scope and research priorities of the program 
     shall--
       ``(A) be refined through stakeholder input in the form of 
     workshops, symposia, and panels; and
       ``(B) include an examination of--
       ``(i) the roles of highway infrastructure, drivers, and 
     vehicles in fatalities on public roads;
       ``(ii) high-risk areas and activities associated with the 
     greatest numbers of highway fatalities;
       ``(iii) the roles of various levels of government agencies 
     and non-governmental organizations in reducing highway 
     fatalities (including recommendations for methods of 
     strengthening highway safety partnerships);
       ``(iv) measures that may save the greatest number of lives 
     in the short- and long-term;
       ``(v) renewal of aging infrastructure with minimum impact 
     on users of facilities;
       ``(vi) driving behavior and likely crash causal factors to 
     support improved countermeasures;
       ``(vii) reduction in congestion due to nonrecurring 
     congestion;
       ``(viii) planning and designing of new road capacity to 
     meet mobility, economic, environmental, and community needs;
       ``(3) the program shall consider, at a minimum, the results 
     of studies relating to the implementation of the Strategic 
     Highway Safety Plan prepared by the American Association of 
     State Highway and Transportation Officials; and
       ``(4) the research results of the program, expressed in 
     terms of technologies, methodologies, and other appropriate 
     categorizations, shall be disseminated to practicing 
     engineers as soon as practicable for their use.
       ``(c) Program Administration.--In carrying out the program 
     under this section, the National Research Council shall 
     ensure, to the maximum extent practicable, that--
       ``(1) the best projects and researchers are selected to 
     conduct research for the program and priorities described in 
     subsection (b)--
       ``(A) on the basis of the merit of each submitted proposal; 
     and
       ``(B) through the use of open solicitations and selection 
     by a panel of appropriate experts;
       ``(2) the National Research Council acquires a qualified, 
     permanent core staff with the ability and expertise to manage 
     a large research program and multiyear budget;
       ``(3) the stakeholders are involved in the governance of 
     the program, at the executive, overall program, and technical 
     levels, through the use of expert panels and committees; and
       ``(4) there is no duplication of research effort between 
     the program established under this section and the surface 
     transportation-environment cooperative research program 
     established under section 507 or any other research effort of 
     the Department.
       ``(d) National Academy of Sciences.--The Secretary may make 
     grants to, and enter into cooperative agreements with, the 
     National Academy of Sciences to carry out such activities 
     relating to research, technology, and technology transfer 
     described in subsections (b) and (c) as the Secretary 
     determines to be appropriate.
       ``(e) Report on Implementation of Results.--
       ``(1) In general.--Not later than October 1, 2007, the 
     Secretary shall enter into a contract with the Transportation 
     Research Board of the National Academy of Sciences under 
     which the Transportation Research Board shall complete a 
     report on the strategies and administrative structure to be 
     used for implementation of the results of new strategic 
     highway research program.
       ``(2) Components.--The report under paragraph (1) shall 
     include, with respect to the new strategic highway research 
     program--
       ``(A) an identification of the most promising results of 
     research under the program (including the persons most likely 
     to use the results);
       ``(B) a discussion of potential incentives for, impediments 
     to, and methods of, implementing those results;
       ``(C) an estimate of costs that would be incurred in 
     expediting implementation of those results; and
       ``(D) recommendations for the way in which implementation 
     of the results of the program under this section should be 
     conducted, coordinated, and supported in future years, 
     including a discussion of the administrative structure and 
     organization best suited to carry out those responsibilities.
       ``(3) Consultation.--In developing the report, the 
     Transportation Research Board shall consult with a wide 
     variety of stakeholders, including--
       ``(A) the American Association of State highway Officials;
       ``(B) the Federal Highway Administration; and
       ``(C) the Surface Transportation Research Technology 
     Advisory Committee.
       ``(4) Submission.--Not later than February 1, 2009, the 
     Secretary shall submit to the Committee on Environment and 
     Public Works of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives the report under this subsection.

     ``Sec. 510. University transportation centers

       ``(a) Centers.--
       ``(1) In general.--During fiscal year 2005, the Secretary 
     shall provide grants to 40 nonprofit institutions of higher 
     learning (or consortia of institutions of higher learning) to 
     establish centers to address transportation design, 
     management, research, development, and technology matters, 
     especially the education and training of greater numbers of 
     individuals to enter into the professional field of 
     transportation.
       ``(2) Distribution of centers.--Not more than 1 university 
     transportation center (or lead university in a consortia of 
     institutions of higher learning), other than a center or 
     university selected through a competitive process, may be 
     located in any State.
       ``(3) Identification of centers.--The university 
     transportation centers established under this section shall--

[[Page 10609]]

       ``(A) comply with applicable requirements under subsection 
     (c); and
       ``(B) be located at the institutions of higher learning 
     specified in paragraph (4).
       ``(4) Identification of groups.--For the purpose of making 
     grants under this subsection, the following grants are 
     identified:
       ``(A) Group a.--Group A shall consist of the 10 regional 
     centers selected under subsection (b).
       ``(B) Group b.--Group B shall consist of the following:
       ``(i) [_________].
       ``(ii) [_________].
       ``(iii) [_________].
       ``(iv) [_________].
       ``(v) [_________].
       ``(vi) [_________].
       ``(vii) [_________].
       ``(viii) [_________].
       ``(ix) [_________].
       ``(x) [_________].
       ``(xi) [_________].
       ``(C) Group c.--Group C shall consist of the following:
       ``(i) [_________].
       ``(ii) [_________].
       ``(iii) [_________].
       ``(iv) [_________].
       ``(v) [_________].
       ``(vi) [_________].
       ``(vii) [_________].
       ``(viii) [_________].
       ``(ix) [_________].
       ``(x) [_________].
       ``(xi) [_________].
       ``(D) Group d.--Group D shall consist of the following:
       ``(i) [_________].
       ``(ii) [_________].
       ``(iii) [_________].
       ``(iv) [_________].
       ``(v) [_________].
       ``(vi) [_________].
       ``(vii) [_________].
       ``(viii) [_________].
       ``(b) Regional Centers.--
       ``(1) In general.--Not later than September 30, 2005, the 
     Secretary shall provide to nonprofit institutions of higher 
     learning (or consortia of institutions of higher learning) 
     grants to be used during the period of fiscal years 2005 
     through 2009 to establish and operate 1 university 
     transportation center in each of the 10 Federal regions that 
     comprise the Standard Federal Regional Boundary System.
       ``(2) Selection of regional centers.--
       ``(A) Proposals.--In order to be eligible to receive a 
     grant under this subsection, an institution described in 
     paragraph (1) shall submit to the Secretary a proposal, in 
     response to any request for proposals that shall be made by 
     the Secretary, that is in such form and contains such 
     information as the Secretary shall prescribe.
       ``(B) Request schedule.--The Secretary shall request 
     proposals once for the period of fiscal years 2005 and 2006 
     and once for the period of fiscal years 2007 through 2009.
       ``(C) Eligibility.--Any institution of higher learning (or 
     consortium of institutions of higher learning) that meets the 
     criteria described in subsection (c) (including any 
     institution identified in subsection (a)(4)) may apply for a 
     grant under this subsection.
       ``(D) Selection criteria.--The Secretary shall select each 
     recipient of a grant under this subsection through a 
     competitive process on the basis of--
       ``(i) the location of the center within the Federal region 
     to be served;
       ``(ii) the demonstrated research capabilities and extension 
     resources available to the recipient to carry out this 
     section;
       ``(iii) the capability of the recipient to provide 
     leadership in making national and regional contributions to 
     the solution of immediate and long-range transportation 
     problems;
       ``(iv) the demonstrated ability of the recipient to 
     disseminate results of transportation research and education 
     programs through a statewide or regionwide continuing 
     education program; and
       ``(v) the strategic plan that the recipient proposes to 
     carry out using funds from the grant.
       ``(E) Selection process.--In selecting the recipients of 
     grants under this subsection, the Secretary shall consult 
     with, and consider the advice of--
       ``(i) the Research and Special Programs Administration;
       ``(ii) the Federal Highway Administration; and
       ``(iii) the Federal Transit Administration.
       ``(c) Center Requirements.--
       ``(1) In general.--With respect to a university 
     transportation center established under subsection (a) or 
     (b), the institution or consortium that receives a grant to 
     establish the center--
       ``(A) shall annually contribute at least $250,000 to the 
     operation and maintenance of the center, except that payment 
     by the institution or consortium of the salary required for 
     transportation-related faculty and staff for a period greater 
     than 90 days may not be counted against that contribution;
       ``(B) shall have established, as of the date of receipt of 
     the grant, undergraduate or graduate programs in--
       ``(i) civil engineering;
       ``(ii) transportation engineering;
       ``(iii) transportation systems management and operations; 
     or
       ``(iv) any other field significantly related to surface 
     transportation systems, as determined by the Secretary; and
       ``(C) not later than 120 days after the date on which the 
     institution or consortium receives notice of selection as a 
     site for the establishment of a university transportation 
     center under this section, shall submit to the Secretary a 6-
     year program plan for the university transportation center 
     that includes, with respect to the center--
       ``(i) a description of the purposes of programs to be 
     conducted by the center;
       ``(ii) a description of the undergraduate and graduate 
     transportation education efforts to be carried out by the 
     center;
       ``(iii) a description of the nature and scope of research 
     to be conducted by the center;
       ``(iv) a list of personnel, including the roles and 
     responsibilities of those personnel within the center; and
       ``(v) a detailed budget, including the amount of 
     contributions by the institution or consortium to the center; 
     and
       ``(D) shall establish an advisory committee that--
       ``(i) is composed of a representative from each of the 
     State transportation department of the State in which the 
     institution or consortium is located, the Department of 
     Transportation, and the institution or consortia, as 
     appointed by those respective entities;
       ``(ii) in accordance with paragraph (2), shall review and 
     approve or disapprove the plan of the institution or 
     consortium under subparagraph (C); and
       ``(iii) shall, to the maximum extent practicable, ensure 
     that the proposed research to be carried out by the 
     university transportation center will contribute to the 
     national highway research and technology agenda, as 
     periodically updated by the Secretary, in consultation with 
     stakeholders representing the highway community.
       ``(2) Peer review.--
       ``(A) In general.--The Secretary shall require peer review 
     for each report on research carried out using funds made 
     available for this section.
       ``(B) Purposes of peer review.--Peer review of a report 
     under this section shall be carried out to evaluate--
       ``(i) the relevance of the research described in the report 
     with respect to the strategic plan under, and the goals of, 
     this section;
       ``(ii) the research covered by the report, and to recommend 
     modifications to individual project plans;
       ``(iii) the results of the research before publication of 
     those results; and
       ``(iv) the overall outcomes of the research.
       ``(C) Internet availability.--Each report under this 
     section that is received by the Secretary shall be 
     published--
       ``(i) by the Secretary, on the Internet website of the 
     Department of Transportation; and
       ``(ii) by the University Transportation Center.
       ``(3) Approval of plans--A plan of an institution or 
     consortium described in paragraph (1)(C) shall not be 
     submitted to the Secretary until such time as the advisory 
     committee established under paragraph (1)(D) reviews and 
     approves the plan.
       ``(4) Failure to comply.--If a recipient of a grant under 
     this subsection fails to submit a program plan acceptable to 
     the Secretary and in accordance with paragraph (1)(C)--
       ``(A) the recipient shall forfeit the grant and the 
     selection of the recipient as a site for the establishment of 
     a university transportation center; and
       ``(B) the Secretary shall select a replacement recipient 
     for the forfeited grant.
       ``(5) Applicability.--This subsection does not apply to any 
     research funds received in accordance with a competitive 
     contract offered and entered into by the Federal Highway 
     Administration.
       ``(d) Objectives.--Each university transportation center 
     established under subsection (a) or (b) shall carry out--
       ``(1) undergraduate or graduate education programs that 
     include--
       ``(A) multidisciplinary coursework; and
       ``(B) opportunities for students to participate in 
     research;
       ``(2) basic and applied research, the results and products 
     of which shall be judged by peers or other experts in the 
     field so as to advance the body of knowledge in 
     transportation; and
       ``(3) an ongoing program of technology transfer that makes 
     research results available to potential users in such form as 
     will enable the results to be implemented, used, or otherwise 
     applied.
       ``(e) Maintenance of Effort.--To be eligible to receive a 
     grant under this section, an applicant shall--
       ``(1) enter into an agreement with the Secretary to ensure 
     that the applicant will maintain total expenditures from all 
     other sources to establish and operate a university 
     transportation center and related educational and research 
     activities at a level that is at least equal to the average 
     level of those expenditures during the 2 fiscal years before 
     the date on which the grant is provided;
       ``(2) provide the annual institutional contribution 
     required under subsection (c)(1); and
       ``(3) submit to the Secretary, in a timely manner, for use 
     by the Secretary in the preparation of the annual research 
     report under section 508(c)(5) of title 23, an annual report 
     on the projects and activities of the university 
     transportation center for which funds are made available 
     under section 2001 of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005 that contains, at 
     a minimum, for the fiscal year covered by the report, a 
     description of--
       ``(A) the goals of the center;
       ``(B) the educational activities carried out by the center 
     (including a detailed summary of the budget for those 
     educational activities);
       ``(C) teaching activities of faculty at the center;

[[Page 10610]]

       ``(D) each research project carried out by the center, 
     including--
       ``(i) the identity and location of each investigator 
     working on a research project;
       ``(ii) the overall funding amount for each research project 
     (including the amounts expended for the project as of the 
     date of the report);
       ``(iii) the current schedule for each research project; and
       ``(iv) the results of each research project through the 
     date of submission of the report, with particular emphasis on 
     results for the fiscal year covered by the report; and
       ``(E) overall technology transfer and implementation 
     efforts of the center.
       ``(f) Program Coordination.--The Secretary shall--
       ``(1) coordinate the research, education, training, and 
     technology transfer activities carried out by recipients of 
     grants under this section; and
       ``(2) establish and operate a clearinghouse for, and 
     disseminate, the results of those activities.
       ``(g) Funding.--
       ``(1) Number and amount of grants.--The Secretary shall 
     make the following grants under this subsection:
       ``(A) Group a.--For each of fiscal years 2005 through 2009, 
     the Secretary shall make a grant in the amount of $938,629 to 
     each of the institutions in group A (as described in 
     subsection (a)(4)(A)).
       ``(B) Group b.--The Secretary shall make a grant to each of 
     the institutions in group B (as described in subsection 
     (a)(4)(B)) in the amount of--
       ``(i) $375,452 for fiscal year 2005; and
       ``(ii) $563,177 for each of fiscal years 2006 and 2007.
       ``(C) Group c.--For each of fiscal years 2005 through 2007, 
     the Secretary shall make a grant in the amount of $938,629 to 
     each of the institutions in group C (as described in 
     subsection (a)(4)(C)).
       ``(D) Group d.--For each of fiscal years 2005 through 2009, 
     the Secretary shall make a grant in the amount of $1,877,258 
     to each of the institutions in group D (as described in 
     subsection (a)(4)(D)).
       ``(E) Limited grants for groups b and c.--For each of 
     fiscal years 2008 and 2009, of the institutions classified in 
     groups B and C (as described in subsection (a)(4)(B)), the 
     Secretary shall select and make grants in an amount totaling 
     $37,545,924 to not more than 15 institutions.
       ``(2) Use of funds--
       ``(A) In general.--Of the funds made available for a fiscal 
     year to a university transportation center established under 
     subsection (a) or (b)--
       ``(i) not less than $250,000 shall be used to establish and 
     maintain new faculty positions for the teaching of 
     undergraduate, transportation-related courses;
       ``(ii) not more than $500,000 for the fiscal year, or 
     $1,000,000 in the aggregate, may be used to construct or 
     improve transportation-related laboratory facilities; and
       ``(iii) not more than $300,000 for the fiscal year may be 
     used for student internships of not more than 180 days in 
     duration to enable students to gain experience by working on 
     transportation projects as interns with design or 
     construction firms.
       ``(B) Facilities and administration fee.--Not more than 10 
     percent of any grant made available to a university 
     transportation center (or any institution or consortium that 
     establishes such a center) for a fiscal year may be used to 
     pay to the appropriate nonprofit institution of higher 
     learning any administration and facilities fee (or any 
     similar overhead fee) for the fiscal year.
       ``(3) Limitation on availability of funds.--Funds made 
     available under this subsection shall remain available for 
     obligation for a period of 2 years after September 30 of the 
     fiscal year for which the funds are authorized.

     ``Sec. 511. Multistate corridor operations and management

       ``(a) In General.--The Secretary shall encourage multistate 
     cooperative agreements, coalitions, or other arrangements to 
     promote regional cooperation, planning, and shared project 
     implementation for programs and projects to improve 
     transportation system management and operations.
       ``(b) Interstate Route I-95 Corridor Coalition 
     Transportation Systems Management and Operations.--
       ``(1) In general.--The Secretary shall make grants under 
     this subsection to States to continue intelligent 
     transportation system management and operations in the 
     Interstate Route I-95 corridor coalition region initiated 
     under the Intermodal Surface Transportation Efficiency Act of 
     1991 (Public Law 102-240).
       ``(2) Funding.--Of the amounts made available under section 
     2001(a)(4) of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2005, the Secretary shall use to 
     carry out this subsection--
       ``(A) $9,386,289 for fiscal year 2005; and
       ``(B) $11,263,547 for each of fiscal years 2006 through 
     2009.

     ``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 2005 for each of fiscal years 
     2005 through 2009, the Secretary shall use $893,082 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.''.
       (b) Other University Funding.--No university (other than 
     university transportation centers specified in section 510 of 
     title 23, United States Code (as added by subsection (a)) 
     shall receive funds made available under section 2001 to 
     carry out research unless the university is selected to 
     receive the funds--
       (1) through a competitive process that incorporates merit-
     based peer review; and
       (2) based on a proposal submitted to the Secretary by the 
     university in response to a request for proposals issued by 
     the Secretary.
       (c) Conforming Amendment.--Section 5505 of title 49, United 
     States Code, is repealed.

     SEC. 2102. STUDY OF DATA COLLECTION AND STATISTICAL ANALYSIS 
                   EFFORTS.

       (a) Definitions.--In this section:
       (1) Administration.--The term ``Administration'' means the 
     Federal Highway Administration.
       (2) Board.--The term ``Board'' means the Transportation 
     Research Board of the National Academy of Sciences.
       (3) Bureau.--The term ``Bureau'' means the Bureau of 
     Transportation Statistics.
       (4) Department.--The term ``Department'' means the 
     Department of Transportation.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.
       (b) Priority Areas of Effort.--
       (1) Statistical standards.--The Secretary shall direct the 
     Bureau to assume the role of the lead agency in working with 
     other agencies of the Department to establish, by not later 
     the date that is 1 year after the date of enactment of this 
     Act, statistical standards for the Department.
       (2) Statistical analysis effort.--
       (A) In general.--The Bureau shall provide to the Secretary, 
     on an annual basis, an overview of the level of effort 
     expended on statistical analyses by each agency within the 
     Department.
       (B) Duty of agencies.--Each agency of the Department shall 
     provide to the Bureau such information as the Bureau may 
     require in carrying out subparagraph (A).
       (3) National security.--The Bureau shall--
       (A) conduct a study of the ways in which transportation 
     statistics are and may be used for the purpose of national 
     security; and
       (B) submit to the Transportation Security Administration 
     recommendations for means by which the use of transportation 
     statistics for the purpose of national security may be 
     improved.
       (4) Modernization.--The Bureau shall develop new protocols 
     for adapting data collection and delivery efforts in 
     existence as of the date of enactment of this Act to deliver 
     information in a more timely and frequent fashion.
       (c) Study.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall provide a grant 
     to, or enter into a cooperative agreement or contract with, 
     the Board for the conduct of a study of the data collection 
     and statistical analysis efforts of the Department with 
     respect to the modes of surface transportation for which 
     funds are made available under this Act.

[[Page 10611]]

       (2) Purpose.--The purpose of the study shall be to provide 
     to the Department information for use by agencies of the 
     Department in providing to surface transportation agencies 
     and individuals engaged in the surface transportation field 
     higher quality, and more relevant and timely, data, 
     statistical analyses, and products.
       (3) Content.--The study shall include--
       (A) an examination and analysis of the efforts, analyses, 
     and products (with respect to usefulness and policy 
     relevance) of the Bureau as of the date of the study, as 
     compared with the duties of the Bureau specified in 
     subsections (c) through (f) of section 111 of title 49, 
     United States Code;
       (B) an examination and analysis of data collected by, 
     methods of data collection of, and analyses performed by, 
     agencies within the Department; and
       (C) recommendations relating to--
       (i) the future efforts of the Department in the area of 
     surface transportation with respect to--

       (I) types of data collected;
       (II) methods of data collection;
       (III) types of analyses performed; and
       (IV) products made available by the Secretary to the 
     transportation community and Congress;

       (ii) the means by which the Department may cooperate with 
     State transportation departments to provide technical 
     assistance in the use of data collected by traffic operations 
     centers; and
       (iii) duplication of efforts within the Department, 
     including ways in which--

       (I) the duplication may be reduced or eliminated; and
       (II) each agency of the Department may cooperate with, and 
     complement the efforts of, the others.

       (4) Consultation.--In conducting the study, the Board shall 
     consult with such stakeholders, agencies, and other entities 
     as the Board considers to be appropriate.
       (5) Report.--Not later than 1 year after the date on which 
     a grant is provided, or a cooperative agreement or contract 
     is entered into, for a study under paragraph (1)--
       (A) the Board shall submit to the Secretary, the Committee 
     on Environment and Public Works of the Senate, and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives a final report on the results of the 
     study; and
       (B) the results of the study shall be published--
       (i) by the Secretary, on the Internet website of the 
     Department; and
       (ii) by the Board, on the Internet website of the Board.
       (6) Implementation of results.--The Bureau shall, to the 
     maximum extent practicable, implement any recommendations 
     made with respect to the results of the study under this 
     subsection.
       (7) Compliance.--
       (A) In general.--The Comptroller General of the United 
     States shall conduct a review of the study under this 
     subsection.
       (B) Noncompliance.--If the Comptroller General of the 
     United States determines that the Bureau failed to conduct 
     the study under this subsection, the Bureau shall be 
     ineligible to receive funds from the Highway Trust Fund until 
     such time as the Bureau conducts the study under this 
     subsection.
       (d) Conforming Amendments.--Section 111 of title 49, United 
     States Code, is amended--
       (1) by redesignating subsection (k) as subsection (m);
       (2) by inserting after subsection (j) the following:
       ``(k) Annual Report.--
       ``(1) In general.--For fiscal year 2005 and each fiscal 
     year thereafter, the Bureau shall prepare and submit to the 
     Secretary an annual report that--
       ``(A) describes progress made in responding to study 
     recommendations for the fiscal year; and
       ``(B) summarizes the activities and expenditure of funds by 
     the Bureau for the fiscal year.
       ``(2) Availability.--The Bureau shall--
       ``(A) make the report described in paragraph (1) available 
     to the public; and
       ``(B) publish the report on the Internet website of the 
     Bureau.
       ``(3) Combination of reports.--The report required under 
     paragraph (1) may be included in or combined with the 
     Transportation Statistics Annual Report required by 
     subsection (j).
       ``(l) Expenditure of Funds.--Funds from the Highway Trust 
     Fund (other than the Mass Transit Account) that are 
     authorized to be appropriated, and made available, in 
     accordance with section 2001(a)(3) of the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2005 
     shall be used only for the collection and statistical 
     analysis of information relating to surface transportation 
     systems.''; and
       (3) in subsection (m) (as redesignated by subparagraph 
     (A)), by inserting ``surface transportation'' after ``sale 
     of''.

     SEC. 2103. CENTERS FOR SURFACE TRANSPORTATION EXCELLENCE.

       (a) Establishment.--The Secretary shall establish the 
     centers for surface transportation excellence described in 
     subsection (b) to promote high-quality outcomes in support of 
     strategic national programs and activities, including--
       (1) the environment;
       (2) operations;
       (3) surface transportation safety;
       (4) project finance; and
       (5) asset management.
       (b) Centers.--The centers for surface transportation 
     excellence referred to in subsection (a) are--
       (1) a Center for Environmental Excellence to provide 
     technical assistance, information sharing of best practices, 
     and training in the use of tools and decision-making 
     processes to assist States in planning and delivering 
     environmentally-sound surface transportation projects;
       (2) a Center for Operations Excellence to provide support 
     for an integrated and coordinated national program for 
     implementing operations in planning and management (including 
     standards development) for the transportation system in the 
     United States;
       (3) a Center for Excellence in Surface Transportation 
     Safety to implement a program of support for State 
     transportation departments, including--
       (A) the maintenance of an Internet site to provide critical 
     information on safety programs;
       (B) the provision of technical assistance to support a lead 
     State transportation department for each of the safety 
     emphasis areas (as identified by the Secretary); and
       (C) the provision of training and education to enhance 
     knowledge of personnel of State transportation departments in 
     support of safety highway goals;
       (4) a Center for Excellence in Project Finance--
       (A) to provide support to State transportation departments 
     in the development of finance plans and project oversight 
     tools; and
       (B) to develop and offer training in state-of-the-art 
     financing methods to advance projects and leverage funds; and
       (5) a Center for Excellence in Asset Management to develop 
     and conduct research, provide training and education, and 
     disseminate information on the benefits and tools for asset 
     management.
       (c) Program Administration.--
       (1) In general.--Before funds authorized under this section 
     for fiscal years 2005 through 2009 are obligated, the 
     Secretary shall review and approve a multiyear strategic plan 
     to be submitted by each of the centers.
       (2) Timing.--The plan shall be submitted before the 
     beginning of fiscal year 2005 and, subsequently, shall be 
     annually updated.
       (3) Content.--The plan shall include--
       (A) a list of research and technical assistance projects 
     and objectives; and
       (B) a description of any other technology transfer 
     activities, including a summary of training efforts.
       (4) Cooperation and competition.--
       (A) In general.--The Secretary shall carry out this section 
     by making grants to, or entering into contracts, cooperative 
     agreements, and other transactions with--
       (i) the National Academy of Sciences;
       (ii) the American Association of State Highway and 
     Transportation Officials;
       (iii) planning organizations;
       (iv) a Federal laboratory;
       (v) a State agency;
       (vi) an authority, association, institution, or 
     organization; or
       (vii) a for-profit or nonprofit corporation.
       (B) Competition; review.--All parties entering into 
     contracts, cooperative agreements, or other transactions with 
     the Secretary, or receiving grants, to perform research or 
     provide technical assistance under this section shall be 
     selected, to the maximum extent practicable--
       (i) on a competitive basis; and
       (ii) on the basis of the results of peer review of 
     proposals submitted to the Secretary.
       (5) Nonduplication.--The Secretary shall ensure that 
     activities conducted by each of the centers do not duplicate, 
     and to the maximum extent practicable, are integrated and 
     coordinated with similar activities conducted by the Federal 
     Highway Administration, the local technical assistance 
     program, university transportation centers, and other 
     research efforts supported with funds authorized by this 
     title.
       (d) Allocations.--
       (1) In general.--For each of fiscal years 2005 through 
     2009, of the funds made available under section 
     2001(a)(1)(A), the Secretary shall set aside $9,386,289 to 
     carry out this section.
       (2) Allocation of funds.--Of the funds made available under 
     paragraph (1)--
       (A) 20 percent shall be allocated to the Center for 
     Environmental Excellence established under subsection (b)(1);
       (B) 30 percent shall be allocated to the Center for 
     Operations Excellence established under subsection (b)(2);
       (C) 20 percent shall be allocated to the Center for 
     Excellence in Surface Transportation Safety established under 
     subsection (b)(3);
       (D) 10 percent shall be allocated to the Center for 
     Excellence in Project Finance established under subsection 
     (b)(4); and
       (E) 20 percent shall be allocated to the Center for 
     Excellence in Asset Management established under subsection 
     (b)(5).
       (3) Applicability of title 23.--Funds made available under 
     this section shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1 of 
     title 23, United States Code, except that the Federal share 
     shall be 100 percent.

     SEC. 2104. MOTORCYCLE CRASH CAUSATION STUDY GRANTS.

       (a) Grants.--The Secretary shall provide grants for the 
     purpose of conducting a comprehensive, in-depth motorcycle 
     crash causation study that employs the common international 
     methodology for in-depth motorcycle accident investigation of 
     the Organization for Economic Cooperation and Development.
       (b) Funding.--Of the amounts made available under section 
     2001(a)(3), $1,407,943 for each of fiscal years 2005 and 2006 
     shall be available to carry out this section.

     SEC. 2105. TRANSPORTATION TECHNOLOGY INNOVATION AND 
                   DEMONSTRATION PROGRAM.

       Section 5117(b) of the Transportation Equity Act for the 
     21st Century (112 Stat 449; 112 Stat.

[[Page 10612]]

     864; 115 Stat. 2330) is amended by striking paragraph (3) and 
     inserting the following:
       ``(3) Intelligent transportation infrastructure.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Congested area.--The term `congested area' means a 
     metropolitan area that experiences significant traffic 
     congestion, as determined by the Secretary on an annual 
     basis.
       ``(ii) Deployment area.--The term `deployment area' means 
     any of the metropolitan areas of Baltimore, Birmingham, 
     Boston, Chicago, Cleveland, Dallas/Ft. Worth, Denver, 
     Detroit, Houston, Indianapolis, Las Vegas, Los Angeles, 
     Miami, New York/Northern New Jersey, Northern Kentucky/
     Cincinnati, Oklahoma City, Orlando, Philadelphia, Phoenix, 
     Pittsburgh, Portland, Providence, Salt Lake, San Diego, San 
     Francisco, St. Louis, Seattle, Tampa, and Washington, 
     District of Columbia.
       ``(iii) Metropolitan area.--

       ``(I) In general.--The term `metropolitan area' means any 
     area that--

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

       ``(II) Inclusions.--The term `metropolitan area' includes a 
     major transportation corridor serving a metropolitan area.

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

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

       ``(vii) Uncommitted funds--The term `uncommitted funds' 
     means the total amount of funds that, as of the date that is 
     180 days after the date of enactment of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2005, remain uncommitted under the original contract.
       ``(B) Intelligent transportation infrastructure program.--
       ``(i) In general.--The Secretary shall carry out a 2-part 
     intelligent transportation infrastructure program in 
     accordance with this paragraph to advance the deployment of 
     an operational intelligent transportation infrastructure 
     system, through measurement of various transportation system 
     activities, to simultaneously--

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

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

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

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

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

       ``(ii) Applicable conditions.--The same asset ownership, 
     maintenance, fixed price contract, and revenue sharing model, 
     and the same competitively selected consortium leader, as 
     were used for the deployment of intelligent transportation 
     infrastructure systems under the original contract before the 
     date of enactment of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005 shall apply to 
     each deployment carried out under clause (i).
       ``(iii) Deployment in congested areas.--If the entity 
     referred to in clause (i) is unable to commit the uncommitted 
     funds by deploying intelligent transportation infrastructure 
     systems in deployment areas, as determined by the Secretary, 
     the entity may deploy the systems in accordance with this 
     paragraph in 1 or more congested areas, with the consent of 
     the State transportation departments for the congested areas.
       ``(D) Part ii.--
       ``(i) In general.--In carrying out part II of the program, 
     the Secretary shall award, on a competitive basis, contracts 
     for the deployment of intelligent transportation 
     infrastructure systems that have been accepted by the 
     Secretary in congested areas, with the consent of the State 
     transportation departments for the congested areas.
       ``(ii) Requirements.--The Secretary shall award contracts 
     under clause (i)--

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

       ``(iii) Provisions in contracts.--The Secretary shall 
     require that each contract for the deployment of an 
     intelligent transportation infrastructure system under this 
     subparagraph contain such provisions relating to asset 
     ownership, maintenance, fixed price, and revenue sharing as 
     the Secretary considers to be appropriate.
       ``(E) Use of funds for undeployed systems.--
       ``(i) In general.--If, under part I or part II of the 
     program, a State transportation department for a deployment 
     area or congested area does not consent by the later of the 
     date that is 180 days after the date of enactment of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2005, or another date determined jointly by the 
     State transportation department and the deployment area or 
     congested area, to participate in the deployment of an 
     intelligent transportation infrastructure system in the 
     deployment area or congested area, upon application by any 
     other deployment area or congested area that has consented by 
     that date to participate in the deployment of such a system, 
     the Secretary shall supplement the funds made available for 
     each of the deployment areas or congested areas submitting 
     the application by using for that purpose the funds not used 
     for deployment of the system in the nonparticipating 
     deployment area or congested area.
       ``(ii) No inclusion in cost limitation.--Costs paid using 
     funds provided through a supplementation under clause (i) 
     shall not be considered in determining the limitation on 
     maximum cost described in subparagraph (F)(ii).
       ``(F) Federal share; limits on costs of systems for 
     metropolitan areas.--
       ``(i) Federal share.--Subject to clause (ii), the Federal 
     share of the cost of any project or activity carried out 
     under the program shall be 80 percent.
       ``(ii) Limit on costs of system for each metropolitan 
     area.--

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

       ``(G) Use of rights-of-way.--
       ``(i) In general.--An intelligent transportation system 
     project described in this paragraph or paragraph (6) that 
     involves privately-owned intelligent transportation system 
     components and is carried out using funds made available from 
     the Highway Trust Fund shall not be subject to any law 
     (including a regulation) of a State or political subdivision 
     of a State prohibiting or regulating commercial activities in 
     the rights-of-way of a highway for which Federal-aid highway 
     funds have been used for planning, design, construction, or 
     maintenance for the project, if the Secretary determines that 
     such use is in the public interest.
       ``(ii) Effect of subparagraph.--Nothing in this 
     subparagraph affects the authority of a State or political 
     subdivision of a State--

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

       ``(H) Funding.--
       ``(i) Authorization of appropriations.--There is authorized 
     to be appropriated out of the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out subparagraph (D) 
     $4,465,409 for each fiscal year.
       ``(ii) Additional amounts.--In addition to the amounts 
     authorized to be appropriated under this subparagraph, funds 
     made available under title II of the Safe, Affordable, 
     Flexible, and Efficient Transportation Equity Act of 2005, 
     and titles 23 and 49, United States Code, for projects and 
     activities the objectives of which are consistent with the 
     objectives described in subparagraph (B)(ii), may be used to 
     carry out part II of the program under subparagraph (D).
       ``(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.

       ``(iv) No effect on previously committed funds.--Nothing in 
     this paragraph affects any funds committed under the original 
     contract before the date of enactment of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2005.
       ``(v) Contract authority.--Except as provided in 
     subparagraph (F)(i), funds authorized

[[Page 10613]]

     to be appropriated under this subparagraph shall be available 
     for obligation in the same manner as if the funds were 
     apportioned under chapter 1 of title 23, United States 
     Code.''.

         Subtitle C--Intelligent Transportation System Research

     SEC. 2201. INTELLIGENT TRANSPORTATION SYSTEM RESEARCH AND 
                   TECHNICAL ASSISTANCE PROGRAM.

       (a) In General.--Chapter 5 of title 23, United States Code 
     (as amended by section 2101), is amended by adding at the end 
     the following:

    ``SUBCHAPTER II--INTELLIGENT TRANSPORTATION SYSTEM RESEARCH AND 
                      TECHNICAL ASSISTANCE PROGRAM

     ``Sec. 521. Finding

       ``Congress finds that continued investment in architecture 
     and standards development, research, technical assistance for 
     State and local governments, and systems integration is 
     needed to accelerate the rate at which intelligent 
     transportation systems--
       ``(1) are incorporated into the national surface 
     transportation network; and
       ``(2) as a result of that incorporation, improve 
     transportation safety and efficiency and reduce costs and 
     negative impacts on communities and the environment.

     ``Sec. 522. Goals and purposes

       ``(a) Goals.--The goals of the intelligent transportation 
     system research and technical assistance program include--
       ``(1) enhancement of surface transportation efficiency and 
     facilitation of intermodalism and international trade--
       ``(A) to meet a significant portion of future 
     transportation needs, including public access to employment, 
     goods, and services; and
       ``(B) to reduce regulatory, financial, and other 
     transaction costs to public agencies and system users;
       ``(2) the acceleration of the use of intelligent 
     transportation systems to assist in the achievement of 
     national transportation safety goals, including the 
     enhancement of safe operation of motor vehicles and 
     nonmotorized vehicles, with particular emphasis on decreasing 
     the number and severity of collisions;
       ``(3) protection and enhancement of the natural environment 
     and communities affected by surface transportation, with 
     particular emphasis on assisting State and local governments 
     in achieving national environmental goals;
       ``(4) accommodation of the needs of all users of surface 
     transportation systems, including--
       ``(A) operators of commercial vehicles, passenger vehicles, 
     and motorcycles;
       ``(B) users of public transportation users (with respect to 
     intelligent transportation system user services); and
       ``(C) individuals with disabilities; and
       ``(5)(A) improvement of the ability of the United States to 
     respond to emergencies and natural disasters; and
       ``(B) enhancement of national security and defense 
     mobility.
       ``(b) Purposes.--The Secretary shall carry out activities 
     under the intelligent transportation system research and 
     technical assistance program to, at a minimum--
       ``(1) assist in the development of intelligent 
     transportation system technologies;
       ``(2) ensure that Federal, State, and local transportation 
     officials have adequate knowledge of intelligent 
     transportation systems for full consideration in the 
     transportation planning process;
       ``(3) improve regional cooperation, interoperability, and 
     operations for effective intelligent transportation system 
     performance;
       ``(4) promote the innovative use of private resources;
       ``(5) assist State transportation departments in developing 
     a workforce capable of developing, operating, and maintaining 
     intelligent transportation systems;
       ``(6) maintain an updated national ITS architecture and 
     consensus-based standards while ensuring an effective Federal 
     presence in the formulation of domestic and international ITS 
     standards;
       ``(7) advance commercial vehicle operations components of 
     intelligent transportation systems--
       ``(A) to improve the safety and productivity of commercial 
     vehicles and drivers; and
       ``(B) to reduce costs associated with commercial vehicle 
     operations and Federal and State commercial vehicle 
     regulatory requirements;
       ``(8) evaluate costs and benefits of intelligent 
     transportation systems projects;
       ``(9) improve, as part of the Archived Data User Service 
     and in cooperation with the Bureau of Transportation 
     Statistics, the collection of surface transportation system 
     condition and performance data through the use of intelligent 
     transportation system technologies; and
       ``(10) ensure access to transportation information and 
     services by travelers of all ages.

     ``Sec. 523. Definitions

       ``In this subchapter:
       ``(1) Commercial vehicle information systems and 
     networks.--The term `commercial vehicle information systems 
     and networks' means the information systems and 
     communications networks that support commercial vehicle 
     operations.
       ``(2) Commercial vehicle operations.--
       ``(A) In general.--The term `commercial vehicle operations' 
     means motor carrier operations and motor vehicle regulatory 
     activities associated with the commercial movement of goods 
     (including hazardous materials) and passengers.
       ``(B) Inclusions.--The term `commercial vehicle 
     operations', with respect to the public sector, includes--
       ``(i) the issuance of operating credentials;
       ``(ii) the administration of motor vehicle and fuel taxes; 
     and
       ``(iii) roadside safety and border crossing inspection and 
     regulatory compliance operations.
       ``(3) Intelligent transportation infrastructure.--The term 
     `intelligent transportation infrastructure' means fully 
     integrated public sector intelligent transportation system 
     components, as defined by the Secretary.
       ``(4) Intelligent transportation system.--The term 
     `intelligent transportation system' means electronics, 
     photonics, communications, or information processing used 
     singly or in combination to improve the efficiency or safety 
     of a surface transportation system.
       ``(5) National its architecture.--The term `national ITS 
     architecture' means the common framework for interoperability 
     adopted by the Secretary that defines--
       ``(A) the functions associated with intelligent 
     transportation system user services;
       ``(B) the physical entities or subsystems within which the 
     functions reside;
       ``(C) the data interfaces and information flows between 
     physical subsystems; and
       ``(D) the communications requirements associated with the 
     information flows.
       ``(6) Standard.--The term `standard' means a document 
     that--
       ``(A) contains technical specifications or other precise 
     criteria for intelligent transportation systems that are to 
     be used consistently as rules, guidelines, or definitions of 
     characteristics so as to ensure that materials, products, 
     processes, and services are fit for their purposes; and
       ``(B) may--
       ``(i) support the national ITS architecture; and
       ``(ii) promote--

       ``(I) the widespread use and adoption of intelligent 
     transportation system technology as a component of the 
     surface transportation systems of the United States; and
       ``(II) interoperability among intelligent transportation 
     system technologies implemented throughout the States.

     ``Sec. 524. General authorities and requirements

       ``(a) Scope.--Subject to this subchapter, the Secretary 
     shall carry out an ongoing intelligent transportation system 
     research program--
       ``(1) to research, develop, and operationally test 
     intelligent transportation systems; and
       ``(2) to provide technical assistance in the nationwide 
     application of those systems as a component of the surface 
     transportation systems of the United States.
       ``(b) Policy.--Intelligent transportation system 
     operational tests and projects funded under this subchapter 
     shall encourage, but not displace, public-private 
     partnerships or private sector investment in those tests and 
     projects.
       ``(c) Cooperation With Governmental, Private, and 
     Educational Entities.--The Secretary shall carry out the 
     intelligent transportation system research and technical 
     assistance program in cooperation with--
       ``(1) State and local governments and other public 
     entities;
       ``(2) the private sector;
       ``(3) Federal laboratories (as defined in section 501); and
       ``(4) colleges and universities, including historically 
     black colleges and universities and other minority 
     institutions of higher education.
       ``(d) Consultation With Federal Officials.--In carrying out 
     the intelligent transportation system research program, the 
     Secretary, as appropriate, shall consult with--
       ``(1) the Secretary of Commerce;
       ``(2) the Secretary of the Treasury;
       ``(3) the Administrator of the Environmental Protection 
     Agency;
       ``(4) the Director of the National Science Foundation; and
       ``(5) the Secretary of Homeland Security.
       ``(e) Technical Assistance, Training, and Information.--The 
     Secretary may provide technical assistance, training, and 
     information to State and local governments seeking to 
     implement, operate, maintain, or evaluate intelligent 
     transportation system technologies and services.
       ``(f) Transportation Planning.--The Secretary may provide 
     funding to support adequate consideration of transportation 
     system management and operations (including intelligent 
     transportation systems) within metropolitan and statewide 
     transportation planning processes.
       ``(g) Information Clearinghouse.--The Secretary shall--
       ``(1) maintain a repository for technical and safety data 
     collected as a result of federally sponsored projects carried 
     out under this subchapter; and
       ``(2) on request, make that information (except for 
     proprietary information and data) readily available to all 
     users of the repository at an appropriate cost.
       ``(h) Advisory Committees.--
       ``(1) In general.--In carrying out this subchapter, the 
     Secretary--
       ``(A) may use 1 or more advisory committees; and
       ``(B) shall designate a public-private organization, the 
     members of which participate in on-going research, planning, 
     standards development, deployment, and marketing of ITS 
     programs, products, and services, and coordinate the 
     development and deployment of intelligent transportation 
     systems in the United States, as the Federal advisory 
     committee authorized by section 5204(h) of the Transportation 
     Equity Act for the 21st Century (112 Stat. 454).
       ``(2) Funding.--Of the amount made available to carry out 
     this subchapter, the Secretary may use $1,407,943 for each 
     fiscal year for advisory committees described in paragraph 
     (1).

[[Page 10614]]

       ``(3) Applicability of federal advisory committee act.--Any 
     advisory committee described in paragraph (1) shall be 
     subject to the Federal Advisory Committee Act (5 U.S.C. 
     App.).
       ``(i) Procurement Methods.--The Secretary shall develop and 
     provide appropriate technical assistance and guidance to 
     assist State and local agencies in evaluating and selecting 
     appropriate methods of deployment and procurement for 
     intelligent transportation system projects carried out using 
     funds made available from the Highway Trust Fund, including 
     innovative and nontraditional methods such as Information 
     Technology Omnibus Procurement (as developed by the 
     Secretary).
       ``(j) Evaluations.--
       ``(1) Guidelines and requirements.--
       ``(A) In general.--The Secretary shall issue revised 
     guidelines and requirements for the evaluation of operational 
     tests and other intelligent transportation system projects 
     carried out under this subchapter.
       ``(B) Objectivity and independence.--The guidelines and 
     requirements issued under subparagraph (A) shall include 
     provisions to ensure the objectivity and independence of the 
     evaluator so as to avoid any real or apparent conflict of 
     interest or potential influence on the outcome by--
       ``(i) parties to any such test; or
       ``(ii) any other formal evaluation carried out under this 
     subchapter.
       ``(C) Funding.--The guidelines and requirements issued 
     under subparagraph (A) shall establish evaluation funding 
     levels based on the size and scope of each test that ensure 
     adequate evaluation of the results of the test or project.
       ``(2) Special rule.--Any survey, questionnaire, or 
     interview that the Secretary considers necessary to carry out 
     the evaluation of any test or program assessment activity 
     under this subchapter shall not be subject to chapter 35 of 
     title 44.

     ``Sec. 525. National ITS Program Plan

       ``(a) In General.--
       ``(1) Updates.--Not later than 1 year after the date of 
     enactment of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2005, the Secretary, in 
     consultation with interested stakeholders (including State 
     transportation departments) shall develop a 5-year National 
     ITS Program Plan.
       ``(2) Scope.--The National ITS Program Plan shall--
       ``(A) specify the goals, objectives, and milestones for the 
     research and deployment of intelligent transportation systems 
     in the contexts of--
       ``(i) major metropolitan areas;
       ``(ii) smaller metropolitan and rural areas; and
       ``(iii) commercial vehicle operations;
       ``(B) specify the manner in which specific programs and 
     projects will achieve the goals, objectives, and milestones 
     referred to in subparagraph (A), including consideration of a 
     5-year timeframe for the goals and objectives;
       ``(C) identify activities that provide for the dynamic 
     development, testing, and necessary revision of standards and 
     protocols to promote and ensure interoperability in the 
     implementation of intelligent transportation system 
     technologies, including actions taken to establish standards; 
     and
       ``(D) establish a cooperative process with State and local 
     governments for--
       ``(i) determining desired surface transportation system 
     performance levels; and
       ``(ii) developing plans for accelerating the incorporation 
     of specific intelligent transportation system capabilities 
     into surface transportation systems.
       ``(b) Reporting.--The National ITS Program Plan shall be 
     transmitted and biennially updated as part of the surface 
     transportation research and technology development strategic 
     plan developed under section 508(c).

     ``Sec. 526. National ITS architecture and standards

       ``(a) In General.--
       ``(1) Development, implementation, and maintenance.--In 
     accordance with section 12(d) of the National Technology 
     Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; 110 
     Stat. 783), the Secretary shall develop, implement, and 
     maintain a national ITS architecture and supporting standards 
     and protocols to promote the widespread use and evaluation of 
     intelligent transportation system technology as a component 
     of the surface transportation systems of the United States.
       ``(2) Interoperability and efficiency.--To the maximum 
     extent practicable, the national ITS architecture shall 
     promote interoperability among, and efficiency of, 
     intelligent transportation system technologies implemented 
     throughout the United States.
       ``(3) Use of standards development organizations.--In 
     carrying out this section, the Secretary shall use the 
     services of such standards development organizations as the 
     Secretary determines to be appropriate.
       ``(b) Provisional Standards.--
       ``(1) In general.--If the Secretary finds that the 
     development or selection of an intelligent transportation 
     system standard jeopardizes the timely achievement of the 
     objectives identified in subsection (a), the Secretary may 
     establish a provisional standard--
       ``(A) after consultation with affected parties; and
       ``(B) by using, to the maximum extent practicable, the work 
     product of appropriate standards development organizations.
       ``(2) Critical standards.--If a standard identified by the 
     Secretary as critical has not been adopted and published by 
     the appropriate standards development organization by the 
     date of enactment of this subchapter, the Secretary shall 
     establish a provisional standard--
       ``(A) after consultation with affected parties; and
       ``(B) by using, to the maximum extent practicable, the work 
     product of appropriate standards development organizations.
       ``(3) Period of effectiveness.--A provisional standard 
     established under paragraph (1) or (2) shall--
       ``(A) be published in the Federal Register; and
       ``(B) remain in effect until such time as the appropriate 
     standards development organization adopts and publishes a 
     standard.
       ``(c) Waiver of Requirement To Establish Provisional 
     Critical Standard.--
       ``(1) In general.--The Secretary may waive the requirement 
     under subsection (b)(2) to establish a provisional standard 
     if the Secretary determines that additional time would be 
     productive in, or that establishment of a provisional 
     standard would be counterproductive to, the timely 
     achievement of the objectives identified in subsection (a).
       ``(2) Notice.--The Secretary shall publish in the Federal 
     Register a notice that describes--
       ``(A) each standard for which a waiver of the provisional 
     standard requirement is granted under paragraph (1);
       ``(B) the reasons for and effects of granting the waiver; 
     and
       ``(C) an estimate as to the date on which the standard is 
     expected to be adopted through a process consistent with 
     section 12(d) of the National Technology Transfer and 
     Advancement Act of 1995 (15 U.S.C. 272 note; 110 Stat. 783).
       ``(3) Withdrawal of waiver.--
       ``(A) In general.--The Secretary may withdraw a waiver 
     granted under paragraph (1) at any time.
       ``(B) Notice.--On withdrawal of a waiver, the Secretary 
     shall publish in the Federal Register a notice that 
     describes--
       ``(i) each standard for which the waiver has been 
     withdrawn; and
       ``(ii) the reasons for withdrawing the waiver.
       ``(d) Conformity With National ITS Architecture.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), the Secretary shall ensure that intelligent 
     transportation system projects carried out using funds made 
     available from the Highway Trust Fund conform to the national 
     ITS architecture, applicable standards or provisional 
     standards, and protocols developed under subsection (a).
       ``(2) Discretion of secretary.--The Secretary may authorize 
     exceptions to paragraph (1) for projects designed to achieve 
     specific research objectives outlined in--
       ``(A) the National ITS Program Plan under section 525; or
       ``(B) the surface transportation research and technology 
     development strategic plan developed under section 508(c).
       ``(3) Exceptions.--Paragraph (1) shall not apply to funds 
     used for operation or maintenance of an intelligent 
     transportation system in existence on the date of enactment 
     of this subchapter.

     ``Sec. 527. Commercial vehicle information systems and 
       networks deployment

       ``(a) Definitions.--In this section:
       ``(1) Commercial vehicle information systems and 
     networks.--The term `commercial vehicle information systems 
     and networks' means the information systems and 
     communications networks that provide the capability to--
       ``(A) improve the safety of commercial vehicle operations;
       ``(B) increase the efficiency of regulatory inspection 
     processes to reduce administrative burdens by advancing 
     technology to facilitate inspections and increase the 
     effectiveness of enforcement efforts;
       ``(C) advance electronic processing of registration 
     information, driver licensing information, fuel tax 
     information, inspection and crash data, and other safety 
     information;
       ``(D) enhance the safe passage of commercial vehicles 
     across the United States and across international borders; 
     and
       ``(E) promote the communication of information among the 
     States and encourage multistate cooperation and corridor 
     development.
       ``(2) Commercial vehicle operations.--
       ``(A) In general.--The term `commercial vehicle operations' 
     means motor carrier operations and motor vehicle regulatory 
     activities associated with the commercial movement of goods 
     (including hazardous materials) and passengers.
       ``(B) Inclusions.--The term `commercial vehicle 
     operations', with respect to the public sector, includes--
       ``(i) the issuance of operating credentials;
       ``(ii) the administration of motor vehicle and fuel taxes; 
     and
       ``(iii) the administration of roadside safety and border 
     crossing inspection and regulatory compliance operations.
       ``(3) Core deployment.--The term `core deployment' means 
     the deployment of systems in a State necessary to provide the 
     State with--
       ``(A) safety information exchange to--
       ``(i) electronically collect and transmit commercial 
     vehicle and driver inspection data at a majority of 
     inspection sites;
       ``(ii) connect to the Safety and Fitness Electronic Records 
     system for access to--

       ``(I) interstate carrier and commercial vehicle data;
       ``(II) summaries of past safety performance; and
       ``(III) commercial vehicle credentials information; and

[[Page 10615]]

       ``(iii) exchange carrier data and commercial vehicle safety 
     and credentials information within the State and connect to 
     Safety and Fitness Electronic Records system for access to 
     interstate carrier and commercial vehicle data;
       ``(B) interstate credentials administration to--
       ``(i)(I) perform end-to-end (including carrier application) 
     jurisdiction application processing, and credential issuance, 
     of at least the International Registration Plan and 
     International Fuel Tax Agreement credentials; and
       ``(II) extend the processing to other credentials, 
     including intrastate, titling, oversize or overweight 
     requirements, carrier registration, and hazardous materials;
       ``(ii) connect to the International Registration Plan and 
     International Fuel Tax Agreement clearinghouses; and
       ``(iii)(I) have at least 10 percent of the transaction 
     volume handled electronically; and
       ``(II) have the capability to add more carriers and to 
     extend to branch offices where applicable; and
       ``(C) roadside electronic screening to electronically 
     screen transponder-equipped commercial vehicles at a minimum 
     of 1 fixed or mobile inspection site and to replicate the 
     screening at other sites.
       ``(4) Expanded deployment.--The term `expanded deployment' 
     means the deployment of systems in a State that--
       ``(A) exceed the requirements of a core deployment of 
     commercial vehicle information systems and networks;
       ``(B) improve safety and the productivity of commercial 
     vehicle operations; and
       ``(C) enhance transportation security.
       ``(b) Program.--The Secretary shall carry out a commercial 
     vehicle information systems and networks program to--
       ``(1) improve the safety and productivity of commercial 
     vehicles and drivers; and
       ``(2) reduce costs associated with commercial vehicle 
     operations and Federal and State commercial vehicle 
     regulatory requirements.
       ``(c) Purpose.--It is the purpose of the program to advance 
     the technological capability and promote the deployment of 
     intelligent transportation system applications for commercial 
     vehicle operations, including commercial vehicle, commercial 
     driver, and carrier-specific information systems and 
     networks.
       ``(d) Core Deployment Grants.--
       ``(1) In general.--The Secretary shall make grants to 
     eligible States for the core deployment of commercial vehicle 
     information systems and networks.
       ``(2) Eligibility.--To be eligible for a core deployment 
     grant under this subsection, a State shall--
       ``(A) have a commercial vehicle information systems and 
     networks program plan and a top level system design approved 
     by the Secretary;
       ``(B) certify to the Secretary that the commercial vehicle 
     information systems and networks deployment activities of the 
     State (including hardware procurement, software and system 
     development, and infrastructure modifications)--
       ``(i) are consistent with the national intelligent 
     transportation systems and commercial vehicle information 
     systems and networks architectures and available standards; 
     and
       ``(ii) promote interoperability and efficiency, to the 
     maximum extent practicable; and
       ``(C) agree to execute interoperability tests developed by 
     the Federal Motor Carrier Safety Administration to verify 
     that the systems of the State conform with the national 
     intelligent transportation systems architecture, applicable 
     standards, and protocols for commercial vehicle information 
     systems and networks.
       ``(3) Amount of grants.--The maximum aggregate amount a 
     State may receive under this subsection for the core 
     deployment of commercial vehicle information systems and 
     networks may not exceed $2,500,000, including funds received 
     under section 2001(a) of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005 for the core 
     deployment of commercial vehicle information systems and 
     networks.
       ``(4) Use of funds.--
       ``(A) In general.--Subject to subparagraph (B), funds from 
     a grant under this subsection may only be used for the core 
     deployment of commercial vehicle information systems and 
     networks.
       ``(B) Remaining funds.--An eligible State that has 
     completed the core deployment of commercial vehicle 
     information systems and networks, or completed the deployment 
     before core deployment grant funds are expended, may use the 
     remaining core deployment grant funds for the expanded 
     deployment of commercial vehicle information systems and 
     networks in the State.
       ``(e) Expanded Deployment Grants.--
       ``(1) In general.--For each fiscal year, from the funds 
     remaining after the Secretary has made core deployment grants 
     under subsection (d), the Secretary may make grants to each 
     eligible State, on request, for the expanded deployment of 
     commercial vehicle information systems and networks.
       ``(2) Eligibility.--Each State that has completed the core 
     deployment of commercial vehicle information systems and 
     networks shall be eligible for an expanded deployment grant.
       ``(3) Amount of grants.--Each fiscal year, the Secretary 
     may distribute funds available for expanded deployment grants 
     equally among the eligible States in an amount that does not 
     exceed $1,000,000 for each State.
       ``(4) Use of funds.--A State may use funds from a grant 
     under this subsection only for the expanded deployment of 
     commercial vehicle information systems and networks.
       ``(f) Federal Share.--The Federal share of the cost of a 
     project payable from funds made available to carry out this 
     section shall be the share applicable under section 120(b), 
     as adjusted under subsection (d) of that section.
       ``(g) Funding.--Funds authorized to be appropriated to 
     carry out this section shall be available for obligation in 
     the same manner and to the same extent as if the funds were 
     apportioned under chapter 1, except that the funds shall 
     remain available until expended.

     ``Sec. 528. Research and development

       ``(a) In General.--The Secretary shall carry out a 
     comprehensive program of intelligent transportation system 
     research, development, and operational tests of intelligent 
     vehicles and intelligent infrastructure systems, and other 
     similar activities that are necessary to carry out this 
     subchapter.
       ``(b) Priority Areas.--Under the program, the Secretary 
     shall give priority to funding projects that--
       ``(1) assist in the development of an interconnected 
     national intelligent transportation system network that--
       ``(A) improves the reliability of the surface 
     transportation system;
       ``(B) supports national security;
       ``(C) reduces, by at least 20 percent, the cost of 
     manufacturing, deploying, and operating intelligent 
     transportation systems network components;
       ``(D) could assist in deployment of the Armed Forces in 
     response to a crisis; and
       ``(E) improves response to, and evacuation of the public 
     during, an emergency situation;
       ``(2) address traffic management, incident management, 
     transit management, toll collection traveler information, or 
     highway operations systems with goals of--
       ``(A) reducing metropolitan congestion by 5 percent by 
     2010;
       ``(B) ensuring that a national, interoperable 511 system, 
     along with a national traffic information system that 
     includes a user-friendly, comprehensive website, is fully 
     implemented for use by travelers throughout the United States 
     by September 30, 2010; and
       ``(C)(i) improving incident management response, 
     particularly in rural areas, so that rural emergency response 
     times are reduced by an average of 10 minutes; and
       ``(ii) subject to subsection (d), improving communication 
     between emergency care providers and trauma centers;
       ``(3) address traffic management, incident management, 
     transit management, toll collection, traveler information, or 
     highway operations systems;
       ``(4) conduct operational tests of the integration of at 
     least 3 crash-avoidance technologies in passenger vehicles;
       ``(5) incorporate human factors research, including the 
     science of the driving process;
       ``(6) facilitate the integration of intelligent 
     infrastructure, vehicle, and control technologies;
       ``(7) incorporate research on the impact of environmental, 
     weather, and natural conditions on intelligent transportation 
     systems, including the effects of cold climates;
       ``(8) as determined by the Secretary, will improve the 
     overall safety performance of vehicles and roadways, 
     including the use of real-time setting of speed limits 
     through the use of speed management technology;
       ``(9) examine--
       ``(A) the application to intelligent transportation systems 
     of appropriately modified existing technologies from other 
     industries; and
       ``(B) the development of new, more robust intelligent 
     transportation systems technologies and instrumentation;
       ``(10) develop and test communication technologies that--
       ``(A) are based on an assessment of the needs of officers 
     participating in a motor carrier safety program funded under 
     section 31104 of title 49;
       ``(B) take into account the effectiveness and adequacy of 
     available technology;
       ``(C) address systems integration, connectivity, and 
     interoperability challenges; and
       ``(D) provide the means for officers participating in a 
     motor carrier safety program funded under section 31104 of 
     title 49 to directly assess, without an intermediary, current 
     and accurate safety and regulatory information on motor 
     carriers, commercial motor vehicles and drivers at roadside 
     or mobile inspection facilities;
       ``(11) enhance intermodal use of intelligent transportation 
     systems for diverse groups, including for emergency and 
     health-related services;
       ``(12) improve sensing and wireless communications that 
     provide real-time information regarding congestion and 
     incidents;
       ``(13) develop and test high-accuracy, lane-level, real-
     time accessible digital map architectures that can be used by 
     intelligent vehicles and intelligent infrastructure elements 
     to facilitate safety and crash avoidance (including 
     establishment of national standards for an open-architecture 
     digital map of all public roads that is compatible with 
     electronic 9-1-1 services);
       ``(14) encourage the dual-use of intelligent transportation 
     system technologies (such as wireless communications) for--
       ``(A) emergency services;
       ``(B) road pricing; and
       ``(C) local economic development; and
       ``(15) advance the use of intelligent transportation 
     systems to facilitate high-performance transportation 
     systems, such as through--
       ``(A) congestion-pricing;
       ``(B) real-time facility management;
       ``(C) rapid-emergency response; and

[[Page 10616]]

       ``(D) just-in-time transit.
       ``(c) Operational Tests.--Operational tests conducted under 
     this section shall be designed for--
       ``(1) the collection of data to permit objective evaluation 
     of the results of the tests;
       ``(2) the derivation of cost-benefit information that is 
     useful to others contemplating deployment of similar systems; 
     and
       ``(3) the development and implementation of standards.
       ``(d) Federal Share.--The Federal share of the costs of 
     operational tests under subsection (a) shall not exceed 80 
     percent.

     ``Sec. 529. Use of funds

       ``(a) In General.--For each fiscal year, not more than 
     $5,000,000 of the funds made available to carry out this 
     subchapter shall be used for intelligent transportation 
     system outreach, public relations, displays, tours, and 
     brochures.
       ``(b) Applicability.--Subsection (a) shall not apply to 
     intelligent transportation system training, scholarships, or 
     the publication or distribution of research findings, 
     technical guidance, or similar documents.''.
       (b) Conforming Amendment.--Title V of the Transportation 
     Equity Act for the 21st Century is amended by striking 
     subtitle C (23 U.S.C. 502 note; 112 Stat. 452).

 TITLE III--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET 
                                OFFSETS

     SEC. 3101. SENSE OF THE SENATE ON OVERALL FEDERAL BUDGET.

       It is the sense of the Senate that--
       (1) comprehensive statutory budget enforcement measures, 
     the jurisdiction of which lies with the Senate Budget 
     Committee and Senate Governmental Affairs Committee, should--
       (A) be enacted this year; and
       (B) address all areas of the Federal budget, including 
     discretionary spending, direct spending, and revenues; and
       (2) special allocations for transportation should be 
     included in that context.

     SEC. 3102. DISCRETIONARY SPENDING CATEGORIES.

       (a) Definitions.--
       (1) Highway category.--Section 250(c)(4)(B) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
     900(c)(4)(B)) is amended--
       (A) by striking ``Transportation Equity Act for the 21st 
     Century'' and inserting ``Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005''; and
       (B) by adding at the end the following:
       ``(v) 69-8158-0-7-401 (Motor Carrier Safety Grants).
       ``(vi) 69-8159-0-7-401 (Motor Carrier Safety Operations and 
     Programs).''.
       (2) Mass transit category.--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 striking subparagraph (C) and 
     inserting the following:
       ``(C) Mass transit category.--The term `mass transit 
     category' means the following budget accounts, or portions of 
     the accounts, that are subject to the obligation limitations 
     on contract authority provided in the Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2005 or 
     for which appropriations are provided in accordance with 
     authorizations contained in that Act:
       ``(i) 69-1120-0-1-401 (Administrative Expenses).
       ``(ii) 69-1134-0-1-401 (Capital Investment Grants).
       ``(iii) 69-8191-0-7-401 (Discretionary Grants).
       ``(iv) 69-1129-0-1-401 (Formula Grants).
       ``(v) 69-8303-0-7-401 (Formula Grants and Research).
       ``(vi) 69-1127-0-1-401 (Interstate Transfer Grants--
     Transit).
       ``(vii) 69-1125-0-1-401 (Job Access and Reverse Commute).
       ``(viii) 69-1122-0-1-401 (Miscellaneous Expired Accounts).
       ``(ix) 69-1139-0-1-401 (Major Capital Investment Grants).
       ``(x) 69-1121-0-1-401 (Research, Training and Human 
     Resources).
       ``(xi) 69-8350-0-7-401 (Trust Fund Share of Expenses).
       ``(xii) 69-1137-0-1-401 (Transit Planning and Research).
       ``(xiii) 69-1136-0-1-401 (University Transportation 
     Research).
       ``(xiv) 69-1128-0-1-401 (Washington Metropolitan Area 
     Transit Authority).''.
       (b) Highway Funding Revenue Alignment.--Section 
     251(b)(1)(B) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 (2 U.S.C. 901(b)(1)(B)) is amended--
       (1) in clause (i)--
       (A) by inserting ``for each of fiscal years 2006 through 
     2009'' after ``submits the budget'';
       (B) by inserting ``the obligation limitation and outlay 
     limit for'' after ``adjustments to''; and
       (C) by striking ``provided in clause (ii)(I)(cc).'' and 
     inserting the following: ``follows:

       ``(I) OMB shall take the actual level of highway receipts 
     for the year before the current year and subtract the sum of 
     the estimated level of highway receipts in clause (iii), plus 
     any amount previously calculated under clauses (i)(II) and 
     (ii) for that year.
       ``(II) OMB shall take the current estimate of highway 
     receipts for the current year and subtract the estimated 
     level of highway receipts in clause (iii) for that year.
       ``(III) OMB shall--

       ``(aa) take the sum of the amounts calculated under 
     subclauses (I) and (II) and add that amount to the obligation 
     limitation set forth in section 3103 of the Safe, 
     Accountable, Flexible, and Efficient Transportation Equity 
     Act of 2005 for the highway category for the budget year, and 
     calculate the outlay change resulting from that change in 
     obligations relative to that amount for the budget year and 
     each outyear using current estimates; and
       ``(bb) after making the calculation under item (aa), adjust 
     the obligation limitation set forth in section 3103 of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2005 for the budget year by adding the amount 
     calculated under subclauses (I) and (II).'';
       (2) by striking clause (ii) and inserting the following:
       ``(ii) When the President submits the supplementary budget 
     estimates for each of fiscal years 2006 through 2009 under 
     section 1106 of title 31, United States Code, OMB's Mid-
     Session Review shall include adjustments to the obligation 
     limitation and outlay limit for the highway category for the 
     budget year and each outyear as follows:

       ``(I) OMB shall take the most recent estimate of highway 
     receipts for the current year (based on OMB's Mid-Session 
     Review) and subtract the estimated level of highway receipts 
     in clause (iii) plus any amount previously calculated and 
     included in the President's Budget under clause (i)(II) for 
     that year.
       ``(II) OMB shall--

       ``(aa) take the amount calculated under subclause (I) and 
     add that amount to the amount of obligations set forth in 
     section 3103 of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005 for the highway 
     category for the budget year, and calculate the outlay change 
     resulting from that change in obligations relative to that 
     amount for the budget year and each outyear using current 
     estimates; and
       ``(bb) after making the calculation under item (aa), adjust 
     the amount of obligations set forth in section 3103 of the 
     Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2005 for the budget year by adding the amount 
     calculated under subclause (I).''; and
       (3) by adding at the end the following:
       ``(iii) The estimated level of highway receipts for the 
     purpose of this subparagraph are--

       ``(I) for fiscal year 2005, $34,163,000,000;
       ``(II) for fiscal year 2006, $36,972,000,000;
       ``(III) for fiscal year 2007, $38,241,000,000;
       ``(IV) for fiscal year 2008, $39,432,000,000; and
       ``(V) for fiscal year 2009, $40,557,000,000.

       ``(iv) In this subparagraph, the term ``highway receipts'' 
     means the governmental receipts and interest credited to the 
     highway account of the Highway Trust Fund.''.
       (c) Continuation of Separate Spending Categories.--For the 
     purpose of section 251(c) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (2 U.S.C. 901(c)), the 
     discretionary spending limits for the highway category and 
     the mass transit category shall be--
       (1) for fiscal year 2005--
       (A) $33,657,000,000 for the highway category; and
       (B) $6,844,000,000 for the mass transit category;
       (2) for fiscal year 2006--
       (A) $37,086,000,000 for the highway category; and
       (B) $5,989,000,000 for the mass transit category;
       (3) for fiscal year 2007--
       (A) $40,192,000,000 for the highway category; and
       (B) $7,493,000,000 for the mass transit category;
       (4) for fiscal year 2008--
       (A) $41,831,000,000 for the highway category; and
       (B) $8,479,000,000 for the mass transit category; and
       (5) for fiscal year 2009--
       (A) $42,883,000,000 for the highway category; and
       (B) $9,131,000,000 for the mass transit category.
       (d) Additional Adjustments.--Section 251(b)(1) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985 (2 
     U.S.C. 901(b)(1)) is amended--
       (1) in subparagraph (C)--
       (A) in clause (i), by striking ``fiscal years 2000, 2001, 
     2002, or 2003,'' and inserting ``each of fiscal years 2006, 
     2007, 2008, and 2009,''; and
       (B) in clause (ii), by striking ``2002 and 2003'' and 
     inserting ``2008 and 2009''; and
       (2) in subparagraph (D)--
       (A) in clause (i)--
       (i) by striking ``1999'' and inserting ``2005'';
       (ii) by striking ``2000 through 2003'' and inserting ``2006 
     through 2009''; and
       (iii) by striking ``section 3103 of the Transportation 
     Equity Act for the 21st Century'' and inserting ``section 
     6102 of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2005''; and
       (B) in clause (ii), by striking ``2000, 2001, 2002, or 
     2003'' and inserting ``2006, 2007, 2008, and 2009''.

     SEC. 3103. LEVEL OF OBLIGATION LIMITATIONS.

       (a) Highway 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 highway category is--
       (1) for fiscal year 2005, $35,154,000,000;
       (2) for fiscal year 2006, $40,110,000,000;
       (3) for fiscal year 2007, $40,564,000,000;
       (4) for fiscal year 2008, $42,544,000,000; and
       (5) for fiscal year 2009, $43,281,000,000.
       (b) Mass Transit Category.--For the purpose of section 
     251(b) of the Balanced Budget

[[Page 10617]]

     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 2005, $7,646,336,000;
       (2) for fiscal year 2006, $8,900,000,000;
       (3) for fiscal year 2007, $9,267,464,000;
       (4) for fiscal year 2008, $10,050,700,000; and
       (5) for fiscal year 2009, $10,685,500,000.

                     TITLE IV--SOLID WASTE DISPOSAL

     SEC. 4001. 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;
       ``(C) blast furnace slag aggregate;
       ``(D) silica fume; and
       ``(E) any other waste material or byproduct recovered or 
     diverted from solid waste that the Administrator, in 
     consultation with an agency head, determines should be 
     treated as recovered mineral component under this section for 
     use in cement or concrete projects paid for, in whole or in 
     part, by the agency head.
       ``(b) Implementation of Requirements.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Administrator and each agency 
     head shall take such actions as are necessary to implement 
     fully all procurement requirements and incentives in effect 
     as of the date of enactment of this section (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. 4002. 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 4001(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 4001(b)) is amended by adding after 
     the item relating to section 6005 the following:

``Sec. 6006. Use of granular mine tailings.''.

     TITLE V--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

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

       (a) Short Title.--This title may be cited as the ``Highway 
     Reauthorization and Excise Tax Simplification Act of 2005''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this title an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.

                 Subtitle A--Trust Fund Reauthorization

     SEC. 5101. EXTENSION OF HIGHWAY-RELATED TAXES AND TRUST 
                   FUNDS.

       (a) Extension of Taxes.--
       (1) In general.--The following provisions are each amended 
     by striking ``2005'' each place it appears and inserting 
     ``2011'':
       (A) Section 4041(a)(1)(C)(iii)(I) (relating to rate of tax 
     on certain buses).
       (B) Section 4041(a)(2)(B) (relating to rate of tax on 
     special motor fuels).
       (C) Section 4041(m)(1) (relating to certain alcohol fuels).
       (D) Section 4051(c) (relating to termination of tax on 
     heavy trucks and trailers).
       (E) Section 4071(d) (relating to termination of tax on 
     tires).
       (F) Section 4081(d)(1) (relating to termination of tax on 
     gasoline, diesel fuel, and kerosene).
       (G) Section 4481(f) (relating to period tax in effect).
       (H) Section 4482(c)(4) (relating to taxable period).
       (I) Section 4482(d) (relating to special rule for taxable 
     period in which termination date occurs).
       (2) Floor stocks refunds.--Section 6412(a)(1) (relating to 
     floor stocks refunds) is amended--
       (A) by striking ``2005'' each place it appears and 
     inserting ``2011'', and
       (B) by striking ``2006'' each place it appears and 
     inserting ``2012''.
       (b) Extension of Certain Exemptions.--The following 
     provisions are each amended by striking ``2005'' and 
     inserting ``2011'':

[[Page 10618]]

       (1) Section 4221(a) (relating to certain tax-free sales).
       (2) Section 4483(h) (relating to termination of exemptions 
     for highway use tax).
       (c) Extension of Transfers of Certain Taxes.--
       (1) In general.--Paragraphs (1), (2), and (4)(D)((iii) of 
     subsection (b) and subsection (c)(3) of section 9503 
     (relating to the Highway Trust Fund) are each amended--
       (A) by striking ``2005'' each place it appears and 
     inserting ``2011'', and
       (B) by striking ``2006'' each place it appears and 
     inserting ``2012''.
       (2) Motorboat and small-engine fuel tax transfers.--
       (A) In general.--Paragraphs (4)(A)(i) and (5)(A) of section 
     9503(c) are each amended by striking ``2005'' and inserting 
     ``2011''.
       (B) Conforming amendments to land and water conservation 
     fund.--Section 201(b) of the Land and Water Conservation Fund 
     Act of 1965 (16 U.S.C. 460l-11(b)) is amended--
       (i) by striking ``2003'' and inserting ``2009'', and
       (ii) by striking ``2004'' each place it appears and 
     inserting ``2010''.
       (d) Extension and Expansion of Expenditures From Trust 
     Funds.--
       (1) Highway trust fund.--
       (A) Highway account.--Paragraph (1) of section 9503(c) is 
     amended--
       (i) in the matter before subparagraph (A), by striking 
     ``June 1, 2005'' and inserting ``October 1, 2009'',
       (ii) by striking ``or'' at the end of subparagraph (J),
       (iii) by striking the period at the end of subparagraph (K) 
     and inserting ``, or'',
       (iv) by inserting after subparagraph (K) the following new 
     subparagraph:
       ``(L) authorized to be paid out of the Highway Trust Fund 
     under the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2005.'', and
       (v) in the matter after subparagraph (L), as added by 
     clause (iv), by striking ``Surface Transportation Extension 
     Act of 2004, Part V'' and inserting ``Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2005''.
       (B) Mass transit account.--Paragraph (3) of section 9503(e) 
     is amended--
       (i) in the matter before subparagraph (A), by striking 
     ``June 1, 2005'' and inserting ``October 1, 2009'',
       (ii) by striking ``or'' at the end of subparagraph (H),
       (iii) by inserting ``or'' at the end of subparagraph (I),
       (iv) by inserting after subparagraph (I) the following new 
     subparagraph:
       ``(J) Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2005,'', and
       (v) in the matter after subparagraph (J), as added by 
     clause (iv), by striking ``Surface Transportation Extension 
     Act of 2004, Part V'' and inserting ``Safe, Accountable, 
     Flexible, and Efficient Transportation Equity Act of 2005''.
       (C) Exception to limitation on transfers.--Subparagraph (B) 
     of section 9503(b)(6) is amended by striking ``June 1, 2005'' 
     and inserting ``October 1, 2009''.
       (D) Expenditures for Highway Use Tax Evasion Projects.--
     Section 9503(c) is amended by adding at the end the following 
     new paragraph:
       ``(6) Highway use tax evasion projects.--From amounts 
     available in the Highway Trust Fund, there is authorized to 
     be expended--
       ``(A) for the period beginning with fiscal year 2006 and 
     ending with fiscal year 2009 to the Internal Revenue 
     Service--
       ``(i) $120,000,000 for enforcement of fuel tax compliance, 
     including the pre-certification of tax-exempt users, and
       ``(ii) $80,000,000 for the excise fuel information 
     reporting system, of which $40,000,000 shall be allocated to 
     the excise summary terminal activity reporting system, and
       ``(B) for each of the fiscal years 2006, 2007, 2008, and 
     2009 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.''.
       (2) Aquatic resources trust fund.--
       (A) Sport fish restoration account.--Paragraph (2) of 
     section 9504(b) is amended by striking ``Surface 
     Transportation Extension Act of 2004, Part V'' each place it 
     appears and inserting ``Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005'' .
       (B) Exception to limitation on transfers.--Paragraph (2) of 
     section 9504(d) is amended by striking ``June 1, 2005'' and 
     inserting ``October 1, 2009''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5102. MODIFICATION OF ADJUSTMENTS OF APPORTIONMENTS.

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

            Subtitle B--Excise Tax Reform and Simplification

                      PART I--HIGHWAY EXCISE TAXES

     SEC. 5201. MODIFICATION OF GAS GUZZLER TAX.

       (a) Uniform Application of Tax.--Subparagraph (A) of 
     section 4064(b)(1) (defining automobile) is amended by 
     striking the second sentence.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on October 1, 2005.

     SEC. 5202. EXCLUSION FOR TRACTORS WEIGHING 19,500 POUNDS OR 
                   LESS FROM FEDERAL EXCISE TAX ON HEAVY TRUCKS 
                   AND TRAILERS.

       (a) In General.--Subsection (a) of section 4051 (relating 
     to imposition of tax) is amended by redesignating paragraph 
     (4) as paragraph (5) and by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) Exclusion for tractors weighing 19,500 pounds or 
     less.--The tax imposed by paragraph (1) shall not apply to 
     tractors of the kind chiefly used for highway transportation 
     in combination with a trailer or semitrailer if such tractor 
     has a gross vehicle weight of 19,500 pounds or less (as 
     determined under regulations prescribed by the Secretary).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to sales after September 30, 2005.

     SEC. 5203. EXEMPTION FOR EQUIPMENT FOR TRANSPORTING BULK BEDS 
                   OF FARM CROPS FROM EXCISE TAX ON RETAIL SALE OF 
                   HEAVY TRUCKS AND TRAILERS.

       (a) In General.--Section 4053 of the Internal Revenue Code 
     of 1986 (relating to exemptions) is amended by adding at the 
     end the following new paragraph:
       ``(9) Equipment for transporting bulk beds of farm crops.--
     Any box, container, receptacle, bin, or other similar article 
     the length of which does not exceed 26 feet, which is mounted 
     or placed on an automobile truck, and which is sold to a 
     person who certifies to the seller that--
       ``(A) such person is actively engaged in the trade or 
     business of farming, and
       ``(B) the primary use of the article is to haul to and on 
     farms bulk beds of farm crops grown in connection with such 
     trade or business.''.
       (b) Recapture of Tax Upon Resale or Nonexempt Use.--Section 
     4052 (relating to definitions and special rules) is amended 
     by redesignating subsection (g) as subsection (h) and by 
     inserting after subsection (f) the following new subsection:
       ``(g) Imposition of Tax on Sales, Etc., Within 2 Years of 
     Equipment for Transporting Bulk Beds of Farm Crops Purchased 
     Tax-Free.--
       ``(1) In general.--If--
       ``(A) no tax was imposed under section 4051 on the first 
     retail sale of any article described in section 4053(9) by 
     reason of its exempt use, and
       ``(B) within 2 years after the date of such first retail 
     sale, such article is resold by the purchaser or such 
     purchaser makes a substantial nonexempt use of such article,

     then such sale or use of such article by such purchaser shall 
     be treated as the first retail sale of such article for a 
     price equal to its fair market value at the time of such sale 
     or use.
       ``(2) Exempt use.--For purposes of this subsection, the 
     term `exempt use' means any use of an article described in 
     section 4053(9) if the first retail sale of such article is 
     not taxable under section 4051 by reason of such use.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to sales after September 30, 2005.

     SEC. 5204. VOLUMETRIC EXCISE TAX CREDIT FOR ALTERNATIVE 
                   FUELS.

       (a) Imposition of Tax.--
       (1) In general.--Section 4081(a)(2)(A) (relating to rates 
     of tax), as amended by section 5611 of this Act, is amended--
       (A) by striking ``and'' at the end of clause (ii),
       (B) by striking the period at the end of clause (iii), and
       (C) by adding at the end the following new clauses:
       ``(iv) in the case of P Series Fuels, 18.3 cents per 
     gallon,
       ``(v) in the case of compressed natural gas and hydrogen, 
     18.3 cents per energy equivalent of a gallon of gasoline, and
       ``(vi) in the case of liquefied natural gas, any liquid 
     fuel (other than ethanol and methanol) derived from coal 
     (including peat), and liquid hydrocarbons derived from 
     biomass (as defined in section 29(c)(3)), 24.3 cents per 
     gallon.''.
       (2) Treatment of alternative fuel as taxable fuel.--
       (A) In general.--Section 4083(a)(1) (defining taxable fuel) 
     is amended--
       (i) by striking ``and'' at the end of subparagraph (B),
       (ii) by striking the period at the end of subparagraph (C) 
     and inserting ``, and'', and
       (iii) by adding at the end the following new subparagraph:
       ``(D) alternative fuel.''.
       (B) Definition.--Section 4083(a) is amended by adding at 
     the end the following new paragraph:

[[Page 10619]]

       ``(4) Alternative fuel.--The term `alternative fuel' 
     means--
       ``(A) compressed or liquefied natural gas,
       ``(B) P Series Fuels (as defined by the Secretary of Energy 
     under section 13211(2) of title 42, United States Code,
       ``(C) hydrogen,
       ``(D) any liquid fuel (other than ethanol and methanol) 
     derived from coal (including peat), and
       ``(E) liquid hydrocarbons derived from biomass (as defined 
     in section 29(c)(3)).''.
       (3) Conforming amendment.--Section 4041(a), as amended by 
     section 5101 of this Act, is amended by striking paragraphs 
     (2) and (3) and inserting the following:
       ``(2) Special motor fuels.--
       ``(A) In general.--There is hereby imposed a tax on any 
     alternative fuel (other than gas oil or fuel oil) and 
     liquefied petroleum gas--
       ``(i) sold by any person to an owner, lessee, or other 
     operator of a motor vehicle or motorboat for use as a fuel in 
     such motor vehicle or motorboat, or
       ``(ii) used by any person as a fuel in a motor vehicle or 
     motorboat unless there was a taxable sale of such fuel under 
     clause (i).
       ``(B) Exemption for previously taxed fuel.--No tax shall be 
     imposed by this paragraph on the sale or use of any 
     alternative fuel or liquefied petroleum gas if tax was 
     imposed on such alternative fuel or liquefied petroleum gas 
     under section 4081 and the tax thereon was not credited or 
     refunded.
       ``(C) Rate of tax.--Except as otherwise provided, the rate 
     of the tax imposed by this paragraph shall be the rate of tax 
     specified in clause (iv), (v), or (vi) of section 
     4081(a)(2)(A) on the alternative fuel which is in effect at 
     the time of such sale or use. In the case of liquefied 
     petroleum gas, the rate of the tax imposed by this paragraph 
     shall be 13.6 cents per gallon (3.2 cents per gallon in the 
     case of any sale or use after September 30, 2011).
       ``(D) Bus uses.--No tax shall be imposed by this paragraph 
     on any sale for use, or use, described in subparagraph (B) or 
     (C) of section 6427(b)(2) (relating to school bus and 
     intracity transportation).''.
       (b) Credit for Alternative Fuel and Alternative Fuel 
     Mixtures.--
       (1) In general.--Section 6426(a) (relating to allowance of 
     credits) is amended by striking ``plus'' at the end of 
     paragraph (1), by striking the period at the end of paragraph 
     (2) and by adding at the end the following new paragraphs:
       ``(3) the alternative fuel credit, plus
       ``(4) the alternative fuel mixture credit.''.
       (2) Alternative fuel and alternative fuel mixture credit.--
     Section 6426 (relating to credit for alcohol fuel and 
     biodiesel mixtures) is amended by redesignating subsections 
     (d) and (e) as subsections (f) and (g) and by inserting after 
     subsection (c) the following new subsection:
       ``(d) Alternative Fuel Credit.--
       ``(1) In general.--For purposes of this section, the 
     alternative fuel credit is the product of 50 cents and the 
     number of gallons of an alternative fuel or gasoline gallon 
     equivalents of a nonliquid alternative fuel sold by the 
     taxpayer for use as a motor fuel in a highway vehicle.
       ``(2) Alternative fuel.--For purposes of this section, the 
     term `alternative fuel'--
       ``(A) has the meaning given such term by subparagraphs (A), 
     (B), (C), and (E) of section 4083(a)(4),
       ``(B) includes any liquid fuel derived from coal (including 
     peat) through the Fischer-Tropsch process, and
       ``(C) does not include ethanol, methanol, or biodiesel.
       ``(3) Gasoline gallon equivalent.--For purposes of this 
     subsection, the term `gasoline gallon equivalent' means, with 
     respect to any nonliquid alternative fuel, the amount of such 
     fuel having a Btu content of 124,800 (higher heating value).
       ``(4) Termination.--This subsection shall not apply to any 
     sale, use, or removal for any period after September 30, 
     2009.
       ``(e) Alternative Fuel Mixture Credit.--
       ``(1) In general.--For purposes of this section, the 
     alternative fuel mixture credit is the product of 50 cents 
     and the number of gallons of alternative fuel used by the 
     taxpayer in producing any alternative fuel mixture for sale 
     or use in a trade or business of the taxpayer.
       ``(2) Alternative fuel mixture.--For purposes of this 
     section, the term `alternative fuel mixture' means a mixture 
     of alternative fuel and taxable fuel (as defined in 
     subparagraph (A), (B), or (C) of section 4083(a)(1)) which--
       ``(A) is sold by the taxpayer producing such mixture to any 
     person for use as fuel in a highway vehicle, or
       ``(B) is used as a fuel in a highway vehicle by the 
     taxpayer producing such mixture.
       ``(3) Termination.--This subsection shall not apply to any 
     sale, use, or removal for any period after September 30, 
     2009.''.
       (3) Conforming amendments.--
       (A) The section heading for section 6426 is amended by 
     striking ``ALCOHOL FUEL AND BIODIESEL'' and inserting 
     ``CERTAIN ALTERNATIVE FUEL''.
       (B) The table of sections for subchapter B of chapter 65 is 
     amended by striking ``alcohol fuel and biodiesel'' in the 
     item relating to section 6426 and inserting ``certain 
     alternative fuel''.
       (C) Section 6427(a) is amended by striking ``paragraph (2) 
     or (3) of section 4041(a) or section 4041(c)'' and inserting 
     ``section 4041(a)(2) or 4041(c)''.
       (D) Section 6427(e) is amended--
       (i) by inserting ``or the alternative fuel mixture credit'' 
     after ``biodiesel mixture credit'' in paragraph (1),
       (ii) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively, and by inserting after paragraph 
     (1) the following new paragraph:
       ``(2) Alternative fuel.--If any person produces an 
     alternative fuel described in section 6426 in such person's 
     trade or business, the Secretary shall pay (without interest) 
     to such person an amount equal to the alternative fuel credit 
     with respect to such fuel.'',
       (iii) by striking ``under paragraph (1) with respect to any 
     mixture'' in paragraph (3) (as redesignated by clause (ii)) 
     and inserting ``under paragraph (1) or (2) with respect to 
     any mixture or alternative fuel'',
       (iv) by striking ``and'' at the end of paragraph (4)(A) (as 
     redesignated by clause (ii)),
       (v) by striking the period at the end of paragraph (4)(B) 
     (as so redesignated),
       (vi) by adding at the end of paragraph (4) (as so 
     redesignated) the following new subparagraph:
       ``(C) any alternative fuel or alternative fuel mixture (as 
     defined in section 6426 (d)(2) or (e)(3)) sold or used after 
     September 30, 2009.'', and
       (vii) by striking ``or Biodiesel Used To Produce Alcohol 
     Fuel and Biodiesel Mixtures'' in the heading and inserting 
     ``, Biodiesel, or Alternative Fuel''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to any sale, use, or removal for any period after 
     September 30, 2006.

                     PART II--AQUATIC EXCISE TAXES

     SEC. 5211. ELIMINATION OF AQUATIC RESOURCES TRUST FUND AND 
                   TRANSFORMATION OF SPORT FISH RESTORATION 
                   ACCOUNT.

       (a) Simplification of Funding for Boat Safety Account.--
       (1) In general.--Section 9503(c)(4) (relating to transfers 
     from Trust Fund for motorboat fuel taxes) is amended--
       (A) by striking ``Fund--'' and all that follows through 
     ``shall be transferred'' in subparagraph (B) and inserting 
     ``Fund which is attributable to motorboat fuel taxes received 
     on or after October 1, 2005, and before October 1, 2011, 
     shall be transferred'',
       (B) by striking subparagraph (A), and
       (C) by redesignating subparagraphs (B) through (E) as 
     subparagraphs (A) through (D), respectively.
       (2) Conforming amendments.--
       (A) Subparagraph (B) of section 9503(c)(4), as redesignated 
     by paragraph (1)(C), is amended--
       (i) by striking ``Account'' in the heading thereof and 
     inserting ``and Boating Trust Fund'',
       (ii) by striking ``or (B)'' in clause (ii), and
       (iii) by striking ``account in the Aquatic Resources'' and 
     inserting ``and Boating''.
       (B) Paragraph (5) of section 9503(c) is amended by striking 
     ``Account in the Aquatic Resources'' in subparagraph (A) and 
     inserting ``and Boating''.
       (b) Merging of Accounts.--
       (1) In general.--Subsection (a) of section 9504 is amended 
     to read as follows:
       ``(a) Creation of Trust Fund.--There is hereby established 
     in the Treasury of the United States a trust fund to be known 
     as the `Sport Fish Restoration and Boating Trust Fund'. Such 
     Trust Fund shall consist of such amounts as may be 
     appropriated, credited, or paid to it as provided in this 
     section, section 9503(c)(4), section 9503(c)(5), or section 
     9602(b).''.
       (2) Conforming amendments.--
       (A) Subsection (b) of section 9504, as amended by section 
     5001 of this Act, is amended--
       (i) by striking ``Account'' in the heading thereof and 
     inserting ``and Boating Trust Fund'',
       (ii) by striking ``Account'' both places it appears in 
     paragraphs (1) and (2) and inserting ``and Boating Trust 
     Fund'', and
       (iii) by striking ``account'' both places it appears in the 
     headings for paragraphs (1) and (2) and inserting ``trust 
     fund''.
       (B) Subsection (d) of section 9504, as amended by section 
     5001 of this Act, is amended--
       (i) by striking ``Aquatic Resources'' in the heading 
     thereof,
       (ii) by striking ``any Account in the Aquatic Resources'' 
     in paragraph (1) and inserting ``the Sport Fish Restoration 
     and Boating'', and
       (iii) by striking ``any such Account'' in paragraph (1) and 
     inserting ``such Trust Fund''.
       (C) Subsection (e) of section 9504 is amended by striking 
     ``Boat Safety Account and Sport Fish Restoration Account'' 
     and inserting ``Sport Fish Restoration and Boating Trust 
     Fund''.
       (D) Section 9504 is amended by striking ``AQUATIC 
     RESOURCES'' in the heading thereof and inserting ``SPORT FISH 
     RESTORATION AND BOATING''.
       (E) The item relating to section 9504 in the table of 
     sections for subchapter A of chapter 98 is amended by 
     striking ``aquatic resources'' and inserting ``sport fish 
     restoration and boating''.
       (c) Phaseout of Boat Safety Account.--Subsection (c) of 
     section 9504 is amended to read as follows:
       ``(c) Expenditures From Boat Safety Account.--Amounts 
     remaining in the Boat Safety Account on October 1, 2005, and 
     amounts thereafter credited to the Account under section 
     9602(b), shall be available, without further appropriation, 
     for making expenditures before October 1, 2010, to carry out 
     the purposes of section 15 of the Dingell-Johnson Sport Fish 
     Restoration Act (as in effect on the date of the enactment of 
     the Safe, Accountable, Flexible, and Efficient Transportation 
     Equity Act of 2005).

[[Page 10620]]

     For purposes of section 9602, the Boat Safety Account shall 
     be treated as a Trust Fund established by this subchapter.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2005.

     SEC. 5212. REPEAL OF HARBOR MAINTENANCE TAX ON EXPORTS.

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

     SEC. 5213. CAP ON EXCISE TAX ON CERTAIN FISHING EQUIPMENT.

       (a) In General.--Paragraph (1) of section 4161(a) (relating 
     to sport fishing equipment) is amended to read as follows:
       ``(1) Imposition of tax.--
       ``(A) In general.--There is hereby imposed on the sale of 
     any article of sport fishing equipment by the manufacturer, 
     producer, or importer a tax equal to 10 percent of the price 
     for which so sold.
       ``(B) Limitation on tax imposed on fishing rods and 
     poles.--The tax imposed by subparagraph (A) on any fishing 
     rod or pole shall not exceed $10.''.
       (b) Conforming Amendments.--Section 4161(a)(2) is amended 
     by striking ``paragraph (1)'' both places it appears and 
     inserting ``paragraph (1)(A)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to articles sold by the manufacturer, producer, 
     or importer after September 30, 2005.

                     PART III--AERIAL EXCISE TAXES

     SEC. 5221. CLARIFICATION OF EXCISE TAX EXEMPTIONS FOR 
                   AGRICULTURAL AERIAL APPLICATORS AND EXEMPTION 
                   FOR FIXED-WING AIRCRAFT ENGAGED IN FORESTRY 
                   OPERATIONS.

       (a) No Waiver by Farm Owner, Tenant, or Operator 
     Necessary.--Subparagraph (B) of section 6420(c)(4) (relating 
     to certain farming use other than by owner, etc.) is amended 
     to read as follows:
       ``(B) if the person so using the gasoline is an aerial or 
     other applicator of fertilizers or other substances and is 
     the ultimate purchaser of the gasoline, then subparagraph (A) 
     of this paragraph shall not apply and the aerial or other 
     applicator shall be treated as having used such gasoline on a 
     farm for farming purposes.''.
       (b) Exemption Includes Fuel Used Between Airfield and 
     Farm.--Section 6420(c)(4), as amended by subsection (a), is 
     amended by adding at the end the following new flush 
     sentence:
     ``In the case of an aerial applicator, gasoline shall be 
     treated as used on a farm for farming purposes if the 
     gasoline is used for the direct flight between the airfield 
     and 1 or more farms.''.
       (c) Exemption From Tax on Air Transportation of Persons for 
     Forestry Purposes Extended to Fixed-Wing Aircraft.--
     Subsection (f) of section 4261 (relating to tax on air 
     transportation of persons) is amended to read as follows:
       ``(f) Exemption for Certain Uses.--No tax shall be imposed 
     under subsection (a) or (b) on air transportation--
       ``(1) by helicopter for the purpose of transporting 
     individuals, equipment, or supplies in the exploration for, 
     or the development or removal of, hard minerals, oil, or gas, 
     or
       ``(2) by helicopter or by fixed-wing aircraft for the 
     purpose of the planting, cultivation, cutting, or 
     transportation of, or caring for, trees (including logging 
     operations),

     but only if the helicopter or fixed-wing aircraft does not 
     take off from, or land at, a facility eligible for assistance 
     under the Airport and Airway Development Act of 1970, or 
     otherwise use services provided pursuant to section 44509 or 
     44913(b) or subchapter I of chapter 471 of title 49, United 
     States Code, during such use. In the case of helicopter 
     transportation described in paragraph (1), this subsection 
     shall be applied by treating each flight segment as a 
     distinct flight.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to fuel use or air transportation after September 
     30, 2005.

     SEC. 5222. MODIFICATION OF RURAL AIRPORT DEFINITION.

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

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

       (b) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2005.

     SEC. 5223. EXEMPTION FROM TAXES ON TRANSPORTATION PROVIDED BY 
                   SEAPLANES.

       (a) In General.--Section 4261 (relating to imposition of 
     tax) is amended by redesignating subsection (i) as subsection 
     (j) and by inserting after subsection (h) the following new 
     subsection:
       ``(i) Exemption for Seaplanes.--No tax shall be imposed by 
     this section or section 4271 on any air transportation by a 
     seaplane with respect to any segment consisting of a takeoff 
     from, and a landing on, water, but only if the places at 
     which such takeoff and landing occur have not received and 
     are not receiving financial assistance from the Airport and 
     Airways Trust Fund.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transportation beginning after September 30, 
     2005.

     SEC. 5224. CERTAIN SIGHTSEEING FLIGHTS EXEMPT FROM TAXES ON 
                   AIR TRANSPORTATION.

       (a) In General.--Section 4281 (relating to small aircraft 
     on nonestablished lines) is amended by adding at the end the 
     following new sentence: ``For purposes of this section, an 
     aircraft shall not be considered as operated on an 
     established line at any time during which such aircraft is 
     being operated on a flight the sole purpose of which is 
     sightseeing.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to transportation beginning after 
     September 30, 2005, but shall not apply to any amount paid 
     before such date for such transportation.

                   PART IV--TAXES RELATING TO ALCOHOL

     SEC. 5231. REPEAL OF SPECIAL OCCUPATIONAL TAXES ON PRODUCERS 
                   AND MARKETERS OF ALCOHOLIC BEVERAGES.

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

                  ``PART II--MISCELLANEOUS PROVISIONS

``Subpart A. Manufacturers of stills.
``Subpart B. Nonbeverage domestic drawback claimants.
``Subpart C. Recordkeeping and registration by dealers.
``Subpart D. Other provisions.''.

       (B) The table of parts for such subchapter A is amended by 
     striking the item relating to part II and inserting the 
     following new item:

``Part II. Miscellaneous provisions.''.

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

         ``Subpart C--Recordkeeping and Registration by Dealers

``Sec. 5121. Recordkeeping by wholesale dealers.
``Sec. 5122. Recordkeeping by retail dealers.
``Sec. 5123. Preservation and inspection of records, and entry of 
              premises for inspection.
``Sec. 5124. Registration by dealers.''.

       (5)(A) Section 5114 (relating to records) is moved to 
     subpart C of such part II and inserted after the table of 
     sections for such subpart.
       (B) Section 5114 is amended--
       (i) by striking the section heading and inserting the 
     following new heading:

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

     and
       (ii) by redesignating subsection (c) as subsection (d) and 
     by inserting after subsection (b) the following new 
     subsection:
       ``(c) Wholesale Dealers.--For purposes of this part--
       ``(1) Wholesale dealer in liquors.--The term `wholesale 
     dealer in liquors' means any dealer (other than a wholesale 
     dealer in beer) who sells, or offers for sale, distilled 
     spirits, wines, or beer, to another dealer.

[[Page 10621]]

       ``(2) Wholesale dealer in beer.--The term `wholesale dealer 
     in beer' means any dealer who sells, or offers for sale, 
     beer, but not distilled spirits or wines, to another dealer.
       ``(3) Dealer.--The term `dealer' means any person who 
     sells, or offers for sale, any distilled spirits, wines, or 
     beer.
       ``(4) Presumption in case of sale of 20 wine gallons or 
     more.--The sale, or offer for sale, of distilled spirits, 
     wines, or beer, in quantities of 20 wine gallons or more to 
     the same person at the same time, shall be presumptive 
     evidence that the person making such sale, or offer for sale, 
     is engaged in or carrying on the business of a wholesale 
     dealer in liquors or a wholesale dealer in beer, as the case 
     may be. Such presumption may be overcome by evidence 
     satisfactorily showing that such sale, or offer for sale, was 
     made to a person other than a dealer.''.
       (C) Paragraph (3) of section 5121(d), as so redesignated, 
     is amended by striking ``section 5146'' and inserting 
     ``section 5123''.
       (6)(A) Section 5124 (relating to records) is moved to 
     subpart C of part II of subchapter A of chapter 51 and 
     inserted after section 5121.
       (B) Section 5124 is amended--
       (i) by striking the section heading and inserting the 
     following new heading:

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

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

     ``SEC. 5124. REGISTRATION BY DEALERS.

       ``Every dealer who is subject to the recordkeeping 
     requirements under section 5121 or 5122 shall register with 
     the Secretary such dealer's name or style, place of 
     residence, trade or business, and the place where such trade 
     or business is to be carried on. In case of a firm or 
     company, the names of the several persons constituting the 
     same, and the places of residence, shall be so registered.''.
       (9) Section 7012 is amended by redesignating paragraphs (4) 
     and (5) as paragraphs (5) and (6), respectively, and by 
     inserting after paragraph (3) the following new paragraph:
       ``(4) For provisions relating to registration by dealers in 
     distilled spirits, wines, and beer, see section 5124.''.
       (10) Part II of subchapter A of chapter 51 is amended by 
     inserting after subpart C the following new subpart:

                     ``Subpart D--Other Provisions

``Sec. 5131. Packaging distilled spirits for industrial uses.
``Sec. 5132. Prohibited purchases by dealers.''.

       (11) Section 5116 is moved to subpart D of part II of 
     subchapter A of chapter 51, inserted after the table of 
     sections, redesignated as section 5131, and amended by 
     inserting ``(as defined in section 5121(c))'' after 
     ``dealer'' in subsection (a).
       (12) Subpart D of part II of subchapter A of chapter 51 is 
     amended by adding at the end the following new section:

     ``SEC. 5132. PROHIBITED PURCHASES BY DEALERS.

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

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

       (13) Subsection (b) of section 5002 is amended--
       (A) by striking ``section 5112(a)'' and inserting ``section 
     5121(c)(3)'',
       (B) by striking ``section 5112'' and inserting ``section 
     5121(c)'',
       (C) by striking ``section 5122'' and inserting ``section 
     5122(c)''.
       (14) Subparagraph (A) of section 5010(c)(2) is amended by 
     striking ``section 5134'' and inserting ``section 5114''.
       (15) Subsection (d) of section 5052 is amended to read as 
     follows:
       ``(d) Brewer.--For purposes of this chapter, the term 
     `brewer' means any person who brews beer or produces beer for 
     sale. Such term shall not include any person who produces 
     only beer exempt from tax under section 5053(e).''.
       (16) The text of section 5182 is amended to read as 
     follows:

``For provisions requiring recordkeeping by wholesale liquor dealers, 
              see section 5112, and by retail liquor dealers, see 
              section 5122.''.

       (17) Subsection (b) of section 5402 is amended by striking 
     ``section 5092'' and inserting ``section 5052(d)''.
       (18) Section 5671 is amended by striking ``or 5091''.
       (19)(A) Part V of subchapter J of chapter 51 is hereby 
     repealed.
       (B) The table of parts for such subchapter J is amended by 
     striking the item relating to part V.
       (20)(A) Sections 5142, 5143, and 5145 are moved to 
     subchapter D of chapter 52, inserted after section 5731, 
     redesignated as sections 5732, 5733, and 5734, respectively, 
     and amended by striking ``this part'' each place it appears 
     and inserting ``this subchapter''.
       (B) Section 5732, as redesignated by subparagraph (A), is 
     amended by striking ``(except the tax imposed by section 
     5131)'' each place it appears.
       (C) Paragraph (2) of section 5733(c), as redesignated by 
     subparagraph (A), is amended by striking ``liquors'' both 
     places it appears and inserting ``tobacco products and 
     cigarette papers and tubes''.
       (D) The table of sections for subchapter D of chapter 52 is 
     amended by adding at the end the following:

``Sec. 5732. Payment of tax.
``Sec. 5733. Provisions relating to liability for occupational taxes.
``Sec. 5734. Application of State laws.''.

       (E) Section 5731 is amended by striking subsection (c) and 
     by redesignating subsection (d) as subsection (c).
       (21) Subsection (c) of section 6071 is amended by striking 
     ``section 5142'' and inserting ``section 5732''.
       (22) Paragraph (1) of section 7652(g) is amended--
       (A) by striking ``subpart F'' and inserting ``subpart B'', 
     and
       (B) by striking ``section 5131(a)'' and inserting ``section 
     5111''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2008, but shall not apply to 
     taxes imposed for periods before such date.

     SEC. 5232. MODIFICATION OF LIMITATION ON RATE OF RUM EXCISE 
                   TAX COVER OVER TO PUERTO RICO AND VIRGIN 
                   ISLANDS.

       (a) In General.--Section 7652(f)(1) (relating to limitation 
     on cover over of tax on distilled spirits) is amended by 
     inserting ``, and $13.50 in the case of distilled spirits 
     brought into the United States after December 31, 2005, and 
     before January 1, 2007'' after ``2006''.
       (b) Special Rule.--
       (1) In general.--After December 31, 2005, and before 
     January 1, 2007, the Commonwealth of Puerto Rico shall make a 
     Conservation Trust Fund transfer from the treasury of Puerto 
     Rico within 30 days from the date of each cover overpayment 
     to such treasury under section 7652(e) of the Internal 
     Revenue Code of 1986.
       (2) Conservation trust fund transfer.--
       (A) In general.--For purposes of this subsection, the term 
     ``Conservation Trust Fund transfer'' means a transfer to the 
     Puerto Rico Conservation Trust Fund of an amount equal to 50 
     cents per proof gallon of the taxes imposed under section 
     5001 or section 7652 of such Code on distilled spirits that 
     are covered over to the treasury of Puerto Rico under section 
     7652(e) of such Code.
       (B) Treatment of transfer.--Each Conservation Trust Fund 
     transfer shall be treated as principal for an endowment, the 
     income from which to be available for use by the Puerto Rico 
     Conservation Trust Fund for the purposes for which the Trust 
     Fund was established.
       (C) Result of nontransfer.--
       (i) In general.--Upon notification by the Secretary of the 
     Interior that a Conservation Trust Fund transfer has not been 
     made by the Commonwealth of Puerto Rico, the Secretary of the 
     Treasury shall, except as provided in clause (ii), deduct and 
     withhold from the next cover overpayment to be made to the 
     treasury of Puerto Rico under section 7652(e) of such Code an 
     amount equal to the appropriate Conservation Trust Fund 
     transfer and interest thereon at the underpayment rate 
     established under section 6621 of such Code as of the due 
     date of such transfer. The Secretary of the Treasury shall 
     transfer such amount deducted and withheld, and the interest 
     thereon, directly to the Puerto Rico Conservation Trust Fund.
       (ii) Good-cause exception.--If the Secretary of the 
     Interior finds, after consultation with the Governor of 
     Puerto Rico, that the failure by the Commonwealth of Puerto 
     Rico to make a required transfer was for good cause, and 
     notifies the Secretary of the Treasury of the finding of such 
     good cause before the due date of the next cover overpayment 
     following the notification of nontransfer, then the Secretary 
     of the Treasury shall not deduct the amount of such 
     nontransfer from any cover overpayment.
       (3) Puerto rico conservation trust fund.--For purposes of 
     this subsection, the term ``Puerto Rico Conservation Trust 
     Fund'' means the

[[Page 10622]]

     fund established pursuant to a Memorandum of Understanding 
     between the United States Department of the Interior and the 
     Commonwealth of Puerto Rico, dated December 24, 1968.

     SEC. 5233. INCOME TAX CREDIT FOR DISTILLED SPIRITS 
                   WHOLESALERS AND FOR DISTILLED SPIRITS IN 
                   CONTROL STATE BAILMENT WAREHOUSES FOR COSTS OF 
                   CARRYING FEDERAL EXCISE TAXES ON BOTTLED 
                   DISTILLED SPIRITS.

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

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

       ``(a) In General.--For purposes of section 38, the amount 
     of the distilled spirits credit for any taxable year is the 
     amount equal to the product of--
       ``(1) in the case of--
       ``(A) any eligible wholesaler, the number of cases of 
     bottled distilled spirits--
       ``(i) which were bottled in the United States, and
       ``(ii) which are purchased by such wholesaler during the 
     taxable year directly from the bottler of such spirits, or
       ``(B) any person which is subject to section 5005 and which 
     is not an eligible wholesaler, the number of cases of bottled 
     distilled spirits which are stored in a warehouse operated 
     by, or on behalf of, a State or political subdivision 
     thereof, or an agency of either, on which title has not 
     passed on an unconditional sale basis, and
       ``(2) the average tax-financing cost per case for the most 
     recent calendar year ending before the beginning of such 
     taxable year.
       ``(b) Eligible Wholesaler.--For purposes of this section, 
     the term `eligible wholesaler' means any person which holds a 
     permit under the Federal Alcohol Administration Act as a 
     wholesaler of distilled spirits which is not a State or 
     political subdivision thereof, or an agency of either.
       ``(c) Average Tax-Financing Cost.--
       ``(1) In general.--For purposes of this section, the 
     average tax-financing cost per case for any calendar year is 
     the amount of interest which would accrue at the deemed 
     financing rate during a 60-day period on an amount equal to 
     the deemed Federal excise tax per case.
       ``(2) Deemed financing rate.--For purposes of paragraph 
     (1), the deemed financing rate for any calendar year is the 
     average of the corporate overpayment rates under paragraph 
     (1) of section 6621(a) (determined without regard to the last 
     sentence of such paragraph) for calendar quarters of such 
     year.
       ``(3) Deemed federal excise tax per case.--For purposes of 
     paragraph (1), the deemed Federal excise tax per case is 
     $25.68.
       ``(d) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Case.--The term `case' means 12 80-proof 750-
     milliliter bottles.
       ``(2) Number of cases in lot.--The number of cases in any 
     lot of distilled spirits shall be determined by dividing the 
     number of liters in such lot by 9.''.
       (b) Credit Treated as Part of General Business Credit.--
     Section 38(b) (relating to current year business credit) is 
     amended by striking ``plus'' at the end of paragraph (18), by 
     striking the period at the end of paragraph (19), and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(20) the distilled spirits credit determined under 
     section 5011(a).''.
       (c) Conforming Amendment.--The table of sections for 
     subpart A of part I of subchapter A of chapter 51 is amended 
     by adding at the end the following new item:

``Sec. 5011. Income tax credit for average cost of carrying excise 
              tax.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after September 30, 
     2005.

     SEC. 5234. QUARTERLY EXCISE TAX FILING FOR SMALL ALCOHOL 
                   EXCISE TAXPAYERS.

       (a) In General.--Subsection (d) of section 5061 (relating 
     to time for collecting tax on distilled spirits, wines, and 
     beer) is amended by redesignating paragraphs (4) and (5) as 
     paragraphs (5) and (6), respectively, and by inserting after 
     paragraph (3) the following new paragraph:
       ``(4) Taxpayers liable for taxes of not more than 
     $50,000.--
       ``(A) In general.--In the case of any taxpayer who 
     reasonably expects to be liable for not more than $50,000 in 
     taxes imposed with respect to distilled spirits, wines, and 
     beer under subparts A, C, and D for the calendar year and who 
     was liable for not more than $50,000 in such taxes in the 
     preceding calendar year, the last day for the payment of tax 
     shall be the 14th day after the last day of the calendar 
     quarter during which the action giving rise to the imposition 
     of such tax occurs.
       ``(B) No application after limit exceeded.--Subparagraph 
     (A) shall not apply to any taxpayer for any portion of the 
     calendar year following the first date on which the aggregate 
     amount of tax due under subparts A, C, and D from such 
     taxpayer during such calendar year exceeds $50,000, and any 
     tax under such subparts which has not been paid on such date 
     shall be due on the 14th day after the last day of the 
     semimonthly period in which such date occurs.
       ``(C) Calendar quarter.--For purposes of this paragraph, 
     the term `calendar quarter' means the three-month period 
     ending on March 31, June 30, September 30, or December 31.''.
       (b) Conforming Amendment.--Section 5061(d)(6), as 
     redesignated by subsection (a), is amended by striking 
     ``paragraph (4)'' and inserting ``paragraph (5)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to quarterly periods beginning on 
     and after January 1, 2006.

                       PART V--SPORT EXCISE TAXES

     SEC. 5241. CUSTOM GUNSMITHS.

       (a) Small Manufacturers Exempt From Firearms Excise Tax.--
     Section 4182 (relating to exemptions) is amended by 
     redesignating subsection (c) as subsection (d) and by 
     inserting after subsection (b) the following new subsection:
       ``(c) Small Manufacturers, Etc.--
       ``(1) In general.--The tax imposed by section 4181 shall 
     not apply to any pistol, revolver, or firearm described in 
     such section if manufactured, produced, or imported by a 
     person who manufactures, produces, and imports less than an 
     aggregate of 50 of such articles during the calendar year.
       ``(2) Controlled groups.--All persons treated as a single 
     employer for purposes of subsection (a) or (b) of section 52 
     shall be treated as one person for purposes of paragraph 
     (1).''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to articles sold by the manufacturer, producer, or 
     importer after September 30, 2005.
       (2) No inference.--Nothing in the amendments made by this 
     section shall be construed to create any inference with 
     respect to the proper tax treatment of any sales before the 
     effective date of such amendments.

                  Subtitle C--Miscellaneous Provisions

     SEC. 5301. MOTOR FUEL TAX ENFORCEMENT ADVISORY COMMISSION.

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

[[Page 10623]]

     to the Commission. The Commission shall also gather evidence 
     through such means as it may deem appropriate, including 
     through holding hearings and soliciting comments by means of 
     Federal Register notices.
       (g) Termination.--The Commission shall terminate as of the 
     close of September 30, 2009.

     SEC. 5302. NATIONAL SURFACE TRANSPORTATION INFRASTRUCTURE 
                   FINANCING COMMISSION.

       (a) Establishment.--There is established a National Surface 
     Transportation Infrastructure Financing Commission (in this 
     section referred to as the ``Commission''). The Commission 
     shall hold its first meeting within 90 days of the 
     appointment of the eighth individual to be named to the 
     Commission.
       (b) Function.--
       (1) In general.--The Commission shall, with respect to the 
     period beginning on the date of the enactment of this Act and 
     ending before 2016--
       (A) make a thorough investigation and study of revenues 
     flowing into the Highway Trust Fund under current law, 
     including the individual components of the overall flow of 
     such revenues;
       (B) consider whether the amount of such revenues is likely 
     to increase, decline, or remain unchanged, absent changes in 
     the law, particularly by taking into account the impact of 
     possible changes in public vehicular choice, fuel use, or 
     travel alternatives that could be expected to reduce or 
     increase revenues into the Highway Trust Fund;
       (C) consider alternative approaches to generating revenues 
     for the Highway Trust Fund, and the level of revenues that 
     such alternatives would yield;
       (D) consider highway and transit needs and whether 
     additional revenues into the Highway Trust Fund, or other 
     Federal revenues dedicated to highway and transit 
     infrastructure, would be required in order to meet such 
     needs; and
       (E) study such other matters closely related to the 
     subjects described in the preceding subparagraphs as it may 
     deem appropriate.
       (2) Preparation of report.--Based on such investigation and 
     study, the Commission shall develop a final report, with 
     recommendations and the bases for those recommendations, 
     indicating policies that should be adopted, or not adopted, 
     to achieve various levels of annual revenue for the Highway 
     Trust Fund and to enable the Highway Trust Fund to receive 
     revenues sufficient to meet highway and transit needs. Such 
     recommendations shall address, among other matters as the 
     Commission may deem appropriate--
       (A) what levels of revenue are required by the Federal 
     Highway Trust Fund in order for it to meet needs to maintain 
     and improve the condition and performance of the Nation's 
     highway and transit systems;
       (B) what levels of revenue are required by the Federal 
     Highway Trust Fund in order to ensure that Federal levels of 
     investment in highways and transit do not decline in real 
     terms; and
       (C) the extent, if any, to which the Highway Trust Fund 
     should be augmented by other mechanisms or funds as a Federal 
     means of financing highway and transit infrastructure 
     investments.
       (c) Membership.--
       (1) Appointment.--The Commission shall be composed of 15 
     members, appointed as follows:
       (A) 7 members appointed by the Secretary of Transportation, 
     in consultation with the Secretary of the Treasury.
       (B) 2 members appointed by the Chairman of the Committee on 
     Ways and Means of the House of Representatives.
       (C) 2 members appointed by the Ranking Minority Member of 
     the Committee on Ways and Means of the House of 
     Representatives.
       (D) 2 members appointed by the Chairman of the Committee on 
     Finance of the Senate.
       (E) 2 members appointed by the Ranking Minority Member of 
     the Committee on Finance of the Senate.
       (2) Qualifications.--Members appointed pursuant to 
     paragraph (1) shall be appointed from among individuals 
     knowledgeable in the fields of public transportation finance 
     or highway and transit programs, policy, and needs, and may 
     include representatives of interested parties, such as State 
     and local governments or other public transportation 
     authorities or agencies, representatives of the 
     transportation construction industry (including suppliers of 
     technology, machinery and materials), transportation labor 
     (including construction and providers), transportation 
     providers, the financial community, and users of highway and 
     transit systems.
       (3) Terms.--Members shall be appointed for the life of the 
     Commission.
       (4) Vacancies.--A vacancy in the Commission shall be filled 
     in the manner in which the original appointment was made.
       (5) Travel expenses.--Members shall serve without pay but 
     shall receive travel expenses, including per diem in lieu of 
     subsistence, in accordance with sections 5702 and 5703 of 
     title 5, United States Code.
       (6) Chairman.--The Chairman of the Commission shall be 
     elected by the members.
       (d) Staff.--The Commission may appoint and fix the pay of 
     such personnel as it considers appropriate.
       (e) Funding.--Funding for the Commission shall be provided 
     by the Secretary of the Treasury and by the Secretary of 
     Transportation, out of funds available to those agencies for 
     administrative and policy functions.
       (f) Staff of Federal Agencies.--Upon request of the 
     Commission, the head of any department or agency of the 
     United States may detail any of the personnel of that 
     department or agency to the Commission to assist in carrying 
     out its duties under this section.
       (g) Obtaining Data.--The Commission may secure directly 
     from any department or agency of the United States, 
     information (other than information required by any law to be 
     kept confidential by such department or agency) necessary for 
     the Commission to carry out its duties under this section. 
     Upon request of the Commission, the head of that department 
     or agency shall furnish such nonconfidential information to 
     the Commission. The Commission shall also gather evidence 
     through such means as it may deem appropriate, including 
     through holding hearings and soliciting comments by means of 
     Federal Register notices.
       (h) Report.--Not later than 2 years after the date of its 
     first meeting, the Commission shall transmit its final 
     report, including recommendations, to the Secretary of 
     Transportation, the Secretary of the Treasury, and the 
     Committee on Ways and Means of the House of Representatives, 
     the Committee on Finance of the Senate, the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives, the Committee on Environment and Public 
     Works of the Senate, and the Committee on Banking, Housing, 
     and Urban Affairs of the Senate.
       (i) Termination.--The Commission shall terminate on the 
     180th day following the date of transmittal of the report 
     under subsection (h). All records and papers of the 
     Commission shall thereupon be delivered to the Administrator 
     of General Services for deposit in the National Archives.

     SEC. 5303. EXPANSION OF HIGHWAY TRUST FUND EXPENDITURE 
                   PURPOSES TO INCLUDE FUNDING FOR STUDIES OF 
                   SUPPLEMENTAL OR ALTERNATIVE FINANCING FOR THE 
                   HIGHWAY TRUST FUND.

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

     SEC. 5304. DELTA REGIONAL TRANSPORTATION PLAN.

       (a) Study.--The Delta Regional Authority shall conduct a 
     study of the transportation assets and needs in the States of 
     Alabama, Arkansas, Illinois, Kentucky, Louisiana, 
     Mississippi, Missouri, and Tennessee which comprise the Delta 
     region.
       (b) Regional Strategic Transportation Plan.--Upon 
     completion of the study required under subsection (a), the 
     Delta Regional Authority shall establish a regional strategic 
     transportation plan to achieve efficient transportation 
     systems in the Delta region. In developing the regional 
     strategic transportation plan, the Delta Regional Authority 
     shall consult with local planning and development districts, 
     local and regional governments, metropolitan planning 
     organizations, State transportation entities, and Federal 
     transportation agencies.
       (c) Elements of Study and Plan.--The study and plan under 
     this section shall include the following transportation modes 
     and systems: transit, rail, highway, interstate, bridges, 
     air, airports, waterways, and ports.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Delta Regional Authority $500,000 
     for each of the fiscal years 2005 and 2006 to carry out the 
     purposes of this section, to remain available until expended.

     SEC. 5305. BUILD AMERICA CORPORATION.

       (a) Establishment of Build America Corporation.--There is 
     established a nonprofit corporation, to be known as the 
     ``Build America

[[Page 10624]]

     Corporation''. The Build America Corporation is not an agency 
     or establishment of the United States Government. The purpose 
     of the Corporation is to issue 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.
       (b) Use of Build America Bond Proceeds.--The proceeds from 
     the sale of any Build America bonds issued by the Build 
     America Corporation as authorized by subsection (a) may be 
     used to fund any qualified project.
       (c) Qualified Projects.--For purposes of this section--
       (1) In general.--With respect to any Build America bonds 
     issued by the Build America Corporation as authorized by 
     subsection (a), the term ``qualified project'' means any--
       (A) qualified highway project,
       (B) qualified public transportation project, and
       (C) congestion relief project,
     proposed by 1 or more States and approved by the Build 
     America Corporation, which meets the requirements under 
     subparagraphs (A), (B), and (C) of paragraph (5).
       (2) Qualified highway project.--The term ``qualified 
     highway project'' means a project for highway facilities or 
     other facilities which are eligible for assistance under 
     title 23, United States Code.
       (3) Qualified public transportation project.--The term 
     ``qualified public transportation project'' means a project 
     for public transportation facilities or other facilities 
     which are eligible for assistance under title 49, United 
     States Code.
       (4) Congestion relief project.--The term ``congestion 
     relief project'' means an intermodal freight transfer 
     facility, freight rail facility, freight movement corridor, 
     intercity passenger rail facility, intercity bus facility, 
     border crossing facility, or other public or private facility 
     approved as a congestion relief project by the Secretary of 
     Transportation. In making such approvals, the Secretary of 
     Transportation shall--
       (A) consider the economic, environmental, mobility, and 
     national security improvements to be realized through the 
     project, and
       (B) give preference to projects with national or regional 
     significance, including any 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.
       (5) Additional requirements for qualified projects.--For 
     purposes of paragraph (1)--
       (A) Costs of qualified projects.--The requirement of this 
     subparagraph is met if the costs of the qualified project 
     funded by Build America bonds only relate to capital 
     investments and do not include any costs relating to 
     operations, maintenance, or rolling stock.
       (B) Applicability of federal law.--The requirement of this 
     subparagraph 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.
       (C) Utilization of updated construction technology for 
     qualified projects.--The requirement of this subparagraph 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.

     SEC. 5306. INCREASE IN DOLLAR LIMITATION FOR QUALIFIED 
                   TRANSPORTATION FRINGE BENEFITS.

       (a) In General.--Section 132(f)(2) (relating to limitation 
     on exclusion) is amended--
       (1) by striking ``$100'' in subparagraph (A) and inserting 
     ``$155 (in the case of any calendar year after 2009, the 
     dollar amount specified in subparagraph (B) for such year)'', 
     and
       (2) by striking ``$175'' in subparagraph (B) and inserting 
     ``$200''.
       (b) Inflation Adjustment Conforming Amendments.--
     Subparagraph (A) of section 132(f)(6) (relating to inflation 
     adjustment) is amended--
       (1) by striking the last sentence,
       (2) by striking ``1999'' and inserting ``2008'', and
       (3) by striking ``1998'' and inserting ``2007''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

     SEC. 5307. TREASURY STUDY OF HIGHWAY FUELS USED BY TRUCKS FOR 
                   NON-TRANSPORTATION PURPOSES.

       (a) Study.--The Secretary of the Treasury shall conduct a 
     study regarding the use of highway motor fuel by trucks that 
     is not used for the propulsion of the vehicle. As part of 
     such study--
       (1) in the case of vehicles carrying equipment that is 
     unrelated to the transportation function of the vehicle--
       (A) the Secretary of the Treasury, in consultation with the 
     Secretary of Transportation, and with public notice and 
     comment, shall determine the average annual amount of tax 
     paid fuel consumed per vehicle, by type of vehicle, used by 
     the propulsion engine to provide the power to operate the 
     equipment attached to the highway vehicle, and
       (B) the Secretary of the Treasury shall review the 
     technical and administrative feasibility of exempting such 
     nonpropulsive use of highway fuels for the highway motor 
     fuels excise taxes, shall propose options for implementing 
     exemptions for classes of vehicles whose nonpropulsive fuel 
     use exceeds 50 percent,
       (2) in the case where non-transportation equipment is run 
     by a separate motor--
       (A) the Secretary of the Treasury shall determine the 
     annual average amount of fuel exempted from tax in the use of 
     such equipment by equipment type, and
       (B) the Secretary of the Treasury shall review issues of 
     administration and compliance related to the present-law 
     exemption provided for such fuel use, and
       (3) the Secretary of the Treasury shall--
       (A) estimate the amount of taxable fuel consumed by trucks 
     and the emissions of various pollutants due to the long-term 
     idling of diesel engines, and
       (B) determine the cost of reducing such long-term idling 
     through the use of plug-ins at truck stops, auxiliary power 
     units, or other technologies.
       (b) Report.--Not later than January 1, 2007, the Secretary 
     of the Treasury shall report the findings of the study 
     required under subsection (a) to the Committee on Finance of 
     the Senate and the Committee on Ways and Means of the House 
     of Representatives, except that the Secretary shall report 
     and take action under subsection (a)(1) not later than July 
     1, 2006.

     SEC. 5308. TAX-EXEMPT FINANCING OF HIGHWAY PROJECTS AND RAIL-
                   TRUCK TRANSFER FACILITIES.

       (a) Treatment as Exempt Facility Bond.--Subsection (a) of 
     section 142 (relating to exempt facility bond) is amended by 
     striking ``or'' at the end of paragraph (13), by striking the 
     period at the end of paragraph (14), and by adding at the end 
     the following:
       ``(15) qualified highway facilities, or
       ``(16) qualified surface freight transfer facilities.''.
       (b) Qualified Highway Facilities and Qualified Surface 
     Freight Transfer Facilities.--Section 142 is amended by 
     adding at the end the following:
       ``(m) Qualified Highway and Surface Freight Transfer 
     Facilities.--
       ``(1) Qualified highway facilities.--For purposes of 
     subsection (a)(15), the term `qualified highway facilities' 
     means--
       ``(A) any surface transportation project which receives 
     Federal assistance under title 23, United States Code (as in 
     effect on the date of the enactment of this subsection), or
       ``(B) any project for an international bridge or tunnel for 
     which an international entity authorized under Federal or 
     State law is responsible and which receives Federal 
     assistance under such title 23.
       ``(2) Qualified surface freight transfer facilities.--For 
     purposes of subsection (a)(16), the term `qualified surface 
     freight transfer facilities' means facilities for the 
     transfer of freight from truck to rail or rail to truck 
     (including any temporary storage facilities directly related 
     to such transfers) which receives Federal assistance under 
     either title 23 or title 49, United States Code (as in effect 
     on the date of the enactment of this subsection).
       ``(3) National limitation on amount of tax-exempt financing 
     for facilities.--
       ``(A) National limitation.--There is a national highway and 
     surface freight transfer facilities bond limitation for each 
     calendar year. Such limitation is $130,000,000 for 2005, 
     $750,000,000 for 2006, 2007, 2008, and 2009, $1,870,000,000 
     for 2010, $2,000,000,000 for 2011, 2012, 2013, 2014, and 
     2015, and zero thereafter.
       ``(B) Enforcement of national limitation.--An issue shall 
     not be treated as an issue described in subsection (a)(15) or 
     (a)(16) if the aggregate face amount of bonds issued pursuant 
     to such issue for any calendar year (when added to the 
     aggregate face amount of bonds previously issued as part of 
     issues described in subsections (a)(15) and (a)(16) for such 
     calendar year) exceeds the national highway and surface 
     freight transfer facilities bond limitation for such calendar 
     year.
       ``(C) Allocation by secretary of transportation.--The 
     Secretary of Transportation shall allocate the amount 
     described in subparagraph (A) among projects for qualified 
     highway facilities and qualified surface freight transfer 
     facilities in such manner as the Secretary determines 
     appropriate.
       ``(4) Expenditure of proceeds.--An issue shall not be 
     treated as an issue described in subsection (a)(15) or 
     (a)(16) unless at least 95 percent of the net proceeds of the 
     issue is expended for projects described in paragraph (3)(C) 
     within the 5-year period beginning on the date of issuance. 
     If at least 95 percent of such net proceeds is not expended 
     with such 5-year period, an issue shall be treated as 
     continuing to meet the requirements of this paragraph if the 
     issuer uses all unspent proceeds of the issue to redeem bonds 
     of the issue within 90 days after the end of such 5-year 
     period. The Secretary, at the request of the issuer, may 
     extend such 5-year period if the issuer establishes that any 
     failure to meet such period is due to circumstances beyond 
     the control of the issuer.''.
       (c) Exemption From General State Volume Caps.--Paragraph 
     (3) of section 146(g) of the Internal Revenue Code of 1986 
     (relating to exception for certain bonds) is amended by 
     striking ``or (14)'' and all that follows through the end

[[Page 10625]]

     of the paragraph and inserting ``(14), (15), or (16) of 
     section 142(a), and''.
       (d) Effective Date.--The amendments made by this section 
     apply to bonds issued after the date of the enactment of this 
     Act.

     SEC. 5309. TAX TREATMENT OF STATE OWNERSHIP OF RAILROAD REAL 
                   ESTATE INVESTMENT TRUST.

       (a) In General.--If a State owns all of the outstanding 
     stock of a corporation--
       (1) which is a real estate investment trust on the date of 
     the enactment of this Act,
       (2) which is a non-operating class III railroad, and
       (3) substantially all of the activities of which consist of 
     the ownership, leasing, and operation by such corporation of 
     facilities, equipment, and other property used by the 
     corporation or other persons for railroad transportation and 
     for economic development purposes for the benefit of the 
     State and its citizens,
     then, to the extent such activities are of a type which are 
     an essential governmental function within the meaning of 
     section 115 of the Internal Revenue Code of 1986, income 
     derived from such activities by the corporation shall be 
     treated as accruing to the State for purposes of section 115 
     of such Code.
       (b) Gain or Loss Not Recognized on Conversion.--
     Notwithstanding section 337(d) of the Internal Revenue Code 
     of 1986--
       (1) no gain or loss shall be recognized under section 336 
     or 337 of such Code, and
       (2) no change in basis of the property of such corporation 
     shall occur,
     because of any change of status of a corporation to a tax-
     exempt entity by reason of the application of subsection (a).
       (c) Tax-Exempt Financing.--
       (1) In general.--Any obligation issued by a corporation 
     described in subsection (a) at least 95 percent of the net 
     proceeds (as defined in section 150(a) of the Internal 
     Revenue Code of 1986) of which are to be used to provide for 
     the acquisition, construction, or improvement of railroad 
     transportation infrastructure (including railroad terminal 
     facilities)--
       (A) shall be treated as a State or local bond (within the 
     meaning of section 103(c) of such Code), and
       (B) shall not be treated as a private activity bond (within 
     the meaning of section 103(b)(1) of such Code) solely by 
     reason of the ownership or use of such railroad 
     transportation infrastructure by the corporation.
       (2) No inference.--Except as provided in paragraph (1), 
     nothing in this subsection shall be construed to affect the 
     treatment of the private use of proceeds or property financed 
     with obligations issued by the corporation for purposes of 
     section 103 of the Internal Revenue Code of 1986 and part IV 
     of subchapter B of such Code.
       (d) Definitions.--For purposes of this section:
       (1) Real estate investment trust.--The term ``real estate 
     investment trust'' has the meaning given such term by section 
     856(a) of the Internal Revenue Code of 1986.
       (2) Non-operating class iii railroad.--The term ``non-
     operating class III railroad'' has the meaning given such 
     term by part A of subtitle IV of title 49, United States Code 
     (49 U.S.C. 10101 et seq.), and the regulations thereunder.
       (3) State.--The term ``State'' includes--
       (A) the District of Columbia and any possession of the 
     United States, and
       (B) any authority, agency, or public corporation of a 
     State.
       (e) Applicability.--
       (1) In general.--Except as provided in paragraph (2), this 
     section shall apply on and after the date on which a State 
     becomes the owner of all of the outstanding stock of a 
     corporation described in subsection (a) through action of 
     such corporation's board of directors.
       (2) Exception.--This section shall not apply to any State 
     which--
       (A) becomes the owner of all of the voting stock of a 
     corporation described in subsection (a) after December 31, 
     2003, or
       (B) becomes the owner of all of the outstanding stock of a 
     corporation described in subsection (a) after December 31, 
     2006.

     SEC. 5310. INCENTIVES FOR THE INSTALLATION OF ALTERNATIVE 
                   FUEL REFUELING STATIONS.

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

     ``SEC. 30B. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY 
                   CREDIT.

       ``(a) Credit Allowed.--There shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to 50 percent of the cost of any qualified 
     alternative fuel vehicle refueling property placed in service 
     by the taxpayer during the taxable year.
       ``(b) Limitation.--The credit allowed under subsection (a) 
     with respect to any alternative fuel vehicle refueling 
     property shall not exceed--
       ``(1) $30,000 in the case of a property of a character 
     subject to an allowance for depreciation, and
       ``(2) $1,000 in any other case.
       ``(c) Qualified Alternative Fuel Vehicle Refueling 
     Property.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     term `qualified alternative fuel vehicle refueling property' 
     has the meaning given to such term by section 179A(d), but 
     only with respect to any fuel at least 85 percent of the 
     volume of which consists of ethanol, natural gas, compressed 
     natural gas, liquefied natural gas, and hydrogen.
       ``(2) Residential property.--In the case of any property 
     installed on property which is used as the principal 
     residence (within the meaning of section 121) of the 
     taxpayer, paragraph (1) of section 179A(d) shall not apply.
       ``(d) Application With Other Credits.--The credit allowed 
     under subsection (a) for any taxable year shall not exceed 
     the excess (if any) of--
       ``(1) the regular tax for the taxable year reduced by the 
     sum of the credits allowable under subpart A and sections 27, 
     29, and 30, over
       ``(2) the tentative minimum tax for the taxable year.
       ``(e) Carryforward Allowed.--
       ``(1) In general.--If the credit amount allowable under 
     subsection (a) for a taxable year exceeds the amount of the 
     limitation under subsection (d) for such taxable year, such 
     excess shall be allowed as a credit carryforward for each of 
     the 20 taxable years following the unused credit year.
       ``(2) Rules.--Rules similar to the rules of section 39 
     shall apply with respect to the credit carryforward under 
     paragraph (1).
       ``(f) Special Rules.--For purposes of this section--
       ``(1) Basis reduction.--The basis of any property shall be 
     reduced by the portion of the cost of such property taken 
     into account under subsection (a).
       ``(2) No double benefit.--No deduction shall be allowed 
     under section 179A with respect to any property with respect 
     to which a credit is allowed under subsection (a).
       ``(3) Property used by tax-exempt entity.--In the case of 
     any qualified alternative fuel vehicle refueling property the 
     use of which is described in paragraph (3) or (4) of section 
     50(b) and which is not subject to a lease, the person who 
     sold such property to the person or entity using such 
     property shall be treated as the taxpayer that placed such 
     property in service, but only if such person clearly 
     discloses to such person or entity in a document the amount 
     of any credit allowable under subsection (a) with respect to 
     such property (determined without regard to subsection (d)).
       ``(4) Property used outside united states, etc., not 
     qualified.--No credit shall be allowable under subsection (a) 
     with respect to any property referred to in section 50(b)(1) 
     or with respect to the portion of the cost of any property 
     taken into account under section 179.
       ``(5) Election not to take credit.--No credit shall be 
     allowed under subsection (a) for any property if the taxpayer 
     elects not to have this section apply to such property.
       ``(6) Recapture rules.--Rules similar to the rules of 
     section 179A(e)(4) shall apply.
       ``(g) Regulations.--The Secretary shall prescribe such 
     regulations as necessary to carry out the provisions of this 
     section.
       ``(h) Termination.--This section shall not apply to any 
     property placed in service after December 31, 2009.''.
       (b) Conforming Amendments.--
       (1) Section 1016(a) is amended by striking ``and'' at the 
     end of paragraph (30), by striking the period at the end of 
     paragraph (31) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(32) to the extent provided in section 30B(f)(1).''.
       (2) Section 55(c)(2) is amended by inserting ``30B(d),'' 
     after ``30(b)(3),''.
       (3) Section 6501(m) is amended by inserting ``30B(f)(5),'' 
     after ``30(d)(4),''.
       (4) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 30A the following new item:

``Sec. 30B Alternative fuel vehicle refueling property credit.''.

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

     SEC. 5311. MODIFICATION OF RECAPTURE RULES FOR AMORTIZABLE 
                   SECTION 197 INTANGIBLES.

       (a) In General.--Subsection (b) of section 1245 is amended 
     by adding at the end the following new paragraph:
       ``(9) Disposition of amortizable section 197 intangibles.--
       ``(A) In general.--If a taxpayer disposes of more than 1 
     amortizable section 197 intangible (as defined in section 
     197(c)) in a transaction or a series of related transactions, 
     all such amortizable 197 intangibles shall be treated as 1 
     section 1245 property for purposes of this section.
       ``(B) Exception.--Subparagraph (A) shall not apply to any 
     amortizable section 197 intangible (as so defined) with 
     respect to which the adjusted basis exceeds the fair market 
     value.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to dispositions of property after the date of the 
     enactment of this Act.

     SEC. 5312. DIESEL FUEL TAX EVASION REPORT.

       Not later than 360 days after the date of the enactment of 
     this Act, the Commissioner of the Internal Revenue shall 
     report to the Committees on Finance and Environment and 
     Public Works of the Senate and the Committees on Ways and 
     Means and Transportation and Infrastructure of the House of 
     Representatives on the availability of new technologies that 
     can be employed to enhance collections of the excise tax on 
     diesel fuel and the plans of the Internal Revenue Service to 
     employ such technologies.

[[Page 10626]]



            Subtitle D--Fuels-related Technical Corrections

     SEC. 5401. FUELS-RELATED TECHNICAL CORRECTIONS.

       (a) Amendments Related to Section 301 of the American Jobs 
     Creation Act of 2004.--Section 6427 is amended--
       (1) by striking subsection (f), and
       (2) by striking subsection (o) and redesignating subsection 
     (p) as subsection (o).
       (b) Amendments Related to Section 853 of the American Jobs 
     Creation Act of 2004.--
       (1) Subparagraph (C) of section 4081(a)(2) is amended by 
     striking ``for use in commercial aviation'' and inserting 
     ``for use in commercial aviation by a person registered for 
     such use under section 4101''.
       (2) So much of paragraph (2) of section 4081(d) as precedes 
     subparagraph (A) is amended to read as follows:
       ``(2) Aviation fuels.--The rates of tax specified in 
     clauses (ii) and (iv) of subsection (a)(2)(A) shall be 4.3 
     cents per gallon--''.
       (3) Section 6421(f)(2) is amended--
       (A) by striking ``noncommercial aviation (as defined in 
     section 4041(c)(2))'' in subparagraph (A) and inserting 
     ``aviation which is not commercial aviation (as defined in 
     section 4083(b))'', and
       (B) by striking ``aviation which is not noncommercial 
     aviation'' in subparagraph (B) and inserting ``commercial 
     aviation''.
       (c) Amendment Related to Section 9005 of the Transportation 
     Equity Act for the 21st Century.--The last sentence of 
     paragraph (2) of section 9504(b) is amended by striking 
     ``subparagraph (B)'', and inserting ``subparagraph (C)''.
       (d) Effective Dates.--
       (1) American jobs creation act of 2004.--The amendments 
     made by subsections (a) and (b) shall take effect as if 
     included in the provisions of the American Jobs Creation Act 
     of 2004 to which they relate.
       (2) Transportation equity act for the 21st century.--The 
     amendment made by subsection (c) shall take effect as if 
     included in the provision of the Transportation Equity Act 
     for the 21st Century to which it relates.

                 Subtitle E--Revenue Offset Provisions

                       PART I--GENERAL PROVISIONS

     SEC. 5501. TREATMENT OF CONTINGENT PAYMENT CONVERTIBLE DEBT 
                   INSTRUMENTS.

       (a) In General.--Section 1275(d) (relating to regulation 
     authority) is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Treatment of contingent payment convertible debt.--
       ``(A) In general.--In the case of a debt instrument which--
       ``(i) is convertible into stock of the issuing corporation, 
     into stock or debt of a related party (within the meaning of 
     section 267(b) or 707(b)(1)), or into cash or other property 
     in an amount equal to the approximate value of such stock or 
     debt, and
       ``(ii) provides for contingent payments,
     any regulations which require original issue discount to be 
     determined by reference to the comparable yield of a 
     noncontingent fixed-rate debt instrument shall be applied as 
     if the regulations require that such comparable yield be 
     determined by reference to a noncontingent fixed-rate debt 
     instrument which is convertible into stock.
       ``(B) Special rule.--For purposes of subparagraph (A), the 
     comparable yield shall be determined without taking into 
     account the yield resulting from the conversion of a debt 
     instrument into stock.''.
       (b) Cross Reference.--Section 163(e)(6) (relating to cross 
     references) is amended by adding at the end the following:
     ``For the treatment of contingent payment convertible debt, 
     see section 1275(d)(2).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to debt instruments issued on or after the date 
     of the enactment of this Act.

     SEC. 5502. FRIVOLOUS TAX SUBMISSIONS.

       (a) Civil Penalties.--Section 6702 is amended to read as 
     follows:

     ``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.

       ``(a) Civil Penalty for Frivolous Tax Returns.--A person 
     shall pay a penalty of $5,000 if--
       ``(1) such person files what purports to be a return of a 
     tax imposed by this title but which--
       ``(A) does not contain information on which the substantial 
     correctness of the self-assessment may be judged, or
       ``(B) contains information that on its face indicates that 
     the self-assessment is substantially incorrect; and
       ``(2) the conduct referred to in paragraph (1)--
       ``(A) is based on a position which the Secretary has 
     identified as frivolous under subsection (c), or
       ``(B) reflects a desire to delay or impede the 
     administration of Federal tax laws.
       ``(b) Civil Penalty for Specified Frivolous Submissions.--
       ``(1) Imposition of penalty.--Except as provided in 
     paragraph (3), any person who submits a specified frivolous 
     submission shall pay a penalty of $5,000.
       ``(2) Specified frivolous submission.--For purposes of this 
     section--
       ``(A) Specified frivolous submission.--The term `specified 
     frivolous submission' means a specified submission if any 
     portion of such submission--
       ``(i) is based on a position which the Secretary has 
     identified as frivolous under subsection (c), or
       ``(ii) reflects a desire to delay or impede the 
     administration of Federal tax laws.
       ``(B) Specified submission.--The term `specified 
     submission' means--
       ``(i) a request for a hearing under--

       ``(I) section 6320 (relating to notice and opportunity for 
     hearing upon filing of notice of lien), or
       ``(II) section 6330 (relating to notice and opportunity for 
     hearing before levy), and

       ``(ii) an application under--

       ``(I) section 6159 (relating to agreements for payment of 
     tax liability in installments),
       ``(II) section 7122 (relating to compromises), or

       ``(III) section 7811 (relating to taxpayer assistance 
     orders).

       ``(3) Opportunity to withdraw submission.--If the Secretary 
     provides a person with notice that a submission is a 
     specified frivolous submission and such person withdraws such 
     submission within 30 days after such notice, the penalty 
     imposed under paragraph (1) shall not apply with respect to 
     such submission.
       ``(c) Listing of Frivolous Positions.--The Secretary shall 
     prescribe (and periodically revise) a list of positions which 
     the Secretary has identified as being frivolous for purposes 
     of this subsection. The Secretary shall not include in such 
     list any position that the Secretary determines meets the 
     requirement of section 6662(d)(2)(B)(ii)(II).
       ``(d) Reduction of Penalty.--The Secretary may reduce the 
     amount of any penalty imposed under this section if the 
     Secretary determines that such reduction would promote 
     compliance with and administration of the Federal tax laws.
       ``(e) Penalties in Addition to Other Penalties.--The 
     penalties imposed by this section shall be in addition to any 
     other penalty provided by law.''.
       (b) Treatment of Frivolous Requests for Hearings Before 
     Levy.--
       (1) Frivolous requests disregarded.--Section 6330 (relating 
     to notice and opportunity for hearing before levy) is amended 
     by adding at the end the following new subsection:
       ``(g) Frivolous Requests for Hearing, Etc.--Notwithstanding 
     any other provision of this section, if the Secretary 
     determines that any portion of a request for a hearing under 
     this section or section 6320 meets the requirement of clause 
     (i) or (ii) of section 6702(b)(2)(A), then the Secretary may 
     treat such portion as if it were never submitted and such 
     portion shall not be subject to any further administrative or 
     judicial review.''.
       (2) Preclusion from raising frivolous issues at hearing.--
     Section 6330(c)(4) is amended--
       (A) by striking ``(A)'' and inserting ``(A)(i)'';
       (B) by striking ``(B)'' and inserting ``(ii)'';
       (C) by striking the period at the end of the first sentence 
     and inserting ``; or''; and
       (D) by inserting after subparagraph (A)(ii) (as so 
     redesignated) the following:
       ``(B) the issue meets the requirement of clause (i) or (ii) 
     of section 6702(b)(2)(A).''.
       (3) Statement of grounds.--Section 6330(b)(1) is amended by 
     striking ``under subsection (a)(3)(B)'' and inserting ``in 
     writing under subsection (a)(3)(B) and states the grounds for 
     the requested hearing''.
       (c) Treatment of Frivolous Requests for Hearings Upon 
     Filing of Notice of Lien.--Section 6320 is amended--
       (1) in subsection (b)(1), by striking ``under subsection 
     (a)(3)(B)'' and inserting ``in writing under subsection 
     (a)(3)(B) and states the grounds for the requested hearing'', 
     and
       (2) in subsection (c), by striking ``and (e)'' and 
     inserting ``(e), and (g)''.
       (d) Treatment of Frivolous Applications for Offers-in-
     Compromise and Installment Agreements.--Section 7122 is 
     amended by adding at the end the following new subsection:
       ``(e) Frivolous Submissions, Etc.--Notwithstanding any 
     other provision of this section, if the Secretary determines 
     that any portion of an application for an offer-in-compromise 
     or installment agreement submitted under this section or 
     section 6159 meets the requirement of clause (i) or (ii) of 
     section 6702(b)(2)(A), then the Secretary may treat such 
     portion as if it were never submitted and such portion shall 
     not be subject to any further administrative or judicial 
     review.''.
       (e) Clerical Amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by striking the item 
     relating to section 6702 and inserting the following new 
     item:

``Sec. 6702. Frivolous tax submissions.''.

       (f) Effective Date.--The amendments made by this section 
     shall apply to submissions made and issues raised after the 
     date on which the Secretary first prescribes a list under 
     section 6702(c) of the Internal Revenue Code of 1986, as 
     amended by subsection (a).

     SEC. 5503. INCREASE IN CERTAIN CRIMINAL PENALTIES.

       (a) In General.--Section 7206 (relating to fraud and false 
     statements) is amended--
       (1) by striking ``Any person who--'' and inserting ``(a) In 
     General.--Any person who--'', and
       (2) by adding at the end the following new subsection:
       ``(b) Increase in Monetary Limitation for Underpayment or 
     Overpayment of Tax Due to Fraud.--If any portion of any 
     underpayment (as defined in section 6664(a)) or overpayment 
     (as defined in section 6401(a)) of tax required to be shown 
     on a return is attributable

[[Page 10627]]

     to fraudulent action described in subsection (a), the 
     applicable dollar amount under subsection (a) shall in no 
     event be less than an amount equal to such portion. A rule 
     similar to the rule under section 6663(b) shall apply for 
     purposes of determining the portion so attributable.''.
       (b) Increase in Penalties.--
       (1) Attempt to evade or defeat tax.--Section 7201 is 
     amended--
       (A) by striking ``$100,000'' and inserting ``$500,000'',
       (B) by striking ``$500,000'' and inserting ``$1,000,000'', 
     and
       (C) by striking ``5 years'' and inserting ``10 years''.
       (2) Willful failure to file return, supply information, or 
     pay tax.--Section 7203 is amended--
       (A) in the first sentence--
       (i) by striking ``Any person'' and inserting the following:
       ``(a) In General.--Any person'', and
       (ii) by striking ``$25,000'' and inserting ``$50,000'',
       (B) in the third sentence, by striking ``section'' and 
     inserting ``subsection'', and
       (C) by adding at the end the following new subsection:
       ``(b) Aggravated Failure To File.--
       ``(1) In general.--In the case of any failure described in 
     paragraph (2), the first sentence of subsection (a) shall be 
     applied by substituting--
       ``(A) `felony' for `misdemeanor',
       ``(B) `$500,000 ($1,000,000' for `$25,000 ($100,000', and
       ``(C) `10 years' for `1 year'.
       ``(2) Failure described.--A failure described in this 
     paragraph is a failure to make a return described in 
     subsection (a) for a period of 3 or more consecutive taxable 
     years and the aggregated tax liability for such period is at 
     least $100,000.''.
       (3) Fraud and false statements.--Section 7206(a) (as 
     redesignated by subsection (a)) is amended--
       (A) by striking ``$100,000'' and inserting ``$500,000'',
       (B) by striking ``$500,000'' and inserting ``$1,000,000'', 
     and
       (C) by striking ``3 years'' and inserting ``5 years''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to actions, and failures to act, occurring after 
     the date of the enactment of this Act.

     SEC. 5504. DOUBLING OF CERTAIN PENALTIES, FINES, AND INTEREST 
                   ON UNDERPAYMENTS RELATED TO CERTAIN OFFSHORE 
                   FINANCIAL ARRANGEMENTS.

       (a) Determination of Penalty.--
       (1) In general.--Notwithstanding any other provision of 
     law, in the case of an applicable taxpayer--
       (A) the determination as to whether any interest or 
     applicable penalty is to be imposed with respect to any 
     arrangement described in paragraph (2), or to any 
     underpayment of Federal income tax attributable to items 
     arising in connection with any such arrangement, shall be 
     made without regard to the rules of subsections (b), (c), and 
     (d) of section 6664 of the Internal Revenue Code of 1986, and
       (B) if any such interest or applicable penalty is imposed, 
     the amount of such interest or penalty shall be equal to 
     twice that determined without regard to this section.
       (2) Applicable taxpayer.--For purposes of this subsection--
       (A) In general.--The term ``applicable taxpayer'' means a 
     taxpayer which--
       (i) has underreported its United States income tax 
     liability with respect to any item which directly or 
     indirectly involves--

       (I) any financial arrangement which in any manner relies on 
     the use of offshore payment mechanisms (including credit, 
     debit, or charge cards) issued by banks or other entities in 
     foreign jurisdictions, or
       (II) any offshore financial arrangement (including any 
     arrangement with foreign banks, financial institutions, 
     corporations, partnerships, trusts, or other entities), and

       (ii) has not signed a closing agreement pursuant to the 
     Voluntary Offshore Compliance Initiative established by the 
     Department of the Treasury under Revenue Procedure 2003-11 or 
     voluntarily disclosed its participation in such arrangement 
     by notifying the Internal Revenue Service of such arrangement 
     prior to the issue being raised by the Internal Revenue 
     Service during an examination.
       (B) Authority to waive.--The Secretary of the Treasury or 
     the Secretary's delegate may waive the application of 
     paragraph (1) to any taxpayer if the Secretary or the 
     Secretary's delegate determines that the use of such offshore 
     payment mechanisms is incidental to the transaction and, in 
     addition, in the case of a trade or business, such use is 
     conducted in the ordinary course of the trade or business of 
     the taxpayer.
       (C) Issues raised.--For purposes of subparagraph (A)(ii), 
     an item shall be treated as an issue raised during an 
     examination if the individual examining the return--
       (i) communicates to the taxpayer knowledge about the 
     specific item, or
       (ii) has made a request to the taxpayer for information and 
     the taxpayer could not make a complete response to that 
     request without giving the examiner knowledge of the specific 
     item.
       (b) Definitions and Rules.--For purposes of this section--
       (1) Applicable penalty.--The term ``applicable penalty'' 
     means any penalty, addition to tax, or fine imposed under 
     chapter 68 of the Internal Revenue Code of 1986.
       (2) Fees and expenses.--The Secretary of the Treasury may 
     retain and use an amount not in excess of 25 percent of all 
     additional interest, penalties, additions to tax, and fines 
     collected under this section to be used for enforcement and 
     collection activities of the Internal Revenue Service. The 
     Secretary shall keep adequate records regarding amounts so 
     retained and used. The amount credited as paid by any 
     taxpayer shall be determined without regard to this 
     paragraph.
       (c) Report by Secretary.--The Secretary shall each year 
     conduct a study and report to Congress on the implementation 
     of this section during the preceding year, including 
     statistics on the number of taxpayers affected by such 
     implementation and the amount of interest and applicable 
     penalties asserted, waived, and assessed during such 
     preceding year.
       (d) Effective Date.--The provisions of this section shall 
     apply to interest, penalties, additions to tax, and fines 
     with respect to any taxable year if, as of the date of the 
     enactment of this Act, the assessment of any tax, penalty, or 
     interest with respect to such taxable year is not prevented 
     by the operation of any law or rule of law.

     SEC. 5505. MODIFICATION OF INTERACTION BETWEEN SUBPART F AND 
                   PASSIVE FOREIGN INVESTMENT COMPANY RULES.

       (a) Limitation on Exception From PFIC Rules for United 
     States Shareholders of Controlled Foreign Corporations.--
     Paragraph (2) of section 1297(e) (relating to passive foreign 
     investment company) is amended by adding at the end the 
     following flush sentence:
     ``Such term shall not include any period if the earning of 
     subpart F income by such corporation during such period would 
     result in only a remote likelihood of an inclusion in gross 
     income under section 951(a)(1)(A)(i).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years of controlled foreign 
     corporations beginning after March 2, 2005, and to taxable 
     years of United States shareholders with or within which such 
     taxable years of controlled foreign corporations end.

     SEC. 5506. DECLARATION BY CHIEF EXECUTIVE OFFICER RELATING TO 
                   FEDERAL ANNUAL CORPORATE INCOME TAX RETURN.

       (a) In General.--The Federal annual tax return of a 
     corporation with respect to income shall also include a 
     declaration signed by the chief executive officer of such 
     corporation (or other such officer of the corporation as the 
     Secretary of the Treasury may designate if the corporation 
     does not have a chief executive officer), under penalties of 
     perjury, that the corporation has in place processes and 
     procedures that ensure that such return complies with the 
     Internal Revenue Code of 1986 and that the chief executive 
     officer was provided reasonable assurance of the accuracy of 
     all material aspects of such return. The preceding sentence 
     shall not apply to any return of a regulated investment 
     company (within the meaning of section 851 of such Code).
       (b) Effective Date.--This section shall apply to Federal 
     annual tax returns for taxable years ending after the date of 
     the enactment of this Act.

     SEC. 5507. TREASURY REGULATIONS ON FOREIGN TAX CREDIT.

       (a) In General.--Section 901 (relating to taxes of foreign 
     countries and of possessions of United States) is amended by 
     redesignating subsection (m) as subsection (n) and by 
     inserting after subsection (l) the following new subsection:
       ``(m) Regulations.--The Secretary may prescribe regulations 
     disallowing a credit under subsection (a) for all or a 
     portion of any foreign tax, or allocating a foreign tax among 
     2 or more persons, in cases where the foreign tax is imposed 
     on any person in respect of income of another person or in 
     other cases involving the inappropriate separation of the 
     foreign tax from the related foreign income.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. 5508. WHISTLEBLOWER REFORMS.

       (a) In General.--Section 7623 (relating to expenses of 
     detection of underpayments and fraud, etc.) is amended--
       (1) by striking ``The Secretary'' and inserting ``(a) In 
     General.--The Secretary'',
       (2) by striking ``and'' at the end of paragraph (1) and 
     inserting ``or'',
       (3) by striking ``(other than interest)'', and
       (4) by adding at the end the following new subsections:
       ``(b) Awards to Whistleblowers.--
       ``(1) In general.--If the Secretary proceeds with any 
     administrative or judicial action described in subsection (a) 
     based on information brought to the Secretary's attention by 
     an individual, such individual shall, subject to paragraph 
     (2), receive as an award at least 15 percent but not more 
     than 30 percent of the collected proceeds (including 
     penalties, interest, additions to tax, and additional 
     amounts) resulting from the action (including any related 
     actions) or from any settlement in response to such action. 
     The determination of the amount of such award by the 
     Whistleblower Office shall depend upon the extent to which 
     the individual substantially contributed to such action.
       ``(2) Award in case of less substantial contribution.--
       ``(A) In general.--In the event the action described in 
     paragraph (1) is one which the Whistleblower Office 
     determines to be based principally on disclosures of specific 
     allegations (other than information provided by the 
     individual described in paragraph (1)) resulting

[[Page 10628]]

     from a judicial or administrative hearing, from a 
     governmental report, hearing, audit, or investigation, or 
     from the news media, the Whistleblower Office may award such 
     sums as it considers appropriate, but in no case more than 10 
     percent of the collected proceeds (including penalties, 
     interest, additions to tax, and additional amounts) resulting 
     from the action (including any related actions) or from any 
     settlement in response to such action, taking into account 
     the significance of the individual's information and the role 
     of such individual and any legal representative of such 
     individual in contributing to such action.
       ``(B) Nonapplication of paragraph where individual is 
     original source of information.--Subparagraph (A) shall not 
     apply if the information resulting in the initiation of the 
     action described in paragraph (1) was originally provided by 
     the individual described in paragraph (1).
       ``(3) Reduction in or denial of award.--If the 
     Whistleblower Office determines that the claim for an award 
     under paragraph (1) or (2) is brought by an individual who 
     planned and initiated the actions that led to the 
     underpayment of tax or actions described in subsection 
     (a)(2), then the Whistleblower Office may appropriately 
     reduce such award. If such individual is convicted of 
     criminal conduct arising from the role described in the 
     preceding sentence, the Whistleblower Office shall deny any 
     award.
       ``(4) Appeal of award determination.--Any determination 
     regarding an award under paragraph (1), (2), or (3) shall be 
     subject to the filing by the individual described in such 
     paragraph of a petition for review with the Tax Court under 
     rules similar to the rules under section 7463 (without regard 
     to the amount in dispute) and such review shall be subject to 
     the rules under section 7461(b)(1).
       ``(5) Application of this subsection.--This subsection 
     shall apply with respect to any action--
       ``(A) against any taxpayer, but in the case of any 
     individual, only if such individual's gross income exceeds 
     $200,000 for any taxable year subject to such action, and
       ``(B) if the tax, penalties, interest, additions to tax, 
     and additional amounts in dispute exceed $20,000.
       ``(6) Additional rules.--
       ``(A) No contract necessary.--No contract with the Internal 
     Revenue Service is necessary for any individual to receive an 
     award under this subsection.
       ``(B) Representation.--Any individual described in 
     paragraph (1) or (2) may be represented by counsel.
       ``(C) Award not subject to individual alternative minimum 
     tax.--No award received under this subsection shall be 
     included in gross income for purposes of determining 
     alternative minimum taxable income.
       ``(c) Whistleblower Office.--
       ``(1) In general.--There is established in the Internal 
     Revenue Service an office to be known as the `Whistleblower 
     Office' which--
       ``(A) shall at all times operate at the direction of the 
     Commissioner and coordinate and consult with other divisions 
     in the Internal Revenue Service as directed by the 
     Commissioner,
       ``(B) shall analyze information received from any 
     individual described in subsection (b) and either investigate 
     the matter itself or assign it to the appropriate Internal 
     Revenue Service office,
       ``(C) shall monitor any action taken with respect to such 
     matter,
       ``(D) shall inform such individual that it has accepted the 
     individual's information for further review,
       ``(E) may require such individual and any legal 
     representative of such individual to not disclose any 
     information so provided,
       ``(F) in its sole discretion, may ask for additional 
     assistance from such individual or any legal representative 
     of such individual, and
       ``(G) shall determine the amount to be awarded to such 
     individual under subsection (b).
       ``(2) Funding for office.--There is authorized to be 
     appropriated $10,000,000 for each fiscal year for the 
     Whistleblower Office. These funds shall be used to maintain 
     the Whistleblower Office and also to reimburse other Internal 
     Revenue Service offices for related costs, such as costs of 
     investigation and collection.
       ``(3) Request for assistance.--
       ``(A) In general.--Any assistance requested under paragraph 
     (1)(F) shall be under the direction and control of the 
     Whistleblower Office or the office assigned to investigate 
     the matter under subparagraph (A). To the extent the 
     disclosure of any returns or return information to the 
     individual or legal representative is required for the 
     performance of such assistance, such disclosure shall be 
     pursuant to a contract entered into between the Secretary and 
     the recipients of such disclosure subject to section 6103(n). 
     No individual or legal representative whose assistance is so 
     requested may by reason of such request represent himself or 
     herself as an employee of the Federal Government.
       ``(B) Funding of assistance.--From the amounts available 
     for expenditure under subsection (b), the Whistleblower 
     Office may, with the agreement of the individual described in 
     subsection (b), reimburse the costs incurred by any legal 
     representative of such individual in providing assistance 
     described in subparagraph (A).
       ``(d) Report by Secretary.--The Secretary shall each year 
     conduct a study and report to Congress on the use of this 
     section, including--
       ``(1) an analysis of the use of this section during the 
     preceding year and the results of such use, and
       ``(2) any legislative or administrative recommendations 
     regarding the provisions of this section and its 
     application.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to information provided on or after the date of 
     the enactment of this Act.

     SEC. 5509. DENIAL OF DEDUCTION FOR CERTAIN FINES, PENALTIES, 
                   AND OTHER AMOUNTS.

       (a) In General.--Subsection (f) of section 162 (relating to 
     trade or business expenses) is amended to read as follows:
       ``(f) Fines, Penalties, and Other Amounts.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     deduction otherwise allowable shall be allowed under this 
     chapter for any amount paid or incurred (whether by suit, 
     agreement, or otherwise) to, or at the direction of, a 
     government or entity described in paragraph (4) in relation 
     to the violation of any law or the investigation or inquiry 
     by such government or entity into the potential violation of 
     any law.
       ``(2) Exception for amounts constituting restitution.--
     Paragraph (1) shall not apply to any amount which--
       ``(A) the taxpayer establishes constitutes restitution 
     (including remediation of property) for damage or harm caused 
     by or which may be caused by the violation of any law or the 
     potential violation of any law, and
       ``(B) is identified as restitution in the court order or 
     settlement agreement.
     Identification pursuant to subparagraph (B) alone shall not 
     satisfy the requirement under subparagraph (A). This 
     paragraph shall not apply to any amount paid or incurred as 
     reimbursement to the government or entity for the costs of 
     any investigation or litigation.
       ``(3) Exception for amounts paid or incurred as the result 
     of certain court orders.--Paragraph (1) shall not apply to 
     any amount paid or incurred by order of a court in a suit in 
     which no government or entity described in paragraph (4) is a 
     party.
       ``(4) Certain nongovernmental regulatory entities.--An 
     entity is described in this paragraph if it is--
       ``(A) a nongovernmental entity which exercises self-
     regulatory powers (including imposing sanctions) in 
     connection with a qualified board or exchange (as defined in 
     section 1256(g)(7)), or
       ``(B) to the extent provided in regulations, a 
     nongovernmental entity which exercises self-regulatory powers 
     (including imposing sanctions) as part of performing an 
     essential governmental function.
       ``(5) Exception for taxes due.--Paragraph (1) shall not 
     apply to any amount paid or incurred as taxes due.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred on or after the date 
     of the enactment of this Act, except that such amendment 
     shall not apply to amounts paid or incurred under any binding 
     order or agreement entered into before such date. Such 
     exception shall not apply to an order or agreement requiring 
     court approval unless the approval was obtained before such 
     date.

     SEC. 5510. FREEZE OF INTEREST SUSPENSION RULES WITH RESPECT 
                   TO LISTED TRANSACTIONS.

       (a) In General.--Paragraph (2) of section 903(d) of the 
     American Jobs Creation Act of 2005 is amended to read as 
     follows:
       ``(2) Exception for reportable or listed transactions.--
       ``(A) In general.--The amendments made by subsection (c) 
     shall apply with respect to interest accruing after October 
     3, 2004.
       ``(B) Special rule for certain listed transactions.--
       ``(i) In general.--Except as provided in clause (ii) or 
     (iii), in the case of any listed transaction, the amendments 
     made by subsection (c) shall also apply with respect to 
     interest accruing on or before October 3, 2004.
       ``(ii) Participants in settlement initiatives.--Clause (i) 
     shall not apply to a listed transaction if, as of May 9, 
     2005--

       ``(I) the taxpayer is participating in a published 
     settlement initiative which is offered by the Secretary of 
     the Treasury or his delegate to a group of similarly situated 
     taxpayers claiming benefits from the listed transaction, or
       ``(II) the taxpayer has entered into a settlement agreement 
     pursuant to such an initiative with respect to the tax 
     liability arising in connection with the listed transaction.

     Subclause (I) shall not apply to the taxpayer if, after May 
     9, 2005, the taxpayer withdraws from, or terminates, 
     participation in the initiative or the Secretary or his 
     delegate determines that a settlement agreement will not be 
     reached pursuant to the initiative within a reasonable period 
     of time.
       ``(iii) Closed transactions.--Clause (i) shall not apply to 
     a listed transaction if, as of May 9, 2005--

       ``(I) the assessment of all Federal income taxes for the 
     taxable year in which the tax liability to which the interest 
     relates arose is prevented by the operation of any law or 
     rule of law, or
       ``(II) a closing agreement under section 7121 has been 
     entered into with respect to the tax liability arising in 
     connection with the listed transaction.''.

       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the provisions of the 
     American Jobs Creation Act of 2004 to which it relates.

     SEC. 5511. MODIFICATIONS OF EFFECTIVE DATES OF LEASING 
                   PROVISIONS OF THE AMERICAN JOBS CREATION ACT OF 
                   2004.

       (a) Repeal of Exception for Qualified Transportation 
     Property.--Section 849(b) of

[[Page 10629]]

     the American Jobs Creation Act of 2004 is amended by striking 
     paragraphs (1) and (2) and by redesignating paragraphs (3) 
     and (4) as paragraphs (1) and (2).
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the 
     American Jobs Creation Act of 2004.

     SEC. 5512. IMPOSITION OF MARK-TO-MARKET TAX ON INDIVIDUALS 
                   WHO EXPATRIATE.

       (a) In General.--Subpart A of part II of subchapter N of 
     chapter 1 is amended by inserting after section 877 the 
     following new section:

     ``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.

       ``(a) General Rules.--For purposes of this subtitle--
       ``(1) Mark to market.--Except as provided in subsections 
     (d) and (f), all property of a covered expatriate to whom 
     this section applies shall be treated as sold on the day 
     before the expatriation date for its fair market value.
       ``(2) Recognition of gain or loss.--In the case of any sale 
     under paragraph (1)--
       ``(A) notwithstanding any other provision of this title, 
     any gain arising from such sale shall be taken into account 
     for the taxable year of the sale, and
       ``(B) any loss arising from such sale shall be taken into 
     account for the taxable year of the sale to the extent 
     otherwise provided by this title, except that section 1091 
     shall not apply to any such loss.
     Proper adjustment shall be made in the amount of any gain or 
     loss subsequently realized for gain or loss taken into 
     account under the preceding sentence.
       ``(3) Exclusion for certain gain.--
       ``(A) In general.--The amount which, but for this 
     paragraph, would be includible in the gross income of any 
     individual by reason of this section shall be reduced (but 
     not below zero) by $600,000. For purposes of this paragraph, 
     allocable expatriation gain taken into account under 
     subsection (f)(2) shall be treated in the same manner as an 
     amount required to be includible in gross income.
       ``(B) Cost-of-living adjustment.--
       ``(i) In general.--In the case of an expatriation date 
     occurring in any calendar year after 2005, the $600,000 
     amount under subparagraph (A) shall be increased by an amount 
     equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year, determined by 
     substituting `calendar year 2004' for `calendar year 1992' in 
     subparagraph (B) thereof.

       ``(ii) Rounding rules.--If any amount after adjustment 
     under clause (i) is not a multiple of $1,000, such amount 
     shall be rounded to the next lower multiple of $1,000.
       ``(4) Election to continue to be taxed as united states 
     citizen.--
       ``(A) In general.--If a covered expatriate elects the 
     application of this paragraph--
       ``(i) this section (other than this paragraph and 
     subsection (i)) shall not apply to the expatriate, but
       ``(ii) in the case of property to which this section would 
     apply but for such election, the expatriate shall be subject 
     to tax under this title in the same manner as if the 
     individual were a United States citizen.
       ``(B) Requirements.--Subparagraph (A) shall not apply to an 
     individual unless the individual--
       ``(i) provides security for payment of tax in such form and 
     manner, and in such amount, as the Secretary may require,
       ``(ii) consents to the waiver of any right of the 
     individual under any treaty of the United States which would 
     preclude assessment or collection of any tax which may be 
     imposed by reason of this paragraph, and
       ``(iii) complies with such other requirements as the 
     Secretary may prescribe.
       ``(C) Election.--An election under subparagraph (A) shall 
     apply to all property to which this section would apply but 
     for the election and, once made, shall be irrevocable. Such 
     election shall also apply to property the basis of which is 
     determined in whole or in part by reference to the property 
     with respect to which the election was made.
       ``(b) Election To Defer Tax.--
       ``(1) In general.--If the taxpayer elects the application 
     of this subsection with respect to any property treated as 
     sold by reason of subsection (a), the payment of the 
     additional tax attributable to such property shall be 
     postponed until the due date of the return for the taxable 
     year in which such property is disposed of (or, in the case 
     of property disposed of in a transaction in which gain is not 
     recognized in whole or in part, until such other date as the 
     Secretary may prescribe).
       ``(2) Determination of tax with respect to property.--For 
     purposes of paragraph (1), the additional tax attributable to 
     any property is an amount which bears the same ratio to the 
     additional tax imposed by this chapter for the taxable year 
     solely by reason of subsection (a) as the gain taken into 
     account under subsection (a) with respect to such property 
     bears to the total gain taken into account under subsection 
     (a) with respect to all property to which subsection (a) 
     applies.
       ``(3) Termination of postponement.--No tax may be postponed 
     under this subsection later than the due date for the return 
     of tax imposed by this chapter for the taxable year which 
     includes the date of death of the expatriate (or, if earlier, 
     the time that the security provided with respect to the 
     property fails to meet the requirements of paragraph (4), 
     unless the taxpayer corrects such failure within the time 
     specified by the Secretary).
       ``(4) Security.--
       ``(A) In general.--No election may be made under paragraph 
     (1) with respect to any property unless adequate security is 
     provided to the Secretary with respect to such property.
       ``(B) Adequate security.--For purposes of subparagraph (A), 
     security with respect to any property shall be treated as 
     adequate security if--
       ``(i) it is a bond in an amount equal to the deferred tax 
     amount under paragraph (2) for the property, or
       ``(ii) the taxpayer otherwise establishes to the 
     satisfaction of the Secretary that the security is adequate.
       ``(5) Waiver of certain rights.--No election may be made 
     under paragraph (1) unless the taxpayer consents to the 
     waiver of any right under any treaty of the United States 
     which would preclude assessment or collection of any tax 
     imposed by reason of this section.
       ``(6) Elections.--An election under paragraph (1) shall 
     only apply to property described in the election and, once 
     made, is irrevocable. An election may be made under paragraph 
     (1) with respect to an interest in a trust with respect to 
     which gain is required to be recognized under subsection 
     (f)(1).
       ``(7) Interest.--For purposes of section 6601--
       ``(A) the last date for the payment of tax shall be 
     determined without regard to the election under this 
     subsection, and
       ``(B) section 6621(a)(2) shall be applied by substituting 
     `5 percentage points' for `3 percentage points' in 
     subparagraph (B) thereof.
       ``(c) Covered Expatriate.--For purposes of this section--
       ``(1) In general.--Except as provided in paragraph (2), the 
     term `covered expatriate' means an expatriate.
       ``(2) Exceptions.--An individual shall not be treated as a 
     covered expatriate if--
       ``(A) the individual--
       ``(i) became at birth a citizen of the United States and a 
     citizen of another country and, as of the expatriation date, 
     continues to be a citizen of, and is taxed as a resident of, 
     such other country, and
       ``(ii) has not been a resident of the United States (as 
     defined in section 7701(b)(1)(A)(ii)) during the 5 taxable 
     years ending with the taxable year during which the 
     expatriation date occurs, or
       ``(B)(i) the individual's relinquishment of United States 
     citizenship occurs before such individual attains age 18\1/
     2\, and
       ``(ii) the individual has been a resident of the United 
     States (as so defined) for not more than 5 taxable years 
     before the date of relinquishment.
       ``(d) Exempt Property; Special Rules for Pension Plans.--
       ``(1) Exempt property.--This section shall not apply to the 
     following:
       ``(A) United states real property interests.--Any United 
     States real property interest (as defined in section 
     897(c)(1)), other than stock of a United States real property 
     holding corporation which does not, on the day before the 
     expatriation date, meet the requirements of section 
     897(c)(2).
       ``(B) Specified property.--Any property or interest in 
     property not described in subparagraph (A) which the 
     Secretary specifies in regulations.
       ``(2) Special rules for certain retirement plans.--
       ``(A) In general.--If a covered expatriate holds on the day 
     before the expatriation date any interest in a retirement 
     plan to which this paragraph applies--
       ``(i) such interest shall not be treated as sold for 
     purposes of subsection (a)(1), but
       ``(ii) an amount equal to the present value of the 
     expatriate's nonforfeitable accrued benefit shall be treated 
     as having been received by such individual on such date as a 
     distribution under the plan.
       ``(B) Treatment of subsequent distributions.--In the case 
     of any distribution on or after the expatriation date to or 
     on behalf of the covered expatriate from a plan from which 
     the expatriate was treated as receiving a distribution under 
     subparagraph (A), the amount otherwise includible in gross 
     income by reason of the subsequent distribution shall be 
     reduced by the excess of the amount includible in gross 
     income under subparagraph (A) over any portion of such amount 
     to which this subparagraph previously applied.
       ``(C) Treatment of subsequent distributions by plan.--For 
     purposes of this title, a retirement plan to which this 
     paragraph applies, and any person acting on the plan's 
     behalf, shall treat any subsequent distribution described in 
     subparagraph (B) in the same manner as such distribution 
     would be treated without regard to this paragraph.
       ``(D) Applicable plans.--This paragraph shall apply to--
       ``(i) any qualified retirement plan (as defined in section 
     4974(c)),
       ``(ii) an eligible deferred compensation plan (as defined 
     in section 457(b)) of an eligible employer described in 
     section 457(e)(1)(A), and
       ``(iii) to the extent provided in regulations, any foreign 
     pension plan or similar retirement arrangements or programs.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Expatriate.--The term `expatriate' means--
       ``(A) any United States citizen who relinquishes 
     citizenship, and
       ``(B) any long-term resident of the United States who--

[[Page 10630]]

       ``(i) ceases to be a lawful permanent resident of the 
     United States (within the meaning of section 7701(b)(6)), or
       ``(ii) commences to be treated as a resident of a foreign 
     country under the provisions of a tax treaty between the 
     United States and the foreign country and who does not waive 
     the benefits of such treaty applicable to residents of the 
     foreign country.
       ``(2) Expatriation date.--The term `expatriation date' 
     means--
       ``(A) the date an individual relinquishes United States 
     citizenship, or
       ``(B) in the case of a long-term resident of the United 
     States, the date of the event described in clause (i) or (ii) 
     of paragraph (1)(B).
       ``(3) Relinquishment of citizenship.--A citizen shall be 
     treated as relinquishing United States citizenship on the 
     earliest of--
       ``(A) the date the individual renounces such individual's 
     United States nationality before a diplomatic or consular 
     officer of the United States pursuant to paragraph (5) of 
     section 349(a) of the Immigration and Nationality Act (8 
     U.S.C. 1481(a)(5)),
       ``(B) the date the individual furnishes to the United 
     States Department of State a signed statement of voluntary 
     relinquishment of United States nationality confirming the 
     performance of an act of expatriation specified in paragraph 
     (1), (2), (3), or (4) of section 349(a) of the Immigration 
     and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
       ``(C) the date the United States Department of State issues 
     to the individual a certificate of loss of nationality, or
       ``(D) the date a court of the United States cancels a 
     naturalized citizen's certificate of naturalization.
     Subparagraph (A) or (B) shall not apply to any individual 
     unless the renunciation or voluntary relinquishment is 
     subsequently approved by the issuance to the individual of a 
     certificate of loss of nationality by the United States 
     Department of State.
       ``(4) Long-term resident.--The term `long-term resident' 
     has the meaning given to such term by section 877(e)(2).
       ``(f) Special Rules Applicable to Beneficiaries' Interests 
     in Trust.--
       ``(1) In general.--Except as provided in paragraph (2), if 
     an individual is determined under paragraph (3) to hold an 
     interest in a trust on the day before the expatriation date--
       ``(A) the individual shall not be treated as having sold 
     such interest,
       ``(B) such interest shall be treated as a separate share in 
     the trust, and
       ``(C)(i) such separate share shall be treated as a separate 
     trust consisting of the assets allocable to such share,
       ``(ii) the separate trust shall be treated as having sold 
     its assets on the day before the expatriation date for their 
     fair market value and as having distributed all of its assets 
     to the individual as of such time, and
       ``(iii) the individual shall be treated as having 
     recontributed the assets to the separate trust.
     Subsection (a)(2) shall apply to any income, gain, or loss of 
     the individual arising from a distribution described in 
     subparagraph (C)(ii). In determining the amount of such 
     distribution, proper adjustments shall be made for 
     liabilities of the trust allocable to an individual's share 
     in the trust.
       ``(2) Special rules for interests in qualified trusts.--
       ``(A) In general.--If the trust interest described in 
     paragraph (1) is an interest in a qualified trust--
       ``(i) paragraph (1) and subsection (a) shall not apply, and
       ``(ii) in addition to any other tax imposed by this title, 
     there is hereby imposed on each distribution with respect to 
     such interest a tax in the amount determined under 
     subparagraph (B).
       ``(B) Amount of tax.--The amount of tax under subparagraph 
     (A)(ii) shall be equal to the lesser of--
       ``(i) the highest rate of tax imposed by section 1(e) for 
     the taxable year which includes the day before the 
     expatriation date, multiplied by the amount of the 
     distribution, or
       ``(ii) the balance in the deferred tax account immediately 
     before the distribution determined without regard to any 
     increases under subparagraph (C)(ii) after the 30th day 
     preceding the distribution.
       ``(C) Deferred tax account.--For purposes of subparagraph 
     (B)(ii)--
       ``(i) Opening balance.--The opening balance in a deferred 
     tax account with respect to any trust interest is an amount 
     equal to the tax which would have been imposed on the 
     allocable expatriation gain with respect to the trust 
     interest if such gain had been included in gross income under 
     subsection (a).
       ``(ii) Increase for interest.--The balance in the deferred 
     tax account shall be increased by the amount of interest 
     determined (on the balance in the account at the time the 
     interest accrues), for periods after the 90th day after the 
     expatriation date, by using the rates and method applicable 
     under section 6621 for underpayments of tax for such periods, 
     except that section 6621(a)(2) shall be applied by 
     substituting `5 percentage points' for `3 percentage points' 
     in subparagraph (B) thereof.
       ``(iii) Decrease for taxes previously paid.--The balance in 
     the tax deferred account shall be reduced--

       ``(I) by the amount of taxes imposed by subparagraph (A) on 
     any distribution to the person holding the trust interest, 
     and
       ``(II) in the case of a person holding a nonvested 
     interest, to the extent provided in regulations, by the 
     amount of taxes imposed by subparagraph (A) on distributions 
     from the trust with respect to nonvested interests not held 
     by such person.

       ``(D) Allocable expatriation gain.--For purposes of this 
     paragraph, the allocable expatriation gain with respect to 
     any beneficiary's interest in a trust is the amount of gain 
     which would be allocable to such beneficiary's vested and 
     nonvested interests in the trust if the beneficiary held 
     directly all assets allocable to such interests.
       ``(E) Tax deducted and withheld.--
       ``(i) In general.--The tax imposed by subparagraph (A)(ii) 
     shall be deducted and withheld by the trustees from the 
     distribution to which it relates.
       ``(ii) Exception where failure to waive treaty rights.--If 
     an amount may not be deducted and withheld under clause (i) 
     by reason of the distributee failing to waive any treaty 
     right with respect to such distribution--

       ``(I) the tax imposed by subparagraph (A)(ii) shall be 
     imposed on the trust and each trustee shall be personally 
     liable for the amount of such tax, and
       ``(II) any other beneficiary of the trust shall be entitled 
     to recover from the distributee the amount of such tax 
     imposed on the other beneficiary.

       ``(F) Disposition.--If a trust ceases to be a qualified 
     trust at any time, a covered expatriate disposes of an 
     interest in a qualified trust, or a covered expatriate 
     holding an interest in a qualified trust dies, then, in lieu 
     of the tax imposed by subparagraph (A)(ii), there is hereby 
     imposed a tax equal to the lesser of--
       ``(i) the tax determined under paragraph (1) as if the day 
     before the expatriation date were the date of such cessation, 
     disposition, or death, whichever is applicable, or
       ``(ii) the balance in the tax deferred account immediately 
     before such date.
     Such tax shall be imposed on the trust and each trustee shall 
     be personally liable for the amount of such tax and any other 
     beneficiary of the trust shall be entitled to recover from 
     the covered expatriate or the estate the amount of such tax 
     imposed on the other beneficiary.
       ``(G) Definitions and special rules.--For purposes of this 
     paragraph--
       ``(i) Qualified trust.--The term `qualified trust' means a 
     trust which is described in section 7701(a)(30)(E).
       ``(ii) Vested interest.--The term `vested interest' means 
     any interest which, as of the day before the expatriation 
     date, is vested in the beneficiary.
       ``(iii) Nonvested interest.--The term `nonvested interest' 
     means, with respect to any beneficiary, any interest in a 
     trust which is not a vested interest. Such interest shall be 
     determined by assuming the maximum exercise of discretion in 
     favor of the beneficiary and the occurrence of all 
     contingencies in favor of the beneficiary.
       ``(iv) Adjustments.--The Secretary may provide for such 
     adjustments to the bases of assets in a trust or a deferred 
     tax account, and the timing of such adjustments, in order to 
     ensure that gain is taxed only once.
       ``(v) Coordination with retirement plan rules.--This 
     subsection shall not apply to an interest in a trust which is 
     part of a retirement plan to which subsection (d)(2) applies.
       ``(3) Determination of beneficiaries' interest in trust.--
       ``(A) Determinations under paragraph (1).--For purposes of 
     paragraph (1), a beneficiary's interest in a trust shall be 
     based upon all relevant facts and circumstances, including 
     the terms of the trust instrument and any letter of wishes or 
     similar document, historical patterns of trust distributions, 
     and the existence of and functions performed by a trust 
     protector or any similar adviser.
       ``(B) Other determinations.--For purposes of this section--
       ``(i) Constructive ownership.--If a beneficiary of a trust 
     is a corporation, partnership, trust, or estate, the 
     shareholders, partners, or beneficiaries shall be deemed to 
     be the trust beneficiaries for purposes of this section.
       ``(ii) Taxpayer return position.--A taxpayer shall clearly 
     indicate on its income tax return--

       ``(I) the methodology used to determine that taxpayer's 
     trust interest under this section, and
       ``(II) if the taxpayer knows (or has reason to know) that 
     any other beneficiary of such trust is using a different 
     methodology to determine such beneficiary's trust interest 
     under this section.

       ``(g) Termination of Deferrals, etc.--In the case of any 
     covered expatriate, notwithstanding any other provision of 
     this title--
       ``(1) any period during which recognition of income or gain 
     is deferred shall terminate on the day before the 
     expatriation date, and
       ``(2) any extension of time for payment of tax shall cease 
     to apply on the day before the expatriation date and the 
     unpaid portion of such tax shall be due and payable at the 
     time and in the manner prescribed by the Secretary.
       ``(h) Imposition of Tentative Tax.--
       ``(1) In general.--If an individual is required to include 
     any amount in gross income under subsection (a) for any 
     taxable year, there is hereby imposed, immediately before the 
     expatriation date, a tax in an amount equal to the amount of 
     tax which would be imposed if the taxable year were a short 
     taxable year ending on the expatriation date.
       ``(2) Due date.--The due date for any tax imposed by 
     paragraph (1) shall be the 90th day after the expatriation 
     date.

[[Page 10631]]

       ``(3) Treatment of tax.--Any tax paid under paragraph (1) 
     shall be treated as a payment of the tax imposed by this 
     chapter for the taxable year to which subsection (a) applies.
       ``(4) Deferral of tax.--The provisions of subsection (b) 
     shall apply to the tax imposed by this subsection to the 
     extent attributable to gain includible in gross income by 
     reason of this section.
       ``(i) Special Liens for Deferred Tax Amounts.--
       ``(1) Imposition of lien.--
       ``(A) In general.--If a covered expatriate makes an 
     election under subsection (a)(4) or (b) which results in the 
     deferral of any tax imposed by reason of subsection (a), the 
     deferred amount (including any interest, additional amount, 
     addition to tax, assessable penalty, and costs attributable 
     to the deferred amount) shall be a lien in favor of the 
     United States on all property of the expatriate located in 
     the United States (without regard to whether this section 
     applies to the property).
       ``(B) Deferred amount.--For purposes of this subsection, 
     the deferred amount is the amount of the increase in the 
     covered expatriate's income tax which, but for the election 
     under subsection (a)(4) or (b), would have occurred by reason 
     of this section for the taxable year including the 
     expatriation date.
       ``(2) Period of lien.--The lien imposed by this subsection 
     shall arise on the expatriation date and continue until--
       ``(A) the liability for tax by reason of this section is 
     satisfied or has become unenforceable by reason of lapse of 
     time, or
       ``(B) it is established to the satisfaction of the 
     Secretary that no further tax liability may arise by reason 
     of this section.
       ``(3) Certain rules apply.--The rules set forth in 
     paragraphs (1), (3), and (4) of section 6324A(d) shall apply 
     with respect to the lien imposed by this subsection as if it 
     were a lien imposed by section 6324A.
       ``(j) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''.
       (b) Inclusion in Income of Gifts and Bequests Received by 
     United States Citizens and Residents From Expatriates.--
     Section 102 (relating to gifts, etc. not included in gross 
     income) is amended by adding at the end the following new 
     subsection:
       ``(d) Gifts and Inheritances From Covered Expatriates.--
       ``(1) In general.--Subsection (a) shall not exclude from 
     gross income the value of any property acquired by gift, 
     bequest, devise, or inheritance from a covered expatriate 
     after the expatriation date. For purposes of this subsection, 
     any term used in this subsection which is also used in 
     section 877A shall have the same meaning as when used in 
     section 877A.
       ``(2) Exceptions for transfers otherwise subject to estate 
     or gift tax.--Paragraph (1) shall not apply to any property 
     if either--
       ``(A) the gift, bequest, devise, or inheritance is--
       ``(i) shown on a timely filed return of tax imposed by 
     chapter 12 as a taxable gift by the covered expatriate, or
       ``(ii) included in the gross estate of the covered 
     expatriate for purposes of chapter 11 and shown on a timely 
     filed return of tax imposed by chapter 11 of the estate of 
     the covered expatriate, or
       ``(B) no such return was timely filed but no such return 
     would have been required to be filed even if the covered 
     expatriate were a citizen or long-term resident of the United 
     States.''.
       (c) Definition of Termination of United States 
     Citizenship.--Section 7701(a) is amended by adding at the end 
     the following new paragraph:
       ``(49) Termination of united states citizenship.--
       ``(A) In general.--An individual shall not cease to be 
     treated as a United States citizen before the date on which 
     the individual's citizenship is treated as relinquished under 
     section 877A(e)(3).
       ``(B) Dual citizens.--Under regulations prescribed by the 
     Secretary, subparagraph (A) shall not apply to an individual 
     who became at birth a citizen of the United States and a 
     citizen of another country.''.
       (d) Ineligibility for Visa or Admission to United States.--
       (1) In general.--Section 212(a)(10)(E) of the Immigration 
     and Nationality Act (8 U.S.C. 1182(a)(10)(E)) is amended to 
     read as follows:
       ``(E) Former citizens not in compliance with expatriation 
     revenue provisions.--Any alien who is a former citizen of the 
     United States who relinquishes United States citizenship 
     (within the meaning of section 877A(e)(3) of the Internal 
     Revenue Code of 1986) and who is not in compliance with 
     section 877A of such Code (relating to expatriation).''.
       (2) Availability of information.--
       (A) In general.--Section 6103(l) (relating to disclosure of 
     returns and return information for purposes other than tax 
     administration) is amended by adding at the end the following 
     new paragraph:
       ``(21) Disclosure to deny visa or admission to certain 
     expatriates.--Upon written request of the Attorney General or 
     the Attorney General's delegate, the Secretary shall disclose 
     whether an individual is in compliance with section 877A (and 
     if not in compliance, any items of noncompliance) to officers 
     and employees of the Federal agency responsible for 
     administering section 212(a)(10)(E) of the Immigration and 
     Nationality Act solely for the purpose of, and to the extent 
     necessary in, administering such section 212(a)(10)(E).''.
       (B) Safeguards.--Section 6103(p)(4) (relating to 
     safeguards) is amended by striking ``or (20)'' each place it 
     appears and inserting ``(20), or (21)''.
       (3) Effective dates.--The amendments made by this 
     subsection shall apply to individuals who relinquish United 
     States citizenship on or after the date of the enactment of 
     this Act.
       (e) Conforming Amendments.--
       (1) Section 877 is amended by adding at the end the 
     following new subsection:
       ``(h) Application.--This section shall not apply to an 
     expatriate (as defined in section 877A(e)) whose expatriation 
     date (as so defined) occurs on or after the date of the 
     enactment of the Safe, Accountable, Flexible, and Efficient 
     Transportation Equity Act of 2005.''.
       (2) Section 2107 is amended by adding at the end the 
     following new subsection:
       ``(f) Application.--This section shall not apply to any 
     expatriate subject to section 877A.''.
       (3) Section 2501(a)(3) is amended by adding at the end the 
     following new subparagraph:
       ``(C) Application.--This paragraph shall not apply to any 
     expatriate subject to section 877A.''.
       (f) Clerical Amendment.--The table of sections for subpart 
     A of part II of subchapter N of chapter 1 is amended by 
     inserting after the item relating to section 877 the 
     following new item:

``Sec. 877A. Tax responsibilities of expatriation.''.

       (g) Effective Date.--
       (1) In general.--Except as provided in this subsection, the 
     amendments made by this section shall apply to expatriates 
     (within the meaning of section 877A(e) of the Internal 
     Revenue Code of 1986, as added by this section) whose 
     expatriation date (as so defined) occurs on or after the date 
     of the enactment of this Act.
       (2) Gifts and bequests.--Section 102(d) of the Internal 
     Revenue Code of 1986 (as added by subsection (b)) shall apply 
     to gifts and bequests received on or after the date of the 
     enactment of this Act, from an individual or the estate of an 
     individual whose expatriation date (as so defined) occurs 
     after such date.
       (3) Due date for tentative tax.--The due date under section 
     877A(h)(2) of the Internal Revenue Code of 1986, as added by 
     this section, shall in no event occur before the 90th day 
     after the date of the enactment of this Act.

     SEC. 5513. DISALLOWANCE OF DEDUCTION FOR PUNITIVE DAMAGES.

       (a) Disallowance of Deduction.--
       (1) In general.--Section 162(g) (relating to treble damage 
     payments under the antitrust laws) is amended--
       (A) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively,
       (B) by striking ``If'' and inserting:
       ``(1) Treble damages.--If'', and
       (C) by adding at the end the following new paragraph:
       ``(2) Punitive damages.--No deduction shall be allowed 
     under this chapter for any amount paid or incurred for 
     punitive damages in connection with any judgment in, or 
     settlement of, any action. This paragraph shall not apply to 
     punitive damages described in section 104(c).''.
       (2) Conforming amendment.--The heading for section 162(g) 
     is amended by inserting ``or Punitive Damages'' after 
     ``Laws''.
       (b) Inclusion in Income of Punitive Damages Paid by Insurer 
     or Otherwise.--
       (1) In general.--Part II of subchapter B of chapter 1 
     (relating to items specifically included in gross income) is 
     amended by adding at the end the following new section:

     ``SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSURANCE OR 
                   OTHERWISE.

       ``Gross income shall include any amount paid to or on 
     behalf of a taxpayer as insurance or otherwise by reason of 
     the taxpayer's liability (or agreement) to pay punitive 
     damages.''.
       (2) Reporting requirements.--Section 6041 (relating to 
     information at source) is amended by adding at the end the 
     following new subsection:
       ``(f) Section To Apply to Punitive Damages Compensation.--
     This section shall apply to payments by a person to or on 
     behalf of another person as insurance or otherwise by reason 
     of the other person's liability (or agreement) to pay 
     punitive damages.''.
       (3) Conforming amendment.--The table of sections for part 
     II of subchapter B of chapter 1 is amended by adding at the 
     end the following new item:

``Sec. 91. Punitive damages compensated by insurance or otherwise.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to damages paid or incurred on or after the date 
     of the enactment of this Act.

     SEC. 5514. APPLICATION OF EARNINGS STRIPPING RULES TO 
                   PARTNERS WHICH ARE C CORPORATIONS.

       (a) In General.--Section 163(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) Allocations to certain corporate partners.--If a C 
     corporation is a partner in a partnership--
       ``(A) 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
       ``(B) if a deduction is not disallowed under this 
     subsection with respect to any interest expense of the 
     partnership, this subsection shall

[[Page 10632]]

     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 on or after the date 
     of the enactment of this Act.

     SEC. 5515. PROHIBITION ON DEFERRAL OF GAIN FROM THE EXERCISE 
                   OF STOCK OPTIONS AND RESTRICTED STOCK GAINS 
                   THROUGH DEFERRED COMPENSATION ARRANGEMENTS.

       (a) In General.--Section 83 (relating to property 
     transferred in connection with performance of services) is 
     amended by adding at the end the following new subsection:
       ``(i) Prohibition on Additional Deferral Through Deferred 
     Compensation Arrangements.--If a taxpayer exchanges--
       ``(1) an option to purchase employer securities--
       ``(A) to which subsection (a) applies, or
       ``(B) which is described in subsection (e)(3), or
       ``(2) employer securities or any other property based on 
     employer securities transferred to the taxpayer,

     for a right to receive future payments, then, notwithstanding 
     any other provision of this title, there shall be included in 
     gross income for the taxable year of the exchange an amount 
     equal to the present value of such right (or such other 
     amount as the Secretary may by regulations specify). For 
     purposes of this subsection, the term `employer securities' 
     includes any security issued by the employer.''.
       (b) Controlled Group Rules.--Section 414(t)(2) is amended 
     by inserting ``83(i),'' after ``79,''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to any exchange after the date of the enactment 
     of this Act.

     SEC. 5516. LIMITATION OF EMPLOYER DEDUCTION FOR CERTAIN 
                   ENTERTAINMENT EXPENSES.

       (a) In General.--Paragraph (2) of section 274(e) (relating 
     to expenses treated as compensation) is amended to read as 
     follows:
       ``(2) Expenses treated as compensation.--Expenses for 
     goods, services, and facilities, to the extent that the 
     expenses do not exceed the amount of the expenses which are 
     treated by the taxpayer, with respect to the recipient of the 
     entertainment, amusement, or recreation, as compensation to 
     an employee on the taxpayer's return of tax under this 
     chapter and as wages to such employee for purposes of chapter 
     24 (relating to withholding of income tax at source on 
     wages).''.
       (b) Persons Not Employees.--Paragraph (9) of section 274(e) 
     is amended by striking ``to the extent that the expenses are 
     includible in the gross income'' and inserting ``to the 
     extent that the expenses do not exceed the amount of the 
     expenses which are includible in the gross income''.
       (c) Effective Date.--The amendment made by this section 
     shall apply to expenses incurred after the date of the 
     enactment of this Act.

     SEC. 5517. INCREASE IN PENALTY FOR BAD CHECKS AND MONEY 
                   ORDERS.

       (a) In General.--Section 6657 (relating to bad checks) is 
     amended--
       (1) by striking ``$750'' and inserting ``$1,250'', and
       (2) by striking ``$15'' and inserting ``$25''.
       (b) Effective Date.--The amendments made by this section 
     apply to checks or money orders received after the date of 
     the enactment of this Act.

     SEC. 5518. ELIMINATION OF DOUBLE DEDUCTION ON MINING 
                   EXPLORATION AND DEVELOPMENT COSTS UNDER THE 
                   MINIMUM TAX.

       (a) In General.--Section 57(a)(1) (relating to depletion) 
     is amended by striking ``for the taxable year)'' and 
     inserting ``for the taxable year and determined without 
     regard to so much of the basis as is attributable to mining 
     exploration and development costs described in section 616 or 
     617 for which a deduction is allowable for any taxable year 
     under this part).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment this Act.

                  PART II--ECONOMIC SUBSTANCE DOCTRINE

     SEC. 5521. CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.

       (a) In General.--Section 7701 is amended by redesignating 
     subsection (o) as subsection (p) and by inserting after 
     subsection (n) the following new subsection:
       ``(o) Clarification of Economic Substance Doctrine; Etc.--
       ``(1) General rules.--
       ``(A) In general.--In any case in which a court determines 
     that the economic substance doctrine is relevant for purposes 
     of this title to a transaction (or series of transactions), 
     such transaction (or series of transactions) shall have 
     economic substance only if the requirements of this paragraph 
     are met.
       ``(B) Definition of economic substance.--For purposes of 
     subparagraph (A)--
       ``(i) In general.--A transaction has economic substance 
     only if--

       ``(I) the transaction changes in a meaningful way (apart 
     from Federal tax effects) the taxpayer's economic position, 
     and
       ``(II) the taxpayer has a substantial nontax purpose for 
     entering into such transaction and the transaction is a 
     reasonable means of accomplishing such purpose.

     In applying subclause (II), a purpose of achieving a 
     financial accounting benefit shall not be taken into account 
     in determining whether a transaction has a substantial nontax 
     purpose if the origin of such financial accounting benefit is 
     a reduction of income tax.
       ``(ii) Special rule where taxpayer relies on profit 
     potential.--A transaction shall not be treated as having 
     economic substance by reason of having a potential for profit 
     unless--

       ``(I) the present value of the reasonably expected pre-tax 
     profit from the transaction is substantial in relation to the 
     present value of the expected net tax benefits that would be 
     allowed if the transaction were respected, and
       ``(II) the reasonably expected pre-tax profit from the 
     transaction exceeds a risk-free rate of return.

       ``(C) Treatment of fees and foreign taxes.--Fees and other 
     transaction expenses and foreign taxes shall be taken into 
     account as expenses in determining pre-tax profit under 
     subparagraph (B)(ii).
       ``(2) Special rules for transactions with tax-indifferent 
     parties.--
       ``(A) Special rules for financing transactions.--The form 
     of a transaction which is in substance the borrowing of money 
     or the acquisition of financial capital directly or 
     indirectly from a tax-indifferent party shall not be 
     respected if the present value of the deductions to be 
     claimed with respect to the transaction is substantially in 
     excess of the present value of the anticipated economic 
     returns of the person lending the money or providing the 
     financial capital. A public offering shall be treated as a 
     borrowing, or an acquisition of financial capital, from a 
     tax-indifferent party if it is reasonably expected that at 
     least 50 percent of the offering will be placed with tax-
     indifferent parties.
       ``(B) Artificial income shifting and basis adjustments.--
     The form of a transaction with a tax-indifferent party shall 
     not be respected if--
       ``(i) it results in an allocation of income or gain to the 
     tax-indifferent party in excess of such party's economic 
     income or gain, or
       ``(ii) it results in a basis adjustment or shifting of 
     basis on account of overstating the income or gain of the 
     tax-indifferent party.
       ``(3) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Economic substance doctrine.--The term `economic 
     substance doctrine' means the common law doctrine under which 
     tax benefits under subtitle A with respect to a transaction 
     are not allowable if the transaction does not have economic 
     substance or lacks a business purpose.
       ``(B) Tax-indifferent party.--The term `tax-indifferent 
     party' means any person or entity not subject to tax imposed 
     by subtitle A. A person shall be treated as a tax-indifferent 
     party with respect to a transaction if the items taken into 
     account with respect to the transaction have no substantial 
     impact on such person's liability under subtitle A.
       ``(C) Exception for personal transactions of individuals.--
     In the case of an individual, this subsection shall apply 
     only to transactions entered into in connection with a trade 
     or business or an activity engaged in for the production of 
     income.
       ``(D) Treatment of lessors.--In applying paragraph 
     (1)(B)(ii) to the lessor of tangible property subject to a 
     lease--
       ``(i) the expected net tax benefits with respect to the 
     leased property shall not include the benefits of--

       ``(I) depreciation,
       ``(II) any tax credit, or
       ``(III) any other deduction as provided in guidance by the 
     Secretary, and

       ``(ii) subclause (II) of paragraph (1)(B)(ii) shall be 
     disregarded in determining whether any of such benefits are 
     allowable.
       ``(4) Other common law doctrines not affected.--Except as 
     specifically provided in this subsection, the provisions of 
     this subsection shall not be construed as altering or 
     supplanting any other rule of law, and the requirements of 
     this subsection shall be construed as being in addition to 
     any such other rule of law.
       ``(5) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this subsection. Such regulations may include 
     exemptions from the application of this subsection.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. 5522. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO 
                   TRANSACTIONS LACKING ECONOMIC SUBSTANCE, ETC.

       (a) In General.--Subchapter A of chapter 68 is amended by 
     inserting after section 6662A the following new section:

     ``SEC. 6662B. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO 
                   TRANSACTIONS LACKING ECONOMIC SUBSTANCE, ETC.

       ``(a) Imposition of Penalty.--If a taxpayer has an 
     noneconomic substance transaction understatement for any 
     taxable year, there shall be added to the tax an amount equal 
     to 40 percent of the amount of such understatement.
       ``(b) Reduction of Penalty for Disclosed Transactions.--
     Subsection (a) shall be applied by substituting `20 percent' 
     for `40 percent' with respect to the portion of any 
     noneconomic substance transaction understatement with respect 
     to which the relevant facts affecting the tax treatment of 
     the item are adequately disclosed in the return or a 
     statement attached to the return.
       ``(c) Noneconomic Substance Transaction Understatement.--
     For purposes of this section--
       ``(1) In general.--The term `noneconomic substance 
     transaction understatement' means

[[Page 10633]]

     any amount which would be an understatement under section 
     6662A(b)(1) if section 6662A were applied by taking into 
     account items attributable to noneconomic substance 
     transactions rather than items to which section 6662A would 
     apply without regard to this paragraph.
       ``(2) Noneconomic substance transaction.--The term 
     `noneconomic substance transaction' means any transaction 
     if--
       ``(A) there is a lack of economic substance (within the 
     meaning of section 7701(o)(1)) for the transaction giving 
     rise to the claimed benefit or the transaction was not 
     respected under section 7701(o)(2), or
       ``(B) the transaction fails to meet the requirements of any 
     similar rule of law.
       ``(d) Rules Applicable to Compromise of Penalty.--
       ``(1) In general.--If the 1st letter of proposed deficiency 
     which allows the taxpayer an opportunity for administrative 
     review in the Internal Revenue Service Office of Appeals has 
     been sent with respect to a penalty to which this section 
     applies, only the Commissioner of Internal Revenue may 
     compromise all or any portion of such penalty.
       ``(2) Applicable rules.--The rules of paragraphs (2) and 
     (3) of section 6707A(d) shall apply for purposes of paragraph 
     (1).
       ``(e) Coordination With Other Penalties.--Except as 
     otherwise provided in this part, the penalty imposed by this 
     section shall be in addition to any other penalty imposed by 
     this title.
       ``(f) Cross References.--

    ``(1) For coordination of penalty with understatements under 
      section 6662 and other special rules, see section 6662A(e).
    ``(2) For reporting of penalty imposed under this section to the 
      Securities and Exchange Commission, see section 6707A(e).''.

       (b) Coordination With Other Understatements and 
     Penalties.--
       (1) The second sentence of section 6662(d)(2)(A) is amended 
     by inserting ``and without regard to items with respect to 
     which a penalty is imposed by section 6662B'' before the 
     period at the end.
       (2) Subsection (e) of section 6662A is amended--
       (A) in paragraph (1), by inserting ``and noneconomic 
     substance transaction understatements'' after ``reportable 
     transaction understatements'' both places it appears,
       (B) in paragraph (2)(A), by inserting ``and a noneconomic 
     substance transaction understatement'' after ``reportable 
     transaction understatement'',
       (C) in paragraph (2)(B), by inserting ``6662B or'' before 
     ``6663'',
       (D) in paragraph (2)(C)(i), by inserting ``or section 
     6662B'' before the period at the end,
       (E) in paragraph (2)(C)(ii), by inserting ``and section 
     6662B'' after ``This section'',
       (F) in paragraph (3), by inserting ``or noneconomic 
     substance transaction understatement'' after ``reportable 
     transaction understatement'', and
       (G) by adding at the end the following new paragraph:
       ``(4) Noneconomic substance transaction understatement.--
     For purposes of this subsection, the term `noneconomic 
     substance transaction understatement' has the meaning given 
     such term by section 6662B(c).''.
       (3) Subsection (e) of section 6707A is amended--
       (A) by striking ``or'' at the end of subparagraph (B), and
       (B) by striking subparagraph (C) and inserting the 
     following new subparagraphs:
       ``(C) is required to pay a penalty under section 6662B with 
     respect to any noneconomic substance transaction, or
       ``(D) is required to pay a penalty under section 6662(h) 
     with respect to any transaction and would (but for section 
     6662A(e)(2)(C)) have been subject to penalty under section 
     6662A at a rate prescribed under section 6662A(c) or under 
     section 6662B,''.
       (c) Clerical Amendment.--The table of sections for part II 
     of subchapter A of chapter 68 is amended by inserting after 
     the item relating to section 6662A the following new item:

``Sec. 6662B. Penalty for understatements attributable to transactions 
              lacking economic substance, etc.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. 5523. DENIAL OF DEDUCTION FOR INTEREST ON UNDERPAYMENTS 
                   ATTRIBUTABLE TO NONECONOMIC SUBSTANCE 
                   TRANSACTIONS.

       (a) In General.--Section 163(m) (relating to interest on 
     unpaid taxes attributable to nondisclosed reportable 
     transactions) is amended--
       (1) by striking ``attributable'' and all that follows and 
     inserting the following: ``attributable to--
       ``(1) the portion of any reportable transaction 
     understatement (as defined in section 6662A(b)) with respect 
     to which the requirement of section 6664(d)(2)(A) is not met, 
     or
       ``(2) any noneconomic substance transaction understatement 
     (as defined in section 6662B(c)).'', and
       (2) by inserting ``and Noneconomic Substance Transactions'' 
     in the heading thereof after ``Transactions''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions after the date of the enactment 
     of this Act in taxable years ending after such date.

PART III--IMPROVEMENTS IN EFFICIENCY AND SAFEGUARDS IN INTERNAL REVENUE 
                           SERVICE COLLECTION

     SEC. 5531. WAIVER OF USER FEE FOR INSTALLMENT AGREEMENTS 
                   USING AUTOMATED WITHDRAWALS.

       (a) In General.--Section 6159 (relating to agreements for 
     payment of tax liability in installments) is amended by 
     redesignating subsection (e) as subsection (f) and by 
     inserting after subsection (d) the following:
       ``(e) Waiver of User Fees for Installment Agreements Using 
     Automated Withdrawals.--In the case of a taxpayer who enters 
     into an installment agreement in which automated installment 
     payments are agreed to, the Secretary shall waive the fee (if 
     any) for entering into the installment agreement.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to agreements entered into on or after the date 
     which is 180 days after the date of the enactment of this 
     Act.

     SEC. 5532. TERMINATION OF INSTALLMENT AGREEMENTS.

       (a) In General.--Section 6159(b)(4) (relating to failure to 
     pay an installment or any other tax liability when due or to 
     provide requested financial information) is amended by 
     striking ``or'' at the end of subparagraph (B), by 
     redesignating subparagraph (C) as subparagraph (E), and by 
     inserting after subparagraph (B) the following:
       ``(C) to make a Federal tax deposit under section 6302 at 
     the time such deposit is required to be made,
       ``(D) to file a return of tax imposed under this title by 
     its due date (including extensions), or''.
       (b) Conforming Amendment.--The heading for section 
     6159(b)(4) is amended by striking ``Failure to pay an 
     installment or any other tax liability when due or to provide 
     requested financial information'' and inserting ``Failure to 
     make payments or deposits or file returns when due or to 
     provide requested financial information''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to failures occurring on or after the date of the 
     enactment of this Act.

     SEC. 5533. OFFICE OF CHIEF COUNSEL REVIEW OF OFFERS-IN-
                   COMPROMISE.

       (a) In General.--Section 7122(b) (relating to record) is 
     amended by striking ``Whenever a compromise'' and all that 
     follows through ``his delegate'' and inserting ``If the 
     Secretary determines that an opinion of the General Counsel 
     for the Department of the Treasury, or the Counsel's 
     delegate, is required with respect to a compromise, there 
     shall be placed on file in the office of the Secretary such 
     opinion''.
       (b) Conforming Amendments.--Section 7122(b) is amended by 
     striking the second and third sentences.
       (c) Effective Date.--The amendments made by this section 
     shall apply to offers-in-compromise submitted or pending on 
     or after the date of the enactment of this Act.

     SEC. 5534. PARTIAL PAYMENTS REQUIRED WITH SUBMISSION OF 
                   OFFERS-IN-COMPROMISE.

       (a) In General.--Section 7122 (relating to compromises), as 
     amended by this Act, is amended by redesignating subsections 
     (c), (d), and (e) as subsections (d), (e), and (f), 
     respectively, and by inserting after subsection (b) the 
     following new subsection:
       ``(c) Rules for Submission of Offers-in-compromise.--
       ``(1) Partial payment required with submission.--
       ``(A) Lump-sum offers.--
       ``(i) In general.--The submission of any lump-sum offer-in-
     compromise shall be accompanied by the payment of 20 percent 
     of amount of such offer.
       ``(ii) Lump-sum offer-in-compromise.--For purposes of this 
     section, the term `lump-sum offer-in-compromise' means any 
     offer of payments made in 5 or fewer installments.
       ``(B) Periodic payment offers.--The submission of any 
     periodic payment offer-in-compromise shall be accompanied by 
     the payment of the amount of the first proposed installment 
     and each proposed installment due during the period such 
     offer is being evaluated for acceptance and has not been 
     rejected by the Secretary. Any failure to make a payment 
     required under the preceding sentence shall be deemed a 
     withdrawal of the offer-in-compromise.
       ``(2) Rules of application.--
       ``(A) Use of payment.--The application of any payment made 
     under this subsection to the assessed tax or other amounts 
     imposed under this title with respect to such tax may be 
     specified by the taxpayer.
       ``(B) No user fee imposed.--Any user fee which would 
     otherwise be imposed under this section shall not be imposed 
     on any offer-in-compromise accompanied by a payment required 
     under this subsection.''.
       (b) Additional Rules Relating to Treatment of Offers.--
       (1) Unprocessable offer if payment requirements are not 
     met.--Paragraph (3) of section 7122(d) (relating to standards 
     for evaluation of offers), as redesignated by subsection (a), 
     is amended by striking ``; and'' at the end of subparagraph 
     (A) and inserting a comma, by striking the period at the end 
     of subparagraph (B) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(C) any offer-in-compromise which does not meet the 
     requirements of subsection (c) shall be returned to the 
     taxpayer as unprocessable.''.
       (2) Deemed acceptance of offer not rejected within certain 
     period.--Section 7122, as amended by subsection (a), is 
     amended by adding at the end the following new subsection:
       ``(g) Deemed Acceptance of Offer Not Rejected Within 
     Certain Period.--Any offer-in-

[[Page 10634]]

     compromise submitted under this section shall be deemed to be 
     accepted by the Secretary if such offer is not rejected by 
     the Secretary before the date which is 24 months after the 
     date of the submission of such offer (12 months for offers-
     in-compromise submitted after the date which is 5 years after 
     the date of the enactment of this subsection). For purposes 
     of the preceding sentence, any period during which any tax 
     liability which is the subject of such offer-in-compromise is 
     in dispute in any judicial proceeding shall not be taken in 
     to account in determining the expiration of the 24-month 
     period (or 12-month period, if applicable).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to offers-in-compromise submitted on and after 
     the date which is 60 days after the date of the enactment of 
     this Act.

     SEC. 5535. JOINT TASK FORCE ON OFFERS-IN-COMPROMISE.

       (a) In General.--The Secretary of the Treasury shall 
     establish a joint task force--
       (1) to review the Internal Revenue Service's determinations 
     with respect to offers-in-compromise, including offers which 
     raise equitable, public policy, or economic hardship grounds 
     for compromise of a tax liability under section 7122 of the 
     Internal Revenue Code of 1986,
       (2) to review the extent to which the Internal Revenue 
     Service has used its authority to resolve longstanding cases 
     by forgoing penalties and interest which have accumulated as 
     a result of delay in determining the taxpayer's liability,
       (3) to provide recommendations as to whether the Internal 
     Revenue Service's evaluation of offers-in-compromise should 
     include--
       (A) the taxpayer's compliance history,
       (B) errors by the Internal Revenue Service with respect to 
     the underlying tax, and
       (C) wrongful acts by a third party which gave rise to the 
     liability, and
       (4) to annually report to the Committee on Finance of the 
     Senate and the Committee on Ways and Means of the House of 
     Representatives (beginning in 2006) regarding such review and 
     recommendations.
       (b) Members of Joint Task Force.--The membership of the 
     joint task force under subsection (a) shall consist of 1 
     representative each from the Department of the Treasury, the 
     Internal Revenue Service Oversight Board, the Office of the 
     Chief Counsel for the Internal Revenue Service, the Office of 
     the Taxpayer Advocate, the Office of Appeals, and the 
     division of the Internal Revenue Service charged with 
     operating the offer-in-compromise program.
       (c) Report of National Taxpayer Advocate.--
       (1) In general.--Clause (ii) of section 7803(c)(2)(B) 
     (relating to annual reports) is amended by striking ``and'' 
     at the end of subclause (X), by redesignating subclause (XI) 
     as subclause (XII), and by inserting after subclause (X) the 
     following new subclause:

       ``(XI) include a list of the factors taxpayers have raised 
     to support their claims for offers-in-compromise relief, the 
     number of such offers submitted, accepted, and rejected, the 
     number of such offers appealed, the period during which 
     review of such offers have remained pending, and the efforts 
     the Internal Revenue Service has made to correctly identify 
     such offers, including the training of employees in 
     identifying and evaluating such offers.''.

       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to reports in calendar year 2006 and thereafter.

               Subtitle F--Additional Revenue Provisions

                       PART I--GENERAL PROVISIONS

     SEC. 5601. SUSPENSION OF TRANSFERS FROM HIGHWAY TRUST FUND 
                   FOR CERTAIN REPAYMENTS AND CREDITS.

       (a) In General.--Section 9503(c)(2)(A) (relating to 
     transfers from Highway Trust Fund for certain repayments and 
     credits) is amended--
       (1) by striking ``July 1, 2006'' in clause (i) and 
     inserting ``July 1, 2012'',
       (2) by striking ``October 1, 2005'' in the matter following 
     clause (i)(III) and inserting ``April 1, 2005, or for periods 
     ending after September 30, 2009, and before October 1, 
     2011'', and
       (3) by striking ``October 1, 2005'' in clause (ii) and 
     inserting ``April 1, 2005, or used after September 30, 2009, 
     and before October 1, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to amounts paid for which no transfer has been 
     made before April 1, 2005.

     SEC. 5602. TEMPORARY DEDICATION OF GAS GUZZLER TAX TO HIGHWAY 
                   TRUST FUND.

       (a) In General.--Section 9503(b)(1) (relating to transfer 
     to Highway Trust Fund of amounts equivalent to certain 
     taxes), as amended by this Act, is amended by redesignating 
     subparagraphs (C), (D), and (E) as subparagraphs (D), (E), 
     and (F), respectively, and by inserting after subparagraph 
     (B) the following new subparagraph:
       ``(C) section 4064 (relating to gas guzzler tax),''.
       (b) Temporary Period for Dedication.--Section 9503(b)(4) 
     (relating to certain taxes not transferred to Highway Trust 
     Fund) is amended by redesignating subparagraphs (B), (C), and 
     (D) as subparagraphs (C), (D), and (E), respectively, and by 
     inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) section 4064 with respect to taxes imposed after 
     September 30, 2009,''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxes imposed on and after July 1, 2005.

                PART II--PROVISIONS TO COMBAT FUEL FRAUD

     SEC. 5611. TREATMENT OF KEROSENE FOR USE IN AVIATION.

       (a) All Kerosene Taxed at Highest Rate.--
       (1) In general.--Section 4081(a)(2)(A) (relating to rates 
     of tax) is amended by adding ``and'' at the end of clause 
     (ii), by striking ``, and'' at the end of clause (iii) and 
     inserting a period, and by striking clause (iv).
       (2) Exception for use in aviation.--Subparagraph (C) of 
     section 4081(a)(2), as amended by this Act, is amended to 
     read as follows:
       ``(C) Taxes imposed on fuel used in aviation.--In the case 
     of kerosene which is removed from any refinery or terminal 
     directly into the fuel tank of an aircraft for use in 
     aviation, the rate of tax under subparagraph (A)(iii) shall 
     be--
       ``(i) in the case of use for commercial aviation by a 
     person registered for such use under section 4101, 4.3 cents 
     per gallon, and
       ``(ii) in the case of use for aviation not described in 
     clause (i), 21.8 cents per gallon.''.
       (3) Conforming amendments.--
       (A) Sections 4081(a)(3)(A) and 4082(b) are amended by 
     striking ``aviation-grade'' each place it appears.
       (B) Section 4081(a)(4) is amended by striking ``paragraph 
     (2)(C)'' and inserting ``paragraph (2)(C)(i)''.
       (C) The heading for paragraph (4) of section 4081(a) is 
     amended by striking ``aviation-grade''.
       (D) Section 4081(d)(2), as amended by this Act, is amended 
     by striking so much as precedes subparagraph (A) and 
     inserting the following:
       ``(2) Aviation fuels.--The rates of tax specified in 
     subsections (a)(2)(A)(ii) and (a)(2)(C)(ii) shall be 4.3 
     cents per gallon--''.
       (E) Subsection (e) of section 4082 is amended--
       (i) by striking ``aviation-grade'',
       (ii) by striking ``section 4081(a)(2)(A)(iv)'' and 
     inserting ``section 4081(a)(2)(A)(iii)'', and
       (iii) by striking ``Aviation-Grade Kerosene'' in the 
     heading thereof and inserting ``Kerosene Removed Into an 
     Aircraft''.
       (b) Reduced Rate for Use of Certain Liquids in Aviation.--
       (1) In general.--Subsection (c) of section 4041 (relating 
     to imposition of tax) is amended--
       (A) by striking ``aviation-grade kerosene'' in paragraph 
     (1) and inserting ``any liquid for use as a fuel other than 
     aviation gasoline'',
       (B) by striking ``aviation-grade kerosene'' in paragraph 
     (2) and inserting ``liquid for use as a fuel other than 
     aviation gasoline'',
       (C) by striking paragraph (3) and inserting the following 
     new paragraph:
       ``(3) Rate of tax.--The rate of tax imposed by this 
     subsection shall be 21.8 cents per gallon (4.3 cents per 
     gallon with respect to any sale or use for commercial 
     aviation).'', and
       (D) by striking ``Aviation-Grade Kerosene'' in the heading 
     thereof and inserting ``Certain Liquids Used as a Fuel in 
     Aviation''.
       (2) Partial refund of full rate.--
       (A) In general.--Paragraph (2) of section 6427(l) (relating 
     to nontaxable uses of diesel fuel, kerosene and aviation 
     fuel) is amended to read as follows:
       ``(2) Nontaxable use.--For purposes of this subsection, the 
     term `nontaxable use' means any use which is exempt from the 
     tax imposed by section 4041(a)(1) other than by reason of a 
     prior imposition of tax.''.
       (B) Refunds for noncommercial aviation.--Section 6427(l) 
     (relating to nontaxable uses of diesel fuel, kerosene and 
     aviation fuel) is amended by redesignating paragraph (5) as 
     paragraph (6) and by inserting after paragraph (4) the 
     following new paragraph:
       ``(5) Refunds for kerosene used in noncommercial 
     aviation.--
       ``(A) In general.--In the case of kerosene used in aviation 
     not described in paragraph (4)(A) (other than any use which 
     is exempt from the tax imposed by section 4041(c) other than 
     by reason of a prior imposition of tax), paragraph (1) shall 
     not apply to so much of the tax imposed by section 4081 as is 
     attributable to--
       ``(i) the Leaking Underground Storage Tank Trust Fund 
     financing rate imposed by such section, and
       ``(ii) so much of the rate of tax specified in section 
     4081(a)(2)(A)(iii) as does not exceed the rate specified in 
     section 4081(a)(2)(C)(ii).
       ``(B) Payment to ultimate, registered vendor.--The amount 
     which would be paid under paragraph (1) with respect to any 
     kerosene shall be paid to the ultimate vendor of such 
     kerosene, if such vendor--
       ``(i) is registered under section 4101, and
       ``(ii) meets the requirements of subparagraph (A), (B), or 
     (D) of section 6416(a)(1).''.
       (3) Conforming amendments.--
       (A) Section 4041(a)(1)(B) is amended by striking the last 
     sentence.
       (B) The heading for subsection (l) of section 6427 is 
     amended by striking ``, Kerosene and Aviation Fuel'' and 
     inserting ``and Kerosene''.
       (C) Section 4082(d)(2)(B) is amended by striking ``section 
     6427(l)(5)(B)'' and inserting ``section 6427(l)(6)(B)''.
       (D) Section 6427(i)(4)(A) is amended--
       (i) by striking ``paragraph (4)(B) or (5)'' both places it 
     appears and inserting ``paragraph (4)(B), (5), or (6)'', and
       (ii) by striking ``subsection (b)(4) and subsection 
     (l)(5)'' in the last sentence and inserting ``subsections 
     (b)(4), (l)(5), and (l)(6)''.
       (E) Paragraph (4) of section 6427(l) is amended--

[[Page 10635]]

       (i) by striking ``aviation-grade'' in subparagraph (A),
       (ii) by striking ``section 4081(a)(2)(A)(iv)'' and 
     inserting ``section 4081(a)(2)(iii)'',
       (iii) by striking ``aviation-grade kerosene'' in 
     subparagraph (B) and inserting ``kerosene used in commercial 
     aviation as described in subparagraph (A)'', and
       (iv) by striking ``aviation-grade kerosene'' in the heading 
     thereof and inserting ``kerosene used in commercial 
     aviation''.
       (F) Section 6427(l)(6)(B), as redesignated by paragraph 
     (2)(B), is amended by striking ``aviation-grade kerosene'' 
     and inserting ``kerosene used in aviation''.
       (c) Transfers From Highway Trust Fund of Taxes on Fuels 
     Used in Aviation to Airport and Airway Trust Fund.--
       (1) In general.--Section 9503(c) (relating to expenditures 
     from Highway Trust Fund), as amended by this Act, is amended 
     by adding at the end the following new paragraph:
       ``(7) Transfers from the trust fund for certain aviation 
     fuel taxes.--The Secretary shall pay from time to time from 
     the Highway Trust Fund into the Airport and Airway Trust Fund 
     amounts (as determined by the Secretary) equivalent to the 
     taxes received on or after October 1, 2005, and before 
     October 1, 2011, under sections 4041 and 4081 with respect to 
     fuels used in a nontaxable use (as described in section 
     6427(l)(2)(B)) to the extent such amounts exceed the amounts 
     paid with respect to such use under paragraphs (4) and (5) of 
     section 6427(l).''.
       (2) Conforming amendments.--
       (A) Section 9502(a) is amended by striking ``appropriated 
     or credited to the Airport and Airway Trust Fund as provided 
     in this section or section 9602(b)'' and inserting 
     ``appropriated, credited, or paid into the Airport and Airway 
     Trust Fund as provided in this section, section 9503(c)(7), 
     or section 9602(b)''.
       (B) Section 9502(b)(1) is amended--
       (i) by striking ``subsections (c) and (e) of section 4041'' 
     in subparagraph (A) and inserting ``section 4041(c)'', and
       (ii) by striking ``and aviation-grade kerosene'' in 
     subparagraph (C) and inserting ``and kerosene to the extent 
     attributable to the rate specified in section 
     4081(a)(2)(C)''.
       (C) Section 9503(b) is amended by striking paragraph (3).
       (d) Effective Date.--The amendments made by this section 
     shall apply to fuels or liquids removed, entered, or sold 
     after September 30, 2005.

     SEC. 5612. REPEAL OF ULTIMATE VENDOR REFUND CLAIMS WITH 
                   RESPECT TO FARMING.

       (a) In General.--Subparagraph (A) of section 6427(l)(6) 
     (relating to registered vendors to administer claims for 
     refund of diesel fuel or kerosene sold to farmers and State 
     and local governments), as redesignated by section 5611, is 
     amended to read as follows:
       ``(A) In general.--Paragraph (1) shall not apply to diesel 
     fuel or kerosene used by a State or local government.''.
       (b) Conforming Amendment.--The heading of paragraph (6) of 
     section 6427(l), as so redesignated, is amended by striking 
     ``farmers and''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales after September 30, 2005.

     SEC. 5613. REFUNDS OF EXCISE TAXES ON EXEMPT SALES OF FUEL BY 
                   CREDIT CARD.

       (a) Gasoline.--
       (1) In general.--Paragraph (4) of section 6416(a) (relating 
     to condition to allowance) is amended--
       (A) by inserting ``except as provided in subparagraph 
     (B),'' after ``For purposes of this subsection,'' in 
     subparagraph (A),
       (B) by redesignating subparagraph (B) as subparagraph (C) 
     and by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Credit card issuer.--For purposes of this subsection, 
     if the sale of gasoline described in subparagraph (A) 
     (determined without regard to the registration status of the 
     ultimate vendor) is made by means of a credit card issued to 
     the ultimate purchaser, paragraph (1) shall not apply and the 
     person extending the credit to the ultimate purchaser shall 
     be treated as the person (and the only person) who paid the 
     tax, but only if such person--
       ``(i) is registered under section 4101, and
       ``(ii) has established, under regulations prescribed by the 
     Secretary, that such person--

       ``(I) has not collected the amount of the tax from the 
     person who purchased such article, or
       ``(II) has obtained the written consent from the ultimate 
     purchaser to the allowance of the credit or refund, and

       ``(iii) has so established that such person--

       ``(I) has repaid or agreed to repay the amount of the tax 
     to the ultimate vendor,
       ``(II) has obtained the written consent of the ultimate 
     vendor to the allowance of the credit or refund, or
       ``(III) has otherwise made arrangements which directly or 
     indirectly assure the ultimate vendor of reimbursement of 
     such tax.'',

       (C) by striking ``subparagraph (A)'' in subparagraph (C), 
     as redesignated by paragraph (2), and inserting 
     ``subparagraph (A) or (B)'',
       (D) by inserting ``or credit card issuer'' after ``vendor'' 
     in subparagraph (C), as so redesignated, and
       (E) by inserting ``or credit card issuer'' after ``vendor'' 
     in the heading thereof.
       (2) Conforming amendment.--Section 6416(b)(2) is amended by 
     adding at the end the following new sentence: ``Subparagraphs 
     (C) and (D) shall not apply in the case of any tax imposed on 
     gasoline under section 4081 if the requirements of subsection 
     (a)(4) are not met.''
       (b) Diesel Fuel or Kerosene.--Paragraph (6) of section 
     6427(l) (relating to nontaxable uses of diesel fuel and 
     kerosene), as redesignated by section 5611, is amended--
       (1) by striking ``The amount'' in subparagraph (C) and 
     inserting ``Except as provided in subparagraph (D), the 
     amount'', and
       (2) by adding at the end the following new subparagraph:
       ``(D) Credit card issuer.--For purposes of this paragraph, 
     if the sale of any fuel described in subparagraph (A) 
     (determined without regard to the registration status of the 
     ultimate vendor) is made by means of a credit card issued to 
     the ultimate purchaser, the Secretary shall pay to the person 
     extending the credit to the ultimate purchaser the amount 
     which would have been paid under paragraph (1) (but for 
     subparagraph (A) or (B)), but only if such person meets the 
     requirements of clauses (i), (ii), and (iii) of section 
     6416(a)(4)(B).''.
       (c) Conforming Penalty Amendments.--
       (1) Section 6206 (relating to special rules applicable to 
     excessive claims under sections 6420, 6421, and 6427) is 
     amended--
       (A) by striking ``Any portion'' in the first sentence and 
     inserting ``Any portion of a refund made under section 
     6416(a)(4) and any portion'',
       (B) by striking ``payments under sections 6420'' in the 
     first sentence and inserting ``refunds under section 
     6416(a)(4) and payments under sections 6420'',
       (C) by striking ``section 6420'' in the second sentence and 
     inserting ``section 6416(a)(4), 6420'', and
       (D) by striking ``SECTIONS 6420, 6421, and 6427'' in the 
     heading thereof and inserting ``CERTAIN SECTIONS''.
       (2) Section 6675(a) is amended by inserting ``section 
     6416(a)(4) (relating to certain sales of gasoline),'' after 
     ``made under''.
       (3) Section 6675(b)(1) is amended by inserting 
     ``6416(a)(4),'' after ``under section''.
       (4) The item relating to section 6206 in the table of 
     sections for subchapter A of chapter 63 is amended by 
     striking ``sections 6420, 6421, and 6427'' and inserting 
     ``certain sections''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to sales after December 31, 2005.

     SEC. 5614. ADDITIONAL REQUIREMENT FOR EXEMPT PURCHASES.

       (a) State and Local Governments.--
       (1) Subparagraph (C) of section 6416(b)(2) (relating to 
     specified uses and resales) is amended to read as follows:
       ``(C) sold to a State or local government for the exclusive 
     use of a State or local government (as defined in section 
     4221(d)(4) and certified as such by the State) or sold to a 
     qualified volunteer fire department (as defined in section 
     150(e)(2) and certified as such by the State) for its 
     exclusive use;''.
       (2) Section 4041(g)(2) (relating to other exemptions) is 
     amended by striking ``or the District of Columbia'' and 
     inserting ``the District of Columbia, or a qualified 
     volunteer fire department (as defined in section 150(e)(2)) 
     (and certified as such by the State or the District of 
     Columbia)''.
       (b) Nonprofit Educational Organizations.--
       (1) Section 6416(b)(2)(D) is amended by inserting ``(as 
     defined in section 4221(d)(5) and certified to be in good 
     standing by the State in which such organization is providing 
     educational services)'' after ``organization''.
       (2) Section 4041(g)(4) is amended--
       (A) by inserting ``(certified to be in good standing by the 
     State in which such organization is providing educational 
     services)'' after ``organization'' the first place it 
     appears, and
       (B) by striking ``use by a'' and inserting ``use by such 
     a''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales after December 31, 2005.

     SEC. 5615. REREGISTRATION IN EVENT OF CHANGE IN OWNERSHIP.

       (a) In General.--Section 4101(a) (relating to registration) 
     is amended by adding at the end the following new paragraph:
       ``(4) Reregistration in event of change in ownership.--
     Under regulations prescribed by the Secretary, a person 
     (other than a corporation the stock of which is regularly 
     traded on an established securities market) shall be required 
     to reregister under this section if after a transaction (or 
     series of related transactions) more than 50 percent of 
     ownership interests in, or assets of, such person are held by 
     persons other than persons (or persons related thereto) who 
     held more than 50 percent of such interests or assets before 
     the transaction (or series of related transactions).''.
       (b) Conforming Amendments.--
       (1) Civil penalty.--Section 6719 (relating to failure to 
     register) is amended--
       (A) by inserting ``or reregister'' after ``register'' each 
     place it appears,
       (B) by inserting ``or Reregister'' after ``Register'' in 
     the heading for subsection (a), and
       (C) by inserting ``OR REREGISTER'' after ``REGISTER'' in 
     the heading thereof.
       (2) Criminal penalty.--Section 7232 (relating to failure to 
     register under section 4101, false representations of 
     registration status, etc.) is amended--
       (A) by inserting ``or reregister'' after ``register'',
       (B) by inserting ``or reregistration'' after 
     ``registration'', and
       (C) by inserting ``OR REREGISTER'' after ``REGISTER'' in 
     the heading thereof.
       (3) Clerical amendments.--The item relating to section 6719 
     in the table of sections for part I of subchapter B of 
     chapter 68 and the item relating to section 7232 in the table 
     of sections for

[[Page 10636]]

     part II of subchapter A of chapter 75 are each amended by 
     inserting ``or reregister'' after ``register''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to actions, or failures to act, after the date of 
     the enactment of this Act.

     SEC. 5616. RECONCILIATION OF ON-LOADED CARGO TO ENTERED 
                   CARGO.

       (a) In General.--Subsection (a) of section 343 of the Trade 
     Act of 2002 is amended by inserting at the end the following 
     new paragraph:
       ``(4) Transmission of data.--Pursuant to paragraph (2), not 
     later than 1 year after the date of enactment of this 
     paragraph, the Secretary of Homeland Security, after 
     consultation with the Secretary of the Treasury, shall 
     establish an electronic data interchange system through which 
     the United States Customs and Border Protection shall 
     transmit to the Internal Revenue Service information 
     pertaining to cargoes of any taxable fuel (as defined in 
     section 4083 of the Internal Revenue Code of 1986) that the 
     United States Customs and Border Protection has obtained 
     electronically under its regulations adopted in accordance 
     with paragraph (1). For this purpose, not later than 1 year 
     after the date of enactment of this paragraph, all filers of 
     required cargo information for such taxable fuels (as so 
     defined) must provide such information to the United States 
     Customs and Border Protection through such electronic data 
     interchange system.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 5617. REGISTRATION OF DEEP-DRAFT VESSELS.

       In applying section 4101 of the Internal Revenue Code of 
     1986 on and after the date of the enactment of this Act, the 
     Secretary of the Treasury shall require the registration 
     under such section of every operator of a vessel described in 
     section 4042(c)(1) of such Code.

     SEC. 5618. TAXATION OF GASOLINE BLEND-
                   STOCKS AND KEROSENE.

       With respect to fuel entered or removed after September 30, 
     2005, the Secretary of the Treasury shall, in applying 
     section 4083 of the Internal Revenue Code of 1986--
       (1) prohibit the nonbulk entry or removal of any gasoline 
     blend stock without the imposition of tax under section 4081 
     of such Code, and
       (2) include mineral spirits in the definition of kerosene.

     SEC. 5619. NONAPPLICATION OF EXPORT EXEMPTION TO DELIVERY OF 
                   FUEL TO MOTOR VEHICLES REMOVED FROM UNITED 
                   STATES.

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

     SEC. 5620. PENALTY WITH RESPECT TO CERTAIN ADULTERATED FUELS.

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

     ``SEC. 6720A. PENALTY WITH RESPECT TO CERTAIN ADULTERATED 
                   FUELS.

       ``(a) In General.--Any person who knowingly transfers for 
     resale, sells for resale, or holds out for resale any liquid 
     for use in a diesel-powered highway vehicle or a diesel-
     powered train which does not meet applicable EPA regulations 
     (as defined in section 45H(c)(3)), shall pay a penalty of 
     $10,000 for each such transfer, sale, or holding out for 
     resale, in addition to the tax on such liquid (if any).
       ``(b) Penalty in the Case of Retailers.--Any person who 
     knowingly holds out for sale (other than for resale) any 
     liquid described in subsection (a), shall pay a penalty of 
     $10,000 for each such holding out for sale, in addition to 
     the tax on such liquid (if any).''.
       (b) Dedication of Revenue.--Paragraph (5) of section 
     9503(b) (relating to certain penalties) is amended by 
     inserting ``6720A,'' after ``6719,''.
       (c) Clerical Amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by adding at the end 
     the following new item:

``Sec. 6720A. Penalty with respect to certain adulterated fuels.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to any transfer, sale, or holding out for sale or 
     resale occurring after the date of the enactment of this Act.

                    TITLE VI--PUBLIC TRANSPORTATION

     SEC. 6001. SHORT TITLE.

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

     SEC. 6002. 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. 6003. 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. 6004. 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 redesignating paragraphs (8) through (17) as 
     paragraphs (9) through (18), respectively;
       (3) 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.'';
       (4) 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.'';
       (5) in subparagraphs (A) and (E) of paragraph (16), as 
     redesignated, by striking ``and'' each place it appears and 
     inserting ``or''; and

[[Page 10637]]

       (6) by amending paragraph (18), as redesignated, to read as 
     follows:
       ``(18) 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. 6005. 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 2005 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.

[[Page 10638]]

       ``(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 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--

[[Page 10639]]

       ``(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 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 
     2005, 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

[[Page 10640]]

       ``(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. 6006. 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 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

[[Page 10641]]

       ``(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.
       ``(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 section 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.).''.

[[Page 10642]]



     SEC. 6007. TRANSPORTATION MANAGEMENT AREAS.

       Section 5305 is repealed.

     SEC. 6008. 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 2005, 
     the Secretary shall issue regulations describing how the 
     requirements under this chapter relating to subsection (a) 
     shall be enforced.''.

     SEC. 6009. 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 section 5336 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 2005 through 2007.--
       ``(A) Increased flexibility.--The Secretary may award 
     grants under this section, from funds made available to carry 
     out this section for each of the fiscal years 2005 through 
     2007, to finance the operating cost of equipment and 
     facilities for use in mass transportation in an urbanized 
     area with a population of at least 200,000, as determined by 
     the 2000 decennial census of population if--
       ``(i) the urbanized area had a population of less than 
     200,000, as determined by the 1990 decennial census of 
     population;
       ``(ii) a portion of the urbanized area was a separate 
     urbanized area with a population of less than 200,000, as 
     determined by the 1990 decennial census of population;
       ``(iii) the area was not designated as an urbanized area, 
     as determined by the 1990 decennial census of population; or
       ``(iv) a portion of the area was not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and received assistance under section 5311 in fiscal year 
     2002.
       ``(B) Maximum amounts in fiscal year 2005.--In fiscal year 
     2005--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     the amount apportioned in fiscal year 2002 to the urbanized 
     area with a population of less than 200,000, as determined in 
     the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than the amount 
     apportioned to the urbanized area under this section for 
     fiscal year 2003; and
       ``(iii) each portion of any area not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and eligible to receive funds under subparagraph (A)(iv), 
     shall receive an amount of funds to carry out this section 
     that is not less than the amount the portion of the area 
     received under section 5311 for fiscal year 2002.
       ``(C) Maximum amounts in fiscal year 2006.--In fiscal year 
     2006--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     50 percent of the amount apportioned in fiscal year 2002 to 
     the urbanized area with a population of less than 200,000, as 
     determined in the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than 50 percent of 
     the amount apportioned to the urbanized area under this 
     section for fiscal year 2003; and
       ``(iii) each portion of any area not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and eligible to receive funds under subparagraph (A)(iv), 
     shall receive an amount of funds to carry out this section 
     that is not less 50 percent of the amount the portion of the 
     area received under section 5311 for fiscal year 2002.
       ``(D) Maximum amounts in fiscal year 2007.--In fiscal year 
     2007--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     25 percent of the amount apportioned in fiscal year 2002 to 
     the urbanized area with a population of less than 200,000, as 
     determined in the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than 25 percent of 
     the amount apportioned to the urbanized area under this 
     section for fiscal year 2003; and
       ``(iii) each portion of any area not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and eligible to receive funds under subparagraph (A)(iv), 
     shall receive an amount of funds to carry out this section 
     that is not less than 25 percent of the amount the portion of 
     the area received under section 5311 in fiscal year 2002.''; 
     and
       (3) by striking paragraph (4).
       (d) Grant Recipient Requirements.--Section 5307(d)(1) is 
     amended--
       (1) in subparagraph (A), by inserting ``, including safety 
     and security aspects of the program'' after ``program'';
       (2) in subparagraph (E), 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).''.
       (e) 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.''.
       (f) Undertaking Projects in Advance.--Section 5307(g) is 
     amended by striking paragraph (4).
       (g) 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.''.
       (h) Contracted Paratransit Pilot.--
       (1) In General.--Notwithstanding section 5302(a)(1)(I) of 
     title 49, United States Code, for fiscal years 2005 through 
     2009, a recipient of assistance under section 5307 of title 
     49, United States Code, in an urbanized area with a 
     population of 558,329 according to the 2000 decennial census 
     of population may use not more than 20 percent of such 
     recipient's annual formula apportionment under section 5307 
     of title 49,

[[Page 10643]]

     United States Code, for the provision of nonfixed route 
     paratransit services in accordance with section 223 of the 
     Americans with Disabilities Act (42 U.S.C. 12143), but only 
     if the grant recipient is in compliance with applicable 
     requirements of that Act, including both fixed route and 
     demand responsive service and the service is acquired by 
     contract.
       (2) Report.--Not later than January 1, 2009, the Secretary 
     shall submit to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate, a report on the implementation of this section and 
     any recommendations of the Secretary regarding the 
     application of this section.

     SEC. 6010. 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 
     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 2006 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. 6011. 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

[[Page 10644]]

     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;
       ``(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 2005.
       ``(7) Rulemaking.--Not later than 240 days after the date 
     of enactment of the Federal Public Transportation Act of 
     2005, 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 2005; 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

[[Page 10645]]

     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 
     2005, 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 
     2005, the Secretary shall issue regulations establishing an 
     evaluation and rating process for proposed projects under 
     this subsection that is based on the results of project 
     justification and local financial commitment, as required 
     under this subsection.''.
       (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) Government Share of Net Project Cost.--Section 5309(h) 
     is amended to read as follows:
       ``(h) Government 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 government 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 2005.--Of the amounts made available or 
     appropriated for fiscal year 2005 under section 5338(a)(3)--
       ``(A) $1,437,829,600 shall be allocated for 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) $1,204,684,800 shall be allocated for capital 
     projects for fixed guideway modernization; and
       ``(C) $669,600,000 shall be allocated for capital projects 
     for buses and bus-related equipment and facilities.
       ``(2) In general.--Of the amounts made available or 
     appropriated for fiscal year 2006 and each fiscal year 
     thereafter for grants under this section pursuant to 
     subsections (b)(4) and (c) of section 5338--

[[Page 10646]]

       ``(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 2006 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 2005 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 the Departments of 
     Transportation, Treasury, Housing and Urban Development, The 
     Judiciary, District of Columbia, and Independent Agencies of 
     the Committee on Appropriations of the House of 
     Representatives; and
       ``(iv) the Subcommittee on Transportation, Treasury, and 
     General Government 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) Triannual 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 the Departments of 
     Transportation, Treasury, Housing and Urban Development, The 
     Judiciary, District of Columbia, and Independent Agencies of 
     the Committee on Appropriations of the House of 
     Representatives; and
       ``(iv) the Subcommittee on Transportation, Treasury, and 
     General Government 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 the Departments of 
     Transportation, Treasury, Housing and Urban Development, The 
     Judiciary, District of Columbia, and Independent Agencies of 
     the Committee on Appropriations of the House of 
     Representatives; and
       ``(D) the Subcommittee on Transportation, Treasury, and 
     General Government 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 2005, 
     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 government accountability 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 2005, 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.--Funds provided to grantees under the bus 
     and bus facility category for fixed guideway ferry and 
     gondola projects in the Department of Transportation and 
     Related Agencies Appropriations Acts for any of fiscal years 
     1998 through 2005, or accompanying committee reports, that 
     remain available and unobligated may be used for fixed 
     guideway projects under this section.
       (m) Miami Metrorail.--The Secretary may credit funds 
     provided by the Florida Department of Transportation for the 
     extension of the Miami Metrorail System from Earlington 
     Heights to the Miami Intermodal Center to satisfy the 
     matching requirements of section 5309(h)(4) of title 49, 
     United Stated Code, for the Miami North Corridor and Miami 
     East-West Corridor projects.

     SEC. 6012. 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;

[[Page 10647]]

       ``(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) Government 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 Government share in 
     accordance with the formula under that section.
       ``(2) Remaining costs.--The costs of a capital project 
     under this section that are not funded through a grant under 
     this section--
       ``(A) may be funded from an undistributed cash surplus, a 
     replacement or depreciation cash fund or reserve, a service 
     agreement with a State or local social service agency or a 
     private social service organization, or new capital; and
       ``(B) may be derived from amounts appropriated to or made 
     available to any Federal agency (other than the Department of 
     Transportation, except for Federal Lands Highway funds) that 
     are eligible to be expended for transportation.
       ``(3) Exception.--For purposes of paragraph (2), the 
     prohibitions on the use of funds for matching requirements 
     under section 403(a)(5)(C)(vii) of the Social Security Act 
     (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal or 
     State funds to be used for transportation purposes.
       ``(d) Grant Requirements.--
       ``(1) In general.--A grant recipient under this section 
     shall be subject to the requirements of a grant recipient 
     under section 5307 to the extent the Secretary determines to 
     be appropriate.
       ``(2) Certification requirements.--
       ``(A) Fund transfers.--A grant recipient under this section 
     that transfers funds to a project funded under section 5336 
     in accordance with subsection (b)(2) shall certify that the 
     project for which the funds are requested has been 
     coordinated with private nonprofit providers of services 
     under this section.
       ``(B) Project selection and plan development.--Each grant 
     recipient under this section shall certify that--
       ``(i) the projects selected were derived from a locally 
     developed, coordinated public transit-human services 
     transportation plan; and
       ``(ii) the plan was developed through a process that 
     included representatives of public, private, and nonprofit 
     transportation and human services providers and participation 
     by the public.
       ``(C) Allocations to subrecipients.--Each grant recipient 
     under this section shall certify that allocations of the 
     grant to subrecipients, if any, are distributed on a fair and 
     equitable basis.
       ``(e) State Program of Projects.--
       ``(1) Submission to secretary.--Each State shall annually 
     submit a program of transportation projects to the Secretary 
     for approval with an assurance that the program provides for 
     maximum feasible coordination between transportation services 
     funded under this section and transportation services 
     assisted by other Federal sources.
       ``(2) Use of funds.--Each State may use amounts made 
     available to carry out this section to provide transportation 
     services for elderly individuals and individuals with 
     disabilities if such services are included in an approved 
     State program of projects.
       ``(f) Leasing Vehicles.--Vehicles acquired under this 
     section may be leased to local governmental authorities to 
     improve transportation services designed to meet the needs of 
     elderly individuals and individuals with disabilities.
       ``(g) Meal Delivery for Homebound Individuals.--Public 
     transportation service providers receiving assistance under 
     this section or section 5311(c) may coordinate and assist in 
     regularly providing meal delivery service for homebound 
     individuals if the delivery service does not conflict with 
     providing public transportation service or reduce service to 
     public transportation passengers.
       ``(h) Transfers of Facilities and Equipment.--With the 
     consent of the recipient in possession of a facility or 
     equipment acquired with a grant under this section, a State 
     may transfer the facility or equipment to any recipient 
     eligible to receive assistance under this chapter if the 
     facility or equipment will continue to be used as required 
     under this section.
       ``(i) Fares Not Required.--This section does not require 
     that elderly individuals and individuals with disabilities be 
     charged a fare.''.
       (b) Conforming Amendment.--The item relating to section 
     5310 in the table of sections for chapter 53 is amended to 
     read as follows:

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

     SEC. 6013. 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) $8,000,000 for fiscal year 2006.
       ``(B) $10,000,000 for fiscal year 2007.
       ``(C) $12,000,000 for fiscal year 2008.
       ``(D) $15,000,000 for fiscal year 2009.
       ``(2) Remaining amounts.--Of the amounts made available or 
     appropriated for each fiscal year pursuant to subsections 
     (a)(1)(C)(v) and (b)(2)(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--

[[Page 10648]]

       (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) Government Share of Costs.--Section 5311(g) is amended 
     to read as follows:
       ``(g) Government Share of Costs.--
       ``(1) Maximum government 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 Government 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 Government share of the net 
     operating costs equal to 62.5 percent of the Government 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 Government agency (other than the Department 
     of Transportation, except for Federal Land Highway funds) 
     that are eligible to be expended for transportation.
       ``(3) Use of government grant.--A State carrying out a 
     program of operating assistance under this section may not 
     limit the level or extent of use of the Government grant for 
     the payment of operating expenses.
       ``(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. 6014. 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)(2), as redesignated, by striking 
     ``other agreements'' and inserting ``other transactions''; 
     and
       (5) in subsection (c)(2), as redesignated, by striking 
     ``public and private'' and inserting ``public or private''.
       (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. 6015. 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) Government Assistance.--''; and
       (3) by amending subsection (c) to read as follows:
       ``(c) Government Share.--If there would be a clear and 
     direct financial benefit to an entity under a grant or 
     contract financed under this section, the Secretary shall 
     establish a Government share consistent with 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. 6016. 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) Government 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 Government 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

[[Page 10649]]

       ``(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.
       ``(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 2005, 
     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.
       ``(e) Study of Methods to Improve Accessibility of Public 
     Transportation for Persons With Visual Disabilities.--Not 
     later than October 1, 2006, the Secretary shall transmit to 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate a report on the 
     effectiveness of alternative methods to improve the 
     accessibility of public transportation for persons with 
     visual disabilities. The report shall evaluate a variety of 
     methods and techniques for improving accessibility, including 
     installation of Remote Infrared Audible Signs for provision 
     of wayfinding and information for people who have visual, 
     cognitive, or learning disabilities.''.
       (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. 6017. 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 grants to 
     Rutgers University to conduct a national transit institute.
       ``(b) Duties.--
       ``(1) In general.--In cooperation with the Federal Transit 
     Administration, State transportation departments, public 
     transportation authorities, and national and international 
     entities, the institute established 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. 6018. 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. 6019. BICYCLE FACILITIES.

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

     SEC. 6020. SUSPENDED LIGHT RAIL TECHNOLOGY PILOT PROJECT.

       Section 5320 is repealed.

     SEC. 6021. CRIME PREVENTION AND SECURITY.

       Section 5321 is repealed.

     SEC. 6022. 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 (e) to read as follows:
       ``(e) 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) in subsection (f)--

[[Page 10650]]

       (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.'';
       (5) in subsection (g), by striking ``103(e)(4) and 142 (a) 
     or (c)'' each place it appears and inserting ``133 and 142'';
       (6) 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.'';
       (7) 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 2005'';
       (8) 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.'';
       (9) in subsection (m), by adding 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.'';
       (10) in subsection (o), by striking ``the Transportation 
     Infrastructure Finance and Innovation Act of 1998'' and 
     inserting ``subchapter II of chapter 1 of title 23''; and
       (11) by adding at the end the following:
       ``(p) 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.'';
       ``(q) Prohibited Use of Funds.--Grant funds received under 
     this chapter may not be used to pay ordinary governmental or 
     nonproject operating expenses.''.

     SEC. 6023. 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.
       ``(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. 6024. 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,

[[Page 10651]]

     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. 6025. 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.''; and
       (2) in paragraph (2)--
       (A) by striking ``(2)'' and inserting the following:
       ``(2) Other allowable uses.--''; and
       (B) by inserting ``and security'' after ``safety''.

     SEC. 6026. 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. 6027. 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 2005, 
     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. 6028. 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)''; 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. 6029. 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,''.

[[Page 10652]]

       (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. 6030. 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. 6031. 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. 6032. 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.'';
       (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)''; and
       (5) by adding at the end the following:
       ``(l) Notification of pending discretionary grants.--Not 
     less than 3 full business days before announcement of award 
     by the Secretary of any discretionary grant, letter of 
     intent, or full funding grant agreement totaling $1,000,000 
     or more, the Secretary shall notify the Committees on 
     Banking, Housing, and Urban Affairs and Appropriations of the 
     Senate and Committees on Transportation and Infrastructure 
     and Appropriation of the House of Representatives.''.

     SEC. 6033. 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. 6034. APPORTIONMENTS OF APPROPRIATIONS FOR FORMULA 
                   GRANTS.

       Section 5336 is amended--
       (1) by striking subsections (d), (h), and (k);
       (2) by redesignating subsections (a) through (c) as 
     subsections (b) through (d), respectively;
       (3) by redesignating subsection (i) and (j) as subsection 
     (h) and (i) respectively;
       (4) 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 2006 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).'';
       (5) 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)'';
       (6) in subsection (c)(2), as redesignated, by striking 
     ``subsection (a)(2) of this section'' and inserting 
     ``subsection (b)(2)'';
       (7) in subsection (d), as redesignated, by striking 
     ``subsection (a)(2) of this section'' and inserting 
     ``subsection (b)(2)'';
       (8) 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'';
       (9) in subsection (g), by striking ``subsection (a)(1) of 
     this section'' each place it appears and inserting 
     ``subsection (b)(1)''; and
       (10) by adding at the end the following:
       ``(j) 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).
       ``(k) 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 2005, 
     the Secretary shall submit a report on the results of the 
     study conducted under paragraph (1) to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives.
       ``(B) Contents.--The report submitted under subparagraph 
     (A) shall include--
       ``(i) an analysis of the availability of appropriate 
     measures to be used as a basis for the distribution of 
     incentive payments;
       ``(ii) the optimal number and size of any incentive 
     programs;
       ``(iii) what types of systems should compete for various 
     incentives;
       ``(iv) how incentives should be distributed; and
       ``(v) the likely effects of the incentive funding 
     system.''.

     SEC. 6035. 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. 6036. AUTHORIZATIONS.

       Section 5338 is amended to read as follows:

     ``Sec. 5338. Authorizations

       ``(a) Fiscal Year 2005.--
       ``(1) Formula grants.--
       ``(A) Trust fund.--For fiscal year 2005, $3,499,927,776 
     shall be available from the Mass Transit Account of the 
     Highway Trust Fund to carry out sections 5307, 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 $499,989,824 for fiscal year 2005 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) $4,811,150 shall be available to the Alaska Railroad 
     for improvements to its passenger operations under section 
     5307;

[[Page 10653]]

       ``(ii) $6,894,400 shall be available to provide over-the-
     road bus accessibility grants under section 3038 of the 
     Transportation Equity Act for the 21st Century (49 U.S.C. 
     5310 note);
       ``(iii) $94,526,689 shall be available to provide 
     transportation services to elderly individuals and 
     individuals with disabilities under section 5310;
       ``(iv) $173,040,330 shall be available to provide financial 
     assistance for other than urbanized areas under section 5311;
       ``(v) $3,325,048,327 shall be available to provide 
     financial assistance for urbanized areas under section 5307;
       ``(vi) $49,600,000 shall be available to provide financial 
     assistance for buses and bus facilities under section 5309; 
     and
       ``(vii) $345,996,704 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.''.
       ``(2) Job access and reverse commute.--
       ``(A) Trust fund.--For fiscal year 2005, $108,500,000 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out section 3037 of the Transportation 
     Equity Act for the 21st Century (49 U.S.C. 5309 note).
       ``(B) General fund.--In addition to the amounts made 
     available under paragraph (A), there are authorized to be 
     appropriated $15,500,000 for fiscal year 2005 to carry out 
     section 3037 of the Transportation Equity Act of the 21st 
     Century (49 U.S.C. 5309 note).
       ``(3) Capital program grants.--
       ``(A) Trust fund.--For fiscal year 2005, $2,898,100,224 
     shall be available from the Mass Transit Account of the 
     Highway Trust Fund to carry out section 5309.
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there are authorized to be 
     appropriated $414,014,176 for fiscal year 2005 to carry out 
     section 5309.
       ``(4) Planning.--
       ``(A) Trust fund.--For fiscal year 2005, $63,364,000 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out section 5308.
       ``(B) General fund.--In addition to the amounts made 
     available under subparagraph (A), there are authorized to be 
     appropriated $9,052,000 for fiscal year 2005 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 2005, $47,740,000 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 $6,820,000 for fiscal year 2005 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 $3,968,000 shall be available to carry 
     out programs of the National Transit Institute under section 
     5315;
       ``(ii) not less than $5,208,000 shall be available to carry 
     out section 5311(b)(2);
       ``(iii) not less than $8,184,000 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 2005, $5,208,000 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 $744,000 for fiscal year 2005 to carry out 
     sections 5505 and 5506.
       ``(C) Allocation of funds.--Of the amounts made available 
     or appropriated under this paragraph--
       ``(i) $1,984,000 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 2005;
       ``(ii) $1,984,000 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) $1,984,000 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 2005, $67,704,000 shall 
     be available from the Mass Transit Account of the Highway 
     Trust Fund to carry out section 5334.
       ``(B) General fund.--In addition to amounts made available 
     under subparagraph (A), there are authorized to be 
     appropriated $9,672,000 for fiscal year 2005 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) $6,443,600,000 for fiscal year 2006;
       ``(B) $6,709,644,000 for fiscal year 2007;
       ``(C) $7,276,707,000 for fiscal year 2008; and
       ``(D) $7,737,026,000 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 2006 through 2009 to carry out section 5316;
       ``(I) there shall be available to carry out section 5335--
       ``(i) $3,900,000 in fiscal year 2006;
       ``(ii) $4,200,000 in fiscal year 2007;
       ``(iii) $4,600,000 in fiscal year 2008; and
       ``(iv) $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 2006 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) $864,101,000 for fiscal year 2006;
       ``(B) $899,778,000 for fiscal year 2007;
       ``(C) $975,823,000 for fiscal year 2008; and
       ``(D) $1,037,552,000 for fiscal year 2009.

[[Page 10654]]

       ``(c) Major Capital Investment Grants.--There are 
     authorized to be appropriated to carry out section 
     5309(i)(2)(A)--
       ``(1) $1,503,299,000 for fiscal year 2006;
       ``(2) $1,565,367,000 for fiscal year 2007;
       ``(3) $1,697,663,000 for fiscal year 2008; and
       ``(4) $1,805,057,000 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) $89,000,000 for fiscal year 2006;
       ``(2) $92,675,000 for fiscal year 2007;
       ``(3) $100,507,000 for fiscal year 2008; and
       ``(4) $106,865,000 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), (b)(4), 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 (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. 6037. 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) Definition.--In this section, the term `State' shall 
     mean each of the 50 States of the United States.
       ``(b) Allocation.--Of the amounts made available for each 
     fiscal year under section 5338(b)(2)(J), the Secretary shall 
     apportion--
       ``(1) 50 percent to States and urbanized areas in 
     accordance with subsection (c); and
       ``(2) 50 percent to States and urbanized areas in 
     accordance with subsection (d).
       ``(c) Growing State Apportionments.--
       ``(1) Apportionment among states.--The amounts apportioned 
     under subsection (b)(1) shall provide each State with an 
     amount equal to the total amount apportioned multiplied by a 
     ratio equal to the population of that State forecast for the 
     year that is 15 years after the most recent decennial census, 
     divided by the total population of all States forecast for 
     the year that is 15 years after the most recent decennial 
     census. Such forecast shall be based on the population trend 
     for each State between the most recent decennial census and 
     the most recent estimate of population made by the Secretary 
     of Commerce.
       ``(2) Apportionments between urbanized areas and other than 
     urbanized areas in each state.--
       ``(A) In general.--The Secretary shall apportion amounts to 
     each State under paragraph (1) so that urbanized areas in 
     that State receive an amount equal to the amount apportioned 
     to that State multiplied by a ratio equal to the sum of the 
     forecast population of all urbanized areas in that State 
     divided by the total forecast population of that State. In 
     making the apportionment under this subparagraph, the 
     Secretary shall utilize any available forecasts made by the 
     State. If no forecasts are available, the Secretary shall 
     utilize data on urbanized areas and total population from the 
     most recent decennial census.
       ``(B) Remaining amounts.--Amounts remaining for each State 
     after apportionment under subparagraph (A) shall be 
     apportioned to that State and added to the amount made 
     available for grants under section 5311.
       ``(3) Apportionments among urbanized areas in each state.--
     The Secretary shall apportion amounts made available to 
     urbanized areas in each State under paragraph (2)(A) so that 
     each urbanized area receives an amount equal to the amount 
     apportioned under paragraph (2)(A) multiplied by a ratio 
     equal to the population of each urbanized area divided by the 
     sum of populations of all urbanized areas in the State. 
     Amounts apportioned to each urbanized area shall be added to 
     amounts apportioned to that urbanized area under section 
     5336, and made available for grants under section 5307.
       ``(d) High Density State Apportionments.--Amounts to be 
     apportioned under subsection (b)(2) shall be apportioned as 
     follows:
       ``(1) Eligible states.--The Secretary shall designate as 
     eligible for an apportionment under this subsection all 
     States with a population density in excess of 370 persons per 
     square mile.
       ``(2) State urbanized land factor.--For each State 
     qualifying for an apportionment under paragraph (1), the 
     Secretary shall calculate an amount equal to--
       ``(A) the total land area of the State (in square miles); 
     multiplied by
       ``(B) 370; multiplied by
       ``(C)(i) the population of the State in urbanized areas; 
     divided by
       ``(ii) the total population of the State.
       ``(3) State apportionment factor.--For each State 
     qualifying for an apportionment under paragraph (1), the 
     Secretary shall calculate an amount equal to the difference 
     between the total population of the State less the amount 
     calculated in paragraph (2).
       ``(4) State apportionment.--Each State qualifying for an 
     apportionment under paragraph (1) shall receive an amount 
     equal to the amount to be apportioned under this subsection 
     multiplied by the amount calculated for the State under 
     paragraph (3) divided by the sum of the amounts calculated 
     under paragraph (3) for all States qualifying for an 
     apportionment under paragraph (1).
       ``(5) Apportionments 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 paragraph (5)(A) so that 
     each urbanized area receives an amount equal to the amount 
     apportioned under paragraph (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. 6038. 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. 6039. 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:

[[Page 10655]]



     ``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. 6040. 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.--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(b)(2)(H) 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(b)(2)(H) for any 
     fiscal year.
       ``(e) Planning Process.--In undertaking a qualified project 
     under this section--
       ``(1) if the qualified participant is a Federal land 
     management agency--
       ``(A) the Secretary, in cooperation with the Secretary of 
     the Interior, shall develop transportation planning 
     procedures that are consistent with--
       ``(i) the metropolitan planning provisions under section 
     5303 of this title;
       ``(ii) the statewide planning provisions under section 5304 
     of this title; and
       ``(iii) the public participation requirements under section 
     5307(e); and
       ``(B) in the case of a qualified project that is at a unit 
     of the National Park system, the planning process shall be 
     consistent with the general management plans of the unit of 
     the National Park system; and
       ``(2) if the qualified participant is a State or local 
     governmental authority, or more than one State or local 
     governmental authority in more than one State, the qualified 
     participant shall--
       ``(A) comply with the metropolitan planning provisions 
     under section 5303 of this title;
       ``(B) comply with the statewide planning provisions under 
     section 5304 of this title;
       ``(C) comply with the public participation requirements 
     under section 5307(e) of this title; and
       ``(D) consult with the appropriate Federal land management 
     agency during the planning process.
       ``(f) Cost Sharing.--
       ``(1) The Secretary, in cooperation with the Secretary of 
     the Interior, shall establish the agency share of net project 
     cost to be provided under this section to a qualified 
     participant.
       ``(2) In establishing the agency share of net project cost 
     to be provided under this section, the Secretary shall 
     consider--
       ``(A) visitation levels and the revenue derived from user 
     fees in the eligible area in which the qualified project is 
     carried out;
       ``(B) the extent to which the qualified participant 
     coordinates with a public transportation authority or private 
     entity engaged in public transportation;
       ``(C) private investment in the qualified project, 
     including the provision of contract services, joint 
     development activities, and the use of innovative financing 
     mechanisms;
       ``(D) the clear and direct benefit to the qualified 
     participant; and
       ``(E) any other matters that the Secretary considers 
     appropriate to carry out this section.
       ``(3) Notwithstanding any other provision of law, Federal 
     funds appropriated to any Federal land management agency may 
     be counted toward the non-agency share of the net project 
     cost of a qualified project.
       ``(g) Selection of Qualified Projects.--
       ``(1) The Secretary of the Interior, after consultation 
     with and in cooperation with the Secretary, shall determine 
     the final selection and funding of an annual program of 
     qualified projects in accordance with this section.
       ``(2) In determining whether to include a project in the 
     annual program of qualified projects, the Secretary of the 
     Interior shall consider--
       ``(A) the justification for the qualified project, 
     including the extent to which the qualified project would 
     conserve resources, prevent or mitigate adverse impact, and 
     enhance the environment;

[[Page 10656]]

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

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

     SEC. 6041. 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) $7,646,336,000 for fiscal year 2005;
       (2) $8,900,000,000 for fiscal year 2006;
       (3) $9,267,464,000 for fiscal year 2007;
       (4) $10,050,700,000 for fiscal year 2008; and
       (5) $10,686,500,000 for fiscal year 2009.

     SEC. 6042. ADJUSTMENTS FOR THE SURFACE TRANSPORTATION 
                   EXTENSION ACT OF 2004.

       (a) In General.--Notwithstanding any other provision of 
     law, the Secretary shall reduce the total apportionments and 
     allocations made for fiscal year 2005 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 2004 part V (118 
     Stat. 1154).
       (b) Fixed Guideway Modernization Adjustment.--In making the 
     apportionments described in subsection (a), the Secretary 
     shall adjust the amount apportioned for fiscal year 2005 to 
     each urbanized area for fixed guideway modernization to 
     reflect the apportionment method set forth in 5337(a) of 
     title 49, United States Code.

     SEC. 6043. DISADVANTAGED BUSINESS ENTERPRISE.

       Section 1821(a) of the Safe, Accountable, Flexible, and 
     Efficient Transportation Equity Act of 2005 shall apply to 
     all funds authorized or otherwise made available under this 
     title.

     SEC. 6044. TRANSIT PASS TRANSPORTATION FRINGE BENEFITS.

       (a) Transit Pass Transportation Fringe Benefits Study.--
       (1) Study.--The Secretary of Transportation shall conduct a 
     study on tax-free transit benefits and ways to promote 
     improved access to and increased usage of such benefits, at 
     Federal agencies in the National Capital Region, including 
     agencies not currently offering the benefit.
       (2) Content.--The study under this subsection shall 
     include--
       (A) an examination of how agencies offering the benefit 
     make its availability known to their employees and the 
     methods agencies use to deliver the benefit to employees, 
     including examples of best practices; and
       (B) an analysis of the impact of Federal employees' use of 
     transit on traffic congestion and pollution in the National 
     Capital Region.
       (3) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit a report to 
     Congress on the results of the study under this subsection.
       (b) Authority To Use Government Vehicles To Transport 
     Federal Employees Between Their Place of Employment and Mass 
     Transit Facilities.--
       (1) In general.--Section 1344 of title 31, United States 
     Code, is amended--
       (A) by redesignating subsections (g) and (h) as subsections 
     (h) and (i), respectively; and
       (B) by inserting after subsection (f) the following:
       ``(g)(1) A passenger carrier may be used to transport an 
     officer or employee of a Federal agency between the officer's 
     or employee's place of employment and a mass transit facility 
     (whether or not publicly owned) in accordance with succeeding 
     provisions of this subsection.
       ``(2) Notwithstanding section 1343, a Federal agency that 
     provides transportation services under this subsection 
     (including by passenger carrier) shall absorb the costs of 
     such services using any funds available to such agency, 
     whether by appropriation or otherwise.
       ``(3) In carrying out this subsection, a Federal agency 
     shall--
       ``(A) to the maximum extent practicable, use alternative 
     fuel vehicles to provide transportation services;
       ``(B) to the extent consistent with the purposes of this 
     subsection, provide transportation services in a manner that 
     does not result in additional gross income for Federal income 
     tax purposes; and
       ``(C) coordinate with other Federal agencies to share, and 
     otherwise avoid duplication of, transportation services 
     provided under this subsection.
       ``(4) For purposes of any determination under chapter 81 of 
     title 5, an individual shall not be considered to be in the 
     `performance of duty' by virtue of the fact that such 
     individual is receiving transportation services under this 
     subsection.
       ``(5)(A) The Administrator of General Services, after 
     consultation with the National Capital Planning Commission 
     and other appropriate agencies, shall prescribe any 
     regulations necessary to carry out this subsection.
       ``(B) Transportation services under this subsection shall 
     be subject neither to the last sentence of subsection (d)(3) 
     nor to any regulations under the last sentence of subsection 
     (e)(1).

[[Page 10657]]

       ``(6) In this subsection, the term `passenger carrier' 
     means a passenger motor vehicle, aircraft, boat, ship, or 
     other similar means of transportation that is owned or leased 
     by the United States Government or the government of the 
     District of Columbia.''.
       (2) Funds for maintenance, repair, etc.--Subsection (a) of 
     section 1344 of title 31, United States Code, is amended by 
     adding at the end the following:
       ``(3) For purposes of paragraph (1), the transportation of 
     an individual between such individual's place of employment 
     and a mass transit facility pursuant to subsection (g) is 
     transportation for an official purpose.''.
       (3) Coordination.--The authority to provide transportation 
     services under section 1344(g) of title 31, United States 
     Code (as amended by paragraph (1)) shall be in addition to 
     any authority otherwise available to the agency involved.

     SEC. 6045. FUNDING FOR FERRY BOATS.

       Section 5309(i)(5) of title 49, United States Code, as 
     amended by section 6011(j) of this Act, is amended to read as 
     follows:
       ``(5) Funding for ferry boats.--Of the amounts described in 
     paragraphs (1)(A) and (2)(A)--
       ``(A) $10,400,000 shall be available in fiscal year 2005 
     for capital projects in Alaska and Hawaii for new fixed 
     guideway systems and extension projects utilizing ferry 
     boats, ferry boat terminals, or approaches to ferry boat 
     terminals;
       ``(B) $15,000,000 shall be available in each of fiscal 
     years 2006 through 2009 for capital projects in Alaska and 
     Hawaii for new fixed guideway systems and extension projects 
     utilizing ferry boats, ferry boat terminals, or approaches to 
     ferry boat terminals; and
       ``(C) $5,000,000 shall be available in each of fiscal years 
     2006 through 2009 for payments to the Denali Commission under 
     the terms of section 307(e) of the Denali Commission Act of 
     1998, as amended (42 U.S.C. 3121 note), for docks, waterfront 
     development projects, and related transportation 
     infrastructure.''.

     SEC. 6046. COMMUTER RAIL.

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

          TITLE VII--SURFACE TRANSPORTATION SAFETY IMPROVEMENT

     SEC. 7001. SHORT TITLE.

       This title may be cited as the ``Surface Transportation 
     Safety Improvement Act of 2005''.

     SEC. 7002. AMENDMENT OF UNITED STATES CODE.

       (a) Amendment of Title 49.--Except as otherwise 
     specifically provided, whenever in this title (other than in 
     chapter 1 of subtitle B) an amendment is expressed in terms 
     of an amendment to 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) Amendment of Title 23.--Except as otherwise expressly 
     provided, whenever in chapter 1 of subtitle B of this title 
     an amendment or repeal is expressed in terms of an amendment 
     to, or a repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of title 23, United States Code.

                    Subtitle A--Motor Carrier Safety

                       CHAPTER 1--MOTOR CARRIERS

     SEC. 7101. SHORT TITLE.

       This chapter may be cited as the ``Motor Carrier Safety 
     Reauthorization Act of 2005''.

     SEC. 7102. CONTRACT AUTHORITY.

       Authorizations from the Highway Trust Fund (other than the 
     Mass Transit Account) to carry out this chapter shall be 
     available for obligation on the date of their apportionment 
     or allocation or on October 1 of the fiscal year for which 
     they are authorized, whichever occurs first. Approval by the 
     Secretary of a grant with funds made available under this 
     chapter imposes upon the United States Government a 
     contractual obligation for payment of the Government's share 
     of costs incurred in carrying out the objectives of the 
     grant.

     SEC. 7103. AUTHORIZATION OF APPROPRIATIONS.

       (a) Administrative Expenses.--Section 31104 is amended by 
     adding at the end the following:
       ``(i) Administrative expenses.--
       ``(1) There are authorized to be appropriated from the 
     Highway Trust Fund (other than the Mass Transit Account) for 
     the Secretary of Transportation to pay administrative 
     expenses of the Federal Motor Carrier Safety Administration--
       ``(A) $211,400,000 for fiscal year 2006,
       ``(B) $217,500,000 for fiscal year 2007,
       ``(C) $222,600,000 for fiscal year 2008, and
       ``(D) $228,500,000 for fiscal year 2009,
     of which $6,800,000 shall be available for each fiscal year 
     to make grants to, or execute contracts with, States, local 
     governments, or other persons for the commercial vehicle 
     analysis reporting system, with the Federal share payable 
     under any such grant to be 100 percent.
       ``(2) The funds authorized by this subsection shall be used 
     for personnel costs; administrative infrastructure; rent; 
     information technology; programs for research and technology, 
     information management, regulatory development (including a 
     medical review board and rules for medical examiners), 
     performance and registration information system management, 
     and outreach and education; other operating expenses and 
     similar matters; and such other expenses as may from time to 
     time become necessary to implement statutory mandates not 
     funded from other sources.
       ``(3) The amounts made available under this section shall 
     remain available until expended.''.
       (b) Grant Programs.--There are authorized to be 
     appropriated from the Highway Trust Fund (other than the Mass 
     Transit Account) for the following Federal Motor Carrier 
     Safety Administration programs:
       (1) Border enforcement grants under section 31107 of title 
     49, United States Code--
       (A) $33,000,000 for fiscal year 2006;
       (B) $34,000,000 for fiscal year 2007;
       (C) $35,000,000 for fiscal year 2008; and
       (D) $36,000,000 for fiscal year 2009.
       (2) Performance and registration information system 
     management grant program under 31109 of title 49, United 
     States Code, $4,000,000 for each of fiscal years 2006 through 
     2009.
       (3) Commercial driver's license and driver improvement 
     program grants under section 31318 of title 49, United States 
     Code--
       (A) $23,000,000 for fiscal year 2006;
       (B) $23,000,000 for fiscal year 2007;
       (C) $24,000,000 for fiscal year 2008; and
       (D) $25,000,000 for fiscal year 2009.
       (4) For carrying out the commercial vehicle information 
     systems and networks deployment program established under 
     section 31151 of title 49, United States Code, $25,000,000 
     for each of fiscal years 2006 through 2009.
       (c) Motor Carrier Safety Account.--Funds made available 
     under subsection (a) shall be administered in the account 
     established in the Treasury entitled ``Motor Carrier Safety 
     Operations and Program 69-8159-0-7-401'' and the funds made 
     available under subsection (b) shall be administered in the 
     account established in the Treasury entitled ``Motor Carrier 
     Safety Grants 69-8158-0-7-401''.
       (d) Period of Availability.--The amounts made available 
     under subsection (b) of this section shall remain available 
     until expended.

     SEC. 7104. HIGH RISK CARRIER COMPLIANCE REVIEWS.

       From the funds authorized by section 31104(i)(1) of title 
     49, United States Code, the Secretary of Transportation shall 
     ensure that compliance reviews are completed on motor 
     carriers that have demonstrated through performance data that 
     they pose the highest safety risk. At a minimum, compliance 
     reviews shall be conducted whenever a motor carrier is rated 
     as category A or B for 2 consecutive months.

     SEC. 7105. OVERDUE REPORTS, STUDIES, AND RULEMAKINGS.

       (a) Requirement for Completion.--Within 6 months after the 
     date of enactment of this Act, the Secretary of 
     Transportation shall transmit to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Transportation and 
     Infrastructure a schedule for the completion of the following 
     reports, studies, and rulemaking proceedings:
       (1) Motor Carrier Replacement Information and Registration 
     System, section 103, ICC Termination Act of 1995.
       (2) General Jurisdiction Over Freight Forwarder Service, 
     section 13531, ICC Termination Act of 1995.
       (3) Performance-based CDL Testing, section 4019, 
     Transportation Equity Act for the Twenty-First Century.
       (4) Improved Flow of Driver History Pilot Program, section 
     4022, Transportation Equity Act for the Twenty-First Century.
       (5) Employee Protections, section 4023, Transportation 
     Equity Act for the Twenty-First Century.
       (6) Federal Motor Carrier Safety Administration 2010 
     Strategy, section 104, Motor Carrier Safety Improvement Act 
     of 1999.
       (7) New Motor Carrier Entrant Requirements, section 210, 
     Motor Carrier Safety Improvement Act of 1999.
       (8) Certified Motor Carrier Safety Auditors, section 211, 
     Motor Carrier Safety Improvement Act of 1999.
       (9) Medical Certificate, section 215, Motor Carrier Safety 
     Improvement Act of 1999.
       (10) Truck Crash Causation Study, section 224, Motor 
     Carrier Safety Improvement Act of 1999.
       (b) Final Rule Required.--Unless specifically otherwise 
     permitted by law, rulemaking proceedings shall be considered 
     completed for purposes of this section only when the 
     Secretary has issued a final rule and the docket for the 
     rulemaking proceeding is closed or the rulemaking proceeding 
     is withdrawn or terminated and the docket closed without 
     further action.
       (c) Schedule for Completion.--The Secretary shall transmit 
     a revised schedule, indicating progress made in completing 
     the reports, studies, and rulemaking proceedings reported 
     under subsection (a) every 6 months after the first such 
     report under subsection (a) until they are completed. The 
     Inspector General of the Department of Transportation shall 
     monitor whether the schedule is being met and report 
     periodically to the Senate Committee on Commerce, Science, 
     and Transportation and the House Committee on Transportation 
     and Infrastructure on progress made in completing the 
     reports, studies, and rulemaking proceedings.
       (e) Completion of New Rulemaking Proceedings.--Nothing in 
     this section delays or

[[Page 10658]]

     changes the deadlines specified for new reports, studies, or 
     rulemaking mandates contained in this chapter.
       (f) Report of Other Agency Actions.--Within 12 months after 
     the date of enactment of this Act, the Secretary shall submit 
     to the Senate Committee on Commerce, Science, and 
     Transportation and the House Committee on Transportation and 
     Infrastructure a report on the status of the following 
     projects:
       (1) Rescinding the current regulation which prohibits truck 
     and bus drivers from viewing television and monitor screens 
     while operating commercial vehicles.
       (2) Consolidating Out-Of-Service Criteria regulations 
     enforced by the Federal Motor Carrier Safety Administration.
       (3) Revision of the safety fitness rating system of motor 
     carriers.
       (4) Amendment of Federal Motor Carrier Safety 
     Administration rules of practice for conducting motor carrier 
     administrative proceedings, investigations, 
     disqualifications, and for issuing penalties.
       (5) Requiring commercial drivers to have a sufficient 
     functional speaking and reading comprehension of the English 
     language.

     SEC. 7106. AMENDMENTS TO THE LISTED REPORTS, STUDIES, AND 
                   RULEMAKING PROCEEDINGS.

       In addition to completing the reports, studies, and 
     rulemaking proceedings listed in section 7105(a), the 
     Secretary of Transportation shall--
       (1) cause the Interim Final Rule addressing New Motor 
     Carrier Entrant Requirements to be amended so as to require 
     that a safety audit be immediately converted to a compliance 
     review and appropriate enforcement actions be taken if the 
     safety audit discloses acute safety violations by the new 
     entrant; and
       (2) ensure that Federal motor carrier safety regulations 
     that apply to interstate operations of commercial motor 
     vehicles designed to transport between 9 and 15 passengers 
     (including the driver) apply to all interstate operations of 
     such carries regardless of the distance traveled.

     SEC. 7107. MOTOR CARRIER SAFETY GRANTS.

       (a) Motor Carrier Safety Assistance Program.--
       (1) Section 31102 is amended--
       (A) by striking ``activities by fiscal year 2000;'' in 
     subsection (b)(1)(A) and inserting ``activities for 
     commercial motor vehicles of passengers and freight;'';
       (B) by striking ``years before December 18, 1991;'' in 
     subsection (b)(1)(E) and inserting ``years;'';
       (C) by striking ``and'' after the semicolon in subsection 
     (b)(1)(S);
       (D) by striking ``personnel.'' in subsection (b)(1)(T) and 
     inserting ``personnel;'';
       (E) adding at the end of subsection (b)(1) the following:
       ``(U) ensures that inspections of motor carriers of 
     passengers are conducted at stations, terminals, border 
     crossings, or maintenance facilities, except in the case of 
     an imminent or obvious safety hazard;
       ``(V) provides that the State will include in the training 
     manual for the licensing examination to drive a non-
     commercial motor vehicle and a commercial motor vehicle, 
     information on best practices for driving safely in the 
     vicinity of commercial motor vehicles and in the vicinity of 
     non-commercial vehicles, respectively; and
       ``(W) provides that the State will enforce the registration 
     requirements of section 13902 by suspending the operation of 
     any vehicle discovered to be operating without registration 
     or beyond the scope of its registration.''; and
       (F) by striking subsection (c) and inserting the following:
       ``(c) Use of Grants To Enforce Other Laws.--A State may use 
     amounts received under a grant under subsection (a) of this 
     section for the following activities:
       ``(1) If the activities are carried out in conjunction with 
     an appropriate inspection of the commercial motor vehicle to 
     enforce Government or State commercial motor vehicle safety 
     regulations--
       ``(A) enforcement of commercial motor vehicle size and 
     weight limitations at locations other than fixed weight 
     facilities, at specific locations such as steep grades or 
     mountainous terrains where the weight of a commercial motor 
     vehicle can significantly affect the safe operation of the 
     vehicle, or at ports where intermodal shipping containers 
     enter and leave the United States; and
       ``(B) detection of the unlawful presence of a controlled 
     substance (as defined under section 102 of the Comprehensive 
     Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 
     802)) in a commercial motor vehicle or on the person of any 
     occupant (including the operator) of the vehicle.
       ``(2) Documented enforcement of State traffic laws and 
     regulations designed to promote the safe operation of 
     commercial motor vehicles, including documented enforcement 
     of such laws and regulations against non-commercial motor 
     vehicles when necessary to promote the safe operation of 
     commercial motor vehicles.''.
       (2) Section 31103(b) is amended--
       (A) by inserting ``(1)'' after ``activities.--''; and
       (B) by adding at the end the following:
       ``(2) New entrant motor carrier audit funds.--From the 
     amounts designated under section 31104(f)(4), the Secretary 
     may allocate new entrant motor carrier audit funds to States 
     and local governments without requiring a matching 
     contribution from such States or local governments.''.
       (3) Section 31104(a) is amended to read as follows:
       ``(a) In General.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to carry out section 31102:
       ``(1) Not more than $193,620,000 for fiscal year 2006.
       ``(2) Not more than $197,490,000 for fiscal year 2007.
       ``(3) Not more than $201,440,000 for fiscal year 2008.
       ``(4) Not more than $205,470,000 for fiscal year 2009.''.
       (4) Section 31104(f) is amended by striking paragraph (2) 
     and inserting the following:
       ``(2) High-priority activities.--The Secretary may 
     designate up to $15,000,000 for each of fiscal years 2006 
     through 2009 from amounts available for allocation under 
     paragraph (1) for States, local governments, and 
     organizations representing government agencies or officials 
     for carrying out high priority activities and projects that 
     improve commercial motor vehicle safety and compliance with 
     commercial motor vehicle safety regulations, including 
     activities and projects that are national in scope, increase 
     public awareness and education, or demonstrate new 
     technologies, and will reduce the number and rate of 
     accidents involving commercial motor vehicles. The amounts 
     designated under this paragraph shall be allocated by the 
     Secretary to State agencies, local governments, and 
     organizations representing government agencies or officials 
     that use and train qualified officers and employees in 
     coordination with State motor vehicle safety agencies. The 
     Secretary shall establish safety performance criteria to be 
     used to distribute high priority program funds. At least 80 
     percent of the amounts designated under this paragraph shall 
     be awarded to State agencies and local government agencies.
       ``(3) New entrant audits.--The Secretary shall designate up 
     to $29,000,000 of the amounts available for allocation under 
     paragraph (1) for audits of new entrant motor carriers 
     conducted pursuant to 31144(f). The Secretary may withhold 
     such funds from a State or local government that is unable to 
     use government employees to conduct new entrant motor carrier 
     audits, and may instead utilize the funds to conduct audits 
     in those jurisdictions.
       ``(4) CDLIS modernization.--The Secretary may designate up 
     to $2,000,000 for fiscal year 2006 and up to $6,000,000 for 
     fiscal years 2007 through 2009 from amounts available for 
     allocation under paragraph (1) for commercial driver's 
     license information system modernization under section 
     31309(f).''.
       (b) Grants to States for Border Enforcement.--Section 31107 
     is amended to read as follows:

     ``Sec. 31107. Border enforcement grants

       ``(a) General Authority.--From the funds authorized by 
     section 7103(b)(1) of the Motor Carrier Safety 
     Reauthorization Act of 2005, the Secretary may make a grant 
     in a fiscal year to a State that shares a border with another 
     country for carrying out border commercial motor vehicle 
     safety programs and related enforcement activities and 
     projects.
       ``(b) Maintenance of Expenditures.--The Secretary may make 
     a grant to a State under this section only if the State 
     agrees that the total expenditure of amounts of the State and 
     political subdivisions of the State, exclusive of United 
     States Government amounts, for carrying out border commercial 
     motor vehicle safety programs and related enforcement 
     activities and projects will be maintained at a level at 
     least equal to the average level of that expenditure by the 
     State and political subdivisions of the State for the last 2 
     State or Federal fiscal years before October 1, 2005.''.
       (c) Noncompliance With CDL Requirements.--Section 31314 is 
     amended by inserting ``up to'' after ``withhold'' in 
     subsections (a) and (b).
       (d) Conforming Amendments.--(1) The chapter analysis for 
     chapter 311 is amended--
       (A) by striking the item relating to Subchapter I, and 
     inserting the following:

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

       and
       (B) by striking the item relating to section 31107, and 
     inserting the following:

``31107. Border enforcement grants.''.

       (2) Subchapter I of chapter 311 is amended by striking the 
     subchapter heading and inserting the following:

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

     SEC. 7108. TECHNICAL CORRECTIONS.

       (a) Jurisdiction of Court of Appeals Over Commercial Motor 
     Vehicle Safety Regulation and Operators and Motor Carrier 
     Safety.--Section 2342(3)(A) of title 28, United States Code, 
     is amended by striking ``subtitle IV'' and inserting 
     ``subtitle IV, subchapter III of chapter 311, chapter 313, or 
     chapter 315''.
       (b) Judicial Review.--Section 351(a) is amended to read as 
     follows:
       ``(a) Judicial Review.--An action of the Secretary of 
     Transportation in carrying out a duty or power transferred 
     under the Department of Transportation Act (Public Law 89-
     670; 80 Stat. 931), or an action of the Administrator of the 
     Federal Railroad Administration, Federal Motor Carrier Safety 
     Administration, or the Federal Aviation Administration in 
     carrying out a duty or power specifically assigned to the 
     Administrator by that Act, may be reviewed judicially to the 
     same extent and in the same way as if the action had been an 
     action by the department, agency, or instrumentality of the 
     United States

[[Page 10659]]

     Government carrying out the duty or power immediately before 
     the transfer or assignment.''.
       (c) Authority To Carry Out Certain Transferred Duties and 
     Powers.--Section 352 is amended to read as follows:

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

       ``In carrying out a duty or power transferred under the 
     Department of Transportation Act (Public Law 89-670; 80 Stat. 
     931), the Secretary of Transportation and the Administrators 
     of the Federal Railroad Administration, the Federal Motor 
     Carrier Safety Administration, and the Federal Aviation 
     Administration have the same authority that was vested in the 
     department, agency, or instrumentality of the United States 
     Government carrying out the duty or power immediately before 
     the transfer. An action of the Secretary or Administrator in 
     carrying out the duty or power has the same effect as when 
     carried out by the department, agency, or instrumentality.''.
       (d) Transfer of Provision.--
       (1) Section 345 of Public Law 104-59 is transferred to 
     subchapter III of chapter 311 of title 49, United States 
     Code, redesignated as section 31149, and inserted after 
     section 31148 as section 31149. Section 31149, as transferred 
     by the preceding sentence, is amended--
       (A) by conforming the section heading to the style and 
     format of the section headings in chapter 311 of title 49, 
     United States Code;
       (B) by striking ``of title 49, United States Code,'' in 
     subsection (a)(1), subsection (a)(5), and subsection (e)(4); 
     and
       (C) by striking subsection (f).
       (2) The chapter analysis for chapter 311 is amended by 
     inserting after the item relating to section 31148 the 
     following:

``31149. Exemptions from requirements relating to commercial motor 
              vehicles and their operators.''.

       (e) Elimination of Commodity and Service Exemptions.--
       (1) Section 13506(a) is amended--
       (A) by striking paragraphs (6), (11), (12), (13), and (15);
       (B) by redesignating paragraphs (7), (8), (9), (10), and 
     (14) as paragraphs (6), (7), (8), (9) and (10), respectively;
       (C) by inserting ``or'' after the semicolon in paragraph 
     (9), as redesignated; and
       (D) striking ``13904(d); or'' in paragraph (10), as 
     redesignated, and inserting ``14904(d).''.
       (2) Section 13507 is amended by striking ``(6), (8), (11), 
     (12), or (13)'' and inserting ``(6)''.

     SEC. 7109. PENALTY FOR DENIAL OF ACCESS TO RECORDS.

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

     SEC. 7110. MEDICAL PROGRAM.

       (a) In General.--Subchapter III of chapter 311, as amended 
     by section 7108(d) of this chapter, is amended by adding at 
     the end the following:

     ``Sec. 31150. Medical program

       ``(a) Medical Review Board.--
       ``(1) Establishment and function.--The Secretary of 
     Transportation shall establish a Medical Review Board to 
     provide the Federal Motor Carrier Safety Administration with 
     medical advice and recommendations on driver qualification 
     medical standards and guidelines, medical examiner education, 
     and medical research.
       ``(2) Composition.--The Medical Review Board shall be 
     appointed by the Secretary and shall consist of 5 members 
     selected from medical institutions and private practice. The 
     membership shall reflect expertise in a variety of 
     specialties relevant to the functions of the Federal Motor 
     Carrier Safety Administration.
       ``(b) Chief Medical Examiner.--The Secretary shall appoint 
     a chief medical examiner who shall be an employee of the 
     Federal Motor Carrier Safety Administration according to the 
     SL schedule.
       ``(c) Medical Standards and Requirements.--
       ``(1) In general.-- The Secretary, with the advice of the 
     Medical Review Board and the chief medical examiner, shall--
       ``(A) establish, review, and revise--
       ``(i) medical standards for applicants for and holders of 
     commercial driver's licenses that will ensure that the 
     physical condition of operators of commercial motor vehicles 
     is adequate to enable them to operate the vehicles safely;
       ``(ii) requirements for periodic physical examinations of 
     such operators performed by medical examiners who have 
     successfully completed training in physical and medical 
     examination standards and are listed on a national registry 
     maintained by the Department of Transportation; and
       ``(B) issue certificates to such holders and applicants 
     that have been found, upon examination, to be physically 
     qualified to operate a commercial motor vehicle and to meet 
     applicable medical standards unless the authority to issue 
     certificates has been delegated to medical examiners under 
     subparagraph (d)(2) of this section;
       ``(C) require each holder of a commercial driver's license 
     or learner's permit who operates a commercial vehicle in 
     interstate commerce to have a current valid medical 
     certificate;
       ``(D) conduct periodic reviews of a select number of 
     medical examiners on the national registry to ensure that 
     proper examinations of applicants and holders are being 
     conducted;
       ``(E) develop, as appropriate, specific courses and 
     materials for medical examiners listed in the national 
     registry established under this section, and require those 
     medical examiners to complete specific training, including 
     refresher courses, to be listed in the registry;
       ``(F) require medical examiners to transmit the name of the 
     applicant and numerical identifier, as determined by the 
     Administrator, for any completed medical examination report 
     required under section 391.43 of title 49, Code of Federal 
     Regulations, electronically to the Chief Medical Examiner on 
     monthly basis; and
       ``(G) periodically review a representative sample of the 
     medical examination reports associated with the name and 
     numerical identifiers of applicants transmitted under 
     subparagraph (F) for errors, omissions, or other indications 
     of improper certification.
       ``(2) Monitoring performance.--The Secretary shall 
     investigate patterns of errors or improper certification by a 
     medical examiner. If the Secretary finds that a medical 
     examiner has issued a medical certificate to an applicant or 
     holder who fails to meet the applicable standards at the time 
     of the examination, such a medical examiner may be removed 
     from the registry and the medical certificate of the 
     applicant or holder may be deemed void.
       ``(d) National Registry of Medical Examiners.--The 
     Secretary, through the Federal Motor Carrier Safety 
     Administration--
       ``(1) shall establish and maintain a current national 
     registry of medical examiners who are qualified to perform 
     examinations and issue medical certificates;
       ``(2) shall delegate to those examiners the authority to 
     issue such certificates upon successfully completing the 
     required training;
       ``(3) shall remove from the registry the name of any 
     medical examiner that fails to meet or maintain the 
     qualifications established by the Secretary for being listed 
     in the registry or otherwise does not meet the requirements 
     of this section or regulation issued there under; and
       ``(4) shall accept as valid only medical certificates 
     issued by persons on the national registry of medical 
     examiners.
       ``(e) Regulations.--The Secretary is authorized to 
     promulgate such regulations as may be necessary to carry out 
     this section.''.
       (b) Medical Examiners.--Section 31136(a)(3) is amended to 
     read as follows:
       ``(3) the physical condition of operators of commercial 
     motor vehicles is adequate to enable them to operate the 
     vehicles safely, and the periodic physical examinations 
     required of such operators are performed by medical examiners 
     who have received training in physical and medical 
     examination standards and are listed on a national registry 
     maintained by the Department of Transportation; and''.
       (c) Definition of Medical Examiner.--Section 31132 is 
     amended--
       (1) by redesignating paragraphs (6) through (10) as 
     paragraphs (7) through (11), respectively; and
       (2) by inserting after paragraph (5) the following:
       ``(6) `medical examiner' means an individual licensed, 
     certified, or registered in accordance with regulations 
     issued by the Federal Motor Carrier Safety Administration as 
     a medical examiner.''.
       (d) Funding.--Amounts made available pursuant to section 
     31104(i)(1) of title 49, United States Code, shall be used by 
     the Secretary to carry out section 31150 of title 49, United 
     States Code.
       (e) Conforming Amendment.--The chapter analysis for chapter 
     311, as amended by section 7108(d) of this chapter, is 
     amended by inserting after the item relating to section 31149 
     the following:

``31150. Medical program''.

       (f) Effective Date.--The amendment made by subsection (a) 
     shall take effect 1 year after the date of enactment of this 
     Act.

     SEC. 7111. OPERATION OF COMMERCIAL MOTOR VEHICLES BY 
                   INDIVIDUALS WHO USE INSULIN TO TREAT DIABETES 
                   MELLITUS.

       (a) Revision of Final Rule.--Not later than 90 days after 
     the date of the enactment of this Act, the Secretary shall 
     revise the final rule to allow individuals who use insulin to 
     treat their diabetes to operate commercial motor vehicles in 
     interstate commerce. The revised final rule shall provide for 
     the individual assessment of applicants who use insulin to 
     treat their diabetes and who are, except for their use of 
     insulin, otherwise qualified under the Federal Motor Carrier 
     Safety Regulations. The revised final rule shall be 
     consistent with the criteria described in section 4018 of the 
     Transportation Equity Act for

[[Page 10660]]

     the 21st Century (49 U.S.C. 31305 note) and shall conclude 
     the rulemaking process in the Federal Motor Carrier Safety 
     Administration docket relating to qualifications of drivers 
     with diabetes.
       (b) No History of Driving While Using Insulin Required for 
     Qualification.--The Secretary may not require individuals to 
     have experience operating commercial motor vehicles while 
     using insulin in order to qualify to operate a commercial 
     motor vehicle in interstate commerce.
       (c) History of Diabetes Control.--The Secretary may require 
     an individual to have used insulin for a minimum period of 
     time and demonstrated stable control of diabetes in order to 
     qualify to operate a commercial motor vehicle in interstate 
     commerce. Any such requirement, including any requirement 
     with respect to the duration of such insulin use, shall be 
     consistent with the findings of the expert medical panel 
     reported in July 2000 in ``A Report to Congress on the 
     Feasibility of a Program to Qualify Individuals with Insulin-
     Treated Diabetes Mellitus to Operate Commercial Motor 
     Vehicles in Interstate Commerce as Directed by the 
     Transportation Equity Act for the 21st Century''.
       (d) Applicable Standard.--The Secretary shall ensure that 
     individuals who use insulin to treat their diabetes are not 
     held to a higher standard than other qualified commercial 
     drivers, except to the extent that limited operating, 
     monitoring, or medical requirements are deemed medically 
     necessary by experts in the field of diabetes medicine.

     SEC. 7112. FINANCIAL RESPONSIBILITY FOR PRIVATE MOTOR 
                   CARRIERS.

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

     SEC. 7113. INCREASED PENALTIES FOR OUT-OF-SERVICE VIOLATIONS 
                   AND FALSE RECORDS.

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

     SEC. 7114. INTRASTATE OPERATIONS OF INTERSTATE MOTOR 
                   CARRIERS.

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

     SEC. 7115. AUTHORITY TO STOP COMMERCIAL MOTOR VEHICLES.

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

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

       ``(a) A driver of a commercial motor vehicle, as defined in 
     section 31132(1) of title 49, shall stop and submit to 
     inspection of the vehicle, driver, cargo, and required 
     records when directed to do so by an authorized employee of 
     the Federal Motor Carrier Safety Administration, Department 
     of Transportation, at or in the vicinity of an inspection 
     site. The driver shall not leave the inspection site until 
     authorized to do so by an authorized employee.

[[Page 10661]]

       ``(b) A driver of a commercial motor vehicle, as defined in 
     subsection (a), who knowingly fails to stop for inspection 
     when directed to do so by an authorized employee of the 
     Federal Motor Carrier Safety Administration at or in the 
     vicinity of an inspection site, or leaves the inspection site 
     without authorization, shall be fined under this title or 
     imprisoned not more than 1 year, or both.''.
       (b) Authority of FMCSA.--Chapter 203 of title 18, United 
     States Code, is amended by adding at the end the following:

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

       ``Authorized employees of the Federal Motor Carrier Safety 
     Administration may direct a driver of a commercial motor 
     vehicle, as defined in 49 U.S.C. 31132(1), to stop for 
     inspection of the vehicle, driver, cargo, and required 
     records at or in the vicinity of an inspection site.''.
       (c) Conforming Amendments.--
       (1) The chapter analysis for chapter 2 of title 18, United 
     States Code, is amended by inserting after the item relating 
     to section 38 the following:

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

       (2) The chapter analysis for chapter 203 of title 18, 
     United States Code, is amended by inserting after the item 
     relating to section 3063 the following:

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

     SEC. 7116. REVOCATION OF OPERATING AUTHORITY.

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

     SEC. 7117. PATTERN OF SAFETY VIOLATIONS BY MOTOR CARRIER 
                   MANAGEMENT.

       (a) In General.--Section 31135 is amended--
       (1) by inserting ``(a) In General.--'' before ``Each''; and
       (2) by adding at the end the following:
       ``(b) Pattern of Non-Compliance.--If an officer of a motor 
     carrier engages in a pattern or practice of avoiding 
     compliance, or masking or otherwise concealing non-
     compliance, with regulations on commercial motor vehicle 
     safety prescribed under this subchapter, the Secretary may 
     suspend, amend, or revoke any part of the motor carrier's 
     registration under section 13905 of this title.
       ``(c) Regulations.--Within 1 year after the date of 
     enactment of the Motor Carrier Safety Reauthorization Act of 
     2005, the Secretary shall by regulation establish standards 
     to implement subsection (b).
       ``(d) Definitions.--In this section:
       ``(1) Motor carrier.--The term `motor carrier' has the 
     meaning given the term in section 13102(12) of this title.
       ``(2) Officer.--The term `officer' means an owner, 
     director, chief executive officer, chief operating officer, 
     chief financial officer, safety director, vehicle maintenance 
     supervisor, and driver supervisor of a motor carrier, 
     regardless of the title attached to those functions, and any 
     person, however designated, exercising controlling influence 
     over the operations of the motor carrier.''.
       (b) Cross-reference.--Section 13902(a)(1)(B) is amended to 
     read as follows:
       ``(B) any safety regulations imposed by the Secretary, the 
     duties of employers and employees established by the 
     Secretary under section 31135, and the safety fitness 
     requirements established by the Secretary under section 
     31144; and''.

     SEC. 7118. MOTOR CARRIER RESEARCH AND TECHNOLOGY PROGRAM.

       (a) In General.--Section 31108 is amended to read as 
     follows:

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

       ``(a) Research, Technology, and Technology Transfer 
     Activities.--
       ``(1) The Secretary of Transportation shall establish and 
     carry out a motor carrier and motor coach research and 
     technology program. The Secretary may carry out research, 
     development, technology, and technology transfer activities 
     with respect to--
       ``(A) the causes of accidents, injuries and fatalities 
     involving commercial motor vehicles; and
       ``(B) means of reducing the number and severity of 
     accidents, injuries and fatalities involving commercial motor 
     vehicles.
       ``(2) The Secretary may test, develop, or assist in testing 
     and developing any material, invention, patented article, or 
     process related to the research and technology program.
       ``(3) The Secretary may use the funds appropriated to carry 
     out this section for training or education of commercial 
     motor vehicle safety personnel, including, but not limited 
     to, training in accident reconstruction and detection of 
     controlled substances or other contraband, and stolen cargo 
     or vehicles.
       ``(4) The Secretary may carry out this section--
       ``(A) independently;
       ``(B) in cooperation with other Federal departments, 
     agencies, and instrumentalities and Federal laboratories; or
       ``(C) by making grants to, or entering into contracts, 
     cooperative agreements, and other transactions with, any 
     Federal laboratory, State agency, authority, association, 
     institution, for-profit or non-profit corporation, 
     organization, foreign country, or person.
       ``(5) The Secretary shall use funds made available to carry 
     out this section to develop, administer, communicate, and 
     promote the use of products of research, technology, and 
     technology transfer programs under this section.
       ``(b) Collaborative Research and Development.--
       ``(1) To advance innovative solutions to problems involving 
     commercial motor vehicle and motor carrier safety, security, 
     and efficiency, and to stimulate the deployment of emerging 
     technology, the Secretary may carry out, on a cost-shared 
     basis, collaborative research and development with--
       ``(A) non-Federal entities, including State and local 
     governments, foreign governments, colleges and universities, 
     corporations, institutions, partnerships, and sole 
     proprietorships that are incorporated or established under 
     the laws of any State; and
       ``(B) Federal laboratories.
       ``(2) In carrying out this subsection, the Secretary may 
     enter into cooperative research and development agreements 
     (as defined in section 12 of the Stevenson-Wydler Technology 
     Innovation Act of 1980 (15 U.S.C. 3710a)).
       ``(3)(A) The Federal share of the cost of activities 
     carried out under a cooperative research and development 
     agreement entered into under this subsection shall not exceed 
     50 percent, except that if there is substantial public 
     interest or benefit, the Secretary may approve a greater 
     Federal share.
       ``(B) All costs directly incurred by the non-Federal 
     partners, including personnel, travel, and hardware or 
     software development costs, shall be credited toward the non-
     Federal share of the cost of the activities described in 
     subparagraph (A).
       ``(4) The research, development, or use of a technology 
     under a cooperative research and development agreement 
     entered into under this subsection, including the terms under 
     which the technology may be licensed and the resulting 
     royalties may be distributed, shall be subject to the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3701 et seq.).
       ``(c) Availability of Amounts.--The amounts made available 
     under section 7103(a) of the Motor Carrier Safety 
     Reauthorization Act of 2005 to carry out this section shall 
     remain available until expended.
       ``(d) Contract Authority.--Approval by the Secretary of a 
     grant with funds made available under section 7103(a) of the 
     Motor Carrier Safety Reauthorization Act of 2005 to carry out 
     this section imposes upon the United States Government a 
     contractual obligation for payment of the Government's share 
     of costs incurred in carrying out the objectives of the 
     grant.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     311 is amended by striking the item relating to section 
     31108, and inserting the following:

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

     SEC. 7119. INTERNATIONAL COOPERATION.

       (a) In General.--Chapter 311 is amended by inserting at the 
     end the following:

                     ``Subchapter IV--Miscellaneous

     ``Sec. 31161. International cooperation

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

                     ``SUBCHAPTER IV--MISCELLANEOUS

``31161. International cooperation.''.

     SEC. 7120. PERFORMANCE AND REGISTRATION INFORMATION SYSTEM 
                   MANAGEMENT.

       (a) In General.--Section 31106(b) is amended--
       (1) by striking paragraphs (2) and (3) and inserting the 
     following:
       ``(2) Design.--The program shall link Federal motor carrier 
     safety information systems with State commercial vehicle 
     registration and licensing systems and shall be designed to 
     enable a State to--
       ``(A) determine the safety fitness of a motor carrier or 
     registrant when licensing or registering the registrant or 
     motor carrier or while the license or registration is in 
     effect; and
       ``(B) deny, suspend, or revoke the commercial motor vehicle 
     registrations of a motor carrier or registrant that has been 
     issued an operations out-of-service order by the Secretary.

[[Page 10662]]

       ``(3) Conditions for participation.--The Secretary shall 
     require States, as a condition of participation in the 
     program, to--
       ``(A) comply with the uniform policies, procedures, and 
     technical and operational standards prescribed by the 
     Secretary under subsection (a)(4);
       ``(B) possess the authority to impose sanctions relating to 
     commercial motor vehicle registration on the basis of a 
     Federal safety fitness determination; and
       ``(C) cancel the motor vehicle registration and seize the 
     registration plates of an employer found liable under section 
     31310(i)(2)(C) of this title for knowingly allowing or 
     requiring an employee to operate a commercial motor vehicle 
     in violation of an out-of-service order.''; and
       (2) by striking paragraph (4).
       (b) Performance and Registration Information System 
     Management Grants.--
       (1) Subchapter I of chapter 311, as amended by section 7118 
     of this chapter, is further amended by adding at the end the 
     following:

     ``Sec. 31109. Performance and Registration Information System 
       Management

       ``(a) In General.--From the funds authorized by section 
     7103(b)(2) of the Motor Carrier Safety Reauthorization Act of 
     2005, the Secretary may make a grant in a fiscal year to a 
     State to implement the performance and registration 
     information system management requirements of section 
     31106(b).
       ``(b) Availability of Amounts.--Amounts made available to a 
     State under section 7103(b)(2) of the Motor Carrier Safety 
     Reauthorization Act of 2005 to carry out this section shall 
     remain available until expended.
       ``(c) Secretary's Approval.--Approval by the Secretary of a 
     grant to a State under section 7103(b)(2) of the Motor 
     Carrier Safety Reauthorization Act of 2005 to carry out this 
     section is a contractual obligation of the Government for 
     payment of the amount of the grant.''.
       (2) Conforming amendment.--The chapter analysis for chapter 
     311 is amended by inserting after the item relating to 
     section 31108 the following:

``31109. Performance and Registration Information System Management.''.

     SEC. 7121. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND 
                   NETWORKS DEPLOYMENT.

       (a) In General.--Subchapter III of chapter 311, as amended 
     by section 7110, is amended by adding at the end the 
     following:

     ``Sec. 31151. Commercial vehicle information systems and 
       networks

       ``(a) In General.--The Secretary shall carry out a 
     commercial vehicle information systems and networks program 
     to--
       ``(1) improve the safety and productivity of commercial 
     vehicles; and
       ``(2) reduce costs associated with commercial vehicle 
     operations and Federal and State commercial vehicle 
     regulatory requirements.
       ``(b) Purpose.--The program shall advance the technological 
     capability and promote the deployment of intelligent 
     transportation system applications for commercial vehicle 
     operations, including commercial vehicle, commercial driver, 
     and carrier-specific information systems and networks.
       ``(c) Core Deployment Grants.--
       ``(1) In general.--The Secretary shall make grants to 
     eligible States for the core deployment of commercial vehicle 
     information systems and networks.
       ``(2) Eligibility.--To be eligible for a core deployment 
     grant under this section, a State--
       ``(A) shall have a commercial vehicle information systems 
     and networks program plan and a system design approved by the 
     Secretary;
       ``(B) shall certify to the Secretary that its commercial 
     vehicle information systems and networks deployment 
     activities, including hardware procurement, software and 
     system development, and infrastructure modifications, are 
     consistent with the national intelligent transportation 
     systems and commercial vehicle information systems and 
     networks architectures and available standards, and promote 
     interoperability and efficiency to the extent practicable; 
     and
       ``(C) shall agree to execute interoperability tests 
     developed by the Federal Motor Carrier Safety Administration 
     to verify that its systems conform with the national 
     intelligent transportation systems architecture, applicable 
     standards, and protocols for commercial vehicle information 
     systems and networks.
       ``(3) Amount of grants.--The maximum aggregate amount a 
     State may receive under this section for the core deployment 
     of commercial vehicle information systems and networks may 
     not exceed $2,500,000.
       ``(4) Use of funds.--Funds from a grant under this 
     subsection may only be used for the core deployment of 
     commercial vehicle information systems and networks. Eligible 
     States that have either completed the core deployment of 
     commercial vehicle information systems and networks or 
     completed such deployment before core deployment grant funds 
     are expended may use the remaining core deployment grant 
     funds for the expanded deployment of commercial vehicle 
     information systems and networks in their State.
       ``(d) Expanded Deployment Grants.--
       ``(1) In general.--For each fiscal year, from the funds 
     remaining after the Secretary has made core deployment grants 
     under subsection (c) of this section, the Secretary may make 
     grants to each eligible State, upon request, for the expanded 
     deployment of commercial vehicle information systems and 
     networks.
       ``(2) Eligibility.--Each State that has completed the core 
     deployment of commercial vehicle information systems and 
     networks is eligible for an expanded deployment grant.
       ``(3) Amount of grants.--Each fiscal year, the Secretary 
     may distribute funds available for expanded deployment grants 
     equally among the eligible States, but not to exceed 
     $1,000,000 per State.
       ``(4) Use of funds.--A State may use funds from a grant 
     under this subsection only for the expanded deployment of 
     commercial vehicle information systems and networks.
       ``(e) Federal Share.--The Federal share of the cost of a 
     project payable from funds made available to carry out this 
     section shall not exceed 50 percent. The total Federal share 
     of the cost of a project payable from all eligible sources 
     shall not exceed 80 percent.
       ``(f) Availability of Funds.--Funds authorized to be 
     appropriated under section 7103(b)(4) of the Motor Carrier 
     Safety Reauthorization Act of 2005 shall be available for 
     obligation in the same manner and to the same extent as if 
     such funds were apportioned under chapter 1 of title 23, 
     United States Code, except that such funds shall remain 
     available until expended.
       ``(g) Definitions.--In this section:
       ``(1) Commercial vehicle information systems and 
     networks.--The term `commercial vehicle information systems 
     and networks' means the information systems and 
     communications networks that provide the capability to--
       ``(A) improve the safety of commercial vehicle operations;
       ``(B) increase the efficiency of regulatory inspection 
     processes to reduce administrative burdens by advancing 
     technology to facilitate inspections and increase the 
     effectiveness of enforcement efforts;
       ``(C) advance electronic processing of registration 
     information, driver licensing information, fuel tax 
     information, inspection and crash data, and other safety 
     information;
       ``(D) enhance the safe passage of commercial vehicles 
     across the United States and across international borders; 
     and
       ``(E) promote the communication of information among the 
     States and encourage multistate cooperation and corridor 
     development.
       ``(2) Commercial vehicle operations.--The term `commercial 
     vehicle operations'--
       ``(A) means motor carrier operations and motor vehicle 
     regulatory activities associated with the commercial movement 
     of goods, including hazardous materials, and passengers; and
       ``(B) with respect to the public sector, includes the 
     issuance of operating credentials, the administration of 
     motor vehicle and fuel taxes, and roadside safety and border 
     crossing inspection and regulatory compliance operations.
       ``(3) Core deployment.--The term `core deployment' means 
     the deployment of systems in a State necessary to provide the 
     State with the following capabilities:
       ``(A) Safety information exchange.--Safety information 
     exchange to--
       ``(i) electronically collect and transmit commercial 
     vehicle and driver inspection data at a majority of 
     inspection sites;
       ``(ii) connect to the Safety and Fitness Electronic Records 
     system for access to interstate carrier and commercial 
     vehicle data, summaries of past safety performance, and 
     commercial vehicle credentials information; and
       ``(iii) exchange carrier data and commercial vehicle safety 
     and credentials information within the State and connect to 
     Safety and Fitness Electronic Records for access to 
     interstate carrier and commercial vehicle data.
       ``(B) Interstate credentials administration.--Interstate 
     credentials administration to--
       ``(i) perform end-to-end processing, including carrier 
     application, jurisdiction application processing, and 
     credential issuance, of at least the International 
     Registration Plan and International Fuel Tax Agreement 
     credentials and subsequently extend this processing to other 
     credentials, including intrastate, titling, oversize/
     overweight, carrier registration, and hazardous materials;
       ``(ii) connect to the International Registration Plan and 
     International Fuel Tax Agreement clearinghouses; and
       ``(iii) have at least 10 percent of the transaction volume 
     handled electronically, and have the capability to add more 
     carriers and to extend to branch offices where applicable.
       ``(C) Roadside screening.--Roadside electronic screening to 
     electronically screen transponder-equipped commercial 
     vehicles at a minimum of 1 fixed or mobile inspection sites 
     and to replicate this screening at other sites.
       ``(4) Expanded deployment.--The term `expanded deployment' 
     means the deployment of systems in a State that exceed the 
     requirements of an core deployment of commercial vehicle 
     information systems and networks, improve safety and the 
     productivity of commercial vehicle operations, and enhance 
     transportation security.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     311 is amended by inserting after the item relating to 
     section 31150 the following:

``31151. Commercial vehicle information systems and networks''.

     SEC. 7122. OUTREACH AND EDUCATION.

       (a) In General.--The Secretary of Transportation, through 
     the National Highway Traffic Safety Administration and the 
     Federal Motor Carrier Safety Administration, may undertake 
     outreach and education initiatives, including the ``Share the 
     Road Safely'' program, that will reduce the number of highway 
     accidents, injuries, and fatalities involving commercial 
     motor vehicles.
       (b) Study.--The Comptroller General shall update the 
     Government Accountability Office's

[[Page 10663]]

     evaluation of the ``Share the Road Safely'' program to 
     determine if it has achieved reductions in the number and 
     severity of commercial motor vehicle crashes, including 
     reductions in the number of deaths and the severity of 
     injuries sustained in these crashes, and shall report its 
     updated evaluation to Congress no later than June 30, 2006.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for each of fiscal years 
     2006 through 2009 to carry out this section--
       (1) $1,000,000 for the Federal Motor Carrier Safety 
     Administration; and
       (2) $3,000,000 for the National Highway Traffic Safety 
     Administration.

     SEC. 7123. FOREIGN COMMERCIAL MOTOR VEHICLES.

       (a) Operating Authority Enforcement Assistance for 
     States.--Within 180 days after the date of enactment of this 
     Act, the Federal Motor Carrier Safety Administration shall 
     conduct outreach and provide training as necessary to State 
     personnel engaged in the enforcement of Federal Motor Carrier 
     Safety Administration safety regulations to ensure their 
     awareness of the process to be used for verification of the 
     operating authority of motor carriers, including buses, and 
     to ensure proper enforcement when motor carriers are found to 
     be in violation of operating authority requirements. The 
     Inspector General of the Department of Transportation may 
     periodically assess the implementation and effectiveness of 
     the training and outreach program.
       (b) Study of Foreign Commercial Motor Vehicles.--
       (1) Review.--Within 1 year after the date of enactment of 
     this Act, the Federal Motor Carrier Safety Administration 
     shall conduct a review to determine the degree to which 
     Canadian and Mexican commercial motor vehicles, including 
     buses, currently operating or expected to operate, in the 
     United States comply with the Federal Motor Vehicle Safety 
     Standards.
       (2) Reports.--Within 1 year after the date of enactment of 
     this Act, the Adminstrator shall transmit a report to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure containing the findings and conclusions of the 
     review. Within 4 months after the report is transmitted to 
     the Committees, the Inspector General of the Department of 
     Transportation shall provide comments and observations to the 
     Committees on the scope and methodology of the review.

     SEC. 7124. PRE-EMPLOYMENT SAFETY SCREENING.

       (a) In General.--Subchapter III of chapter 311, as amended 
     by section 7121, is amended by adding at the end the 
     following:

     ``Sec. 31152. Pre-employment safety screening

       ``(a) In General.--The Secretary of Transportation shall 
     provide companies conducting pre-employment screening 
     services for the motor carrier industry electronic access 
     to--
       ``(1) commercial motor vehicle accident report information 
     contained in the Motor Carrier Management Information System; 
     and
       ``(2) all driver safety violations contained in the Motor 
     Carrier Management Information System.
       ``(b) Establishment.--Prior to making information available 
     to such companies under subsection (a), the Secretary shall--
       ``(1) ensure that any information released is done in 
     accordance with the Fair Credit Reporting Act (15 U.S.C. 1681 
     et seq.) and all applicable Federal laws;
       ``(2) require the driver applicant's written consent as a 
     condition of releasing the information;
       ``(3) ensure that the information made available to 
     companies providing pre-employment screening services is not 
     released to any other unauthorized company or individual, 
     unless expressly authorized or required by law; and
       ``(4) provide a procedure for drivers to remedy incorrect 
     information in a timely manner.
       ``(c) Design.--To be eligible to have access to information 
     under subsection (a), a company conducting pre-employment 
     screening services for the motor carrier industry shall 
     utilize a screening process--
       ``(1) that is designed to assist the motor carrier industry 
     in assessing an individual driver's crash and safety 
     violation history as a pre-employment condition;
       ``(2) the use of which is not mandatory; and
       ``(3) which is used only during the pre-employment 
     assessment of a driver-applicant.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     311, as amended by section 7121, is amended by inserting 
     after the item relating to section 31151 the following:

``31152. Pre-employment safety screening.''.

     SEC. 7125. CLASS OR CATEGORY EXEMPTIONS.

       (a) In General.--The Secretary of Transportation may grant 
     exemptions for categories or classes of drivers of commercial 
     motor vehicles not required to hold a commercial driver's 
     license under section 31301(4) of title 49, United States 
     Code, from compliance in whole or in part with a regulation 
     issued under chapter 315 of title 49, United States Code, or 
     with regulations issued under section 31502 of that title 
     governing hours of service if the Secretary determines that 
     it is in the public interest to grant the exemption and that 
     the exemption is likely to achieve a level of safety that is 
     equivalent to, or greater than, the level of safety that 
     would be obtained in the absence of the exemption subject to 
     such conditions as the Secretary may impose. An exemption may 
     be granted for no longer than 2 years from its initial 
     approval date and may be renewed upon application to the 
     Secretary.
       (b) Authority to Revoke Exemption.--The Secretary shall 
     immediately revoke an exemption if--
       (1) the exemption has resulted in a lower level of safety 
     than was maintained before the exemption was granted; or
       (2) continuation of the exemption would not be consistent 
     with the goals and objectives of that chapter or section 
     31136, as the case may be.
       (c) Requests for Exemption.--
       (1) Interim final rule.--Not later than 180 days after the 
     date of enactment of this Act, the Secretary shall specify by 
     interim final rule the procedures by which an exemption for a 
     category or class of drivers may be requested under this 
     section. The rule shall, at a minimum, require the motor 
     carrier or other entity requesting the exemption to provide 
     the following information:
       (A) The provisions from which the motor carrier or other 
     entity requests exemption.
       (B) The reason for which the exemption is requested.
       (C) The time period during which the requested exemption 
     would apply.
       (D) An analysis of the safety impacts the requested 
     exemption may cause.
       (E) The specific countermeasures the motor carrier or other 
     entity will undertake to ensure an equivalent or greater 
     level of safety than would be achieved absent the requested 
     exemption.
       (F) The benefits to be derived from the exemption.
       (2) Final rule.--Not later than 2 years after the date of 
     enactment of this Act, and after notice and an opportunity 
     for comment, the Secretary shall promulgate a final rule 
     specifying the procedures by which an exemption for a 
     category or class of drivers may be requested under this 
     section.
       (d) Notice and Comment.--
       (1) Upon receipt of a request.--Upon receipt of an 
     exemption request, the Secretary shall publish in the Federal 
     Register a notice explaining the request that has been filed 
     and shall give the public an opportunity to inspect the 
     safety analysis and any other relevant information known to 
     the Secretary and to comment on the request. This 
     subparagraph does not require the release of information 
     protected by law from public disclosure.
       (2) Upon granting a request.--Upon granting a request for 
     exemption, the Secretary shall publish in the Federal 
     Register the name of the motor carrier or other entity 
     granted the exemption, the provisions from which the category 
     or class of vehicles will be exempt, the effective period, 
     and all terms and conditions of the exemption.
       (3) After denying a request.--After denying a request for 
     exemption, the Secretary shall publish in the Federal 
     Register the name of the motor carrier or other entity denied 
     the exemption, the category or class of vehicles for which 
     the exemption was requested, and the reasons for such denial. 
     The Secretary may meet the requirement of this subparagraph 
     by periodically publishing in the Federal Register the names 
     of motor carriers or other entities denied exemptions, the 
     categories or classes of vehicles for which the exemption was 
     requested, and the reasons for such denials.
       (e) Applications To Be Dealt with Promptly.--The Secretary 
     shall grant or deny an exemption request after a thorough 
     review of its safety implications, but in no case later than 
     90 days after the filing date of such request.
       (f) Terms and Conditions.--The Secretary shall establish 
     terms and conditions for each exemption to ensure that it 
     will likely achieve a level of safety that is equivalent to, 
     or greater than, the level that would be achieved absent such 
     exemption. The Secretary shall monitor the implementation of 
     the exemption to ensure compliance with its terms and 
     conditions.
       (g) Notification of State Compliance and Enforcement 
     Personnel.--Before granting a request for exemption, the 
     Secretary shall notify State safety compliance and 
     enforcement personnel, including roadside inspectors, and the 
     public that a motor carrier or other entity will be operating 
     pursuant to an exemption and any terms and conditions that 
     will apply to the exemption.
       (h) Preemption of State Rules.--During the time period that 
     an exemption is in effect under this section, no State shall 
     enforce any law or regulation that conflicts with or is 
     inconsistent with the exemption with respect to the category 
     or class of vehicles to which the exemption applies.

     SEC. 7126. DECALS.

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

     SEC. 7127. ROADABILITY.

       (a) Inspection, Repair and Maintenance of Intermodal 
     Equipment.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, after providing notice 
     and opportunity for comment, shall issue regulations 
     establishing a program to ensure that intermodal equipment 
     used to transport intermodal containers is safe and 
     systematically maintained.
       (2) Intermodal equipment safety regulations.--The Secretary 
     shall promulgate regulations under this section as a subpart 
     of the regulations of the Federal Motor Carrier Safety

[[Page 10664]]

     Administration of the Department of Transportation.
       (3) Contents.--The regulations issued under this section 
     shall include, at a minimum--
       (A) a requirement to identify intermodal equipment 
     providers responsible for the inspection and maintenance of 
     intermodal equipment that is interchanged or intended for 
     interchange to motor carriers in intermodal transportation;
       (B) a requirement to match intermodal equipment readily to 
     an intermodal equipment provider through a unique identifying 
     number;
       (C) a requirement that an intermodal equipment provider 
     identified under the requirement of subparagraph (A) 
     systematically inspect, repair, and maintain, or cause to be 
     systematically inspected, repaired, and maintained, 
     intermodal equipment described in subparagraph (A) that is 
     intended for interchange with a motor carrier;
       (D) a requirement to ensure that each intermodal equipment 
     provider identified under the requirement of subparagraph (A) 
     maintains a system of maintenance and repair records for such 
     equipment;
       (E) requirements that--
       (i) a specific list of intermodal equipment components or 
     items be identified for the visual or audible inspection of 
     which a driver is responsible before operating the equipment 
     over the road; and
       (ii) the inspection be conducted as part of the Federal 
     requirement in effect on the date of enactment of this Act 
     that a driver be satisfied that the components are in good 
     working order before operating the equipment over the road;
       (F) a requirement that a facility at which an intermodal 
     equipment provider regularly makes equipment available for 
     interchange have an operational process and space readily 
     available for a motor carrier to have an equipment defect 
     identified pursuant to subparagraph (E) repaired or the 
     equipment replaced prior to departure;
       (G) a provision that establishes a program for the 
     evaluation and audit of compliance by intermodal equipment 
     providers with applicable Federal Motor Carrier Safety 
     Administration regulations;
       (H) a provision that--
       (i) establishes a civil penalty structure consistent with 
     section 521(b) of title 49, United States Code, for 
     intermodal equipment providers that fail to attain 
     satisfactory compliance with applicable regulations; and
       (ii) prohibits intermodal equipment providers from placing 
     intermodal equipment in service on the public highways to the 
     extent such providers or their equipment are found to pose an 
     imminent hazard;
       (I) a provision that establishes a process by which motor 
     carriers and agents of motor carriers may request the Federal 
     Motor Carrier Safety Administration to undertake an 
     investigation of an intermodal equipment provider identified 
     under the requirement of subparagraph (A) that is alleged to 
     be not in compliance with the regulations established 
     pursuant to this section;
       (J) a provision that establishes a process by which 
     equipment providers and agents of equipment providers may 
     request the Federal Motor Carrier Safety Administration to 
     undertake an investigation of a motor carrier that is alleged 
     to be not in compliance with applicable Federal motor carrier 
     safety regulations;
       (K) a provision that establishes a process by which drivers 
     or motor carriers are required to report any actual damage or 
     defect in the intermodal equipment of which the driver or 
     motor carrier is aware at the time the intermodal equipment 
     is returned to the equipment provider;
       (L) a requirement that any actual damage or defect 
     identified in the process established under subparagraph (K) 
     be repaired before the equipment is made available for 
     interchange to a motor carrier, and that repairs of equipment 
     made pursuant to the requirements of this subparagraph and 
     reports made pursuant to subparagraph (K) process be 
     documented in the maintenance records for such equipment; and
       (M) a procedure under which motor carriers, drivers and 
     intermodal equipment providers may seek correction of their 
     safety records through the deletion from those records of 
     violations of safety regulations attributable to deficiencies 
     in the intermodal chassis or trailer for which they should 
     not have been held responsible.
       (4) Deadline for rulemaking proceeding.--Within 120 days 
     after the date of enactment of this Act, the Secretary shall 
     initiate a rulemaking proceeding for regulations under this 
     section.
       (b) Jurisdiction of Department of Transportation.--Section 
     31136 is amended by adding at the end the following:
       ``(g) Inspection, Repair, and Maintenance of Intermodal 
     Equipment.--The Secretary or an employee of the Department of 
     Transportation designated by the Secretary may inspect 
     intermodal equipment, and copy related maintenance and repair 
     records for such equipment, on demand and display of proper 
     credentials.
       ``(h) Out-of-Service Until Repair.--Any intermodal 
     equipment that is determined under this section to fail to 
     comply with applicable safety regulations may be placed out 
     of service and may not be used on a public highway until the 
     repairs necessary to bring such equipment into compliance 
     have been completed. Repairs of equipment taken out of 
     service shall be documented in the maintenance records for 
     such equipment.''.
       (c) Preemption of State Laws.--
       (1) In general.--Section 31141 is amended by adding at the 
     end the following:
       ``(h) Preemption Generally.--Except as otherwise authorized 
     by law and as provided in subsection (i), a law, regulation, 
     order, or other requirement of a State, a political 
     subdivision of a State, or a tribal organization, is 
     preempted if such law, regulation, order, or other 
     requirement exceeds or is inconsistent with a requirement 
     imposed under or pursuant to this chapter.
       ``(i) Pre-existing State Requirements.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     State requirement for the periodic inspection of intermodal 
     chassis by intermodal equipment providers that was in effect 
     on January 1, 2005, shall remain in effect only until the 
     date on which requirements prescribed under section 7127 of 
     the Surface Transportation Safety Improvement Act of 2005 
     take effect.
       ``(2) Non-preemption determinations.--
       ``(A) In general.--A State requirement described in 
     paragraph (1) is not preempted by a Federal requirement 
     prescribed under section 7127 of that Act if the Secretary 
     determines that the State requirement is as effective as the 
     Federal requirement and does not unduly burden interstate 
     commerce.
       ``(B) Application required.--Subparagraph (A) applies to a 
     State requirement only if the State applies to the Secretary 
     for a determination under this paragraph with respect to the 
     requirement before the date on which requirements prescribed 
     under section 7127 of that Act take effect. The Secretary 
     shall make a determination with respect to any such 
     application within 6 months after the date on which the 
     Secretary receives the application.
       ``(C) Amended state requirements.--Any amendment to a State 
     requirement not preempted under this subsection because of a 
     determination by the Secretary under subparagraph (A) may not 
     take effect unless--
       ``(i) it is submitted to the Secretary before the effective 
     date of the amendment; and
       ``(ii) the Secretary determines that the amendment would 
     not cause the State requirement to be less effective than the 
     Federal requirement and would not unduly burden interstate 
     commerce.
       (2) Conforming Amendment.--Section 31141(c)(1) is amended 
     by striking ``The Secretary'' the first place it appears and 
     inserting ``Except as provided by subsection (h), the 
     Secretary''.
       (d) Definitions.--In this section:
       (1) Intermodal equipment.--The term ``intermodal 
     equipment'' means trailing equipment that is used in the 
     intermodal transportation of freight over public highways in 
     interstate commerce (as defined in section 31132 of title 49, 
     United States Code), including trailers and chassis.
       (2) Intermodal equipment interchange agreement.--The term 
     ``Intermodal equipment interchange agreement'' means the 
     Uniform Intermodal Interchange and Facilities Access 
     Agreement or any other written document executed by an 
     intermodal equipment provider or its agent and a motor 
     carrier or its agent, the primary purpose of which is to 
     establish the responsibilities and liabilities of both 
     parties with respect to the interchange of the intermodal 
     equipment.
       (3) Intermodal equipment provider.--The term ``intermodal 
     equipment provider'' means any person that interchanges 
     intermodal equipment with a motor carrier pursuant to a 
     written interchange agreement or has a contractual 
     responsibility for the maintenance of the intermodal 
     equipment.
       (4) Interchange.--The term ``interchange''--
       (A) means the act of providing intermodal equipment to a 
     motor carrier pursuant to an Intermodal equipment interchange 
     agreement for the purpose of transporting the equipment for 
     loading or unloading by any person or repositioning the 
     equipment for the benefit of the equipment provider; but
       (B) does not include the leasing of equipment to a motor 
     carrier for primary use in the motor carrier's freight 
     hauling operations.

     SEC. 7128. MOTOR CARRIER REGULATIONS.

       (a) In General.--Section 31149, as amended by section 
     7108(d), is further amended--
       (1) by striking paragraph (1) of subsection (a) and 
     inserting the following:
       ``(1) Transportation of agricultural commodities and farm 
     supplies.--Regulations prescribed by the Secretary under 
     sections 31136 and 31502 of this title regarding maximum 
     driving and on-duty time for drivers used by motor carriers 
     shall not apply during planting and harvest periods, as 
     determined by each State, to drivers transporting 
     agricultural commodities or farm supplies for agricultural 
     purposes in a State if such transportation is limited to an 
     area within a 100 air mile radius from the source of the 
     commodities or the distribution point for the farm 
     supplies.'';
       (2) by adding at the end of subsection (e) the following:
       ``(7) Agricultural commodity.--The term `agricultural 
     commodity' means any agricultural commodity, non-processed 
     food, feed, fiber, or livestock (including livestock as 
     defined in section 602 of the Emergency Livestock Feed 
     Assistance Act of 1988 (7 U.S.C. 1471) and insects).
       ``(8) Farm supplies for agricultural purposes.--The term 
     `farm supplies for agricultural purposes' means products 
     directly related to the growing or harvesting of agricultural 
     commodities during the planting and harvesting seasons within 
     each State, as determined by the State, and livestock feed at 
     any time of the year.''.
       (b) Regulations for Movie Production Sites.--
     Notwithstanding sections 31136 and 31502 of title 49, United 
     States Code, and any other provision of law, the maximum 
     daily

[[Page 10665]]

     hours of service for an operator of a commercial motor 
     vehicle providing transportation of property or passengers to 
     or from a theatrical or television motion picture production 
     site located within a 100 air mile radius of the work 
     reporting location of such operator shall be those in effect 
     under the regulations in effect under those sections on April 
     27, 2003.
       (c) Utility Service Vehicles.--Section 31149(a)(4) (as so 
     transferred) is amended to read as follows:
       ``(4) Operators of utility service vehicles.--
       ``(A) Inapplicability of federal regulations.--Such 
     regulations may not apply to a driver of a utility service 
     vehicle.
       ``(B) Prohibition on state regulations.--A State, a 
     political subdivision of a State, an interstate agency, or 
     other entity consisting of 2 or more States, shall not enact 
     or enforce any law, rule, regulation, or standard that 
     imposes requirements on a driver of a utility service vehicle 
     that are similar to the requirements contained in such 
     regulations.'';
       (2) by striking ``Nothing'' in subsection (b) and inserting 
     ``Except as provided in subsection (a)(4), nothing''; and
       (3) by striking ``paragraph (2)'' in the first sentence of 
     subsection (c) and inserting ``an exemption under paragraph 
     (1), (2), or (4)''.

     SEC. 7129. VEHICLE TOWING.

       (a) State Laws Relating to Vehicle towing.--Section 
     14501(c) is amended by adding at the end the following:
       ``(5) Rule of construction.--Nothing in this section shall 
     be construed to prevent a State from requiring that, in the 
     case of vehicles towed from private property without the 
     consent of the owner or operator of the vehicle, towing 
     companies have prior written authorization from the property 
     owner or lessee (or an employee or agent thereof), or that 
     such owner or lessee (or an employee or agent thereof) be 
     present at the time the vehicle is towed from the property, 
     or both.''.
       (b) Predatory Tow Truck Operations.--Within 1 year after 
     the date of enactment of this Act, the Secretary of 
     Transportation, in conjunction with other appropriate Federal 
     agencies, shall--
       (1) conduct a review of Federal, State and local regulation 
     of the tow truck industry before the date of enactment of the 
     ICC Termination Act of 1995; and
       (2) conduct a study to identify issues related to the 
     protection of the rights of consumers who are towed, to 
     establish the scope and geographic reach of any such issues 
     identified, and to identify potential remedies for those 
     issues.

     SEC. 7130. CERTIFICATION OF VEHICLE EMISSION PERFORMANCE 
                   STANDARDS.

       (a) Registration of Motor Carriers.--Section 13902(a)(1) of 
     title 49, United States Code (as amended by section 7117(b)), 
     is amended--
       (1) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (D), respectively; and
       (2) by inserting after subparagraph (A) the following:
       ``(B) a requirement that a motor carrier certify that, 
     beginning on January 1, 2007, any vehicle operated by the 
     motor carrier will comply with the heavy duty vehicle and 
     engine emissions performance standards and related 
     regulations established by the Administrator of the 
     Environmental Protection Agency under section 202(a)(3) of 
     the Clean Air Act (42 U.S.C. 7521(a)(3));''.
       (b) Study.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall make 
     recommendations to Congress on methods of ensuring that 
     trucks built before January 1, 2007, that are operating in 
     the United States comply with any emissions performance 
     standard under the Clean Air Act (42 U.S.C. 7401 et seq.) 
     that was applicable to the truck on the date on which the 
     engine of the truck was manufactured.

                CHAPTER 2--UNIFIED CARRIER REGISTRATION

     SEC. 7131. SHORT TITLE.

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

     SEC. 7132. RELATIONSHIP TO OTHER LAWS.

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

     SEC. 7133. INCLUSION OF MOTOR PRIVATE AND EXEMPT CARRIERS.

       (a) Persons Registered To Provide Transportation or Service 
     as a Motor Carrier or Motor Private Carrier.--Section 13905 
     is amended by--
       (1) redesignating subsections (b), (c), (d), and (e) as 
     subsections (c), (d), (e), and (f), respectively; and
       (2) inserting after subsection (a) the following:
       ``(b) Person Registered With Secretary.--
       ``(1) In general.--Except as provided in paragraph (2), any 
     person having registered with the Secretary to provide 
     transportation or service as a motor carrier or motor private 
     carrier under this title, as in effect on January 1, 2005, 
     but not having registered pursuant to section 13902(a) of 
     this title, shall be deemed, for purposes of this part, to be 
     registered to provide such transportation or service for 
     purposes of sections 13908 and 14504a of this title.
       ``(2) Exclusively intrastate operators.--Paragraph (1) does 
     not apply to a motor carrier or motor private carrier 
     (including a transporter of waste or recyclable materials) 
     engaged exclusively in intrastate transportation 
     operations.''.
       (b) Security Requirement.--Section 13906(a) is amended by--
       (1) redesignating paragraphs (2) and (3) as paragraphs (3) 
     and (4), respectively; and
       (2) inserting the following:
       ``(2) Security Requirement.--Not later than 120 days after 
     the date of enactment of the Unified Carrier Registration Act 
     of 2005, any person, other than a motor private carrier, 
     registered with the Secretary to provide transportation or 
     service as a motor carrier under section 13905(b) of this 
     title shall file with the Secretary a bond, insurance policy, 
     or other type of security approved by the Secretary, in an 
     amount not less than required by sections 31138 and 31139 of 
     this title.''.
       (c) Termination of Transition Rule.--Section 13902 is 
     amended--
       (1) by adding at the end of subsection (d) the following:
       ``(3) Termination.--This subsection shall cease to be in 
     effect on the transition termination date.''; and
       (2) by redesignating subsection (f) as subsection (g), and 
     inserting after subsection (e) the following:
       ``(f) Modification of Carrier Registration.--
       ``(1) In general.--On and after the transition termination 
     date, the Secretary--
       ``(A) may not register a motor carrier under this section 
     as a motor common carrier or a motor contract carrier;
       ``(B) shall register applicants under this section as motor 
     carriers; and
       ``(C) shall issue any motor carrier registered under this 
     section after that date a motor carrier certificate of 
     registration that specifies whether the holder of the 
     certificate may provide transportation of persons, household 
     goods, other property, or any combination thereof.
       ``(2) Pre-existing certificates and permits.--The Secretary 
     shall redesignate any motor carrier certificate or permit 
     issued before the transition termination date as a motor 
     carrier certificate of registration. On and after the 
     transition termination date, any person holding a motor 
     carrier certificate of registration redesignated under this 
     paragraph may provide both contract carriage (as defined in 
     section 13102(4)(B) of this title) and transportation under 
     terms and conditions meeting the requirements of section 
     13710(a)(1) of this title. The Secretary may not, pursuant to 
     any regulation or form issued before or after the transition 
     termination date, make any distinction among holders of motor 
     carrier certificates of registration on the basis of whether 
     the holder would have been classified as a common carrier or 
     as a contract carrier under--
       ``(A) subsection (d) of this section, as that section was 
     in effect before the transition termination date; or
       ``(B) any other provision of this title that was in effect 
     before the transition termination date.
       ``(3) Transition termination date defined.--In subsection 
     (d) and this subsection, the term `transition termination 
     date' means the first day of January occurring more than 12 
     months after the date of enactment of the Unified Carrier 
     Registration Act of 2005.''.
       (d) Conforming Amendments.--
       (1) Caption of section 13906.--The section caption for 
     section 13906 is amended by inserting ``motor private 
     carriers,'' after ``motor carriers,''.
       (2) Chapter analysis.--The chapter analysis for chapter 139 
     is amended by striking the item relating to section 13906 and 
     inserting the following:

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

     SEC. 7134. UNIFIED CARRIER REGISTRATION SYSTEM.

       (a) Section 13908 is amended to read as follows:

     ``Sec. 13908. Registration and other reforms

       ``(a) Establishment of Unified Carrier Registration 
     System.--The Secretary, in cooperation with the States, 
     representatives of the motor carrier, motor private carrier, 
     freight forwarder and broker industries, and after notice and 
     opportunity for public comment, shall issue within 1 year 
     after the date of enactment of the Unified Carrier 
     Registration Act of 2005 regulations to establish, an online, 
     Federal registration system to be named the Unified Carrier 
     Registration System to replace--
       ``(1) the current Department of Transportation 
     identification number system, the Single State Registration 
     System under section 14504 of this title;
       ``(2) the registration system contained in this chapter and 
     the financial responsibility information system under section 
     13906; and
       ``(3) the service of process agent systems under sections 
     503 and 13304 of this title.
       ``(b) Role as Clearinghouse and Depository of 
     Information.--The Unified Carrier Registration System shall 
     serve as a clearinghouse and depository of information on, 
     and identification of, all foreign and domestic motor 
     carriers, motor private carriers, brokers, and freight 
     forwarders, and others required to register with the 
     Department, including information with respect to a carrier's 
     safety rating, compliance with required levels of financial 
     responsibility, and compliance with the provisions of section 
     14504a of this title. The Secretary shall ensure that Federal 
     agencies, States, representatives of the motor carrier 
     industry, and

[[Page 10666]]

     the public have access to the Unified Carrier Registration 
     System, including the records and information contained in 
     the System.
       ``(c) Procedures for Correcting Information.--Not later 
     than 60 days after the effective date of this section, the 
     Secretary shall prescribe regulations establishing procedures 
     that enable a motor carrier to correct erroneous information 
     contained in any part of the Unified Carrier Registration 
     System.
       ``(d) Fee System.--The Secretary shall establish, under 
     section 9701 of title 31, a fee system for the Unified 
     Carrier Registration System according to the following 
     guidelines:
       ``(1) Registration and filing evidence of financial 
     responsibility.--The fee for new registrants shall as nearly 
     as possible cover the costs of processing the registration 
     and conducting the safety audit or examination, if required, 
     but shall not exceed $300.
       ``(2) Evidence of financial responsibility.--The fee for 
     filing evidence of financial responsibility pursuant to this 
     section shall not exceed $10 per filing. No fee shall be 
     charged for a filing for purposes of designating an agent for 
     service of process or the filing of other information 
     relating to financial responsibility.
       ``(3) Access and retrieval fees.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the fee system shall include a nominal fee for the access to 
     or retrieval of information from the Unified Carrier 
     Registration System to cover the costs of operating and 
     upgrading the System, including the personnel costs incurred 
     by the Department and the costs of administration of the 
     Unified Carrier Registration Agreement.
       ``(B) Exceptions.--There shall be no fee charged--
       ``(i) to any agency of the Federal Government or a State 
     government or any political subdivision of any such 
     government for the access to or retrieval of information and 
     data from the Unified Carrier Registration System for its own 
     use; or
       ``(ii) to any representative of a motor carrier, motor 
     private carrier, leasing company, broker, or freight 
     forwarder (as each is defined in section 14504a of this 
     title) for the access to or retrieval of the individual 
     information related to such entity from the Unified Carrier 
     Registration System for the individual use of such entity.
       ``(e) Application to Certain Intrastate Operations.--
     Nothing in this section requires the registration of a motor 
     carrier, a motor private carrier of property, or a 
     transporter of waste or recyclable materials operating 
     exclusively in intrastate transportation not otherwise 
     required to register with the Secretary under another 
     provision of this title.''.

     SEC. 7135. REGISTRATION OF MOTOR CARRIERS BY STATES.

       (a) Termination of Registration Provisions.--Section 14504 
     is amended by adding at the end the following:
       ``(d) Termination of Provisions.--Subsections (b) and (c) 
     shall cease to be effective on the first January 1st 
     occurring more than 12 months after the date of enactment of 
     the Unified Carrier Registration Act of 2005.''.
       (b) Unified Carrier Registration System Plan and 
     Agreement.--Chapter 145 is amended by inserting after section 
     14504 the following:

     ``Sec. 14504a. Unified carrier registration system plan and 
       agreement

       ``(a) Definitions.--In this section and section 14506 of 
     this title:
       ``(1) Commercial motor vehicle.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `commercial motor vehicle' has the meaning given the 
     term in section 31101 of this title.
       ``(B) Exception.--With respect to motor carriers required 
     to make any filing or pay any fee to a State with respect to 
     the motor carrier's authority or insurance related to 
     operation within such State, the term `commercial motor 
     vehicle' means any self-propelled vehicle used on the highway 
     in commerce to transport passengers or property for 
     compensation regardless of the gross vehicle weight rating of 
     the vehicle or the number of passengers transported by such 
     vehicle.
       ``(2) Base-state.--
       ``(A) In general.--The term `Base-State' means, with 
     respect to the Unified Carrier Registration Agreement, a 
     State--
       ``(i) that is in compliance with the requirements of 
     subsection (e); and
       ``(ii) in which the motor carrier, motor private carrier, 
     broker, freight forwarder or leasing company maintains its 
     principal place of business.
       ``(B) Designation of base-state.--A motor carrier, motor 
     private carrier, broker, freight forwarder or leasing company 
     may designate another State in which it maintains an office 
     or operating facility as its Base-State in the event that--
       ``(i) the State in which the motor carrier, motor private 
     carrier, broker, freight forwarder or leasing company 
     maintains its principal place of business is not in 
     compliance with the requirements of subsection (e); or
       ``(ii) the motor carrier, motor private carrier, broker, 
     freight forwarder or leasing company does not have a 
     principal place of business in the United States.
       ``(3) Intrastate fee.--The term `intrastate fee' means any 
     fee, tax, or other type of assessment, including per vehicle 
     fees and gross receipts taxes, imposed on a motor carrier or 
     motor private carrier for the renewal of the intrastate 
     authority or insurance filings of such carrier with a State.
       ``(4) Leasing company.--The term `leasing company' means a 
     lessor that is engaged in the business of leasing or renting 
     for compensation motor vehicles without drivers to a motor 
     carrier, motor private carrier, or freight forwarder.
       ``(5) Motor carrier.--The term `motor carrier' has the 
     meaning given the term in section 13102(12) of this title, 
     but shall include all carriers that are otherwise exempt from 
     the provisions of part B of this title pursuant to the 
     provisions of chapter 135 of this title or exemption actions 
     by the former Interstate Commerce Commission under this 
     title.
       ``(6) Participating state.--The term `participating state' 
     means a State that has complied with the requirements of 
     subsection (e) of this section.
       ``(7) SSRS.--The term `SSRS' means the Single State 
     Registration System in effect on the date of enactment of the 
     Unified Carrier Registration Act of 2005.
       ``(8) Unified carrier registration agreement.--The terms 
     `Unified Carrier Registration Agreement' and `UCR Agreement' 
     mean the interstate agreement developed under the Unified 
     Carrier Registration Plan governing the collection and 
     distribution of registration and financial responsibility 
     information provided and fees paid by motor carriers, motor 
     private carriers, brokers, freight forwarders and leasing 
     companies pursuant to this section.
       ``(9) Unified carrier registration plan.--The terms 
     `Unified Carrier Registration Plan' and `UCR Plan' mean the 
     organization of State, Federal and industry representatives 
     responsible for developing, implementing and administering 
     the Unified Carrier Registration Agreement.
       ``(10) Vehicle registration.--The term `vehicle 
     registration' means the registration of any commercial motor 
     vehicle under the International Registration Plan or any 
     other registration law or regulation of a jurisdiction.
       ``(b) Applicability of Provisions to Freight Forwarders.--A 
     Freight forwarder that operates commercial motor vehicles and 
     is not required to register as a carrier pursuant to section 
     13903(b) of this title shall be subject to the provisions of 
     this section as if a motor carrier.
       ``(c) Unreasonable Burden.--For purposes of this section, 
     it shall be considered an unreasonable burden upon interstate 
     commerce for any State or any political subdivision of a 
     State, or any political authority of 2 or more States--
       ``(1) to enact, impose, or enforce any requirement or 
     standards, or levy any fee or charge on any interstate motor 
     carrier or interstate motor private carrier in connection 
     with--
       ``(A) the registration with the State of the interstate 
     operations of a motor carrier or motor private carrier;
       ``(B) the filing with the State of information relating to 
     the financial responsibility of a motor carrier or motor 
     private carrier pursuant to sections 31138 or 31139 of this 
     title;
       ``(C) the filing with the State of the name of the local 
     agent for service of process of a motor carrier or motor 
     private carrier pursuant to sections 503 or 13304 of this 
     title; or
       ``(D) the annual renewal of the intrastate authority, or 
     the insurance filings, of a motor carrier or motor private 
     carrier, or other intrastate filing requirement necessary to 
     operate within the State, if the motor carrier or motor 
     private carrier is--
       ``(i) registered in compliance with section 13902 or 
     section 13905(b) of this title; and
       ``(ii) in compliance with the laws and regulations of the 
     State authorizing the carrier to operate in the State 
     pursuant to section 14501(c)(2)(A) of this title

     except with respect to--

       ``(I) intrastate service provided by motor carriers of 
     passengers that is not subject to the preemptive provisions 
     of section 14501(a) of this title,
       ``(II) motor carriers of property, motor private carriers, 
     brokers, or freight forwarders, or their services or 
     operations, that are described in subparagraphs (B) and (C) 
     of section 14501(c)(2) and section 14506(c)(3) or permitted 
     pursuant to section 14506(b) of this title, and
       ``(III) the intrastate transportation of waste or 
     recyclable materials by any carrier); or

       ``(2) to require any interstate motor carrier or motor 
     private carrier to pay any fee or tax, not proscribed by 
     paragraph (1)(D) of this subsection, that a motor carrier or 
     motor private carrier that pays a fee which is proscribed by 
     that paragraph is not required to pay.
       ``(d) Unified Carrier Registration Plan.--
       ``(1) Board of directors.--
       ``(A) Governance of plan.--The Unified Carrier Registration 
     Plan shall be governed by a Board of Directors consisting of 
     representatives of the Department of Transportation, 
     Participating States, and the motor carrier industry.
       ``(B) Number.--The Board shall consist of 15 directors.
       ``(C) Composition.--The Board shall be composed of 
     directors appointed as follows:
       ``(i) Federal motor carrier safety administration.--The 
     Secretary shall appoint 1 director from each of the Federal 
     Motor Carrier Safety Administration's 4 Service Areas (as 
     those areas were defined by the Federal Motor Carrier Safety 
     Administration on January 1, 2005), from among the chief 
     administrative officers of the State agencies responsible for 
     overseeing the administration of the UCR Agreement.
       ``(ii) State agencies.--The Secretary shall appoint 5 
     directors from the professional staffs of State agencies 
     responsible for overseeing the administration of the UCR 
     Agreement in their respective States. Nominees for these 5 
     directorships shall be submitted to the Secretary by the 
     national association of professional employees of the State 
     agencies responsible for overseeing

[[Page 10667]]

     the administration of the UCR Agreement in their respective 
     States.
       ``(iii) Motor carrier industry.--The Secretary shall 
     appoint 5 directors from the motor carrier industry. At least 
     1 of the appointees shall be an employee of the national 
     trade association representing the general motor carrier of 
     property industry.
       ``(iv) Department of transportation.--The Secretary shall 
     appoint the Deputy Administrator of the Federal Motor Carrier 
     Safety Administration, or such other presidential appointee 
     from the United States Department of Transportation, as the 
     Secretary may designate, to serve as a director.
       ``(D) Chairperson and vice-chairperson.--The Secretary 
     shall designate 1 director as Chairperson and 1 director as 
     Vice-Chairperson of the Board. The Chairperson and Vice-
     Chairperson shall serve in such capacity for the term of 
     their appointment as directors.
       ``(E) Term.--In appointing the initial Board, the Secretary 
     shall designate 5 of the appointed directors for initial 
     terms of 3 years, 5 of the appointed directors for initial 
     terms of 2 years, and 5 of the appointed directors for 
     initial terms of 1 year. Thereafter, all directors shall be 
     appointed for terms of 3 years, except that the term of the 
     Deputy Administrator or other individual designated by the 
     Secretary under subparagraph (C)(iv) shall be at the 
     discretion of the Secretary. A director may be appointed to 
     succeed himself or herself. A director may continue to serve 
     on the Board until his or her successor is appointed.
       ``(2) Rules and regulations governing the ucr agreement.--
     The Board of Directors shall issue rules and regulations to 
     govern the UCR Agreement. The rules and regulations shall--
       ``(A) prescribe uniform forms and formats, for--
       ``(i) the annual submission of the information required by 
     a Base-State of a motor carrier, motor private carrier, 
     leasing company, broker, or freight forwarder;
       ``(ii) the transmission of information by a Participating 
     State to the Unified Carrier Registration System;
       ``(iii) the payment of excess fees by a State to the 
     designated depository and the distribution of fees by the 
     depository to those States so entitled; and
       ``(iv) the providing of notice by a motor carrier, motor 
     private carrier, broker, freight forwarder, or leasing 
     company to the Board of the intent of such entity to change 
     its Base-State, and the procedures for a State to object to 
     such a change under subparagraph (C) of this paragraph;
       ``(B) provide for the administration of the Unified Carrier 
     Registration Agreement, including procedures for amending the 
     Agreement and obtaining clarification of any provision of the 
     Agreement;
       ``(C) provide procedures for dispute resolution that 
     provide due process for all involved parties; and
       ``(D) designate a depository.
       ``(3) Compensation and expenses.--Except for the 
     representative of the Department of Transportation appointed 
     pursuant to paragraph (1)(D), no director shall receive any 
     compensation or other benefits from the Federal Government 
     for serving on the Board or be considered a Federal employee 
     as a result of such service. All Directors shall be 
     reimbursed for expenses they incur attending duly called 
     meetings of the Board. In addition, the Board may approve the 
     reimbursement of expenses incurred by members of any 
     subcommittee or task force appointed pursuant to paragraph 
     (5). The reimbursement of expenses to directors and 
     subcommittee and task force members shall be based on the 
     then applicable rules of the General Service Administration 
     governing reimbursement of expenses for travel by Federal 
     employees.
       ``(4) Meetings.--
       ``(A) In general.--The Board shall meet at least once per 
     year. Additional meetings may be called, as needed, by the 
     Chairperson of the Board, a majority of the directors, or the 
     Secretary.
       ``(B) Quorum.--A majority of directors shall constitute a 
     quorum.
       ``(C) Voting.--Approval of any matter before the Board 
     shall require the approval of a majority of all directors 
     present at the meeting.
       ``(D) Open meetings.--Meetings of the Board and any 
     subcommittees or task forces appointed pursuant to paragraph 
     (5) of this section shall be subject to the provisions of 
     section 552b of title 5.
       ``(5) Subcommittees.--
       ``(A) Industry advisory subcommittee.--The Chairperson 
     shall appoint an Industry Advisory Subcommittee. The Industry 
     Advisory Subcommittee shall consider any matter before the 
     Board and make recommendations to the Board.
       ``(B) Other subcommittees.--The Chairperson shall appoint 
     an Audit Subcommittee, a Dispute Resolution Subcommittee, and 
     any additional subcommittees and task forces that the Board 
     determines to be necessary.
       ``(C) Membership.--The chairperson of each subcommittee 
     shall be a director. The other members of subcommittees and 
     task forces may be directors or non-directors.
       ``(D) Representation on subcommittees.--Except for the 
     Industry Advisory Subcommittee (the membership of which shall 
     consist solely of representatives of entities subject to the 
     fee requirements of subsection (f) of this section), each 
     subcommittee and task force shall include representatives of 
     the Participating States and the motor carrier industry.
       ``(6) Delegation of authority.--The Board may contract with 
     any private commercial or non-profit entity or any agency of 
     a State to perform administrative functions required under 
     the Unified Carrier Registration Agreement, but may not 
     delegate its decision or policy-making responsibilities.
       ``(7) Determination of fees.--
       ``(A) Recommendation by board.--The Board shall recommend 
     to the Secretary the initial annual fees to be assessed 
     carriers, leasing companies, brokers, and freight forwarders 
     pursuant to the Unified Carrier Registration Agreement. In 
     making its recommendation to the Secretary for the level of 
     fees to be assessed in any Agreement year, and in setting the 
     fee level, the Board and the Secretary shall consider--
       ``(i) the administrative costs associated with the Unified 
     Carrier Registration Plan and the Agreement;
       ``(ii) whether the revenues generated in the previous year 
     and any surplus or shortage from that or prior years enable 
     the Participating States to achieve the revenue levels set by 
     the Board; and
       ``(iii) the parameters for fees set forth in subsection 
     (f)(1).
       ``(B) Setting fees.--The Secretary shall set the initial 
     annual fees for the next Agreement year and any subsequent 
     adjustment of those fees--
       ``(i) within 90 days after receiving the Board's 
     recommendation under subparagraph (A); and
       ``(ii) after notice and opportunity for public comment.
       ``(8) Liability protections for directors.--No individual 
     appointed to serve on the Board shall be liable to any other 
     director or to any other party for harm, either economic or 
     non-economic, caused by an act or omission of the individual 
     arising from the individual's service on the Board if--
       ``(A) the individual was acting within the scope of his or 
     her responsibilities as a director; and
       ``(B) the harm was not caused by willful or criminal 
     misconduct, gross negligence, reckless misconduct, or a 
     conscious, flagrant indifference to the right or safety of 
     the party harmed by the individual.
       ``(9) Inapplicability of federal advisory committee act.--
     The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to the Unified Carrier Registration Plan or its 
     committees.
       ``(10) Certain fees not affected.--This section does not 
     limit the amount of money a State may charge for vehicle 
     registration or the amount of any fuel use tax a State may 
     impose pursuant to the International Fuel Tax Agreement.
       ``(e) State Participation.--
       ``(1) State plan.--No State shall be eligible to 
     participate in the Unified Carrier Registration Plan or to 
     receive any revenues derived under the Agreement, unless the 
     State submits to the Secretary, not later than 3 years after 
     the date of enactment of the Unified Carrier Registration Act 
     of 2005, a plan--
       ``(A) identifying the State agency that has or will have 
     the legal authority, resources, and qualified personnel 
     necessary to administer the Unified Carrier Registration 
     Agreement in accordance with the rules and regulations 
     promulgated by the Board of Directors of the Unified Carrier 
     Registration Plan; and
       ``(B) containing assurances that an amount at least equal 
     to the revenue derived by the State from the Unified Carrier 
     Registration Agreement shall be used for motor carrier safety 
     programs, enforcement, and financial responsibility, or the 
     administration of the UCR Plan and UCR Agreement.
       ``(2) Amended plans.--A State may change the agency 
     designated in the plan submitted under this subsection by 
     filing an amended plan with the Secretary and the Chairperson 
     of the Unified Carrier Registration Plan.
       ``(3) Withdrawal of plan.--If a State withdraws, or 
     notifies the Secretary that it is withdrawing, the plan 
     submitted under this subsection, then the State may no longer 
     participate in the Unified Carrier Registration Agreement or 
     receive any portion of the revenues derived under the 
     Agreement. The Secretary shall notify the Chairperson upon 
     receiving notice from a State that it is withdrawing its plan 
     or withdrawing from the Agreement.
       ``(4) Termination of eligibility.--If a State fails to 
     submit a plan to the Secretary as required by paragraph (1) 
     or withdraws its plan under paragraph (3), the State shall be 
     prohibited from subsequently submitting or resubmitting a 
     plan or participating in the Agreement.
       ``(5) Provision of plan to chairperson.--The Secretary 
     shall provide a copy of each plan submitted under this 
     subsection to the initial Chairperson of the Board of 
     Directors of the Unified Carrier Registration Plan not later 
     than 90 days of appointing the Chairperson.
       ``(f) Contents of Unified Carrier Registration Agreement.--
     The Unified Carrier Registration Agreement shall provide the 
     following:
       ``(1) Determination of fees.--
       ``(A) Fees charged motor carriers, motor private carriers, 
     or freight forwarders in connection with the filing of proof 
     of financial responsibility under the UCR Agreement shall be 
     based on the number of commercial motor vehicles owned or 
     operated by the motor carrier, motor private carrier, or 
     freight forwarder. Brokers and leasing companies shall pay 
     the same fees as the smallest bracket of motor carriers, 
     motor private carriers, and freight forwarders.
       ``(B) The fees shall be determined by the Secretary based 
     upon the recommendation of the Board under subsection (d)(7).

[[Page 10668]]

       ``(C) The Board shall develop no more than 6 and no less 
     than 4 brackets of carriers by size of fleet.
       ``(D) The fee scale shall be progressive and use different 
     vehicle ratios for each bracket of carrier fleet size.
       ``(E) The Board may ask the Secretary to adjust the fees 
     within a reasonable range on an annual basis if the revenues 
     derived from the fees--
       ``(i) are insufficient to provide the revenues to which the 
     States are entitled under this section; or
       ``(ii) exceed those revenues.
       ``(2) Determination of ownership or operation.--Commercial 
     motor vehicles owned or operated by a motor carrier, motor 
     private carrier, or freight forwarder shall mean those 
     commercial motor vehicles registered in the name of the motor 
     carrier, motor private carrier, or freight forwarder or 
     controlled by the motor carrier, motor private carrier, or 
     freight forwarder under a long term lease during a vehicle 
     registration year.
       ``(3) Calculation of number of commercial motor vehicles 
     owned or operated.--The number of commercial motor vehicles 
     owned or operated by a motor carrier, motor private carrier, 
     or freight forwarder for purposes of paragraph (1) of this 
     subsection shall be based either on the number of commercial 
     motor vehicles the motor carrier, motor private carrier, or 
     freight forwarder has indicated it operates on its most 
     recently filed MCS-150 or the total number of such vehicles 
     it owned or operated for the 12-month period ending on June 
     30 of the year immediately prior to the each registration 
     year of the Unified Carrier Registration System. Commercial 
     motor vehicles used exclusively in the intrastate 
     transportation of property, waste, or recyclable material may 
     not be included in determining the number of commercial motor 
     vehicles owned or operated by a motor carrier or motor 
     private carrier for purposes of paragraph (1) of this 
     subsection.
       ``(4) Payment of fees.--Motor carriers, motor private 
     carriers, leasing companies, brokers, and freight forwarders 
     shall pay all fees required under this section to their Base-
     State pursuant to the UCR Agreement.
       ``(g) Payment of Fees.--Revenues derived under the UCR 
     Agreement shall be allocated to Participating States as 
     follows:
       ``(1) A State that participated in the Single State 
     Registration System in the last SSRS registration year ending 
     before the date of enactment of the Unified Carrier 
     Registration Act of 2005 and complies with the requirements 
     of subsection (e) of this section is entitled to receive a 
     portion of the UCR Agreement revenues generated under the 
     Agreement equivalent to the revenues it received under the 
     SSRS in the last SSRS registration year ending before the 
     date of enactment of the Unified Carrier Registration Act of 
     2005, as long as the State continues to comply with the 
     provisions of subsection (e).
       ``(2) A State that collected intrastate registration fees 
     from interstate motor carriers, interstate motor private 
     carriers, or interstate exempt carriers and complies with the 
     requirements of subsection (e) of this section is entitled to 
     receive an additional portion of the UCR Agreement revenues 
     generated under the Agreement equivalent to the revenues it 
     received from such interstate carriers in the last calendar 
     year ending before the date of enactment of the Unified 
     Carrier Registration Act of 2005, as long as the State 
     continues to comply with the provisions of subsection (e).
       ``(3) States that comply with the requirements of 
     subsection (e) of this section but did not participate in 
     SSRS during the last SSRS registration year ending before the 
     date of enactment of the Unified Carrier Registration Act of 
     2005 shall be entitled to an annual allotment not to exceed 
     $500,000 from the UCR Agreement revenues generated under the 
     Agreement as long as the State continues to comply with the 
     provisions of subsection (e).
       ``(4) The amount of UCR Agreement revenues to which a State 
     is entitled under this section shall be calculated by the 
     Board and approved by the Secretary.
       ``(h) Distribution of UCR Agreement Revenues.--
       ``(1) Eligibility.--Each State that is in compliance with 
     the provisions of subsection (e) shall be entitled to a 
     portion of the revenues derived from the UCR Agreement in 
     accordance with subsection (g).
       ``(2) Entitlement to revenues.--A State that is in 
     compliance with the provisions of subsection (e) may retain 
     an amount of the gross revenues it collects from motor 
     carriers, motor private carriers, brokers, freight forwarders 
     and leasing companies under the UCR Agreement equivalent to 
     the portion of revenues to which the State is entitled under 
     subsection (g). All revenues a Participating State collects 
     in excess of the amount to which the State is so entitled 
     shall be forwarded to the depository designated by the Board 
     under subsection (d)(2)(D).
       ``(3) Distribution of funds from depository.--The excess 
     funds collected in the depository shall be distributed as 
     follows:
       ``(A) Excess funds shall be distributed on a pro rata basis 
     to each Participating State that did not collect revenues 
     under the UCR Agreement equivalent to the amount such State 
     is entitled under subsection (g), except that the sum of the 
     gross UCR Agreement revenues collected by a Participating 
     State and the amount distributed to it from the depository 
     shall not exceed the amount to which the State is entitled 
     under subsection (g).
       ``(B) Any excess funds held by the depository after all 
     distributions under subparagraph (A) have been made shall be 
     used to pay the administrative costs of the UCR Plan and the 
     UCR Agreement.
       ``(C) Any excess funds held by the depository after 
     distributions and payments under subparagraphs (A) and (B) 
     shall be retained in the depository, and the UCR Agreement 
     fees for motor carriers, motor private carriers, leasing 
     companies, freight forwarders, and brokers for the next fee 
     year shall be reduced by the Secretary accordingly.
       ``(i) Enforcement.--
       ``(1) Civil actions.--Upon request by the Secretary of 
     Transportation, the Attorney General may bring a civil action 
     in a court of competent jurisdiction to enforce compliance 
     with this section and with the terms of the Unified Carrier 
     Registration Agreement.
       ``(2) Venue.--An action under this section may be brought 
     only in the Federal court sitting in the State in which an 
     order is required to enforce such compliance.
       ``(3) Relief.--Subject to section 1341 of title 28, the 
     court, on a proper showing--
       ``(A) shall issue a temporary restraining order or a 
     preliminary or permanent injunction; and
       ``(B) may issue an injunction requiring that the State or 
     any person comply with this section.
       ``(4) Enforcement by states.--Nothing in this section--
       ``(A) prohibits a Participating State from issuing 
     citations and imposing reasonable fines and penalties 
     pursuant to applicable State laws and regulations on any 
     motor carrier, motor private carrier, freight forwarder, 
     broker, or leasing company for failure to--
       ``(i) submit documents as required under subsection (d)(2); 
     or
       ``(ii) pay the fees required under subsection (f); or
       ``(B) authorizes a State to require a motor carrier, motor 
     private carrier, or freight forwarder to display as evidence 
     of compliance any form of identification in excess of those 
     permitted under section 14506 of this title on or in a 
     commercial motor vehicle.
       ``(j) Application to Intrastate Carriers.--Notwithstanding 
     any other provision of this section, a State may elect to 
     apply the provisions of the UCR Agreement to motor carriers 
     and motor private carriers subject to its jurisdiction that 
     operate solely in intrastate commerce within the borders of 
     the State.''.
       (c) Conforming Amendment.--The chapter analysis for chapter 
     145 is amended by inserting after the item relating to 
     section 14504 the following:

``14504a. Unified carrier registration system plan and agreement''.

     SEC. 7136. IDENTIFICATION OF VEHICLES.

       (a) In General.--Chapter 145 is amended by adding at the 
     end the following:

     ``Sec. 14506. Identification of vehicles

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

``14506. Identification of vehicles''.

     SEC. 7137. USE OF UCR AGREEMENT REVENUES AS MATCHING FUNDS.

       Section 31103(a) is amended by inserting ``Amounts 
     generated by the Unified Carrier Registration Agreement, 
     under section 14504a of this title and received by a State 
     and used for motor carrier safety purposes may be included as 
     part of the State's share not provided by the United 
     States.'' after ``United States Government.''.

     SEC. 7138. FACILITATION OF INTERNATIONAL REGISTRATION PLANS 
                   AND INTERNATIONAL FUEL TAX AGREEMENTS.

       (a) In General.--Chapter 317 is amended by adding at the 
     end the following:

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

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


[[Page 10669]]


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

     SEC. 7139. IDENTITY AUTHENTICATION STANDARDS.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code (as amended by section 1824(a)), is 
     amended by adding at the end the following:

     ``Sec. 179. Identity authentication standards

       ``(a) Definition of Information-Based Identity 
     Authentication.--In this section, the term `information-based 
     identity authentication' means the determination of the 
     identity of an individual, through the comparison of 
     information provided by a person, with other information 
     previously verified as accurate pertaining to that 
     individual.
       ``(b) Standards.--Not later than 180 days after the date of 
     enactment of this section, the Secretary, in consultation 
     with the Secretary of Homeland Security and the Federal Motor 
     Carrier Safety Administration, shall promulgate regulations 
     establishing minimum standards for State departments of motor 
     vehicles regarding the use of information-based identity 
     authentication to determine the identity of an applicant for 
     a commercial driver's license, or the renewal, transfer or 
     upgrading, of a commercial driver's license.
       ``(c) Minimum Standards.--The regulations shall, at a 
     minimum, require State departments of motor vehicles to 
     implement, and applicants for commercial driver's licenses, 
     (or the renewal, transfer, or upgrading of commercial 
     driver's licenses), to comply with, reasonable procedures for 
     operating an information-based identity authentication 
     program before issuing, renewing, transferring, or upgrading 
     a commercial driver's license.
       ``(d) Key Factors.--In promulgating regulations under this 
     section, the Secretary shall require that an information-
     based identity authentication program carried out under this 
     section establish processes that--
       ``(1) ensure accurate sources of matching information;
       ``(2) enable the measurement of the accuracy of the 
     determination of an applicant's identity;
       ``(3) support continuous auditing of compliance with 
     applicable laws, policies, and practices governing the 
     collection, use, and distribution of information in the 
     operation of the program;
       ``(4) incorporate a comprehensive program ensuring 
     administrative, technical, and physical safeguards to protect 
     the privacy and security of means of identification (as 
     defined in section 1028(d) of title 18, United States Code), 
     against unauthorized and fraudulent access or uses;
       ``(5) impose limitations to ensure that any information 
     containing means of identification transferred or shared with 
     third-party vendors for the purposes of the information-based 
     identity authentication described in this section is only 
     used by the third-party vendors for the specific purposes 
     authorized under this section;
       ``(6) include procedures to ensure accuracy and enable 
     applicants for commercial driver's licenses who are denied 
     licenses as a result of the information-based identity 
     authentication described in this section, to appeal the 
     determination and correct information upon which the 
     comparison described in subsection (a) is based;
       ``(7) ensure that the information-based identity 
     authentication described in this section--
       ``(A) can accurately assess and authenticate identities; 
     and
       ``(B) will not produce a large number of false positives or 
     unjustified adverse consequences;
       ``(8) create penalties for knowing use of inaccurate 
     information as a basis for comparison in authenticating 
     identity; and
       ``(9) adopt policies and procedures establishing effective 
     oversight of the information-based identity authentication 
     systems of State departments of motor vehicles.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter I of title 23, United States Code (as amended by 
     section 1824(b)), is amended by adding at the end the 
     following:

``179. Identity authentication standards.''.

     SEC. 7140. OFF-DUTY TIME FOR DRIVERS OF COMMERCIAL VEHICLES.

       Paragraph (2) of section 31149(a), as transferred by 
     section 7108, is amended by adding at the end the following: 
     ``No additional off-duty time for a driver of such a vehicle 
     shall be required in order for the driver to operate the 
     vehicle.''.

                CHAPTER 3--COMMERCIAL DRIVER'S LICENSES

     SEC. 7151. CDL TASK FORCE.

       (a) In General.--The Secretary of Transportation shall 
     convene a task force to study and address current impediments 
     and foreseeable challenges to the commercial driver's license 
     program's effectiveness and measures needed to realize the 
     full safety potential of the commercial driver's license 
     program. The task force shall address such issues as State 
     enforcement practices, operational procedures to detect and 
     deter fraud, needed improvements for seamless information 
     sharing between States, effective methods for accurately 
     sharing electronic data between States, adequate proof of 
     citizenship, updated technology, and timely notification from 
     judicial bodies concerning traffic and criminal convictions 
     of commercial driver's license holders.
       (b) Membership.--Members of the task force should include 
     State motor vehicle administrators, organizations 
     representing government agencies or officials, members of the 
     Judicial Conference, representatives of the trucking 
     industry, representatives of labor organizations, safety 
     advocates, and other significant stakeholders.
       (c) Report.--Within 2 years after the date of enactment of 
     this Act, the Secretary, on behalf of the task force, shall 
     complete a report of the task force's findings and 
     recommendations for legislative, regulatory, and enforcement 
     changes to improve the commercial driver's license program. 
     The Secretary shall promptly transmit the report to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure.
       (d) Funding.--From the funds authorized by section 
     7103(b)(3) of this subtitle, $200,000 shall be made available 
     for each of fiscal years 2006 and 2007 to carry out this 
     section.

     SEC. 7152. CDL LEARNER'S PERMIT PROGRAM.

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

     SEC. 7153. GRANTS TO STATES FOR COMMERCIAL DRIVER'S LICENSE 
                   IMPROVEMENTS.

       (a) In General.--Chapter 313 is amended by adding at the 
     end the following:

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

       ``(a) General Authority.--From the funds authorized by 
     section 7103(b)(3) of the Motor Carrier Safety 
     Reauthorization Act of 2005, the Secretary may make a grant 
     to a State, except as otherwise provided in subsection (e), 
     in a fiscal year to improve its implementation of the 
     commercial driver's license program, providing the State is 
     making a good faith effort toward substantial compliance with 
     the requirements of section 31311 and this section. The 
     Secretary shall establish criteria for the distribution of 
     grants and notify the States annually of such criteria.
       ``(b) Conditions.--Except as otherwise provided in 
     subsection (e), a State may use a grant under this section 
     only for expenses related to its commercial driver's license 
     program, including, but not limited to, computer hardware and 
     software, publications, testing, personnel, training, and 
     quality control. The grant may not be used to rent, lease, or 
     buy land or buildings. The Secretary shall give priority to 
     grants that will be used to achieve compliance with the 
     requirements of the Motor Carrier Safety Improvement Act of 
     1999. The Secretary may allocate the funds appropriated for 
     such grants in a fiscal year among the eligible States whose 
     applications for grants have been approved, under criteria 
     established by the Secretary.
       ``(c) Maintenance of Expenditures.--Except as otherwise 
     provided in subsection (e), the Secretary may make a grant to 
     a State under this section only if the State agrees that the 
     total expenditure of amounts of the State and political 
     subdivisions of the State, exclusive of United States 
     Government amounts, for the operation of the commercial 
     driver's license program will be maintained at a level at 
     least equal to the average level of that expenditure by the 
     State and political subdivisions of the State for the last 2 
     fiscal years before October 1, 2005.
       ``(d) Government Share.--Except as otherwise provided in 
     subsection (e), the Secretary shall reimburse a State, from a 
     grant made under this section, an amount that is not more 
     than 80 percent of the costs incurred by the State in a 
     fiscal year in implementing the commercial driver's license 
     improvements described in subsection (b). In determining 
     those costs, the Secretary shall include in-kind 
     contributions by the State.
       ``(e) High-Priority Activities.--
       ``(1) The Secretary may make a grant to a State agency, 
     local government, or organization representing government 
     agencies or officials for the full cost of research, 
     development, demonstration projects, public education, or 
     other special activities and projects relating to commercial 
     driver licensing and motor vehicle safety that are of benefit 
     to all jurisdictions or designed to address national safety 
     concerns and circumstances.
       ``(2) The Secretary may designate up to 10 percent of the 
     amounts made available under section 7103(b)(3) of the Motor 
     Carrier Safety Reauthorization Act of 2005 in a fiscal year 
     for high-priority activities under subsection (e)(1).
       ``(f) Emerging Issues.--The Secretary may designate up to 
     10 percent of the amounts made available under section 
     7103(b)(3) of the Motor Carrier Safety Reauthorization Act of 
     2005 in a fiscal year for allocation to a State agency, local 
     government, or other person at the discretion of the 
     Secretary to address emerging issues relating to commercial 
     driver's license improvements.
       ``(g) Apportionment.--Except as otherwise provided in 
     subsections (e) and (f), all amounts

[[Page 10670]]

     available in a fiscal year to carry out this section shall be 
     apportioned to States according to a formula prescribed by 
     the Secretary.
       ``(h) Deduction for Administrative Expenses.--On October 1 
     of each fiscal year or as soon after that date as 
     practicable, the Secretary may deduct, from amounts made 
     available under section 7103(b)(3) of the Motor Carrier 
     Safety Reauthorization Act of 2005 for that fiscal year, up 
     to 0.75 percent of those amounts for administrative expenses 
     incurred in carrying out this section in that fiscal year.''.
       (b) Clerical Amendment.--The chapter analysis for chapter 
     313 is amended by inserting the following after the item 
     relating to section 31317:

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

     SEC. 7154. MODERNIZATION OF CDL INFORMATION SYSTEM.

       (a) Information System Modernization Account.--Section 
     31309 of title 49, United States Code, is amended--
       (1) by striking ``The Secretary'' in the last sentence and 
     inserting ``Except as provided in subsection (e), the 
     Secretary''; and
       (2) by adding at the end the following:
       ``(e) Information System Modernization Account.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish an account to be known as the Information System 
     Modernization Account within the Department of 
     Transportation.
       ``(2) Credits.--Fees collected for any fiscal year 
     beginning after fiscal year 2006 under subsection (d) by the 
     Secretary of Transportation, or an organization that 
     represents the interests of the States, in excess of the 
     costs of operating the information system in that fiscal year 
     shall be and credited to the Information System Modernization 
     Account.
       ``(3) Use of funds.--Amounts credited to the Information 
     System Modernization Account shall be available exclusively 
     for the purpose of modernizing the information system under 
     subsection (f). At the end of fiscal year 2008, the Inspector 
     General of the Department of Transportation shall complete an 
     assessment of whether the fees collected in excess of the 
     costs of operating the information system are property 
     credited to the Information System Modernization Account.''.
       (b) Modernization Plan.--Section 31309 of title 49, United 
     States Code, is further amended by adding at the end the 
     following:
       ``(f) Modernization Plan.--
       ``(1) In general.--The Secretary shall develop a 
     comprehensive plan for modernization of the information 
     system that--
       ``(A) complies with applicable Federal information 
     technology security standards;
       ``(B) provides for the electronic exchange of all 
     information including the posting of convictions;
       ``(C) contains self auditing features to ensure that data 
     is being posted correctly and consistently by the States;
       ``(D) integrates the commercial driver's license and the 
     medical certificate; and
       ``(E) provides a schedule for modernization of the system.
       ``(2) Competitive contracting.--The Secretary may use non-
     Federal entities selected by an open, merit-based, 
     competitive process to develop and implement the 
     modernization plan.
       ``(3) State participation.--
       ``(A) Deadline.--The Secretary shall establish a date by 
     which each State must convert to the new information system.
       ``(B) Funding.--A State may use funds made available under 
     section 31318 of this title to develop or modify its system 
     to be compatible with the modernized information system 
     developed by the Secretary under this subsection.''.
       (c) Baseline Audit.--Within 1 year after the date of 
     enactment of this Act, the Secretary of Transportation, in 
     consultation with the Inspector General of the Department of 
     Transportation, shall perform a baseline audit of the 
     information system maintained under section 31309 of title 
     49, United States Code. The audit shall include--
       (1) an assessment of the validity of data in the 
     information system on a State-by-State basis;
       (2) an assessment of the extent to which convictions are 
     validly posted on a driver's record;
       (3) recommendations to the Secretary of Transportation on 
     how to update the baseline audit annually to ensure that any 
     shortcomings in the information system are addressed, and a 
     methodology for conducting the update; and
       (4) identification, on a State-by-State basis, of any 
     actions that the Inspector General finds necessary to improve 
     the integrity of data collected by the system and to ensure 
     the proper posting of convictions.

     SEC. 7155. SCHOOL BUS ENDORSEMENT KNOWLEDGE TEST REQUIREMENT.

       The Secretary shall recognize any driver who passes a test 
     approved by the Federal Motor Carrier Safety Administration 
     as meeting the knowledge test requirement for a school bus 
     endorsement under section 383.123 of title 49, Code of 
     Federal Regulations.

                Subtitle B--Highway and Vehicular Safety

     SEC. 7201. SHORT TITLE.

       This subtitle may be cited as the ``Highway and Vehicular 
     Safety Reauthorization Act of 2005''.

                CHAPTER 1--HIGHWAY SAFETY GRANT PROGRAM

     SEC. 7211. SHORT TITLE.

       This chapter may be cited as the ``Highway Safety Grant 
     Program Reauthorization Act of 2005''.

     SEC. 7212. AUTHORIZATION OF APPROPRIATIONS.

       (a) Amounts for Fiscal Years 2006 Through 2009.--There are 
     authorized to be appropriated from the Highway Trust Fund 
     (other than the Mass Transit Account) to the Secretary of 
     Transportation for the National Highway Traffic Safety 
     Administration the following:
       (1) To carry out the Highway Safety Programs under section 
     402 of title 23, United States Code, $209,217,985 in fiscal 
     year 2006, $210,224,035 in fiscal year 2007, $221,906,185 in 
     fiscal year 2008, and $226,969,685 in fiscal year 2009.
       (2) To carry out the Highway Safety Research and Outreach 
     Programs under section 403 of title 23, United States Code, 
     $141,852,000 in fiscal year 2006, $142,323,000 in fiscal year 
     2007, $141,560,000 in fiscal year 2008, and $141,952,000 in 
     fiscal year 2009.
       (3) To carry out the Occupant Protection Programs under 
     section 405 of title 23, United States Code, $149,667,110 in 
     fiscal year 2006, $149,787,000 in fiscal year 2007, 
     $149,509,185 in fiscal year 2008, and $149,006,000 in fiscal 
     year 2009.
       (4) To carry out the Demonstration Programs related to 
     older drivers, law enforcement, and motorcycle training under 
     section 406 of title 23, United States Code, $7,400,000 in 
     each of fiscal years 2006 through 2009.
       (5) To carry out the Emergency Medical Services Program 
     under section 407A of title 23, United States Code, 
     $5,000,000 in each of fiscal years 2006 through 2009.
       (6) To carry out the Impaired Driving Program under section 
     410 of title 23, United States Code, $115,721,000 in fiscal 
     year 2006, $129,065,000 in fiscal year 2007, $134,819,000 in 
     fiscal year 2008, and $147,615,000 in fiscal year 2009.
       (7) To carry out the State Traffic Safety Information 
     System Improvements under section 412 of title 23, United 
     States Code, $45,000,000 in each of fiscal years 2006 through 
     2009.
       (8) To carry out chapter 303 of title 49, United States 
     Code, $4,000,000 for each of fiscal years 2006 through 2009, 
     to be available for obligation in the same manner as if such 
     funds were apportioned under chapter 1 of title 23, United 
     States Code.
       (9) To pay administrative and related operating expenses 
     under section 402, section 405, section 406, section 407A, 
     section 410, section 412, section 413, and section 414 of 
     title 23, United States Code, and section 223 of the Highway 
     Safety Grant Program Reauthorization Act of 2005, $17,868,000 
     for fiscal year 2006, $18,150,000 for fiscal year 2007, 
     $18,837,000 for fiscal year 2008, and $19,350,000 for fiscal 
     year 2009.
       (b) Prohibition on Other Uses.--Except as otherwise 
     provided in this chapter, the amounts allocated from the 
     Highway Trust Fund for programs provided for in chapter 4 of 
     title 23, United States Code, shall only be used for such 
     programs and may not be used by States or local governments 
     for construction purposes.
       (c) Proportional Increases.--For each fiscal year from 2006 
     through 2009, if revenue to the Highway Trust Fund increases 
     above the amounts for each such fiscal year assumed in the 
     fiscal year 2006 joint budget resolution, then the amounts 
     made available in such year for the programs in sections 402, 
     403, 405, and 410 shall increase by the same percentage. If 
     revenue to the Highway Trust Fund for a fiscal year is lower 
     than the amounts for such fiscal year assumed in the fiscal 
     year 2006 joint budget resolution, then the amounts 
     authorized to be made available in such year for those 
     programs shall not decrease.

     SEC. 7213. HIGHWAY SAFETY PROGRAMS.

       (a) Programs To Be Included.--
       (1) Motor vehicle airbags public awareness.--Section 
     402(a)(2) is amended by striking ``vehicles and to increase 
     public awareness of the benefit of motor vehicles equipped 
     with airbags'' and inserting ``vehicles,''.
       (2) Aggressive driving.--Section 402(a) is further 
     amended--
       (A) by redesignating clause (6) as clause (8);
       (B) by inserting after ``involving school buses,'' at the 
     end of clause (5) the following: ``(6) to reduce aggressive 
     driving and to educate drivers about defensive driving, (7) 
     to reduce accidents resulting from fatigued and distracted 
     drivers, including distractions arising from the use of 
     electronic devices in vehicles,''; and
       (C) by inserting ``aggressive driving, distracted 
     driving,'' after ``school bus accidents,''.
       (3) Administration of state programs.--Section 402(b)(1) is 
     amended--
       (A) by striking ``and'' after the semicolon in subparagraph 
     (C);
       (B) by striking ``State.'' in subparagraph (D) and 
     inserting ``State; and''; and
       (C) by adding at the end the following:
       ``(E) provide satisfactory assurances that the State will 
     implement activities in support of national highway safety 
     priorities and performance goals, including--
       ``(i) mobilizations, including high visibility enforcement 
     and paid media, in support of efforts to improve occupant 
     protection and reduce impaired driving;
       ``(ii) sustained enforcement of statutes addressing 
     impaired driving, occupant protection, and driving in excess 
     of posted speed limits;
       ``(iii) an annual statewide safety belt use survey in 
     accordance with criteria established by the Secretary for the 
     measurement of State safety belt use rates to ensure that the 
     measurements are accurate and representative;
       ``(iv) development of statewide data systems to provide 
     timely and effective data analysis to support allocation of 
     highway safety resources;
       ``(v) effective efforts to adopt Model Minimum Uniform 
     Crash Criteria and National Emergency

[[Page 10671]]

     Medical System Information System data elements; and
       ``(vi) safety priority programs identified by the Secretary 
     based on national data trends unless a State can demonstrate 
     with data that any such safety priority program is not a 
     matter of significant concern in its jurisdiction.
       (b) Apportionment.--
       (1) Tribal government programs.--Section 402(c) is 
     amended--
       (A) by striking the second sentence; and
       (B) by striking ``three-fourths of 1 percent'' and 
     inserting ``2 percent''.
       (c) Law Enforcement Chase Training.--Section 402 is amended 
     by adding at the end the following:
       ``(l) Limitation Relating to Law Enforcement Vehicular 
     Pursuit Training.--No State may receive any funds available 
     for fiscal years after fiscal year 2007 for programs under 
     this chapter until the State submits to the Secretary a 
     written statement that the State actively encourages all 
     relevant law enforcement agencies in that State to follow the 
     guidelines established for vehicular pursuits issued by the 
     International Association of Chiefs of Police that are in 
     effect on the date of enactment of the Highway Safety Grant 
     Program Reauthorization Act of 2005, or as revised and in 
     effect after that date as determined by the Secretary.
       ``(m) Consolidation of Grant Applications.--The Secretary 
     shall establish an approval process by which a State may 
     apply for all grants included under this chapter through a 
     single application with a single annual deadline. The Bureau 
     of Indian Affairs shall establish a similarly simplified 
     process for applications from Indian tribes.''.

     SEC. 7214. HIGHWAY SAFETY RESEARCH AND OUTREACH PROGRAMS.

       (a) Revised Authority and Requirements.--Section 403 is 
     amended to read as follows:

     ``Sec. 403. Highway safety research and development

       ``(a) Authority of the Secretary.--The Secretary is 
     authorized to use funds appropriated to carry out this 
     section to--
       ``(1) conduct research on all phases of highway safety and 
     traffic conditions, including accident causation, highway or 
     driver characteristics, communications, and emergency care;
       ``(2) conduct ongoing research into driver behavior and its 
     effect on traffic safety;
       ``(3) conduct research on, launch initiatives to counter, 
     and conduct demonstration projects on fatigued driving by 
     drivers of motor vehicles and distracted driving in such 
     vehicles, including the effect that the use of electronic 
     devices and other factors deemed relevant by the Secretary 
     have on driving;
       ``(4) conduct training or education programs in cooperation 
     with other Federal departments and agencies, States, private 
     sector persons, highway safety personnel, and law enforcement 
     personnel;
       ``(5) conduct research on, and evaluate the effectiveness 
     of, traffic safety countermeasures, including seat belts and 
     impaired driving initiatives;
       ``(6) conduct research on, evaluate, and develop best 
     practices related to driver education programs, including 
     driver education curricula, instructor training and 
     certification, program administration and delivery 
     mechanisms, and make recommendations for harmonizing driver 
     education and multistage graduated licensing systems;
       ``(7) conduct research, training, and education programs 
     related to older drivers; and
       ``(8) conduct demonstration projects.
       ``(b) Nationwide Traffic Safety Campaigns.--
       ``(1) Requirement for campaigns.--The Administrator of the 
     National Highway Traffic Safety Administration shall 
     establish and administer a program under which at least 2 
     high-visibility traffic safety law enforcement campaigns will 
     be carried out for the purposes specified in paragraph (2) in 
     each of years 2006 through 2009.
       ``(2) Purpose.--The purpose of each law enforcement 
     campaign is to achieve either or both of the following 
     objectives:
       ``(A) Reduce alcohol-impaired or drug-impaired operation of 
     motor vehicles.
       ``(B) Increase use of seat belts by occupants of motor 
     vehicles.
       ``(3) Advertising.--The Administrator may use, or authorize 
     the use of, funds available under this section to pay for the 
     development, production, and use of broadcast and print media 
     advertising in carrying out traffic safety law enforcement 
     campaigns under this subsection. Consideration shall be given 
     to advertising directed at non-English speaking populations, 
     including those who listen, read, or watch nontraditional 
     media.
       ``(4) Coordination with states.--The Administrator shall 
     coordinate with the States in carrying out the traffic safety 
     law enforcement campaigns under this subsection, including 
     advertising funded under paragraph (3), with a view to--
       ``(A) relying on States to provide the law enforcement 
     resources for the campaigns out of funding available under 
     this section and sections 402, 405, and 410 of this title; 
     and
       ``(B) providing out of National Highway Traffic Safety 
     Administration resources most of the means necessary for 
     national advertising and education efforts associated with 
     the law enforcement campaigns.
       ``(5) Annual evaluation.--The Secretary shall conduct an 
     annual evaluation of the effectiveness of such initiatives.
       ``(6) Funding.--The Secretary shall use $24,000,000 in each 
     of fiscal years 2006 through 2009 for advertising and 
     educational initiatives to be carried out nationwide in 
     support of the campaigns under this section.
       ``(c) International Cooperation.--
       ``(1) Authority.--The Administrator of the National Highway 
     Traffic Safety Administration may participate and cooperate 
     in international activities to enhance highway safety.
       ``(2) Amount for program.--Of the amount available for a 
     fiscal year to carry out this section, $200,000 may be used 
     for activities authorized under paragraph (1).''.
       (b) Specific Research Programs.--
       (1) Required programs.--The Secretary shall conduct 
     research under section 403 of title 23, United States Code, 
     on the following:
       (A) Effects of use of controlled substances.--A study on 
     the effects of the use of controlled substances on driver 
     behavior to determine--
       (i) methodologies for measuring driver impairment resulting 
     from use of the most common controlled substances (including 
     the use of such substances in combination with alcohol); and
       (ii) effective and efficient methods for training law 
     enforcement personnel to detect or measure the level of 
     impairment of a driver who is under the influence of a 
     controlled substance by the use of technology or otherwise.
     The Secretary may develop model State legislation based on 
     research conducted under this subparagraph.
       (B) On-scene motor vehicle collision causation.--A 
     nationally representative study to collect on-scene motor 
     vehicle collision data, and to determine crash causation, for 
     which the Secretary shall enter into a contract with the 
     National Academy of Sciences to conduct a review of the 
     research, design, methodology, and implementation of the 
     study.
       (C) Toll facilities workplace safety.--A study on the 
     safety of highway toll collection facilities, including toll 
     booths, conducted in cooperation with State and local highway 
     safety organizations to determine the safety of highway toll 
     collection facilities for the toll collectors who work in and 
     around such facilities and to develop best practices that 
     would be of benefit to State and local highway safety 
     organizations. The study shall consider--
       (i) any problems resulting from design or construction of 
     facilities that contribute to the occurrence of vehicle 
     collisions with the facilities;
       (ii) the safety of crosswalks used by toll collectors in 
     transit to and from toll booths;
       (iii) the extent of the enforcement of speed limits at and 
     in the vicinity of toll facilities;
       (iv) the use of warning devices, such as vibration and 
     rumble strips, to alert drivers approaching toll facilities;
       (v) the use of cameras to record traffic violations in the 
     vicinity of toll facilities;
       (vi) the use of traffic control arms in the vicinity of 
     toll facilities;
       (vii) law enforcement practices and jurisdictional issues 
     that affect safety at and in the vicinity of toll facilities; 
     and
       (viii) data (which shall be collected in conducting the 
     research) regarding the incidence of accidents and injuries 
     at and around toll booth facilities.
       (2) Time for completion of studies.--The studies conducted 
     in subparagraphs (A), (B), and (C) of paragraph (1) may be 
     conducted in concert with other Federal departments and 
     agencies with relevant expertise. The Secretary shall submit 
     an annual report to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure on the 
     progress of each study conducted under this subsection.
       (3) Reports.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit a report on 
     the studies to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure.
       (4) Research on distracted, inattentive, and fatigued 
     drivers.--In conducting research under section 403(a)(3) of 
     title 23, United States Code, the Secretary shall carry out 
     not less than 2 demonstration projects to evaluate new and 
     innovative means of combating traffic system problems caused 
     by distracted, inattentive, or fatigued drivers. The 
     demonstration projects shall be in addition to any other 
     research carried out under this subsection.
       (5) Pedestrian safety.--
       (A) In general.--The Secretary of Transportation shall--
       (i) produce a comprehensive report on pedestrian safety 
     that builds on the current level of knowledge of pedestrian 
     safety countermeasures by identifying the most effective 
     advanced technology and intelligent transportation systems, 
     such as automated pedestrian detection and warning systems 
     (infrastructure-based and vehicle-based), road design, and 
     vehicle structural design that could potentially mitigate the 
     crash forces on pedestrians in the event of a crash; and
       (ii) include in the report recommendations on how new 
     technological developments could be incorporated into 
     educational and enforcement efforts and how they could be 
     integrated into national design guidelines developed by the 
     American Association of State Highway and Transportation 
     Officials.
       (B) Due date.--The Secretary shall complete the report not 
     less than 2 years after the date of enactment of this Act and 
     transmit a copy of the report to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Transportation and 
     Infrastructure.

[[Page 10672]]

       (6) Study on refusal of intoxication testing.--
       (A) Requirement for study.--In addition to studies under 
     section 403 of title 23, United States Code, the Secretary of 
     Transportation shall carry out a study of the frequency with 
     which persons arrested for the offense of operating a motor 
     vehicle under the influence of alcohol and persons arrested 
     for the offense of operating a motor vehicle while 
     intoxicated refuse to take a test to determine blood alcohol 
     concentration levels and the effect such refusals have on the 
     ability of States to prosecute such persons for those 
     offenses.
       (B) Consultation.--In carrying out the study under this 
     paragraph, the Secretary shall consult with the Governors of 
     the States, the States' Attorneys General, and the United 
     States Sentencing Commission.
       (C) Report.--
       (i) Requirement for report.--Not later than 1 year after 
     the date of the enactment of this Act, the Secretary shall 
     submit a report on the results of the study to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure.
       (ii) Content.--The report shall include any recommendation 
     for legislation, including any recommended model State 
     legislation, and any other recommendations that the Secretary 
     considers appropriate for implementing a program designed to 
     decrease the occurrence refusals by arrested persons to 
     submit to a test to determine blood alcohol concentration 
     levels.

     SEC. 7215. NATIONAL HIGHWAY SAFETY ADVISORY COMMITTEE 
                   TECHNICAL CORRECTION.

       Section 404(d) is amended by striking ``Commerce'' and 
     inserting ``Transportation''.

     SEC. 7216. OCCUPANT PROTECTION GRANTS.

       (a) In General.--Section 405 is amended to read as follows:

     ``Sec. 405. Safety belt performance grants

       ``(a) In General.--The Secretary of Transportation shall 
     make grants to States in accordance with the provisions of 
     this section to encourage the enactment and enforcement of 
     laws requiring the use of safety belts in passenger motor 
     vehicles.
       ``(b) Grants for Enacting Primary Safety Belt Use Laws.--
       ``(1) In general.--The Secretary shall make a single grant 
     to each State that either--
       ``(A) enacts for the first time after December 31, 2002, 
     and has in effect and is enforcing a conforming primary 
     safety belt use law for all passenger motor vehicles; or
       ``(B) in the case of a State that does not have such a 
     primary safety belt use law, has a State safety belt use rate 
     for each of the 2 calendar years immediately preceding the 
     fiscal year of a grant of 90 percent or more, as measured 
     under criteria determined by the Secretary.
       ``(2) Amount.--The amount of a grant available to a State 
     in fiscal year 2006 or in a subsequent fiscal year under 
     paragraph (1) of this subsection is equal to 500 percent of 
     the amount apportioned to the State for fiscal year 2003 
     under section 402(c) of this title.
       ``(3) July 1 cut-off.--For the purpose of determining the 
     eligibility of a State for a grant under paragraph (1)(A), a 
     primary safety belt use law enacted after June 30th of any 
     year shall--
       ``(A) not be considered to have been enacted in the Federal 
     fiscal year in which that June 30th falls; but
       ``(B) be considered as if it were enacted after the 
     beginning of the next Federal fiscal year.
       ``(4) Shortfall.--If the total amount of grants provided 
     for by this subsection for a fiscal year exceeds the amount 
     of funds available for such grants for that fiscal year, then 
     the Secretary shall make grants under this subsection to 
     States in the order in which--
       ``(A) the primary safety belt use law came into effect; or
       ``(B) the State's safety belt use rate was 90 percent or 
     more for 2 consecutive calendar years (as measured by 
     criteria determined by the Secretary),
     whichever first occurs.
       ``(5) Catch-up grants.--The Secretary shall make a grant to 
     any State eligible for a grant under this subsection that did 
     not receive a grant for a fiscal year because of the 
     application of paragraph (4), in the next fiscal year if the 
     State's primary safety belt use law remains in effect or its 
     safety belt use rate is 90 percent or more for the 2 
     consecutive calendar years preceding such next fiscal year 
     (subject to paragraph (4)).
       ``(c) Grants for Pre-2003 Laws.--To the extent that amounts 
     made available for any of fiscal years 2006 through 2009 
     exceed the total amounts to be awarded under subsection (b) 
     for the fiscal year, including amounts to be awarded for 
     catch-up grants under subsection (b)(5), the Secretary shall 
     make a single grant to each State that enacted, has in 
     effect, and is enforcing a primary safety belt use law for 
     all passenger motor vehicles that was in effect before 
     January 1, 2003. The amount of a grant available to a State 
     under this subsection shall be equal to 250 percent of the 
     amount of funds apportioned to the State under section 402(c) 
     of this title for fiscal year 2003. The Secretary may award 
     the grant in up to 4 installments over a period of 4 fiscal 
     years beginning with fiscal year 2006.
       ``(d) Allocation of Unused Grant Funds.--The Secretary 
     shall make additional grants under this section of any 
     amounts available for grants under this section that, on July 
     1, 2009, are neither obligated nor expended. The additional 
     grants made under this subsection shall be allocated among 
     all States that, as of that date, have enacted, have in 
     effect, and are enforcing primary safety belt laws for all 
     passenger motor vehicles. The allocations shall be made in 
     accordance with the formula for apportioning funds among the 
     States under section 402(c) of this title.
       ``(e) Use of Grant Funds.--
       ``(1) In general.--Subject to paragraph (2), a State may 
     use a grant under this section for any safety purpose under 
     this title or for any project that corrects or improves a 
     hazardous roadway location or feature or proactively 
     addresses highway safety problems, including--
       ``(A) intersection improvements;
       ``(B) pavement and shoulder widening;
       ``(C) installation of rumble strips and other warning 
     devices;
       ``(D) improving skid resistance;
       ``(E) improvements for pedestrian or bicyclist safety;
       ``(F) railway-highway crossing safety;
       ``(G) traffic calming;
       ``(H) the elimination of roadside obstacles;
       ``(I) improving highway signage and pavement marking;
       ``(J) installing priority control systems for emergency 
     vehicles at signalized intersections;
       ``(K) installing traffic control or warning devices at 
     locations with high accident potential;
       ``(L) safety-conscious planning; and
       ``(M) improving crash data collection and analysis.
       ``(2) Safety activity requirement.--Notwithstanding 
     paragraph (1), the Secretary shall ensure that at least 
     $1,000,000 of amounts received by States under this section 
     are obligated or expended for safety activities under this 
     chapter.
       ``(3) Support activity.--The Secretary or his designee may 
     engage in activities with States and State legislators to 
     consider proposals related to safety belt use laws.
       ``(f) Carry-forward of Excess Funds.--If the amount 
     available for grants under this section for any fiscal year 
     exceeds the sum of the grants made under this section for 
     that fiscal year, the excess amount and obligational 
     authority shall be carried forward and made available for 
     grants under this section in the succeeding fiscal year.
       ``(g) Federal Share.--The Federal share payable for grants 
     under this subsection is 100 percent.
       ``(h) Passenger Motor Vehicle Defined.--In this section, 
     the term `passenger motor vehicle' means--
       ``(1) a passenger car,
       ``(2) a pickup truck,
       ``(3) a van, minivan, or sport utility vehicle,
     with a gross vehicle weight rating of less than 10,000 
     pounds.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     4 is amended by striking the item relating to section 405 and 
     inserting the following:

``405. Safety belt performance grants''.

     SEC. 7217. OLDER DRIVER SAFETY; LAW ENFORCEMENT TRAINING.

       (a) In General.--Section 406 is amended to read as follows:

     ``Sec. 406. Older driver safety; law enforcement training

       ``(a) Improving Older Driver Safety.--
       ``(1) In general.--Of the funds made available under this 
     section, the Secretary shall allocate $2,000,000 in each of 
     fiscal years 2006 through 2009 to conduct a comprehensive 
     research and demonstration program to improve traffic safety 
     pertaining to older drivers. The program shall--
       ``(A) provide information and guidelines to assist 
     physicians and other related medical personnel, families, 
     licensing agencies, enforcement officers, and various public 
     and transit agencies in enhancing the safety of older 
     drivers;
       ``(B) improve the scientific basis of medical standards and 
     screenings strategies used in the licensing of all drivers in 
     a non-discriminatory manner;
       ``(C) conduct field tests to assess the safety benefits and 
     mobility impacts of different driver licensing strategies and 
     driver assessment and rehabilitation methods;
       ``(D) assess the value and improve the safety potential of 
     driver retraining courses of particular benefit to older 
     drivers; and
       ``(E) conduct other activities to accomplish the objectives 
     of this section.
       ``(2) Formulation of plan.--After consultation with 
     affected parties, the Secretary shall formulate an older 
     driver traffic safety plan to guide the design and 
     implementation of this program. The plan shall be submitted 
     to the House of Representatives Committee on Transportation 
     and Infrastructure and the Senate Committee on Commerce, 
     Science, and Transportation within 1 year after the date of 
     enactment of the Highway Safety Grant Program Reauthorization 
     Act of 2005.
       ``(b) Law Enforcement Training.--
       ``(1) Requirement for program.--The Administrator of the 
     National Highway Traffic Safety Administration shall carry 
     out a program to train law enforcement personnel of each 
     State and political subdivision thereof in police chase 
     techniques that are consistent with the police chase 
     guidelines issued by the International Association of Chiefs 
     of Police.
       ``(2) Amount for program.--Of the amount available for a 
     fiscal year to carry out this section, $200,000 shall be 
     available for carrying out this subsection.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     4 is amended by striking

[[Page 10673]]

     the item relating to section 406 and inserting the following:

``406. Older driver safety; law enforcement training''.

     SEC. 7218. EMERGENCY MEDICAL SERVICES.

       (a) Federal Coordination and Enhanced Support of Emergency 
     Medical Services.--Chapter 4 is amended by inserting after 
     section 407 the following:

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

       ``(a) Federal Interagency Committee on Emergency Medical 
     Services.--
       ``(1) Establishment.--The Secretary of Transportation and 
     the Secretary of Homeland Security, through the Under 
     Secretary for Emergency Preparedness and Response, shall 
     establish a Federal Interagency Committee on Emergency 
     Medical Services. In establishing the Interagency Committee, 
     the Secretary of Transportation and the Secretary of Homeland 
     Security through the Under Secretary for Emergency 
     Preparedness and Response shall consult with the Secretary of 
     Health and Human Services.
       ``(2) Membership.--The Interagency Committee shall consist 
     of the following officials, or their designees:
       ``(A) The Administrator, National Highway Traffic Safety 
     Administration.
       ``(B) The Director, Preparedness Division, Emergency 
     Preparedness and Response Directorate, Department of Homeland 
     Security.
       ``(C) The Administrator, Health Resources and Services 
     Administration, Department of Health and Human Services.
       ``(D) The Director, Centers for Disease Control and 
     Prevention, Department of Health and Human Services.
       ``(E) The Administrator, United States Fire Administration, 
     Emergency Preparedness and Response Directorate, Department 
     of Homeland Security.
       ``(F) The Director, Center for Medicare and Medicaid 
     Services, Department of Health and Human Services.
       ``(G) The Undersecretary of Defense for Personnel and 
     Readiness.
       ``(H) The Director, Indian Health Service, Department of 
     Health and Human Services.
       ``(I) The Chief, Wireless Telecom Bureau, Federal 
     Communications Commission.
       ``(J) A representative of any other Federal agency 
     identified by the Secretary of Transportation or the 
     Secretary of Homeland Security through the Under Secretary 
     for Emergency Preparedness and Response, in consultation with 
     the Secretary of Health and Human Services, as having a 
     significant role in relation to the purposes of the 
     Interagency Committee.
       ``(K) A State Emergency Medical Services Director.
       ``(3) Purposes.--The purposes of the Interagency Committee 
     are as follows:
       ``(A) To ensure coordination among the Federal agencies 
     involved with State, local, tribal, or regional emergency 
     medical services and 9-1-1 systems.
       ``(B) To identify State, local, tribal, or regional 
     emergency medical services and 9-1-1 needs.
       ``(C) To recommend new or expanded programs, including 
     grant programs, for improving State, local, tribal, or 
     regional emergency medical services and implementing improved 
     emergency medical services communications technologies, 
     including wireless 9-1-1.
       ``(D) To identify ways to streamline the process through 
     which Federal agencies support State, local, tribal or 
     regional emergency medical services.
       ``(E) To assist State, local, tribal or regional emergency 
     medical services in setting priorities based on identified 
     needs.
       ``(F) To advise, consult, and make recommendations on 
     matters relating to the implementation of the coordinated 
     State emergency medical services programs.
       ``(4) Administration.--The Administrator of the National 
     Highway Traffic Safety Administration, in cooperation with 
     the Director, Preparedness Division, Emergency Preparedness 
     and Response Directorate, Department of Homeland Security, 
     shall provide administrative support to the Interagency 
     Committee, including scheduling meetings, setting agendas, 
     keeping minutes and records, and producing reports.
       ``(5) Leadership.--The members of the Interagency Committee 
     shall select a chairperson of the Committee annually.
       ``(6) Meetings.--The Interagency Committee shall meet as 
     frequently as is determined necessary by the chairperson of 
     the Committee.
       ``(7) Annual reports.--The Interagency Committee shall 
     prepare an annual report to Congress on the Committee's 
     activities, actions, and recommendations.
       ``(b) Coordinated Nationwide Emergency Medical Services 
     Program.--
       ``(1) Program requirement.--The Secretary of 
     Transportation, acting through the Administrator of the 
     National Highway Traffic Safety Administration, shall 
     coordinate with officials of other Federal departments and 
     agencies, and may assist State and local governments and 
     emergency medical services organizations (whether or not a 
     firefighter organization), private industry, and other 
     interested parties, to ensure the development and 
     implementation of a coordinated nationwide emergency medical 
     services program that is designed to strengthen 
     transportation safety and public health and to implement 
     improved emergency medical services communication systems, 
     including 9-1-1.
       ``(2) Coordinated state emergency medical services 
     program.--Each State shall establish a program, to be 
     approved by the Secretary, to coordinate the emergency 
     medical services and resources deployed throughout the State, 
     so as to ensure--
       ``(A) improved emergency medical services communication 
     systems, including 9-1-1;
       ``(B) utilization of established best practices in system 
     design and operations;
       ``(C) implementation of quality assurance programs; and
       ``(D) incorporation of data collection and analysis 
     programs that facilitate system development and data linkages 
     with other systems and programs useful to emergency medical 
     services.
       ``(3) Administration of state programs.--The Secretary may 
     not approve a coordinated State emergency medical services 
     program under this subsection unless the program--
       ``(A) provides that the Governor of the State is 
     responsible for its administration through a State office of 
     emergency medical services that has adequate powers and is 
     suitably equipped and organized to carry out such program and 
     coordinates such program with the highway safety office of 
     the State; and
       ``(B) authorizes political subdivisions of the State to 
     participate in and receive funds under such program, 
     consistent with a goal of achieving statewide coordination of 
     emergency medical services and 9-1-1 activities.
       ``(4) Funding.--
       ``(A) Use of funds.--Funds authorized to be appropriated to 
     carry out this subsection shall be used to aid the States in 
     conducting coordinated emergency medical services and 9-1-1 
     programs as described in paragraph (2).
       ``(B) Apportionment.--
       ``(i) Apportionment formula.--The funds shall be 
     apportioned as follows: 75 percent in the ratio that the 
     population of each State bears to the total population of all 
     the States, as shown by the latest available Federal census, 
     and 25 percent in the ratio that the public road mileage in 
     each State bears to the total public road mileage in all 
     States. For the purpose of this subparagraph, a `public road' 
     means any road under the jurisdiction of and maintained by a 
     public authority and open to public travel. Public road 
     mileage as used in this subsection shall be determined as of 
     the end of the calendar year prior to the year in which the 
     funds are apportioned and shall be certified by the Governor 
     of the State and subject to approval by the Secretary.
       ``(ii) Minimum apportionment.--The annual apportionment to 
     each State shall not be less than \1/2\ of 1 percent of the 
     total apportionment, except that the apportionment to the 
     Secretary of the Interior on behalf of Indian tribes shall 
     not be less than \3/4\ of 1 percent of the total 
     apportionment, and the apportionments to the Virgin Islands, 
     Guam, American Samoa, and the Commonwealth of the Northern 
     Mariana Islands shall not be less than \1/4\ of 1 percent of 
     the total apportionment.
       ``(5) Applicability of chapter 1.--Section 402(d) of this 
     title shall apply in the administration of this subsection.
       ``(6) Federal share.--The Federal share of the cost of a 
     project or program funded under this subsection shall be 80 
     percent.
       ``(7) Application in indian country.--
       ``(A) Use of terms.--For the purpose of application of this 
     subsection in Indian country, the terms `State' and `Governor 
     of the State' include the Secretary of the Interior and the 
     term `political subdivisions of the State' includes an Indian 
     tribe.
       ``(B) Indian country defined.--In this subsection, the term 
     `Indian country' means--
       ``(i) all land within the limits of any Indian reservation 
     under the jurisdiction of the United States, notwithstanding 
     the issuance of any patent and including rights-of-way 
     running through the reservation;
       ``(ii) all dependent Indian communities within the borders 
     of the United States, whether within the original or 
     subsequently acquired territory thereof and whether within or 
     without the limits of a State; and
       ``(iii) all Indian allotments, the Indian titles to which 
     have not been extinguished, including rights-of-way running 
     through such allotments.
       ``(c) State Defined.--In this section, the term `State' 
     means each of the 50 States, the District of Columbia, Puerto 
     Rico, the Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, and the 
     Secretary of the Interior on behalf of Indian tribes.
       ``(d) Construction With Respect to District of Columbia.--
     In the administration of this section with respect to the 
     District of Columbia, a reference in this section to the 
     Governor of a State shall refer to the Mayor of the District 
     of Columbia.''.
       (b) Clerical Amendment.--The chapter analysis for chapter 4 
     is amended by inserting after the item relating to section 
     407 the following:

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

     SEC. 7219. REPEAL OF AUTHORITY FOR ALCOHOL TRAFFIC SAFETY 
                   PROGRAMS.

       (a) Repeal.--Section 408 is repealed.
       (b) Clerical Amendment.--The chapter analysis for chapter 4 
     is amended by striking the item relating to section 408.

     SEC. 7220. IMPAIRED DRIVING PROGRAM.

       (a) Maintenance of Effort.--Section 410(a)(2) is amended by 
     striking ``the Transportation Equity Act for the 21st 
     Century'' and inserting ``the Highway Safety Grant Program 
     Reauthorization Act of 2005''.
       (b) Revised Grant Authority.--Section 410 is amended--

[[Page 10674]]

       (1) by striking paragraph (3) of subsection (a) and 
     redesignating paragraph (4) as paragraph (3); and
       (2) by striking subsections (b) through (f) and inserting 
     the following:
       ``(b) Program-Related Eligibility Requirements.--To be 
     eligible for a grant under this section, a State shall--
       ``(1) for fiscal year 2006 or 2007, carry out 4 of the 
     programs required under subsection (c);
       ``(2) for fiscal year 2008 or 2009, carry out 5 of the 
     programs required under subsection (c); and
       ``(3) for any such fiscal year--
       ``(A) comply with the additional requirements set forth in 
     subsection (d) with respect to such programs and activities; 
     and
       ``(B) comply with any additional requirements of the 
     Secretary.
       ``(c) State Programs and Activities.--To qualify for a 
     grant under this subsection, a State shall select programs 
     from among the following:
       ``(1) Check-point, saturation patrol program.--
       ``(A) A State program to conduct a series of high-
     visibility, Statewide law enforcement campaigns in which law 
     enforcement personnel monitor for impaired driving, either 
     through use of sobriety check-points or saturation patrols, 
     on a nondiscriminatory, lawful basis for the purpose of 
     determining whether the operators of the motor vehicles are 
     driving while under the influence of alcohol or controlled 
     substances that meets the requirements of subparagraphs (B) 
     and (C).
       ``(B) A program meets the requirements of this subparagraph 
     only if a State organizes the campaigns in cooperation with 
     related periodic national campaigns organized by the National 
     Highway Traffic Safety Administration, but this subparagraph 
     does not preclude a State from initiating sustained high-
     visibility, Statewide law enforcement campaigns independently 
     of the cooperative efforts.
       ``(C) A program meets the requirements of this subparagraph 
     only if, for each fiscal year, a State demonstrates to the 
     Secretary that the State and the political subdivisions of 
     the State that receive funds under this section have 
     increased, in the aggregate, the total number of impaired 
     driving law enforcement activities at high incident 
     locations, as described in subparagraph (A) (or any other 
     similar activity approved by the Secretary), initiated in 
     such State during the preceding fiscal year by a factor that 
     the Secretary determines meaningful for the State over the 
     number of such activities initiated in such State during the 
     preceding fiscal year, which shall not be less than 5 
     percent.
       ``(2) Prosecution and adjudication program.--A State 
     prosecution and adjudication program under which--
       ``(A) judges and prosecutors are actively encouraged to 
     prosecute and adjudicate cases of defendants who repeatedly 
     commit impaired driving offenses by reducing the use of State 
     diversion programs, or other means that have the effect of 
     avoiding or expunging a permanent record of impaired driving 
     in such cases;
       ``(B) the courts in a majority of the judicial 
     jurisdictions of the State are monitored on the courts' 
     adjudication of cases of impaired driving offenses; or
       ``(C) annual Statewide outreach is provided for judges and 
     prosecutors on innovative approaches to the prosecution and 
     adjudication of cases of impaired driving offenses that have 
     the potential for significantly improving the prosecution and 
     adjudication of such cases.
       ``(3) Impaired operator information system.--
       ``(A) A State impaired operator information system that--
       ``(i) tracks drivers who are arrested or convicted for 
     violation of laws prohibiting impaired operation of motor 
     vehicles;
       ``(ii) includes information about each case of an impaired 
     driver beginning at the time of arrest through case 
     disposition, including information about any trial, plea, 
     plea agreement, conviction or other disposition, sentencing 
     or other imposition of sanctions, and substance abuse 
     treatment;
       ``(iii) provides--

       ``(I) accessibility to the information for law enforcement 
     personnel Statewide and for United States law enforcement 
     personnel; and
       ``(II) linkage for the sharing of the information and of 
     the information in State traffic record systems among 
     jurisdictions and appropriate agencies, court systems and 
     offices of the States;

       ``(iv) shares information with the National Highway Traffic 
     Safety Administration for compilation and use for the 
     tracking of impaired operators of motor vehicles who move 
     from State to State; and
       ``(v) meets the requirements of subparagraphs (B), (C), and 
     (D) of this paragraph, as applicable.
       ``(B) A program meets the requirements of this subparagraph 
     only if, during fiscal years 2006 and 2007, a State--
       ``(i) assesses the system used by the State for tracking 
     drivers who are arrested or convicted for violation of laws 
     prohibiting impaired operation of motor vehicles;
       ``(ii) identifies ways to improve the system, as well as to 
     enhance the capability of the system to provide information 
     in coordination with impaired operator information systems of 
     other States; and
       ``(iii) develops a strategic plan that sets forth the 
     actions to be taken and the resources necessary to achieve 
     the identified improvements and to enhance the capability for 
     coordination with the systems of other States.
       ``(C) A program meets the requirements of this subparagraph 
     only if, in each of fiscal years 2008 and 2009, a State 
     demonstrates to the Secretary that the State has made 
     substantial and meaningful progress in improving the State's 
     impaired operator information system, and makes public a 
     report on the progress of the information system.
       ``(4) Impaired driving performance.--The percentage of 
     fatally-injured drivers with 0.08 percent or greater blood 
     alcohol concentration in the State has decreased in each of 
     the 2 most recent calendar years for which data are 
     available.
       ``(5) Self-sustaining impaired driving prevention 
     program.--A program under which a significant portion of the 
     fines or surcharges collected from individuals who are fined 
     for operating a motor vehicle while under the influence of 
     alcohol are returned to communities for comprehensive 
     programs for the prevention of impaired driving.
       ``(6) Laws for high risk drivers.--A law that establishes 
     stronger sanctions or additional penalties for individuals 
     convicted of operating a motor vehicle while under the 
     influence of alcohol whose blood alcohol concentration is 
     0.15 percent or more than for individuals convicted of the 
     same offense but with a lower blood alcohol concentration. 
     For purposes of this paragraph, the term `additional 
     penalties' includes--
       ``(A) a 1-year suspension of a driver's license, but with 
     the individual whose license is suspended becoming eligible 
     after 45 days of such suspension to obtain a provisional 
     driver's license that would permit the individual to drive--
       ``(i) only to and from the individual's place of employment 
     or school; and
       ``(ii) only an automobile equipped with a certified alcohol 
     ignition interlock device; and
       ``(B) a mandatory assessment by a certified substance abuse 
     official of whether the individual has an alcohol abuse 
     problem that includes the possibility of a referral to 
     counseling if the official determines that such a referral is 
     appropriate.
       ``(7) Impaired driving courts.--
       ``(A) In general.--A program to consolidate and coordinate 
     impaired driving cases into courts that specialize in 
     impaired driving cases, with the emphasis on tracking and 
     processing offenders of impaired driving laws, (hereinafter 
     referred to as DWI courts) that meets the requirements of 
     this paragraph.
       ``(B) Characteristics.--A DWI Court is a distinct function 
     performed by a court system for the purpose of changing the 
     behavior of alcohol or drug dependent offenders arrested for 
     driving while impaired. A DWI Court can be a dedicated court 
     with dedicated personnel, including judges, prosecutors and 
     probation officers. A DWI court may be an existing court 
     system that serves the following essential DWI Court 
     functions:
       ``(i) A DWI Court performs an assessment of high-risk 
     offenders utilizing a team headed by the judge and including 
     all criminal justice stakeholders (prosecutors, defense 
     attorneys, probations officers, law enforcement personnel and 
     others) along with alcohol/drug treatment professionals.
       ``(ii) The DWI Court team recommends a specific plea 
     agreement or contract for each offender that can include 
     incarceration, treatment, and close community supervision. 
     The agreement maximizes the probability of rehabilitation and 
     minimizes the likelihood of recidivism.
       ``(iii) Compliance with the agreement is verified with 
     thorough monitoring and frequent alcohol testing. Periodic 
     status hearings assess offender progress and allow an 
     opportunity for modifying the sentence if necessary.
       ``(C) Assessment.--In the first year of operation, the 
     States shall assess the number of court systems in its 
     jurisdiction that are consistently performing the DWI Court 
     functions.
       ``(D) Plan.--In the second year of operation, the State 
     shall develop a strategic plan for increasing the number of 
     courts performing the DWI function.
       ``(E) Progress.--In subsequent years of operation, the 
     State shall demonstrate progress in increasing the number of 
     DWI Courts and in increasing the number of high-risk 
     offenders participating in and successfully completing DWI 
     Court agreements.
       ``(d) Uses of Grants.--Grants made under this section may 
     be used for programs and activities described in subsection 
     (c) and to defray the following costs:
       ``(1) Labor costs, management costs, and equipment 
     procurement costs for the high-visibility, Statewide law 
     enforcement campaigns under subsection (c)(1).
       ``(2) The costs of the training of law enforcement 
     personnel and the procurement of technology and equipment, 
     such as and including video equipment and passive alcohol 
     sensors, to counter directly impaired operation of motor 
     vehicles.
       ``(3) The costs of public awareness, advertising, and 
     educational campaigns that publicize use of sobriety check 
     points or increased law enforcement efforts to counter 
     impaired operation of motor vehicles.
       ``(4) The costs of public awareness, advertising, and 
     educational campaigns that target impaired operation of motor 
     vehicles by persons under 34 years of age.
       ``(5) The costs of the development and implementation of a 
     State impaired operator information system described in 
     subsection (c)(3).
       ``(6) The costs of operating programs that result in 
     vehicle forfeiture or impoundment or license plate 
     impoundment.

[[Page 10675]]

       ``(e) Additional Authorities for Certain Authorized Uses.--
       ``(1) Combination of grant proceeds.--Grant funds used for 
     a campaign under subsection (d)(3) may be combined, or 
     expended in coordination, with proceeds of grants under 
     section 402 of this title.
       ``(2) Coordination of uses.--Grant funds used for a 
     campaign under paragraph (3) or (4) of subsection (d) may be 
     expended--
       ``(A) in coordination with employers, schools, entities in 
     the hospitality industry, and nonprofit traffic safety 
     groups; and
       ``(B) in coordination with sporting events and concerts and 
     other entertainment events.
       ``(f) Funding.--
       ``(1) In general.--Grant funding under this section shall 
     be allocated among States that meet the eligibility criteria 
     in subsection (b) on the basis of the apportionment formula 
     that applies for apportionments under section 402(c) of this 
     title.
       ``(2) High fatality-rate states.--A State that is among the 
     10 States with the highest impaired driving-related fatality 
     rates for the calendar year immediately preceding the fiscal 
     year in which the grant may be made shall be eligible for a 
     grant under this section if the State meets the requirements 
     of subsection (g). A State that receives a grant based upon 
     its eligibility under this paragraph may also receive a grant 
     under subsection (b) if it meets the eligibility requirements 
     of that subsection.
       ``(g) Use of Funds by High Fatality-Rate States.--
       ``(1) Required uses.--At least \1/2\ of the amounts 
     allocated to States under subsection (f)(2) shall be used for 
     the program described in subsection (c)(1).
       ``(2) Requirement for plan.--A State receiving an 
     allocation of grant funds under subsection (f)(2) shall 
     expend those funds only after receiving approval from the 
     Administrator of the National Highway Traffic Safety 
     Administration for a plan regarding such expenditures.
       ``(h) Definitions.--In this section:
       ``(1) Impaired operator.--The term `impaired operator' 
     means a person who, while operating a motor vehicle--
       ``(A) has a blood alcohol content of 0.08 percent or 
     higher; or
       ``(B) is under the influence of a controlled substance.
       ``(2) Impaired driving-related fatality rate.--The term 
     `impaired driving-related fatality rate' means the rate of 
     alcohol-related fatalities, as calculated in accordance with 
     regulations which the Administrator of the National Highway 
     Traffic Safety Administration shall prescribe.''.
       (c) NHTSA To Issue Regulations.--Not later than 12 months 
     after the date of enactment of the Highway Safety Grant 
     Program Reauthorization Act of 2005, the National Highway 
     Traffic Safety Administration shall issue guidelines to the 
     States specifying the types and formats of data that States 
     should collect relating to drivers who are arrested or 
     convicted for violation of laws prohibiting the impaired 
     operation of motor vehicles.

     SEC. 7221. STATE TRAFFIC SAFETY INFORMATION SYSTEM 
                   IMPROVEMENTS.

       (a) Grant Program Authority.--Chapter 4 is amended by 
     adding at the end the following:

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

       ``(a) Grant Authority.--Subject to the requirements of this 
     section, the Secretary shall make grants of financial 
     assistance to eligible States to support the development and 
     implementation of effective programs by such States to--
       ``(1) improve the timeliness, accuracy, completeness, 
     uniformity, integration, and accessibility of the safety data 
     of the State that is needed to identify priorities for 
     national, State, and local highway and traffic safety 
     programs;
       ``(2) evaluate the effectiveness of efforts to make such 
     improvements;
       ``(3) link the State data systems, including traffic 
     records, with other data systems within the State, such as 
     systems that contain medical, roadway, and economic data; and
       ``(4) improve the compatibility and interoperability of the 
     data systems of the State with national data systems and data 
     systems of other States and enhance the ability of the 
     Secretary to observe and analyze national trends in crash 
     occurrences, rates, outcomes, and circumstances.
       ``(b) First-Year Grants.--
       ``(1) Eligibility.--To be eligible for a first-year grant 
     under this section in a fiscal year, a State shall 
     demonstrate to the satisfaction of the Secretary that the 
     State has--
       ``(A) established a highway safety data and traffic records 
     coordinating committee with a multidisciplinary membership 
     that includes, among others, managers, collectors, and users 
     of traffic records and public health and injury control data 
     systems;
       ``(B) completed or updated, within the preceding 5 years, 
     an assessment or an audit of the highway safety data and 
     traffic records system of the State; and
       ``(C) developed a multiyear highway safety data and traffic 
     records system strategic plan that addresses existing 
     deficiencies in the State's highway safety data and traffic 
     records system, is approved by the highway safety data and 
     traffic records coordinating committee, and--
       ``(i) specifies how existing deficiencies in the State's 
     highway safety data and traffic records system were 
     identified;
       ``(ii) prioritizes, on the basis of the identified highway 
     safety data and traffic records system deficiencies, the 
     highway safety data and traffic records system needs and 
     goals of the State, including the activities under subsection 
     (a);
       ``(iii) identifies performance-based measures by which 
     progress toward those goals will be determined; and
       ``(iv) specifies how the grant funds and any other funds of 
     the State are to be used to address needs and goals 
     identified in the multiyear plan.
       ``(2) Grant amount.--Subject to subsection (d)(3), the 
     amount of a first-year grant to a State for a fiscal year 
     shall be the higher of--
       ``(A) the amount determined by multiplying--
       ``(i) the amount appropriated to carry out this section for 
     such fiscal year, by
       ``(ii) the ratio that the funds apportioned to the State 
     under section 402 of this title for fiscal year 2003 bears to 
     the funds apportioned to all States under such section for 
     fiscal year 2003; or
       ``(B) $300,000.
       ``(c) Successive Year Grants.--
       ``(1) Eligibility.--A State shall be eligible for a grant 
     under this subsection in a fiscal year succeeding the first 
     fiscal year in which the State receives a grant under 
     subsection (b) if the State, to the satisfaction of the 
     Secretary--
       ``(A) certifies that an assessment or audit of the State's 
     highway safety data and traffic records system has been 
     conducted or updated within the preceding 5 years;
       ``(B) submits an updated multiyear plan that meets the 
     requirements of subsection (b)(1)(C);
       ``(C) certifies that its highway safety data and traffic 
     records coordinating committee continues to operate and 
     supports the multiyear plan;
       ``(D) specifies how the grant funds and any other funds of 
     the State are to be used to address needs and goals 
     identified in the multiyear plan;
       ``(E) demonstrates measurable progress toward achieving the 
     goals and objectives identified in the multiyear plan; and
       ``(F) includes a current report on the progress in 
     implementing the multiyear plan.
       ``(2) Grant amount.--Subject to subsection (d)(3), the 
     amount of a year grant made to a State for a fiscal year 
     under this subsection shall equal the higher of--
       ``(A) the amount determined by multiplying--
       ``(i) the amount appropriated to carry out this section for 
     such fiscal year, by
       ``(ii) the ratio that the funds apportioned to the State 
     under section 402 of this title for fiscal year 2003 bears to 
     the funds apportioned to all States under such section for 
     fiscal year 2003; or
       ``(B) $500,000.
       ``(d) Additional Requirements and Limitations.--
       ``(1) Model data elements.--The Secretary, in consultation 
     with States and other appropriate parties, shall determine 
     the model data elements that are useful for the observation 
     and analysis of State and national trends in occurrences, 
     rates, outcomes, and circumstances of motor vehicle traffic 
     accidents. In order to be eligible for a grant under this 
     section, a State shall submit to the Secretary a 
     certification that the State has adopted and uses such model 
     data elements, or a certification that the State will use 
     grant funds provided under this section toward adopting and 
     using the maximum number of such model data elements as soon 
     as practicable.
       ``(2) Data on use of electronic devices.--The model data 
     elements required under paragraph (1) shall include data 
     elements, as determined appropriate by the Secretary in 
     consultation with the States and with appropriate elements of 
     the law enforcement community, on the impact on traffic 
     safety of the use of electronic devices while driving.
       ``(3) Maintenance of effort.--No grant may be made to a 
     State under this section in any fiscal year unless the State 
     enters into such agreements with the Secretary as the 
     Secretary may require to ensure that the State will maintain 
     its aggregate expenditures from all other sources for highway 
     safety data programs at or above the average level of such 
     expenditures maintained by such State in the 2 fiscal years 
     preceding the date of enactment of the Highway Safety Grant 
     Program Reauthorization Act of 2005.
       ``(4) Federal share.--The Federal share of the cost of 
     adopting and implementing in a fiscal year a State program 
     described in subsection (a) may not exceed 80 percent.
       ``(5) Limitation on use of grant proceeds.--A State may use 
     the proceeds of a grant received under this section only to 
     implement the program described in subsection (a) for which 
     the grant is made.
       ``(e) Applicability of Chapter 1.--Section 402(d) of this 
     title shall apply in the administration of this section.''.
       (b) Clerical Amendment.--The chapter analysis for chapter 4 
     is amended by adding at the end the following:

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

     SEC. 7222. NHTSA ACCOUNTABILITY.

       (a) In General.--Chapter 4, as amended by section 7221, is 
     amended by adding at the end the following:

     ``Sec. 413. Agency accountability

       ``(a) Triennial State Management Reviews.--At least once 
     every 3 years the National Highway Traffic Safety 
     Administration shall conduct a review of each State highway 
     safety program. The review shall include a management 
     evaluation of all grant programs partially or fully funded 
     under this title. The Administrator shall provide review-
     based recommendations on how each State may improve the 
     management and oversight of its grant activities and may 
     provide a management and oversight plan.

[[Page 10676]]

       ``(b) Recommendations Before Submission.--In order to 
     provide guidance to State highway safety agencies on matters 
     that should be addressed in the State highway safety program 
     goals and initiatives as part of its highway safety plan 
     before the plan is submitted for review, the Administrator 
     shall provide data-based recommendations to each State at 
     least 90 days before the date on which the plan is to be 
     submitted for approval.
       ``(c) State Program Review.--The Administrator shall--
       ``(1) conduct a program improvement review of any State 
     that does not make substantial progress over a 3-year period 
     in meeting its priority program goals; and
       ``(2) provide technical assistance and safety program 
     requirements to be incorporated in a State's highway safety 
     plan for any goal not achieved.
       ``(d) Regional Harmonization.--The Administration and the 
     Inspector General of the Department of Transportation shall 
     undertake a State grant administrative review of the 
     practices and procedures of the management reviews and 
     program reviews conducted by Administration regional offices 
     and formulate a report of best practices to be completed 
     within 180 days after the date of enactment of the Highway 
     Safety Grant Program Reauthorization Act of 2005.
       ``(e) Best Practices Guidelines.--
       ``(1) Uniform guidelines.--The Administrator shall issue 
     uniform management review guidelines and program review 
     guidelines based on the report under subsection (d). Each 
     regional office shall use the guidelines in executing its 
     State administrative review duties.
       ``(2) Publication.--The Administrator shall make the 
     following documents available via the Internet upon their 
     completion:
       ``(A) The Administrator's management review guidelines and 
     the program review guidelines.
       ``(B) State highway safety plans.
       ``(C) State annual accomplishment reports.
       ``(D) The Administration's Summary report of findings from 
     Management Reviews and Improvement Plans.
       ``(3) Reports to state highway safety agencies.--The 
     Administrator may not make a plan, report, or review 
     available under paragraph (2) that is directed to a State 
     highway safety agency until after it has been submitted to 
     that agency.
       ``(f) General Accounting Office Review.--The General 
     Accounting Office shall analyze the effectiveness of the 
     National Highway Traffic Safety Administration's oversight of 
     traffic safety grants by determining the usefulness of the 
     Administration's advice to the States regarding grants 
     administration and State activities, the extent to which the 
     States incorporate the Administration's recommendation into 
     their highway safety plans and programs, and improvements 
     that result in a State's highway safety program that may be 
     attributable to the Administration's recommendations. Based 
     on this analysis, the General Accounting Office shall submit 
     a report by not later than the end of fiscal year 2008 to the 
     House of Representatives Committee on Transportation and 
     Infrastructure and the Senate Committee on Commerce, Science, 
     and Transportation.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     4, as amended by section 7221, is amended by inserting after 
     the item relating to section 412 the following:

``413. Agency accountability.''.

     SEC. 7223. GRANTS FOR IMPROVING CHILD PASSENGER SAFETY 
                   PROGRAMS.

       (a) In General.--The Secretary of Transportation shall 
     establish a program to provide grants to States to assist in 
     the enactment and enforcement of laws implementing Anton's 
     Law (49 U.S.C. 30127 note).
       (b) Eligibility Requirements.--
       (1) In general.--The Secretary shall make a grant to each 
     State that, as determined by the Secretary, enacts or has 
     enacted, has in effect, and is enforcing a law requiring that 
     children riding in passenger motor vehicles (as defined in 
     section 405(f)(4)) of title 23, United States Code, who are 
     too large to be secured in a child safety seat be secured in 
     a child restraint (as defined in section 7(1) of Anton's Law 
     (49 U.S.C. 30127 note)) that meets requirements prescribed by 
     the Secretary under section 3 of Anton's Law.
       (2) Year in which first eligible.--
       (A) Early qualification.--A State that has enacted a law 
     described in paragraph (1) that is in effect before October 
     1, 2005, is first eligible to receive a grant under 
     subsection (a) in fiscal year 2006.
       (B) Subsequent qualification.--A State that enacts a law 
     described in paragraph (1) that takes effect after September 
     30, 2005, is first eligible to receive a grant under 
     subsection (a) in the first fiscal year beginning after the 
     date on which the law is enacted.
       (3) Continuing eligibility.--A State that is eligible under 
     paragraph (1) to receive a grant may receive a grant during 
     each fiscal year listed in subsection (f) in which it is 
     eligible.
       (4) Maximum number of grants.--A State may not receive more 
     than 4 grants under this section.
       (c) Grant Amount.--Amounts available for grants under this 
     section in any fiscal year shall be apportioned among the 
     eligible States on the basis of population.
       (d) Use of Grant Amounts.--
       (1) In general.--Of the amounts received by a State under 
     this section for any fiscal year--
       (A) 50 percent shall be used for the enforcement of, and 
     education to promote public awareness of, State child 
     passenger protection laws; and
       (B) 50 percent shall be used to fund programs that purchase 
     and distribute child booster seats, child safety seats, and 
     other appropriate passenger motor vehicle child restraints to 
     indigent families without charge.
       (2) Report.--Within 60 days after the State fiscal year in 
     which a State receives a grant under this section, the State 
     shall transmit to the Secretary a report documenting the 
     manner in which grant amounts were obligated or expended and 
     identifying the specific programs supports by grant funds. 
     The report shall be in a form prescribed by the Secretary and 
     may be combined with other State grant reporting requirements 
     under this chapter.
       (e) Definition of Child Safety Seat.--The term ``child 
     safety seat'' means any device (except safety belts (as such 
     term is defined in section 405(f)(6)) of title 23, United 
     States Code, designed for use in a motor vehicle (as such 
     term is defined in section 405(f)(4) of that title) to 
     restrain, seat, or position a child who weighs 50 pounds or 
     less.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation--
       (1) $18,000,000 for fiscal year 2006;
       (2) $20,000,000 for fiscal year 2007;
       (3) $25,000,000 for fiscal year 2008; and
       (4) $30,000,000 for fiscal year 2009.

     SEC. 7224. MOTORCYCLIST SAFETY TRAINING AND MOTORIST 
                   AWARENESS PROGRAMS.

       (a) In General.--Chapter 4 of title 23, United States Code, 
     as amended by section 7222, is amended by adding at the end 
     the following:

     ``Sec. 414. Motorcyclist safety training and motorist 
       awareness programs

       ``(a) Definitions.--In this section:
       ``(1) Motorcyclist safety training.--The term `motorcyclist 
     safety training' means any formal program of instruction 
     that--
       ``(A) provides accident avoidance and other safety-oriented 
     operational skills to motorcyclists, including innovative 
     training opportunities to meet unique regional needs; and
       ``(B) is approved for use in a State by the designated 
     State authority having jurisdiction over motorcyclist safety 
     issues, which may include the State Motorcycle Safety 
     Administrator or a motorcycle advisory council appointed by 
     the Governor of the State.
       ``(2) Motorist awareness.--The term `motorist awareness' 
     means individual or collective motorist awareness of--
       ``(A) the presence of motorcycles on or near roadways; and
       ``(B) safe driving practices that avoid injury to 
     motorcyclists, bicyclists, and pedestrians.
       ``(3) Motorist awareness program.--The term `motorist 
     awareness program' means any informational or public 
     awareness program designed to enhance motorist awareness that 
     is developed by or in coordination with the designated State 
     authority having jurisdiction over motorcyclist safety 
     issues, which may include the State Motorcycle Safety 
     Administrator or, in the absence of a State Administrator, a 
     motorcycle advisory council appointed by a Governor of the 
     State.
       ``(4) State.--The term `State' means--
       ``(A) a State;
       ``(B) the District of Columbia; and
       ``(C) the Commonwealth of Puerto Rico.
       ``(b) Eligibility.--Not later than 90 days after the date 
     of enactment of this section and on September 1 of each 
     fiscal year thereafter, based on a letter of certification 
     provided by the Governor of each State, the Secretary shall 
     develop and publish a list of States that, as of the date of 
     publication of the list, have established motorcyclist safety 
     training programs and motorist awareness programs, including 
     information that indicates--
       ``(1) the level of base funding provided for each such 
     program for the applicable fiscal year; and
       ``(2) whether the level of base funding provided for each 
     such program for the applicable fiscal year was increased, 
     decreased, or maintained from the level of funding provided 
     for the program for the previous fiscal year.
       ``(c) Allocation.--Not later than 120 days after the date 
     of enactment of this section, on October 1 of each fiscal 
     year, the Secretary shall allocate to each State for which 
     the base funding allocated for motorcyclist safety training 
     and motorist awareness programs was not less than the amount 
     allocated for the previous year, not less than $100,000, to 
     be used only for motorcyclist safety training and motorist 
     awareness programs, including--
       ``(1) improvements to motorcyclist safety training 
     curricula;
       ``(2) improvements in program delivery to both urban and 
     rural areas, including--
       ``(A) procurement or repair of practice motorcycles;
       ``(B) instructional aides; and
       ``(C) mobile training units;
       ``(3) an increase in the recruitment or retention of 
     motorcyclist safety training instructors certified by a State 
     Motorcycle Safety Administrator or motorcycle advisory 
     council appointed by the Governor; and
       ``(4) public awareness, public service announcements, and 
     other outreach programs to enhance motorist awareness, such 
     as the `share-the-road' safety messages developed in 
     subsection (f).
       ``(d) Contracts With Organizations.--The Secretary may 
     enter into an agreement with an organization that is 
     recommended by and represents the interests of State 
     Motorcycle Safety Administrators to review, determine, and 
     disseminate a description of best practices in motorcycle 
     safety training and motorist awareness, and to recommend such 
     practices, to State administrators, governors, State 
     legislative bodies, and chief licensing officers of States.

[[Page 10677]]

       ``(e) Authorization of Appropriations.--From funds 
     available to carry out section 406 of this title, $5,200,000 
     shall be made available for each of fiscal years 2006 through 
     2009 to carry out this section.
       ``(f) Share-the-road Model Language.--Not later than 1 year 
     after the date of enactment of the Highway Safety Grant 
     Program Reauthorization Act of 2005, the Secretary, in 
     consultation with the Administrator of the Natinoal Highway 
     Traffice Safety Administration, shall develop and provide to 
     the States model language for use in traffic safety education 
     courses, driver's manuals, and other driver's training 
     materials instructing the drivers of motor vehicles on the 
     importance of sharing the roads safely with motorcyclists.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     4 of title 23, United States Code, as amended by section 
     7222, is amended by adding at the end the following:

``414. Motorcyclist safety training and motorist awareness programs.''.

           CHAPTER 2--SPECIFIC VEHICLE SAFETY-RELATED RULINGS

     SEC. 7251. VEHICLE ROLLOVER PREVENTION AND CRASH MITIGATION.

       (a) In General.--Subchapter II of chapter 301 is amended by 
     adding at the end the following:

     ``Sec. 30128. Vehicle rollover prevention and crash 
       mitigation

       (a) In General.--The Secretary shall initiate rulemaking 
     proceedings, for the purpose of establishing rules or 
     standards that will reduce vehicle rollover crashes and 
     mitigate deaths and injuries associated with such crashes for 
     motor vehicles with a gross vehicle weight rating of not more 
     than 10,000 pounds.
       ``(b) Rollover Prevention.--One of the rulemaking 
     proceedings initiated under subsection (a) shall be to 
     establish performance criteria to reduce the occurrence of 
     rollovers consistent with stability enhancing technologies. 
     The Secretary shall issue a proposed rule in this proceeding 
     by rule by October 1, 2006, and a final rule by April 1, 
     2009.
       ``(c) Occupant Ejection Prevention.--
       ``(1) In general.--The Secretary shall also initiate a 
     rulemaking proceeding to establish performance standards to 
     reduce complete and partial ejections of vehicle occupants 
     from outboard seating positions. In formulating the standards 
     the Secretary shall consider various ejection mitigation 
     systems. The Secretary shall issue a final rule under this 
     paragraph no later than October 1, 2009.
       ``(2) Door locks and door retention.--The Secretary shall 
     complete the rulemaking proceeding initiated to upgrade 
     Federal Motor Vehicle Safety Standard No. 206, relating to 
     door locks and door retention, no later than 30 months after 
     the date of enactment of this Act.
       ``(d) Protection of Occupants.--One of the rulemaking 
     proceedings initiated under subsection (a) shall be to 
     establish performance criteria to upgrade Federal Motor 
     Vehicle Safety Standard No. 216 relating to roof strength for 
     driver and passenger sides. The Secretary may consider 
     industry and independent dynamic tests that realistically 
     duplicate the actual forces transmitted during a rollover 
     crash. The Secretary shall issue a proposed rule by December 
     31, 2005, and a final rule by July 1, 2008.
       ``(e) Deadlines.--If the Secretary determines that the 
     deadline for a final rule under this section cannot be met, 
     the Secretary shall--
       ``(1) notify the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Energy and Commerce and explain why that deadline cannot be 
     met; and
       ``(2) establish a new deadline.''.

     SEC. 7252. SIDE-IMPACT CRASH PROTECTION RULEMAKING.

       The Secretary of Transportation shall complete a rulemaking 
     proceeding under chapter 301 of title 49, United States Code, 
     to establish a standard designed to enhance passenger motor 
     vehicle occupant protection, in all seating positions, in 
     side impact crashes. The Secretary shall issue a final rule 
     by July 1, 2008.

     SEC. 7253. TIRE RESEARCH.

       Within 2 years after the date of enactment of this Act, the 
     Secretary shall transmit a report to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Energy and Commerce on research 
     conducted to address tire aging. The report shall include a 
     summary of any Federal agency findings, activities, 
     conclusions, and recommendations concerning tire aging and 
     recommendations for potential rulemaking regarding tire 
     aging.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     301 is amended by inserting after the item relating to 
     section 30127 the following:

``30128. Vehicle accident ejection protection''.

     SEC. 7254. VEHICLE BACKOVER AVOIDANCE TECHNOLOGY STUDY.

       (a) In General.--The Administrator of the National Highway 
     Traffic Safety Administration shall conduct a study of 
     effective methods for reducing the incidence of injury and 
     death outside of parked passenger motor vehicles with a gross 
     vehicle weight rating of not more than 10,000 pounds 
     attributable to movement of such vehicles. The Administrator 
     shall complete the study within 1 year after the date of 
     enactment of this Act and report its findings to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Energy and Commerce not 
     later than 15 months after the date of enactment of this Act.
       (b) Specific Issues To Be Covered.--The study required by 
     subsection (a) shall--
       (1) include an analysis of backover prevention technology;
       (2) identify, evaluate, and compare the available 
     technologies for detecting people or objects behind a motor 
     vehicle with a gross vehicle weight rating of not more than 
     10,000 pounds for their accuracy, effectiveness, cost, and 
     feasibility for installation; and
       (3) provide an estimate of cost savings that would result 
     from widespread use of backover prevention devices and 
     technologies in motor vehicles with a gross vehicle weight 
     rating of not more than 10,000 pounds, including savings 
     attributable to the prevention of--
       (A) injuries and fatalities; and
       (B) damage to bumpers and other motor vehicle parts and 
     damage to other objects.

     SEC. 7255. NONTRAFFIC INCIDENT DATA COLLECTION.

       (a) In General.--In conjunction with the study required in 
     section 7254, the National Highway Traffic Safety 
     Administration shall establish a method to collect and 
     maintain data on the number and types of injuries and deaths 
     involving motor vehicles with a gross vehicle weight rating 
     of not more than 10,000 pounds in non-traffic incidents.
       (b) Data Collection and Publication.--The Secretary of 
     Transportation shall publish the data collected under 
     subsection (a) no less frequently than biennially.

     SEC. 7256. SAFETY BELT USE REMINDERS.

       (a) Buzzer Law.--
       (1) In general.--Section 30124 is amended--
       (A) by striking ``not'' the first place it appears; and
       (B) by striking ``except'' and inserting ``including''.
       (2) Conforming amendment.--Section 30122 is amended by 
     striking subsection (d).
       (b) Study of Safety Belt Use Technologies.--The Secretary 
     of Transportation shall conduct a review of safety belt use 
     technologies to evaluate progress and to consider possible 
     revisions in strategies for achieving further gains in safety 
     belt use. The Secretary shall complete the study by July 1, 
     2008.

     SEC. 7257. AMENDMENT OF AUTOMOBILE INFORMATION DISCLOSURE 
                   ACT.

       (a) Safety Labeling Requirement.--Section 3 of the 
     Automobile Information Disclosure Act (15 U.S.C. 1232) is 
     amended--
       (1) by striking ``and'' after the semicolon in subsection 
     (e);
       (2) by inserting ``and'' after the semicolon in subsection 
     (f)(3);
       (3) by striking ``(3).'' in subsection (f)(4) and inserting 
     ``(3);''; and
       (4) by adding at the end the following:
       ``(g) if 1 or more safety ratings for such automobile have 
     been assigned and formally published or released by the 
     National Highway Traffic Safety Administration under the New 
     Car Assessment Program, information about safety ratings 
     that--
       ``(1) includes a graphic depiction of the number of stars, 
     or other applicable rating, that corresponds to each such 
     assigned safety rating displayed in a clearly differentiated 
     fashion indicating the maximum possible safety rating;
       ``(2) refers to frontal impact crash tests, side impact 
     crash tests, and rollover resistance tests (whether or not 
     such automobile has been assigned a safety rating for such 
     tests);
       ``(3) contains information describing the nature and 
     meaning of the crash test data presented and a reference to 
     additional vehicle safety resources, including http://
www.safecar.gov; and
       ``(4) is presented in a legible, visible, and prominent 
     fashion and covers at least--
       ``(A) 8 percent of the total area of the label; or
       ``(B) an area with a minimum length of 4 \1/2\ inches and a 
     minimum height of 3 \1/2\ inches; and
       ``(h) if an automobile has not been tested by the National 
     Highway Traffic Safety Administration under the New Car 
     Assessment Program, or safety ratings for such automobile 
     have not been assigned in one or more rating categories, a 
     statement to that effect.''.
       (b) Regulations.--Not later than January 1, 2006, the 
     Secretary of Transportation shall issue regulations to 
     implement the labeling requirements under subsections (g) and 
     (h) of section 3 of the Automobile Information Disclosure 
     Act, as added by subsection (a).
       (c) 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, 2006, if the regulations under subsection 
     (b) are prescribed not later than August 31, 2005; or
       (2) September 1, 2007, if the regulations under subsection 
     (b) are prescribed after August 31, 2005.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation, to 
     accelerate the testing processes and increasing the number of 
     vehicles tested under the New Car Assessment Program of the 
     National Highway Traffic Safety Administration--
       (1) $15,000,000 for fiscal year 2006;
       (2) $8,134,065 for fiscal year 2007;
       (3) $8,418,760 for fiscal year 2008;
       (4) $8,713,410 for fiscal year 2009; and
       (5) $9,018,385 for fiscal year 2010.

     SEC. 7258. POWER WINDOW SWITCHES.

       The Secretary of Transportation shall upgrade Federal Motor 
     Vehicle Safety Standard

[[Page 10678]]

     118 to require that power windows in motor vehicles not in 
     excess of 10,000 pounds have switches that raise the window 
     only when the switch is pulled up or out. The Secretary shall 
     issue a final rule implementing this section by April 1, 
     2007.

     SEC. 7259. 15-PASSENGER VAN SAFETY.

       (a) Testing.--
       (1) In general.--The Secretary of Transportation shall 
     require the testing of 15-passenger vans as part of the 
     rollover resistance program of the National Highway Traffic 
     Safety Administration's new car assessment program.
       (2) 15-passenger van defined.--In this subsection, the term 
     ``15-passenger van'' means a vehicle that seats 10 to 14 
     passengers, not including the driver.
       (b) Prohibition of Purchase, Rental, or Lease of 
     Noncomplying 15-passenger Vans for School Use.--Section 
     30112(a) is amended--
       (1) by inserting ``(1)'' before ``Except as provided''; and
       (2) by adding at the end the following:
       ``(2) Except as provided in this section, sections 30113 
     and 30114 of this title, and subchapter III of this chapter, 
     a school or school system may not purchase or lease a new 15-
     passenger van if it will be used significantly by, or on 
     behalf of, the school or school system to transport 
     preprimary, primary, or secondary school students to or from 
     school or an event related to school, unless the 15-passenger 
     van complies with the motor vehicle standards prescribed for 
     school buses and multifunction school activity buses under 
     this title. This paragraph does not apply to the purchase or 
     lease of a 15-passenger van under a contract executed before 
     the date of enactment of the Surface Transportation Safety 
     Improvement Act of 2005.''.
       (c) Penalty.--Section 30165(a) is amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following:
       ``(2) School buses.--
       ``(A) In general.--Notwithstanding paragraph (1), the 
     maximum amount of a civil penalty under this paragraph shall 
     be $10,000 in the case of--
       ``(i) the manufacture, sale, offer for sale, introduction 
     or delivery for introduction into interstate commerce, or 
     importation of a school bus or school bus equipment (as those 
     terms are defined in section 30125(a) of this title) in 
     violation of section 30112(a)(1) of this title; or
       ``(ii) a violation of section 30112(a)(2) of this title.
       ``(B) Related series of violations.--A separate violation 
     occurs for each motor vehicle or item of motor vehicle 
     equipment and for each failure or refusal to allow or perform 
     an act required by that section. The maximum penalty under 
     this paragraph for a related series of violations is 
     $15,000,000.''.

     SEC. 7260. UPDATED FUEL ECONOMY LABELING PROCEDURES.

       (a) In General.--The Administrator of the Environmental 
     Protection Agency shall, as appropriate and in consultation 
     with the Administrator of the National Highway Traffic Safety 
     Administration, update and revise the process used to 
     determine fuel economy values for labeling purposes as set 
     forth in sections 600.209-85 and 600.209.95 (40 C.F.R. 
     600.209-85 and 600.209.95) to take into consideration current 
     factors such as speed limits, acceleration rates, braking, 
     variations in weather and temperature, vehicle load, use of 
     air conditioning, driving patterns, and the use of other fuel 
     consuming features. The Administrator shall use existing 
     emissions test cycles and, or, updated adjustment factors to 
     implement the requirements of this subsection.
       (b) Deadline.--The Administrator of the Environmental 
     Protection Agency shall promulgate a notice of proposed 
     rulemaking by December 31, 2005, and a final rule within 18 
     months after the date on which the Administrator issues the 
     notice.
       (c) Report.--Three years after issuing the final rule 
     required by subsection (b) and every 3 years thereafter the 
     Administrator of the Environmental Protection Agency shall 
     reconsider the fuel economy labeling procedures required 
     under subsection (a) to determine if the changes in the 
     factors require revisting the process. The administrator 
     shall report to the Senate Committee on Commerce, Science and 
     Transportation and to the House of Representatives Committee 
     on Energy and Commerce on the outcome of the reconsideration 
     process.

     SEC. 7261. IDENTIFICATION OF CERTAIN ALTERNATIVE FUELED 
                   VEHICLES.

       (a) In General.--Section 32908 of title 49, United States 
     Code, is amended--
       (1) by redesignating subsections (e) and (f) as subsection 
     (f) and (g), respectively; and
       (2) by inserting after subsection (d) the following new 
     subsection:
       ``(e) Identification of Certain Alternative Fueled 
     Vehicles.--A manufacturer shall affix, or have affixed, to 
     each dual fueled automobile manufactured by the manufacturer 
     (including each light duty truck) that may be operated on the 
     alternative fuel described in section 32901(a)(1)(D)--
       ``(1) a permanent label inside the automobile's fuel door 
     compartment that--
       ``(A) meets the requirements of the regulations prescribed 
     by the Administrator for such label; and
       ``(B) states that the automobile may be operated on the 
     alternative fuel described in section 32901(a)(1)(D) and 
     identifies such alternative fuel; and
       ``(2) a temporary label to the window or windshield of the 
     automobile that--
       ``(A) meets the requirements of the regulations prescribed 
     by the Administrator for such label; and
       ``(B) identifies the automobile as capable of operating on 
     such alternative fuel.''.
       (b) Regulations.--Not later than March 1, 2006, the 
     Administrator of the Environmental Protection Agency shall 
     promulgate regulations--
       (1) for the label referred to in paragraph (1) of section 
     32908(e) of title 49, United States Code, as amended by 
     subsection (a), that describe--
       (A) the language that shall be set out on the label, 
     including a statement that the vehicle is capable of 
     operating on a mixture of 85 percent ethanol blended with 
     gasoline; and
       (B) the appropriate size and color of the font of such 
     language so that it is conspicuous to the individual 
     introducing fuel into the vehicle; and
       (2) for the temporary window or windshield label referred 
     to in paragraph (2) of such section 32908(e), that--
       (A) prohibit the label from being removed by any seller 
     prior to the final sale of the vehicle to a consumer; and
       (B) describe the specifications of the label, including 
     that the label shall be--
       (i) prominently displayed and conspicuous on the vehicle; 
     and
       (ii) separate from any other window or windshield sticker, 
     decal, or label.
       (c) Compliance.--
       (1) In general.--A manufacturer shall be required to comply 
     with the requirements of section 32908(e) of title 49, United 
     State Code, as amended by subsection (a), for a vehicle that 
     is manufactured for a model year after model year 2006.
       (2) Model year defined.--In this subsection, the term 
     ``model year'' shall have the meaning given such term in 
     section 32901(a) of such title.
       (d) Violations.--
       (1) In general.--Section 32908(f) of title 49, United 
     States Code, as redesignated by subsection (a), is amended by 
     inserting ``or (e)'' after ``subsection (b)''.
       (2) Conforming amendment.--Section 32911(a) of such title 
     is amended by inserting ``32908(e),'' after ``32908(b),''.

     SEC. 7262. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary of 
     Transportation to carry out this chapter and chapter 301 of 
     title 49, United States Code--
       (1) $136,000,000 for fiscal year 2006;
       (2) $142,800,000 for fiscal year 2007;
       (3) $149,900,000 for fiscal year 2008; and
       (4) $157,400,000 for fiscal year 2009.

                    Subtitle C--Hazardous Materials

     SEC. 7301. SHORT TITLE.

       This subtitle may be cited as the ``Hazardous Material 
     Transportation Safety and Security Reauthorization Act of 
     2005''.

CHAPTER 1--GENERAL AUTHORITIES ON TRANSPORTATION OF HAZARDOUS MATERIALS

     SEC. 7321. PURPOSE.

       The text of section 5101 is amended to read as follows:
       ``The purpose of this chapter is to protect against the 
     risks to life, property, and the environment that are 
     inherent in the transportation of hazardous material in 
     intrastate, interstate, and foreign commerce.''.

     SEC. 7322. DEFINITIONS.

       Section 5102 is amended as follows:
       (1) Commerce.--Paragraph (1) is amended--
       (A) by striking ``or'' after the semicolon in subparagraph 
     (A);
       (B) by striking the ``State.'' in subparagraph (B) and 
     inserting ``State; or''; and
       (C) by adding at the end the following:
       ``(C) on a United States-registered aircraft.''.
       (2) Hazmat employee.--Paragraph (3) is amended--
       (A) by inserting ``on a fulltime, part time, or temporary 
     basis'' after ``employed'' in subparagraph (A)(i);
       (B) by redesignating clause (ii) of subparagraph (A) as 
     clause (iii) and inserting after clause (i) the following:
       ``(ii) is self-employed (including an owner-operator of a 
     motor vehicle, vessel, or aircraft) transporting hazardous 
     material in commerce; and'';
       (C) by inserting ``such full time, part time, or 
     temporary'' in clause (iii) of subparagraph (A), as 
     redesignated, after ``course of'';
       (D) by striking subparagraph (B) and redesignating 
     subparagraph (C) as subparagraph (B);
       (E) by inserting ``on a full time, part time, or temporary 
     basis'' after ``employed'' in subparagraph (B), as 
     redesignated; and
       (F) by striking clause (ii) of subparagraph (B), as 
     redesignated, and inserting the following:
       ``(ii) designs, manufactures, fabricates, inspects, marks, 
     maintains, reconditions, repairs, or tests a package, 
     container, or packaging component that is represented, 
     marked, certified, or sold by that person as qualified for 
     use in transporting hazardous material in commerce;''.
       (3) Hazmat employer.--Paragraph (4) is amended to read as 
     follows:
       ``(4) `hazmat employer' means a person--
       ``(A) who--
       ``(i) employs or uses at least 1 hazmat employee on a full 
     time, part time, or temporary basis, or
       ``(ii) is self-employed (including an owner-operator of a 
     motor vehicle, vessel, or aircraft) transporting hazardous 
     material in commerce, and
       ``(B) who--

[[Page 10679]]

       ``(i) transports hazardous material in commerce,
       ``(ii) causes hazardous material to be transported in 
     commerce, or
       ``(iii) designs, manufactures, fabricates, inspects, marks, 
     maintains, reconditions, repairs, or tests a package, 
     container, or packaging component that is represented, 
     marked, certified, or sold by that person as qualified for 
     use in transporting hazardous material in commerce, and

     includes a department, agency, or instrumentality of the 
     United States Government, or an authority of a State, 
     political subdivision of a State, or Indian tribe, carrying 
     out an activity described in subparagraph (B).''.
       (4) Imminent hazard.--Paragraph (5) is amended by inserting 
     ``relating to hazardous material'' after ``of a condition''.
       (5) Motor carrier.--Paragraph (7) is amended to read as 
     follows:
       ``(7) `motor carrier'--
       ``(A) means a motor carrier, motor private carrier, and 
     freight forwarder as those terms are defined in section 13102 
     of this title; but
       ``(B) does not include a freight forwarder, as so defined, 
     if the freight forwarder is not performing a function 
     relating to highway transportation.''.
       (6) National response team.--Paragraph (8) is amended--
       (A) by striking ``national response team'' both places it 
     appears and inserting ``National Response Team''; and
       (B) by striking ``national contingency plan'' and inserting 
     ``National Contingency Plan''.
       (7) Person.--Paragraph (9)(A) is amended by striking 
     ``offering'' and all that follows and inserting ``that--
       ``(i) offers hazardous material for transportation in 
     commerce;
       ``(ii) transports hazardous material to further a 
     commercial enterprise; or
       ``(iii) designs, manufactures, fabricates, inspects, marks, 
     maintains, reconditions, repairs, or tests a package, 
     container, or packaging component that is represented, 
     marked, certified, or sold by that person as qualified for 
     use in transporting hazardous material in commerce; but''.
       (8) Secretary of transportation.--Section 5102 is further 
     amended--
       (A) by redesignating paragraphs (11), (12), and (13), as 
     paragraphs (12), (13), and (14), respectively; and
       (B) by inserting after paragraph (10) the following:
       ``(11) `Secretary' means the Secretary of Transportation 
     except as otherwise provided.''.

     SEC. 7323. GENERAL REGULATORY AUTHORITY.

       (a) Reference to Secretary of Transportation.--Section 
     5103(a) is amended by striking ``of Transportation''.
       (b) Designating Material as Hazardous.--Section 5103(a) is 
     further amended--
       (1) by striking ``etiologic agent'' and all that follows 
     through ``corrosive material,'' and inserting ``infectious 
     substance, flammable or combustible liquid, solid, or gas, 
     toxic, oxidizing, or corrosive material,''; and
       (2) by striking ``decides'' and inserting ``determines''.
       (c) Regulations for Safe Transportation.--Section 
     5103(b)(1)(A) is amended to read as follows:
       ``(A) apply to a person who--
       ``(i) transports hazardous material in commerce;
       ``(ii) causes hazardous material to be transported in 
     commerce;
       ``(iii) designs, manufactures, fabricates, inspects, marks, 
     maintains, reconditions, repairs, or tests a package, 
     container, or packaging component that is represented, 
     marked, certified, or sold by that person as qualified for 
     use in transporting hazardous material in commerce;
       ``(iv) prepares or accepts hazardous material for 
     transportation in commerce;
       ``(v) is responsible for the safety of transporting 
     hazardous material in commerce;
       ``(vi) certifies compliance with any requirement under this 
     chapter; or
       ``(vii) misrepresents whether such person is engaged in any 
     activity under clause (i) through (vi) of this subparagraph; 
     and''.
       (d) Technical Amendment Regarding Consultation.--Section 
     5103 is amended--
       (1) by striking subsection (b)(1)(C); and
       (2) by adding at the end the following:
       ``(c) Consultation.--When prescribing a security regulation 
     or issuing a security order that affects the safety of the 
     transportation of hazardous material, the Secretary of 
     Homeland Security shall consult with the Secretary of 
     Transportation.''.

     SEC. 7324. LIMITATION ON ISSUANCE OF HAZMAT LICENSES.

       (a) Reference to Secretary of Transportation.--Section 
     5103a is amended by striking ``of Transportation'' each place 
     it appears in subsections (a)(1), (c)(1)(B), and (d) and 
     inserting ``of Homeland Security''.
       (b) Covered Hazardous Materials.--Section 5103a(b) is 
     amended by striking ``with respect to--'' and all that 
     follows and inserting ``with respect to any material defined 
     as hazardous material by the Secretary for which the 
     Secretary requires placarding of a commercial motor vehicle 
     transporting that material in commerce.''.
       (c) Recommendations on Chemical or Biological Materials.--
     Section 5103a is further amended--
       (1) by redesignating subsections (c), (d), and (e) as 
     subsections (d), (e), and (f), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Recommendations on Chemical and Biological 
     Materials.--The Secretary of Health and Human Services shall 
     recommend to the Secretary any chemical or biological 
     material or agent for regulation as a hazardous material 
     under section 5103(a) of this title if the Secretary of 
     Health and Human Services determines that such material or 
     agent is a threat to the national security of the United 
     States.''.
       (d) Conforming Amendment.--Section 5103a(a)(1) is amended 
     by striking ``subsection (c)(1)(B),'' and inserting 
     ``subsection (d)(1)(B),''.

     SEC. 7325. BACKGROUND CHECKS FOR DRIVERS HAULING HAZARDOUS 
                   MATERIALS.

       (a) Foreign Drivers.--
       (1) In general.--No commercial motor vehicle operator 
     registered to operate in Mexico or Canada may operate a 
     commercial motor vehicle transporting a hazardous material in 
     commerce in the United States until the operator has 
     undergone a background records check similar to the 
     background records check required for commercial motor 
     vehicle operators licensed in the United States to transport 
     hazardous materials in commerce.
       (2) Definitions.--In this subsection:
       (A) Hazardous materials.--The term ``hazardous material'' 
     has the meaning given that term in section 5102(2) of title 
     49, United States Code.
       (B) Commercial motor vehicle.--The term ``commercial motor 
     vehicle'' has the meaning given that term by section 31101 of 
     title 49, United States Code.
       (b) Other Drivers.--
       (1) Employer notification.--Within 90 days after the date 
     of enactment of this Act, the Assistant Secretary of Homeland 
     Security for Transportation Security shall develop and 
     implement a process for the notification of a hazmat employer 
     (as defined in section 5102(4) of title 49, United States 
     Code), if appropriate considering the potential security 
     implications, designated by an applicant seeking a threat 
     assessment under part 1572 of title 49, Code of Federal 
     Regulations, if the Transportation Security Administration, 
     in an initial notification of threat assessment or a final 
     notification of threat assessment, served on the applicant 
     determines that the applicant does not meet the standards set 
     forth in section 1572.5(d) of title 49, Code of Federal 
     Regulations.
       (2) Relationship to other background records checks.--
       (A) Elimination of redundant checks.--An individual with 
     respect to whom the Transportation Security Administration--
       (i) has performed a security threat assessment under part 
     1572 of title 49, Code of Federal Regulations, and
       (ii) has issued a notification of no security threat under 
     section 1572.5(g) of that title,

     is deemed to have met the requirements of any other 
     background check that is equivalent to, or less stringent 
     than, the background check performed under section 5103a of 
     title 49, United States Code, that is required for purposes 
     of any Federal law applicable to transportation workers.
       (B) Determination by assistant secretary.--Within 30 days 
     after the date of enactment of this Act, the Assistant 
     Secretary of Homeland Security (Transportation Security 
     Administration) shall initiate a rulemaking proceeding, 
     including notice and opportunity for comment, that sets forth 
     the background checks and other similar security or threat 
     assessment requirements applicable to transportation workers 
     under Federal law to which subparagraph (A) applies.
       (C) Future rulemakings.--The Assistant Secretary shall make 
     a determination under the criteria established under 
     subparagraph (B) with respect to any rulemaking proceeding to 
     establish or modify required background checks for 
     transportation workers initiated after the date of enactment 
     of this Act.
       (c) Appeals Process for More Stringent State Procedures.--
     If a State establishes standards for applicants for a 
     hazardous materials endorsement to a commercial driver's 
     license that, as determined by the Secretary of Homeland 
     Security, are more stringent than the standards set forth in 
     section 1572.5(d) of title 49, Code of Federal Regulations, 
     then the State shall also provide an appeals process similar 
     to the process provided under section 1572.141 of title 49, 
     Code of Federal Regulations, by which an applicant denied a 
     hazardous materials endorsement to a commercial driver's 
     license by that State may appeal that denial in a manner 
     substantially similar to, and to the same extent as, an 
     individual who received an initial notification of threat 
     assessment under part 1572 of that title.
       (d) Clarification of Term Defined in Regulations.--The term 
     ``severe transportation security incident'', as defined in 
     section 1572.3 of title 49, Code of Federal Regulations, does 
     not include a work stoppage or other nonviolent employee-
     related action resulting from an employer-employee dispute. 
     Within 30 days after the date of enactment of this Act, the 
     Secretary of Homeland Security shall modify the definition of 
     that term to reflect the preceding sentence.
       (e) Background Check Capacity.--The Assistant Secretary of 
     Homeland Security (Transportation Security Administration) 
     shall transmit a report by October 1, 2005, to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Homeland Security on 
     the implementation of fingerprint-based security threat 
     assessments and the adequacy of fingerprinting locations, 
     personnel, and resources to accomplish

[[Page 10680]]

     the timely processing of fingerprint-based security threat 
     assessments for individuals holding commercial driver's 
     licenses who are applying to renew hazardous materials 
     endorsements.

     SEC. 7326. REPRESENTATION AND TAMPERING.

       (a) Representation.--Section 5104(a) is amended--
       (1) by striking ``a container,'' and all that follows 
     through ``packaging) for'' and inserting ``a package, 
     component of a package, or packaging for''; and
       (2) by striking ``the container'' and all that follows 
     through ``packaging) meets'' and inserting ``the package, 
     component of a package, or packaging meets''.
       (b) Tampering.--Section 5104(b) is amended--
       (1) by striking ``A person may not'' and inserting ``No 
     person may''; and
       (2) by inserting ``component of a package, or packaging,'' 
     after ``package,'' in paragraph (2).

     SEC. 7327. TRANSPORTING CERTAIN MATERIAL.

       Section 5105 is amended by striking subsection (d).

     SEC. 7328. HAZMAT EMPLOYEE TRAINING REQUIREMENTS AND GRANTS.

       (a) Reference to Secretary of Transportation.--Section 5107 
     is amended by striking ``of Transportation'' each place it 
     appears in subsections (a), (b), (c) (other than in paragraph 
     (1)), (d), and (f).
       (b) Training Grants.--Section 5107(e) is amended--
       (1) by striking ``section 5127(c)(3)'' and inserting 
     ``section 5128(b)(1) of this title''; and
       (2) by inserting ``and, to the extent determined 
     appropriate by the Secretary, grants for such instructors to 
     train hazmat employees'' after ``employees'' in the first 
     sentence thereof.

     SEC. 7329. REGISTRATION.

       (a) Reference to Secretary of Transportation.--Section 5108 
     is amended by striking ``of Transportation'' each place it 
     appears in subsections (a), (b) (other than following 
     ``Department''), (d), (e), (f), (g), (h), and (i).
       (b) Persons Required To File.--
       (1) Requirement to file.--Section 5108(a)(1)(B) is amended 
     by striking ``class A or B explosive'' and inserting 
     ``Division 1.1, 1.2, or 1.3 explosive material''.
       (2) Authority to require to file.--Section 5108(a)(2)(B) is 
     amended to read as follows:
       ``(B) a person designing, manufacturing, fabricating, 
     inspecting, marking, maintaining, reconditioning, repairing, 
     or testing a package, container, or packaging component that 
     is represented, marked, certified, or sold by that person as 
     qualified for use in transporting hazardous material in 
     commerce.''.
       (3) No transportation without filing.--Section 5108(a)(3) 
     is amended by striking ``fabricate,'' and all that follows 
     through ``package or'' and inserting ``design, manufacture, 
     fabricate, inspect, mark, maintain, recondition, repair, or 
     test a package, container packaging component, or''.
       (c) Form and Content of Filings.--Section 5108(b)(1)(C) by 
     striking ``the activity.'' and inserting ``any of the 
     activities.''.
       (d) Filing.--Section 5108(c) is amended to read as follows:
       ``(c) Filing.--Each person required to file a registration 
     statement under subsection (a) of this section shall file the 
     statement in accordance with regulations prescribed by the 
     Secretary.''.
       (e) Fees.--Section 5108(g)(1) is amended by striking ``may 
     establish,'' and inserting ``shall establish,''.
       (f) Relationship to Other Laws.--Section 5108(i)(2)(B) is 
     amended by inserting ``an Indian tribe,'' after ``subdivision 
     of a State,''.
       (g) Registration and Annual Fees.--
       (1) Reduction in cap.--Section 5108(g)(2)(A) is amended by 
     striking ``$5,000'' and inserting ``$3,000''.
       (2) Rulemaking.--Any rule, regulation, or order issued by 
     the Secretary of Transportation under which the assessment, 
     payment, or collection of fees under section 5108(g) of title 
     49, United States Code, was suspended or terminated before 
     the date of enactment of this Act is declared null and void 
     effective 30 days after such date of enactment. Beginning on 
     the 31st day after such date of enactment, the fee schedule 
     established by the Secretary and set forth at 65 Federal 
     Register 7297 (as modified by the rule set forth at 67 
     Federal Register 58343) shall take effect and apply until 
     such time as it may be modified by a rulemaking proceeding.
       (3) Planning and training grants.--Notwithstanding any 
     other provision of law to the contrary, including any 
     limitation on the amount of grants authorized by section 5116 
     of title 49, United States Code, not contained in that 
     section, the Secretary shall make grants under that section 
     from the account established under section 5116(i) to reduce 
     the balance in that account over the 4 fiscal year period 
     beginning with fiscal year 2006, but in no fiscal year shall 
     the grants distributed exceed the level authorized by section 
     5116 of title 49, United States Code.

     SEC. 7330. SHIPPING PAPERS AND DISCLOSURE.

       (a) Reference to Secretary of Transportation.--Section 
     5110(a) is amended by striking ``of Transportation''.
       (b) Disclosure Considerations and Requirements.--Section 
     5110 is amended--
       (1) by striking ``under subsection (b) of this section.'' 
     in subsection (a) and inserting ``in regulations.'';
       (2) by striking subsection (b); and
       (3) by redesignating subsections (c), (d), and (e) as 
     subsections (b), (c), and (d), respectively.
       (c) Retention of Papers.--Subsection (d) of section 5110, 
     as redesignated by subsection (b)(3) of this section, is 
     amended to read as follows:
       ``(d) Retention of Papers.--
       ``(1) Shippers.--The person who provides the shipping paper 
     under this section shall retain the paper, or an electronic 
     format of it, for a period of 3 years after the date that the 
     shipping paper is provided to the carrier, with the paper or 
     electronic format to be accessible through the shipper's 
     principal place of business.
       ``(2) Carriers.--The carrier required to keep the shipping 
     paper under this section, shall retain the paper, or an 
     electronic format of it, for a period of 1 year after the 
     date that the shipping paper is provided to the carrier, with 
     the paper or electronic format to be accessible through the 
     carrier's principal place of business.
       ``(3) Availability to government agencies.--Any person 
     required to keep a shipping paper under this subsection 
     shall, upon request, make it available to a Federal, State, 
     or local government agency at reasonable times and 
     locations.''.

     SEC. 7331. RAIL TANK CARS.

       (a) Repeal of Requirements.--Section 5111 is repealed.
       (b) Clerical Amendment.--The chapter analysis for chapter 
     51 is amended by striking the item relating to section 5111.

     SEC. 7332. UNSATISFACTORY SAFETY RATINGS.

       (a) In General.--The text of section 5113 is amended to 
     read as follows:
       ``A violation of section 31144(c)(3) of this title shall be 
     considered a violation of this chapter, and shall be subject 
     to the penalties in sections 5123 and 5124 of this title.''.
       (b) Conforming Amendments.--The first subsection (c) of 
     section 31144 is amended--
       (1) by striking ``sections 521(b)(5)(A) and 5113'' in 
     paragraph (1) and inserting ``section 521(b)(5)(A) of this 
     title''; and
       (2) by adding at the end of paragraph (3) ``A violation of 
     this paragraph by an owner or operator transporting hazardous 
     material shall be considered a violation of chapter 51 of 
     this title, and shall be subject to the penalties in sections 
     5123 and 5124 of this title.''.

     SEC. 7333. TRAINING CURRICULUM FOR THE PUBLIC SECTOR.

       (a) In General.--Section 5115(a) is amended to read as 
     follows:
       ``(a) In General.--In coordination with the Director of the 
     Federal Emergency Management Agency, the Chairman of the 
     Nuclear Regulatory Commission, the Administrator of the 
     Environmental Protection Agency, the Secretaries of Labor, 
     Energy, and Health and Human Services, and the Director of 
     the National Institute of Environmental Health Sciences, and 
     using existing coordinating mechanisms of the National 
     Response Team and, for radioactive material, the Federal 
     Radiological Preparedness Coordinating Committee, the 
     Secretary shall maintain a current curriculum of lists of 
     courses necessary to train public sector emergency response 
     and preparedness teams in matters relating to the 
     transportation of hazardous material.''.
       (b) Requirements.--Section 5115(b) is amended--
       (1) by striking ``developed'' in the matter preceding 
     paragraph (1) and inserting ``maintained''; and
       (2) by striking ``under other United States Government 
     grant programs'' in paragraph (1)(C) and all that follows and 
     inserting ``with Federal assistance; and''.
       (c) Training on Compliance With Legal Requirements.--
     Section 5115(c)(3) is amended by striking ``Association.'' 
     and inserting ``Association or by any other voluntary 
     organization establishing consensus-based standards that the 
     Secretary considers appropriate.''.
       (d) Distribution and Publication.--Section 5115(d) is 
     amended--
       (1) by striking ``national response team--'' and inserting 
     ``National Response Team--''; and
       (2) by striking ``publish a list'' in paragraph (2) and all 
     that follows and inserting ``publish and distribute the list 
     of courses maintained under this section, and of any programs 
     utilizing such courses.''.

     SEC. 7334. PLANNING AND TRAINING GRANTS; EMERGENCY 
                   PREPAREDNESS FUND.

       (a) Reference to Secretary of Transportation.--Section 5116 
     is amended by striking ``of Transportation'' each place it 
     appears in subsections (a), (b), (c), (d), (g), and (i).
       (b) Government Share of Costs.--Section 5116(e) is amended 
     by striking the second sentence.
       (c) Monitoring and Technical Assistance.--Section 5116(f) 
     is amended by striking ``national response team'' and 
     inserting ``National Response Team''.
       (d) Delegation of Authority.--Section 5116(g) is amended by 
     striking ``Government grant programs'' and inserting 
     ``Federal financial assistance programs''.
       (e) Emergency Preparedness Fund.--
       (1) Name of fund.--Section 5116(i) is amended by inserting 
     after ``an account'' the following: ``(to be known as the 
     `Emergency Preparedness Fund')''.
       (2) Publication of emergency response guide.--Section 
     5116(i) is further amended--
       (A) by striking ``collects under section 5108(g)(2)(A) of 
     this title and'';
       (B) by striking ``and'' after the semicolon in paragraph 
     (2);
       (C) by redesignating paragraph (3) as paragraph (4); and
       (D) by inserting after paragraph (2) the following:
       ``(3) to publish and distribute an emergency response 
     guide; and''.
       (3) Conforming amendment.--Section 5108(g)(2)(C) is amended 
     by striking ``the account the Secretary of the Treasury 
     establishes''

[[Page 10681]]

     and inserting ``the Emergency Response Fund established''.
       (f) Reports.--Section 5116(k) is amended--
       (1) by striking the first sentence and inserting ``The 
     Secretary shall make available to the public annually 
     information on the allocation and uses of the planning grants 
     allocated under subsection (a), training grants under 
     subsection (b), and grants under subsection (j) of this 
     section and under section 5107 of this title.''; and
       (2) by striking ``Such report'' in the second sentence and 
     inserting ``The information''.

     SEC. 7335. SPECIAL PERMITS AND EXCLUSIONS.

       (a) Special Permits and Exclusions.--
       (1) In general.--Section 5117(a)(1) is amended by striking 
     ``the Secretary of Transportation may issue'' and all that 
     follows through ``in a way'' and inserting ``the Secretary 
     may issue, modify, or terminate a special permit authorizing 
     variances from this chapter, or a regulation prescribed under 
     section 5103(b), 5104, 5110, or 5112 of this title, to a 
     person performing a function regulated by the Secretary under 
     section 5103(b)(1) of this title in a way''.
       (2) Duration.--Section 5117(a)(2) is amended to read as 
     follows:
       ``(2) A special permit under this subsection--
       ``(A) shall be effective when first issued for not more 
     than 2 years; and
       ``(B) may be renewed for successive periods of not more 
     than 4 years each.''.
       (b) References to Special Permits.--Section 5117 is further 
     amended--
       (1) by striking ``an exemption'' each place it appears and 
     inserting ``a special permit'';
       (2) by striking ``the exemption'' each place it appears and 
     inserting ``the special permit''; and
       (3) by striking ``exempt'' in subsection (e) and inserting 
     ``granted a variance''.
       (c) Conforming and Clerical Amendments.--
       (1) Conforming amendment.--The heading of section 5117 is 
     amended to read as follows:

     ``Sec. 5117. Special permits and exclusions''

       (2) Clerical amendment.--The chapter analysis for chapter 
     51 is amended by striking the item relating to section 5117 
     and inserting the following:

``5117. Special permits and exclusions.''.

       (3) Subsection heading.--The heading for subsection (a) of 
     section 5117 is amended by striking ``Exempt'' and inserting 
     ``Issue Special Permits''.
       (d) Repeal of Section 5118.--
       (1) Section 5118 is repealed.
       (2) The chapter analysis for chapter 51 is amended by 
     striking the item relating to section 5118 and inserting the 
     following:

``5118. Repealed.''.

     SEC. 7336. UNIFORM FORMS AND PROCEDURES.

       The text of section 5119 is amended to read as follows:
       ``(a) In General.--The Secretary may prescribe regulations 
     to establish uniform forms and regulations for States on the 
     following:
       ``(1) To register and issue permits to persons that 
     transport or cause to be transported hazardous material by 
     motor vehicles in a State.
       ``(2) To permit the transportation of hazardous material in 
     a State.
       ``(b) Uniformity in Forms and Procedures.--In prescribing 
     regulations under subsection (a) of this section, the 
     Secretary shall develop procedures to eliminate discrepancies 
     among the States in carrying out the activities covered by 
     the regulations.
       ``(c) Limitation.--The regulations prescribed under 
     subsection (a) of this section may not define or limit the 
     amount of any fees imposed or collected by a State for any 
     activities covered by the regulations.
       ``(d) Effective Date.--
       ``(1) In general.--Except as provided in paragraph (2) of 
     this subsection, the regulations prescribed under subsection 
     (a) of this section shall take effect 1 year after the date 
     on which prescribed.
       ``(2) Extension.--The Secretary may extend the 1-year 
     period in subsection (a) for an additional year for good 
     cause.
       ``(e) State Regulations.--After the regulations prescribed 
     under subsection (a) of this section take effect under 
     subsection (d) of this section, a State may establish, 
     maintain, or enforce a requirement relating to the same 
     subject matter only if the requirement is consistent with 
     applicable requirements with respect to such activity in the 
     regulations.
       ``(f) Interim State Programs.--Pending the prescription of 
     regulations under subsection (a) of this section, States may 
     participate in the program of uniform forms and procedures 
     recommended by the Alliance for Uniform Hazmat Transportation 
     Procedures.''.

     SEC. 7337. HAZARDOUS MATERIALS TRANSPORTATION SAFETY AND 
                   SECURITY.

       The text of section 5121 is amended to read as follows:
       ``(a) General Authority.--
       ``(1) To carry out this chapter, the Secretary may 
     investigate, conduct tests, make reports, issue subpoenas, 
     conduct hearings, require the production of records and 
     property, take depositions, and conduct research, 
     development, demonstration, and training activities.
       ``(2) Except as provided in subsections (c) and (d) of this 
     section, the Secretary shall provide notice and an 
     opportunity for a hearing before issuing an order directing 
     compliance with this chapter, a regulation prescribed under 
     this chapter, or an order, special permit, or approval issued 
     under this chapter.
       ``(b) Records, Reports, Property, and Information.--A 
     person subject to this chapter shall--
       ``(1) maintain records, make reports, and provide property 
     and information that the Secretary by regulation or order 
     requires; and
       ``(2) make the records, reports, property, and information 
     available for inspection when the Secretary undertakes an 
     inspection or investigation.
       ``(c) Inspections and Investigations.--
       ``(1) A designated officer or employee of the Secretary 
     may--
       ``(A) inspect and investigate, at a reasonable time and in 
     a reasonable way, records and property relating to a function 
     described in section 5103(b)(1) of this title;
       ``(B) except for packaging immediately adjacent to the 
     hazardous material contents, gain access to, open, and 
     examine a package offered for or in transportation when the 
     officer or employees has an objectively reasonable and 
     articulable belief that the package may contain hazardous 
     material;
       ``(C) remove from transportation a package or related 
     packages in a shipment offered for or in transportation for 
     which--
       ``(i) such officer or employee has an objectively 
     reasonable and articulable belief that the package may pose 
     an imminent hazard; and
       ``(ii) such officer or employee contemporaneously documents 
     such belief in accordance with procedures set forth in 
     regulations prescribed under subsection (e) of this section;
       ``(D) gather information from the offeror, carrier, 
     packaging manufacturer or tester, or other person responsible 
     for a package or packages to ascertain the nature and hazards 
     of the contents of the package or packages;
       ``(E) as necessary under terms and conditions prescribed by 
     the Secretary, order the offeror, carrier, or other person 
     responsible for a package or packages to have the package or 
     packages transported to an appropriate facility, opened, 
     examined, and analyzed; and
       ``(F) when safety might otherwise be compromised, authorize 
     properly qualified personnel to assist in activities carried 
     out under this paragraph.
       ``(2) An officer or employee acting under the authority of 
     the Secretary under this subsection shall display proper 
     credentials when requested.
       ``(3) In instances when, as a result of an inspection or 
     investigation under this subsection, an imminent hazards is 
     not found to exist, the Secretary shall, in accordance with 
     procedures set forth in regulations prescribed under 
     subsection (e) of this section, assist the safe resumption of 
     transportation of the package, packages, or transport unit 
     concerned.
       ``(d) Emergency Orders.--
       ``(1) If, upon inspection, investigation, testing, or 
     research, the Secretary determines that a violation of a 
     provision of this chapter, or a regulation prescribed under 
     this chapter, or an unsafe condition or practice, constitutes 
     or is causing an imminent hazard, the Secretary may issue or 
     impose emergency restrictions, prohibitions, recalls, or out-
     of-service orders, without notice or an opportunity for a 
     hearing, but only to the extent necessary to abate the 
     imminent hazard.
       ``(2) The action of the Secretary under paragraph (1) of 
     this subsection shall be in a written emergency order that--
       ``(A) describes the violation, condition, or practice that 
     constitutes or is causing the imminent hazard;
       ``(B) states the restrictions, prohibitions, recalls, or 
     out-of-service orders issued or imposed; and
       ``(C) describes the standards and procedures for obtaining 
     relief from the order.
       ``(3) After taking action under paragraph (1) of this 
     subsection, the Secretary shall provide for review of the 
     action under section 554 of title 5 if a petition for review 
     is filed within 20 calendar days of the issuance of the order 
     for the action.
       ``(4) If a petition for review of an action is filed under 
     paragraph (3) of this subsection and the review under that 
     paragraph is not completed by the end of the 30-day period 
     beginning on the date the petition is filed, the action shall 
     cease to be effective at the end of such period unless the 
     Secretary determines, in writing, that the imminent hazard 
     providing a basis for the action continues to exist.
       ``(5) In this subsection, the term `out-of-service order' 
     means a requirement that an aircraft, vessel, motor vehicle, 
     train, railcar, locomotive, other vehicle, transport unit, 
     transport vehicle, freight container, potable tank, or other 
     package not be moved until specified conditions have been 
     met.
       ``(e) Regulations.--The Secretary shall prescribe in 
     accordance with section 553 of title 5 regulations to carry 
     out the authority in subsections (c) and (d) of this section.
       ``(f) Facility, Staff, and Reporting System on Risks, 
     Emergencies, and Actions.--
       ``(1) The Secretary shall--
       ``(A) maintain a facility and technical staff sufficient to 
     provide, within the United States Government, the capability 
     of evaluating a risk relating to the transportation of 
     hazardous material and material alleged to be hazardous;
       ``(B) maintain a central reporting system and information 
     center capable of providing information and advice to law 
     enforcement and firefighting personnel, and other interested 
     individuals, and officers and employees of the United States 
     Government and State and local governments on meeting an 
     emergency relating to the transportation of hazardous 
     material; and
       ``(C) conduct a continuous review on all aspects of 
     transporting hazardous material to decide on and take 
     appropriate actions to ensure safe transportation of 
     hazardous material.
       ``(2) Paragraph (1) of this subsection shall not prevent 
     the Secretary from making a contract with a private entity 
     for use of a supplemental

[[Page 10682]]

     reporting system and information center operated and 
     maintained by the contractor.
       ``(g) Grants, Cooperative Agreements, and Other 
     Transactions.--The Secretary may enter into grants, 
     cooperative agreements, and other transactions with a person, 
     agency, or instrumentality of the United States, a unit of 
     State or local government, an Indian tribe, a foreign 
     government (in coordination with the Department of State), an 
     educational institution, or other appropriate entity--
       ``(1) to expand risk assessment and emergency response 
     capabilities with respect to the security of transportation 
     of hazardous material;
       ``(2) to enhance emergency communications capacity as 
     deemed necessary by the Secretary, including the use of 
     integrated, interoperable emergency communications 
     technologies where appropriate;
       ``(3) to conduct research, development, demonstration, risk 
     assessment and emergency response planning and training 
     activities; or
       ``(4) to otherwise carry out this chapter.
       ``(h) Reports.--
       ``(1) The Secretary shall, once every 2 years, submit to 
     the Senate Committee on Commerce, Science, and Transportation 
     and the House of Representatives Committee on Transportation 
     and Infrastructure a comprehensive report on the 
     transportation of hazardous material during the preceding 2 
     calendar years. Each report shall include, for the period 
     covered by such report--
       ``(A) a statistical compilation of the accidents, 
     incidents, and casualties related to the transportation of 
     hazardous material during such period;
       ``(B) a list and summary of applicable Government 
     regulations, criteria, orders, and special permits;
       ``(C) a summary of the basis for each special permit 
     issued;
       ``(D) an evaluation of the effectiveness of enforcement 
     activities relating to the transportation of hazardous 
     material during such period, and of the degree of voluntary 
     compliance with regulations;
       ``(E) a summary of outstanding problems in carrying out 
     this chapter, set forth in order of priority; and
       ``(F) any recommendations for legislative or administrative 
     action that the Secretary considers appropriate.
       ``(2) Before December 31, 2007, and every 3 years 
     thereafter, the Secretary, through the Bureau of 
     Transportation Statistics and in consultation with other 
     appropriate Federal departments and agencies, shall submit a 
     report to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure on the transportation of 
     hazardous material in all modes of transportation during the 
     preceding 3 calendar years. Each report shall include, for 
     the period covered by such report--
       ``(A) a summary of the hazardous material shipments, 
     deliveries, and movements during such period, set forth by 
     hazardous materials type, by tonnage and ton-miles, and by 
     mode, both domestically and across United States borders; and
       ``(B) a summary of shipment estimates during such period as 
     a proxy for risk.
       ``(i) Security Sensitive Information.--
       ``(1) If the Secretary determines that particular 
     information may reveal a vulnerability of a hazardous 
     material to attack during transportation in commerce, or may 
     facilitate the diversion of hazardous material during 
     transportation in commerce for use in an attack on people or 
     property, the Secretary may disclose such information, on the 
     condition that such information may not be released to the 
     public without prior authorization by the Secretary, only--
       ``(A) to the owner, custodian, offeror, or carrier of such 
     hazardous material;
       ``(B) to an officer, employee, or agent of the United 
     States Government, or a State or local government, including 
     volunteer fire departments, concerned with carrying out 
     transportation safety laws, protecting hazardous material in 
     the course of transportation in commerce, protecting public 
     safety or national security, or enforcing Federal law 
     designed to protect public health or the environment; or
       ``(C) in an administrative or judicial proceeding brought 
     under this chapter, under other Federal law intended to 
     protect public health or the environment, or under other 
     Federal law intended to address terrorist actions or threats 
     of terrorist actions.
       ``(2) The Secretary may make determinations under paragraph 
     (1) of this subsection with respect to categories of 
     information in accordance with regulations prescribed by the 
     Secretary.
       ``(3) A release of information pursuant to a determination 
     under paragraph (1) of this subsection shall not be treated 
     as a release of such information to the public for purposes 
     of section 552 of title 5.''.

     SEC. 7338. ENFORCEMENT.

       (a) Reference to Secretary of Transportation.--Section 
     5122(a) is amended by striking ``of Transportation''.
       (b) General.--Section 5122(a) is further amended--
       (1) by striking ``chapter or a regulation prescribed or 
     order'' in the first sentence and inserting ``chapter, a 
     regulation prescribed under this chapter, or an order, 
     special permit, or approval''; and
       (2) by striking the second sentence and inserting ``In an 
     action under this subsection, the court may award appropriate 
     relief, including a temporary or permanent injunction, civil 
     penalties under section 5123 of this title, and punitive 
     damages.''.
       (c) Imminent Hazards.--Section 5122(b)(1)(B) is amended by 
     striking ``ameliorate'' and inserting ``mitigate''.

     SEC. 7339. CIVIL PENALTIES.

       (a) Penalty.--Section 5123(a) is amended--
       (1) in paragraph (1)--
       (A) by striking ``regulation prescribed or order issued'' 
     and inserting ``regulation, order, special permit, or 
     approval issued''; and
       (B) by striking ``$25,000'' and inserting ``$32,500'';
       (2) by redesignating paragraph (2) as paragraph (4); and
       (3) by inserting after paragraph (1) the following:
       ``(2) If the Secretary finds that a violation under 
     paragraph (1) results in death, serious illness, or severe 
     injury to any person, the Secretary may increase the amount 
     of the civil penalty for such violation to not more than 
     $100,000.
       ``(3) If the violation is related to training, paragraph 
     (1) shall be applied by substituting `$450' for `$250'.''.
       (b) Reference to Secretary of Transportation.--Section 
     5123(b) is amended by striking ``of Transportation''.
       (c) Hearing Requirement.--Section 5123(b) is amended by 
     striking ``chapter or a regulation prescribed'' and inserting 
     ``chapter, a regulation prescribed under this chapter, or an 
     order, special permit, or approval issued''.
       (d) Civil Actions To Collect.--Section 5123(d) is amended 
     by striking ``section.'' and inserting ``section and any 
     accrued interest on the civil penalty as calculated in 
     accordance with section 1005 of the Oil Pollution Act of 1990 
     (33 U.S.C. 2705). In the civil action, the amount and 
     appropriateness of the civil penalty shall not be subject to 
     review.''.
       (e) Effective Date.--(1) The amendments made by subsections 
     (b) and (c) of this section shall take effect on the date of 
     the enactment of this Act, and shall apply with respect to 
     violations described in section 5123(a) of title 49, United 
     States Code (as amended by this section), that occur on or 
     after that date.
       (2) The amendment made by subsection (d) of this section 
     shall apply with respect to civil penalties imposed on 
     violations described in section 5123(a) of title 49, United 
     States Code (as amended by this section), which violations 
     occur on or after the date of the enactment of this Act.

     SEC. 7340. CRIMINAL PENALTIES.

       (a) In General.--Section 5124 is amended--
       (1) by inserting ``(a) In General.--'' before ``A person''; 
     and
       (2) by striking ``chapter or a regulation prescribed or 
     order'' and inserting ``chapter, a regulation prescribed 
     under this chapter, or an order, special permit, or 
     approval''.
       (b) Additional Matters.--Section 5124 is further amended by 
     adding at the end the following:
       ``(b) Aggravated Violations.--A person knowingly violating 
     section 5104(b) of this title or willfully violating this 
     chapter or a regulation prescribed, or an order, special 
     permit, or approval issued, under this chapter, who thereby 
     causes the release of hazardous material shall be fined under 
     title 18, imprisoned for not more than 20 years, or both.
       ``(c) Separate Violations.--A separate violation occurs for 
     each day the violation, committed by a person who transports 
     or causes to be transported hazardous material, continues.''.

     SEC. 7341. PREEMPTION.

       (a) Reference to Secretary of Transportation.--Section 
     5125(b)(2) is amended by striking ``of Transportation''.
       (b) Purposes.--Section 5125 is amended--
       (1) by redesignating subsections (a), (b), (c), (d), (e), 
     (f), and (g) as subsections (b), (c), (d), (e), (f), (g), and 
     (h), respectively;
       (2) by inserting before subsection (b), as so redesignated, 
     the following:
       ``(a) Purposes.--The Secretary shall exercise the authority 
     in this section--
       ``(1) to achieve uniform regulation of the transportation 
     of hazardous material;
       ``(2) to eliminate rules that are inconsistent with the 
     regulations prescribed under this chapter; and
       ``(3) to otherwise promote the safe and efficient movement 
     of hazardous material in commerce.'';
       (3) by striking subsection (g), as redesignated; and
       (4) by redesignating subsection (h), as redesignated, as 
     subsection (g).
       (c) General Preemption.--Section 5125(b), as redesignated 
     by subsection (b)(1) of this section, is further amended by 
     striking ``General.--Except as provided in subsection (b), 
     (c), and (e)'' and inserting ``Preemption Generally.--Except 
     as provided in subsections (c), (d), and (f)''.
       (d) Substantive Differences.--Section 5125(c), as so 
     redesignated, is further amended--
       (1) in the matter preceding subparagraph (A) of paragraph 
     (1), by striking ``subsection (c)'' and inserting 
     ``subsection (d)'';
       (2) by striking subparagraph (E) of paragraph (1) and 
     inserting the following:
       ``(E) the designing, manufacturing, fabricating, 
     inspecting, marking, maintaining, reconditioning, repairing, 
     or testing a package, container, or packaging component that 
     is represented, marked, certified, or sold by that person as 
     qualified for use in transporting hazardous material in 
     commerce.''; and
       (3) by striking ``prescribes after November 16, 1990. 
     However, the'' in paragraph (2) and inserting ``prescribes. 
     The''.
       (e) Decisions on Preemption.--Section 5125(e), as so 
     redesignated, is further amended by striking ``subsection 
     (a), (b)(1), or (c) of this

[[Page 10683]]

     section.'' in the first sentence and inserting ``subsection 
     (b), (c)(1), or (d) of this section or section 5119(b) of 
     this title.''.
       (f) Waiver of Preemption.--Section 5125(f), as so 
     redesignated, is further amended by striking ``subsection 
     (a), (b)(1), or (c) of this section.'' and inserting 
     ``subsection (b), (c)(1), or (d) of this section or section 
     5119(b) of this title.''.
       (g) Standards.--Section 5125 is further amended by adding 
     at the end the following:
       ``(h) Application of Each Preemption Standard.--Each 
     standard for preemption in subsection (b), (c)(1), or (d) of 
     this section, and in section 5119(b) of this title, is 
     independent in its application to a requirement of a State, 
     political subdivision of a State, or Indian tribe.
       ``(i) Non-Federal Enforcement Standards.--This section does 
     not apply to any procedure, penalty, required mental state, 
     or other standard utilized by a State, political subdivision 
     of a State, or Indian tribe to enforce a requirement 
     applicable to the transportation of hazardous material.''.

     SEC. 7342. RELATIONSHIP TO OTHER LAWS.

       Section 5126 is amended--
       (1) by striking ``or causes to be transported hazardous 
     material,'' in subsection (a) and inserting ``hazardous 
     material, or causes hazardous material to be transported,'';
       (2) by striking ``manufactures,'' and all that follows 
     through ``or sells'' in subsection (a) and inserting 
     ``designs, manufactures, fabricates, inspects, marks, 
     maintains, reconditions, repairs, or tests a package, 
     container, or packaging component that is represented'';
       (3) by striking ``must'' in subsection (a) and inserting 
     ``shall'';
       (4) by striking ``manufacturing,'' in subsection (a) and 
     all that follows through ``testing'' and inserting 
     ``designing, manufacturing, fabricating, inspecting, marking, 
     maintaining, reconditioning, repairing, or testing''; and
       (5) by striking ``39.'' in subsection (b)(2) and inserting 
     ``39, except in the case of an imminent hazard.''.

     SEC. 7343. JUDICIAL REVIEW.

       (a) In General.--Chapter 51 is amended--
       (1) by redesignating section 5127 as section 5128; and
       (2) by inserting after section 5126 the following:

     ``Sec. 5127. Judicial review

       ``(a) Filing and Venue.--Except as provided in section 
     20114(c) of this title, a person adversely affected or 
     aggrieved by a final action of the Secretary under this 
     chapter may petition for review of the final action in the 
     United States Court of Appeals for the District of Columbia 
     or in the court of appeals of the United States for the 
     circuit in which the person resides or has a principal place 
     of business. The petition shall be filed not more than 60 
     days after the action of the Secretary becomes final.
       ``(b) Procedures.--When a petition on a final action is 
     filed under subsection (a) of this section, the clerk of the 
     court shall immediately send a copy of the petition to the 
     Secretary. The Secretary shall file with the court a record 
     of any proceeding in which the final action was issued as 
     provided in section 2112 of title 28.
       ``(c) Authority of Court.--The court in which a petition on 
     a final action is filed under subsection (a) of this section 
     has exclusive jurisdiction, as provided in subchapter II of 
     chapter 5 of title 5 to affirm or set aside any part of the 
     final action and may order the Secretary to conduct further 
     proceedings.
       ``(d) Requirement for Prior Objections.--In reviewing a 
     final action under this section, the court may consider an 
     objection to the final action only if--
       ``(1) the objection was made in the course of a proceeding 
     or review conducted by the Secretary; or
       ``(2) there was a reasonable ground for not making the 
     objection in the proceeding.''.
       (b) Clerical Amendment.--The chapter analysis for chapter 
     51 is amended by striking the item relating to section 5127 
     and inserting the following:

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

     SEC. 7344. AUTHORIZATION OF APPROPRIATIONS.

       Section 5128, as redesignated by section 7343 of this 
     chapter, is amended to read as follows:

     ``Sec. 5128. Authorization of appropriations

       ``(a) General.--In order to carry out this chapter (except 
     sections 5107(e), 5108(g), 5112, 5113, 5115, 5116, and 5119 
     of this title), the following amounts are authorized to be 
     appropriated to the Secretary:
       ``(1) For fiscal year 2005, not more than $24,940,000.
       ``(2) For fiscal year 2006, not more than $29,000,000.
       ``(3) For each of fiscal years 2007 through 2009, not more 
     than $30,000,000.
       ``(b) Emergency Preparedness Fund.--There shall be 
     available from the Emergency Preparedness Fund under section 
     5116(i) of this title, amounts as follows:
       ``(1) To carry out section 5107(e) of this title, 
     $4,000,000 for each of fiscal years 2005 through 2009.
       ``(2) To carry out section 5115 of this title, $200,000 for 
     each of fiscal years 2005 through 2009.
       ``(3) To carry out sections 5116(a) and (b) of this title, 
     $21,800,000 for each of fiscal years 2005 through 2009, to be 
     allocated as follows:
       ``(A) $5,000,000 to carry out section 5116(a).
       ``(B) $7,800,000 to carry out section 5116(b).
       ``(C) Of the amount provided for by this paragraph in 
     excess of the suballocations in subparagraphs (A) and (B)--
       ``(i) 35 percent shall be used to carry out section 
     5116(a), and
       ``(ii) 65 percent shall be used to carry out section 
     5116(b),

     except that the Secretary may increase the proportion to 
     carry out section 5116(b) and decrease the proportion to 
     carry out section 5116(a) if the Secretary determines that 
     such reallocation is appropriate to carry out the intended 
     uses of these funds as described in the applications 
     submitted by States and Indian tribes.
       ``(4) To carry out section 5116(f) of this title, $150,000 
     for each of fiscal years 2005 through 2009.
       ``(5) To carry out section 5116(i)(4) of this title, 
     $150,000 for each of fiscal years 2005 through 2009.
       ``(6) To carry out section 5116(j) of this title, 
     $1,000,000 for each of fiscal years 2005 through 2009.
       ``(7) To publish and distribute an emergency response 
     guidebook under section 5116(i)(3) of title 49, United States 
     Code, $750,000 for each of fiscal years 2005 through 2009.
       ``(c) Section 5121 Reports.--There are authorized to be 
     appropriated to the Secretary of Transportation for the use 
     of the Bureau of Transportation Statistics such sums as may 
     be necessary to carry out section 5121(h) of this title.''.
       ``(d) Credit to Appropriations.--The Secretary may credit 
     to any appropriation to carry out this chapter an amount 
     received from a State, political subdivision of a State, 
     Indian tribe, or other public authority or private entity for 
     expenses the Secretary incurs in providing training to the 
     State, political subdivision, Indian tribe, or other 
     authority or entity.
       ``(e) Availability of Amounts.--Amounts available under 
     subsections (a) and (b) of this section shall remain 
     available until expended.''.

     SEC. 7345. ADDITIONAL CIVIL AND CRIMINAL PENALTIES.

       (a) Title 49 Penalties.--Section 46312 is amended--
       (1) by striking ``part--'' in subsection (a) and inserting 
     ``part or chapter 51 of this title--''; and
       (2) by inserting ``or chapter 51 of this title'' in 
     subsection (b) after ``under this part''.
       (b) Title 18 Penalties.--Section 3663(a)(1)(A) of title 18, 
     United States Code, is amended by inserting ``5124,'' before 
     ``46312,''.

     SEC. 7346. TECHNICAL CORRECTIONS.

       (a) Highway Routing of Hazardous Material.--The second 
     sentence of section 5112(a)(1) is amended by striking 
     ``However, the Secretary of Transportation'' and inserting 
     ``The Secretary''.
       (b) Air Transportation of Ionizing Radiation Material.--
     Section 5114(b) is amended by striking ``of Transportation''.
       (c) International Uniformity of Standards and 
     Requirements.--Section 5120 is amended by striking ``of 
     Transportation'' each place it appears in subsections (a), 
     (b), and (c)(1).

                        CHAPTER 2--OTHER MATTERS

     SEC. 7361. ADMINISTRATIVE AUTHORITY FOR PIPELINE AND 
                   HAZARDOUS MATERIALS SAFETY ADMINISTRATION.

       Section 108 is amended by adding at the end the following:
       ``(h) Administrative Authorities.--
       ``(1) Grants, cooperative agreements, and other 
     transactions.--The Administrator may enter into grants, 
     cooperative agreements, and other transactions with Federal 
     agencies, State and local government agencies, other public 
     entities, private organizations, and other persons--
       ``(A) to conduct research into transportation service and 
     infrastructure assurance; and
       ``(B) to carry out other research activities of the 
     Administration.
       ``(2) Limitation on disclosure of certain information.--
       ``(A) Limitation.--If the Administrator determines that 
     particular information developed in research sponsored by the 
     Administration may reveal a systemic vulnerability of 
     transportation service or infrastructure, such information 
     may be disclosed only to--
       ``(i) a person responsible for the security of the 
     transportation service or infrastructure;
       ``(ii) a person responsible for protecting public safety; 
     or
       ``(iii) an officer, employee, or agent of the Federal 
     Government, or a State or local government, who, as 
     determined by the Administrator, has need for such 
     information in the performance of official duties.
       ``(B) Treatment of release.--The release of information 
     under subparagraph (A) shall not be treated as a release to 
     the public for purposes of section 552 of title 5.''.

     SEC. 7362. MAILABILITY OF HAZARDOUS MATERIALS.

       (a) Nonmailability Generally.--Section 3001 of title 39, 
     United States Code, is amended--
       (1) by redesignating subsection (n) as subsection (o); and
       (2) by inserting after subsection (m) the following:
       ``(n)(1) Except as otherwise authorized by law or 
     regulations of the Postal Service under section 3018 of this 
     title, hazardous material is nonmailable.
       ``(2) In this subsection, the term `hazardous material' 
     means a substance or material designated by the Secretary of 
     Transportation as hazardous material under section 5103(a) of 
     title 49.''.
       (b) Mailability.--
       (1) In General.--Chapter 30 of title 39, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 3018. Hazardous material

       ``(a) In General.--The Postal Service shall prescribe 
     regulations for the safe transportation of hazardous material 
     in the mails.

[[Page 10684]]

       ``(b) Prohibitions.--No person may--
       ``(1) mail or cause to be mailed hazardous material that 
     has been declared by statute or Postal Service regulation to 
     be nonmailable;
       ``(2) mail or cause to be mailed hazardous material in 
     violation of any statute or Postal Service regulation 
     restricting the time, place, or manner in which hazardous 
     material may be mailed; or
       ``(3) manufacture, distribute, or sell any container, 
     packaging kit, or similar device that--
       ``(A) is represented, marked, certified, or sold by such 
     person for use in the mailing of hazardous material; and
       ``(B) fails to conform with any statute or Postal Service 
     regulation setting forth standards for a container, packaging 
     kit, or similar device used for the mailing of hazardous 
     material.
       ``(c) Civil Penalty.--
       ``(1) In general.--A person who knowingly violates this 
     section or a regulation prescribed under this section shall 
     be liable to the Postal Service for--
       ``(A) a civil penalty of at least $250, but not more than 
     $100,000, for each violation;
       ``(B) the costs of any clean-up associated with such 
     violation; and
       ``(C) damages.
       ``(2) Knowing action.--A person acts knowingly for purposes 
     of paragraph (1) when--
       ``(A) the person has actual knowledge of the facts giving 
     rise to the violation; or
       ``(B) a reasonable person acting in the circumstances and 
     exercising reasonable care would have had that knowledge.
       ``(3) Knowledge of statute or regulation not element of 
     offense.--Knowledge of the existence of a statutory provision 
     or Postal Service regulation is not an element of an offense 
     under this subsection.
       ``(4) Separate violations.--
       ``(A) Violations over time.--A separate violation under 
     this subsection occurs for each day hazardous material, 
     mailed or cause to be mailed in noncompliance with this 
     section, is in the mail.
       ``(B) Separate items.--A separate violation under this 
     subsection occurs for each item containing hazardous material 
     that is mailed or caused to be mailed in noncompliance with 
     this section.
       ``(d) Hearings.--The Postal Service may determine that a 
     person has violated this section or a regulation prescribed 
     under this section only after notice and an opportunity for a 
     hearing.
       ``(e) Penalty Considerations.--In determining the amount of 
     a civil penalty for a violation of this section, the Postal 
     Service shall consider--
       ``(1) the nature, circumstances, extent, and gravity of the 
     violation;
       ``(2) with respect to the person who committed the 
     violation, the degree of culpability, any history of prior 
     violations, the ability to pay, and any effect on the ability 
     to continue in business;
       ``(3) the impact on Postal Service operations; and
       ``(4) any other matters that justice requires.
       ``(f) Civil Actions To Collect.--
       ``(1) In general.--In accordance with section 4409(d) of 
     this title, a civil action may be commenced in an appropriate 
     district court of the United States to collect a civil 
     penalty, clean-up costs, and damages assessed under 
     subsection (c).
       ``(2) Limitation.--In a civil action under paragraph (1), 
     the validity, amount, and appropriateness of the civil 
     penalty, clean-up costs, and damages covered by the civil 
     action shall not be subject to review.
       ``(3) Compromise.--The Postal Service may compromise the 
     amount a civil penalty, clean-up costs, and damages assessed 
     under subsection (c) before commencing a civil action with 
     respect to such civil penalty, clean-up costs, and damages 
     under paragraph (1).
       ``(g) Civil Judicial Penalties.--
       ``(1) In general.--At the request of the Postal Service, 
     the Attorney General may bring a civil action in an 
     appropriate district court of the United States to enforce 
     this section or a regulation prescribed under this section.
       ``(2) Relief.--The court in a civil action under paragraph 
     (1) may award appropriate relief, including a temporary or 
     permanent injunction, civil penalties as determined in 
     accordance with this section, or punitive damages.
       ``(3) Construction.--A civil action under this subsection 
     shall be in lieu of civil penalties for the same violation 
     under subsection (c)(1)(A).
       ``(h) Deposit of Amounts Collected.--Amounts collected 
     under this section shall be deposited into the Postal Service 
     Fund under section 2003 of this title.''.
       (2) Conforming amendment.--The chapter analysis for chapter 
     30 of title 39, United States Code, is amended by adding at 
     the end the following:

``3018. Hazardous material.''.
       (c) Conforming Amendment.--Section 2003(b) of title 39, 
     United States Code, is amended--
       (1) by striking ``and'' after the semicolon in paragraph 
     (7);
       (2) by striking ``purposes.'' in paragraph (8) and 
     inserting ``purposes; and''; and
       (3) by adding at the end the following:
       ``(9) any amounts collected under section 3018 of this 
     title.''.

     SEC. 7363. CRIMINAL MATTERS.

       Section 845(a)(1) of title 18, United States Code, is 
     amended by striking ``which are regulated'' and all that 
     follows and inserting ``that is subject to the authority of 
     the Departments of Transportation and Homeland Security;''.

     SEC. 7364. CARGO INSPECTION PROGRAM.

       (a) In General.--The Secretary of Transportation may 
     establish a program of random inspections of cargo at points 
     of entry into the United States for the purpose of 
     determining the extent to which undeclared hazardous material 
     is being offered for transportation in commerce through such 
     points of entry.
       (b) Inspections.--Under the program under subsection (a)--
       (1) an officer of the Department of Transportation who is 
     not located at a point of entry into the United States may 
     select at random cargo shipments at points of entry into the 
     United States for inspection; and
       (2) an officer or employee of the Department may open and 
     inspect each cargo shipment so selected for the purpose 
     described in subsection (a).
       (c) Coordination.--The Secretary of Transportation shall 
     coordinate any inspections under the program under subsection 
     (a) with the Secretary of Homeland Security.
       (d) Disposition of Hazardous Materials.--The Secretary of 
     Transportation shall provide for the appropriate handling and 
     disposition of any hazardous material discovered pursuant to 
     inspections under the program under subsection (a).

     SEC. 7365. INFORMATION ON HAZMAT REGISTRATIONS.

       The Administrator of the Department of Transportation's 
     Research and Special Programs Administration shall--
       (1) transmit current hazardous material registrant 
     information to the Federal Motor Carrier Safety 
     Administration to cross reference the registrant's Federal 
     motor carrier registration number; and
       (2) notify the Federal Motor Carrier Safety Administration 
     immediately, and provide a registrant's United States 
     Department of Transportation identification number to the 
     Administration, whenever a new registrant registers to 
     transport hazardous materials as a motor carrier.

     SEC. 7366. REPORT ON APPLYING HAZARDOUS MATERIALS REGULATIONS 
                   TO PERSONS WHO REJECT HAZARDOUS MATERIALS.

       Within 6 months after the date of enactment of this Act, 
     the Secretary of Transportation shall complete an assessment 
     of the costs and benefits of subjecting persons who reject 
     hazardous material for transportation in commerce to the 
     hazardous materials laws and regulations. In completing this 
     assessment, the Secretary shall--
       (1) estimate the number of affected employers and 
     employees;
       (2) determine what actions would be required by them to 
     comply with such laws and regulations; and
       (3) consider whether and to what extent the application of 
     Federal hazardous materials laws and regulations should be 
     limited to--
       (A) particular modes of transportation;
       (B) certain categories of employees; or
       (C) certain classes or categories of hazardous materials.

     SEC. 7367. NATIONAL FIRST RESPONDER TRANSPORTATION INCIDENT 
                   RESPONSE SYSTEM.

       (a) In General.--The Secretary of Transportation shall 
     provide funding to the Operation Respond Institute to design, 
     build, and operate a seamless first responder hazardous 
     materials incident detection, preparedness, and response 
     system.
       (b) OREIS Expansion.--
       (1) In general.--The system designed, built, and operated 
     by the Institute shall include an expansion of the Operation 
     Respond Emergency Information System.
       (2) Functionality.--The Secretary may require that the 
     system designed by the Operation Respond Institute function 
     across multiple transportation modes.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary to carry out this section 
     $5,000,000 for each of fiscal years 2005 through 2009.

     SEC. 7368. HAZARDOUS MATERIAL TRANSPORTATION PLAN 
                   REQUIREMENT.

       (a) In General.--Subpart I of part 172 of the Department of 
     Transportation's regulations (49 C.F.R. 172.800 et seq.), or 
     any subsequent Department of Transportation regulation in 
     pari materia, does not apply to the surface transportation 
     activities of a farmer that are--
       (1) in direct support of the farmer's farming operations; 
     and
       (2) conducted within a 150-mile radius of those operations.
       (b) Farmer Defined.--In this section, the term ``farmer'' 
     means a person--
       (1) actively engaged in the production or raising of crops, 
     poultry, livestock, or other agricultural commodities; and
       (2) whose gross receipts from the sale of such agricultural 
     commodities or products do not exceed $500,000 annually.

     SEC. 7369. WELDED RAIL AND TANK CAR SAFETY IMPROVEMENTS.

       (a) Track Standards.--
       (1) In general.--Within 90 days after the date of enactment 
     of this Act, the Federal Railroad Administration shall--
       (A) require each track owner using continuous welded rail 
     track to include procedures (in its procedures filed with the 
     Administration pursuant to section 213.119 of title 49, Code 
     of Federal Regulations) to improve the identification of 
     cracks in rail joint bars;
       (B) instruct Administration track inspectors to obtain 
     copies of the most recent continuous welded rail programs of 
     each railroad within the

[[Page 10685]]

     inspectors' areas of responsibility and require that 
     inspectors use those programs when conducting track 
     inspections; and
       (C) establish a program to review continuous welded rail 
     joint bar inspection data from railroads and Administration 
     track inspectors periodically.
       (2) Whenever the Administration determines that it is 
     necessary or appropriate the Administration may require 
     railroads to increase the frequency of inspection, or improve 
     the methods of inspection, of joint bars in continuous welded 
     rail.
       (b) Tank Car Standards.--The Federal Railroad 
     Administration shall--
       (1) validate a predictive model to quantify the relevant 
     dynamic forces acting on railroad tank cars under accident 
     conditions within 1 year after the date of enactment of this 
     Act; and
       (2) initiate a rulemaking to develop and implement 
     appropriate design standards for pressurized tank cars within 
     18 months after the date of enactment of this Act.
       (c) Older Tank Car Impact Resistance Analysis and Report.--
     Within 1 year after the date of enactment of this Act the 
     Federal Railroad Administration shall conduct a comprehensive 
     analysis to determine the impact resistance of the steels in 
     the shells of pressure tank cars constructed before 1989. 
     Within 6 months after completing that analysis the 
     Administration shall--
       (1) establish a program to rank those cars according to 
     their risk of catastrophic fracture and separation;
       (2) implement measures to eliminate or mitigate this risk; 
     and
       (3) transmit a report to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure setting forth 
     the measures implemented.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Federal Railroad Administration 
     $1,000,000 for fiscal year 2006 to carry out this section, 
     such sums to remain available until expended.

     SEC. 7370. HAZARDOUS MATERIALS COOPERATIVE RESEARCH PROGRAM.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary of Transportation $2,000,000 for each of fiscal 
     years 2005 through 2009 to develop and administer a hazardous 
     materials cooperative research program.
       (b) Governance.--The Secretary of Transportation shall 
     establish an independent governing board to select projects 
     and studies to be carried out under the hazardous materials 
     cooperative research program. The Board shall be comprised of 
     one voting representative from the following:
       (1) The Federal Aviation Administration.
       (2) The Federal Motor Carrier Administration.
       (3) The Federal Transit Administration.
       (4) The Federal Railroad Administration.
       (5) The Maritime Administration.
       (6) The Research and Innovative Technology Administration.
       (7) The Pipeline and Hazardous Materials Safety 
     Administration.
       (8) The Department of Homeland Security.
       (9) The Department of Energy.
       (10) The Environmental Protection Agency.
       (11) A State department of transportation.
       (12) A State emergency management agency.
       (13) A nonprofit organization representing emergency 
     responders.
       (14) A hazmat employer.
       (15) A nonprofit organization representing hazmat 
     employees.
       (16) A hazardous materials shipper.
       (17) A hazardous materials manufacturer.
       (18) An organization representing the hazardous materials 
     manufacturing industry.
       (19) A research university or research institution.
       (20) Additional representatives as the Secretary considers 
     appropriate.
       (c) Research Studies.--Under the cooperative research 
     program, the governing board shall select cooperative 
     research studies of hazardous materials transportation that 
     are cross-cutting in nature and that consider issues not 
     adequately addressed by existing Federal or private sector 
     research programs. Priority shall be given to research 
     studies that will yield results immediately applicable to 
     risk analysis and mitigation or that will strengthen the 
     ability of first responders to respond to incidents and 
     accidents involving transportation of hazardous materials.
       (d) Special Rules Regarding Studies.--
       (1) Safety and security.--The purpose of at least one of 
     the studies to be conducted under the cooperative research 
     program shall be--
       (A) to provide an assessment of opportunities for 
     integrating and supplementing safety and security measures 
     for hazardous materials transportation;
       (B) to identify areas where safety and security measures 
     currently utilized in the transportation of hazardous 
     materials conflict or complement one another;
       (C) to outline a comprehensive approach to hazardous 
     materials transportation that effectively incorporates safety 
     and security procedures;
       (D) to produce a model of reasonable State and local risk 
     response and management plans that effectively address safety 
     and security of hazardous materials transportation; and
       (E) to provide an assessment of the need and feasibility of 
     substituting less lethal substances than toxic inhalation 
     hazards in the manufacturing process.
       (2) Performance data for bulk containers.--The purpose of 
     at least one of the studies to be conducted under the 
     research program shall be to provide--
       (A) an analysis of, and recommendations for, the design and 
     funding of a nationwide system capable of collecting and 
     analyzing performance data from bulk containers involved in 
     transportation accidents; and
       (B) recommendations that can be used to develop conditional 
     release probabilities for various container design 
     specifications (by transport mode).
       (3) Packaging requirements.--The purpose of at least one of 
     the studies to be conducted under the research program shall 
     be to provide an analysis of recommendations on appropriate 
     packaging requirements for those hazardous materials that are 
     most frequently involved in release incidents.
       (4) Routing.--The purpose of at least one of the studies to 
     be conducted under the research program shall be to identify 
     the components that could comprise a model of risk and 
     consequence analysis in rail and highway transportation and 
     that can be used to facilitate decisionmaking regarding the 
     routing of hazardous materials shipments and the development 
     of regulations regarding mandatory routing decisions.
       (5) Response coverage.--The purpose of at least one of the 
     studies to be conducted under the research program shall be 
     to provide an assessment of the quality of response coverage 
     for hazardous materials incidents, including cost-effective 
     strategies for improving response capabilities and making 
     recommendations on systematic approaches that could be used 
     to allocate government funding to enhance response 
     capability.
       (e) Implementation.--The Secretary of Transportation shall 
     make grants to, and enter a cooperative agreement with, the 
     National Academy of Sciences to carry out activities under 
     this Act.
       (f) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall transmit a report 
     to the Committee on Transportation and Infrastructure of the 
     House of Representatives and the Committee on Commerce, 
     Science, and Transportation of the Senate on the 
     effectiveness of the program in meeting the needs of 
     government and the private sector for cooperative research on 
     hazardous materials transportation.
       (g) Definitions.--In this section, the terms `hazmat 
     employer' and `hazmat employee' have the meaning given those 
     terms in section 5102 of title 49, United States Code.

                CHAPTER 3--SANITARY FOOD TRANSPORTATION

     SEC. 7381. SHORT TITLE.

       This chapter may be cited as the ``Sanitary Food 
     Transportation Act of 2005''.

     SEC. 7382. RESPONSIBILITIES OF THE SECRETARY OF HEALTH AND 
                   HUMAN SERVICES.

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

     ``SEC. 416. SANITARY TRANSPORTATION PRACTICES.

       ``(a) Definitions.--In this section:
       ``(1) Bulk vehicle.--The term `bulk vehicle' includes a 
     tank truck, hopper truck, rail tank car, hopper car, cargo 
     tank, portable tank, freight container, or hopper bin, and 
     any other vehicle in which food is shipped in bulk, with the 
     food coming into direct contact with the vehicle.
       ``(2) Transportation.--The term `transportation' means any 
     movement in commerce by motor vehicle or rail vehicle.
       ``(b) Regulations.--The Secretary shall by regulation 
     require shippers, carriers by motor vehicle or rail vehicle, 
     receivers, and other persons engaged in the transportation of 
     food to use sanitary transportation practices prescribed by 
     the Secretary to ensure that food is not transported under 
     conditions that may render the food adulterated.
       ``(c) Contents.--The regulations shall--
       ``(1) prescribe such practices as the Secretary determines 
     to be appropriate relating to--
       ``(A) sanitation;
       ``(B) packaging, isolation, and other protective measures;
       ``(C) limitations on the use of vehicles;
       ``(D) information to be disclosed--
       ``(i) to a carrier by a person arranging for the transport 
     of food; and
       ``(ii) to a manufacturer or other person that--

       ``(I) arranges for the transportation of food by a carrier; 
     or
       ``(II) furnishes a tank vehicle or bulk vehicle for the 
     transportation of food; and

       ``(E) recordkeeping; and
       ``(2) include--
       ``(A) a list of nonfood products that the Secretary 
     determines may, if shipped in a bulk vehicle, render 
     adulterated food that is subsequently transported in the same 
     vehicle; and
       ``(B) a list of nonfood products that the Secretary 
     determines may, if shipped in a motor vehicle or rail vehicle 
     (other than a tank vehicle or bulk vehicle), render 
     adulterated food that is simultaneously or subsequently 
     transported in the same vehicle.
       ``(d) Waivers.--
       ``(1) In general.--The Secretary may waive any requirement 
     under this section, with respect to any class of persons, 
     vehicles, food, or

[[Page 10686]]

     nonfood products, if the Secretary determines that the 
     waiver--
       ``(A) will not result in the transportation of food under 
     conditions that would be unsafe for human or animal health; 
     and
       ``(B) will not be contrary to the public interest.
       ``(2) Publication.--The Secretary shall publish in the 
     Federal Register any waiver and the reasons for the waiver.
       ``(e) Preemption.--
       ``(1) In general.--No State or political subdivision of a 
     State may directly or indirectly establish or continue in 
     effect, as to any food in interstate commerce, any authority 
     or requirement concerning transportation of food that is not 
     identical to an authority or requirement under this section.
       ``(2) Applicability.--This subsection applies to 
     transportation that occurs on or after the effective date of 
     the regulations promulgated under subsection (b).
       ``(f) Assistance of Other Agencies.--The Secretary of 
     Transportation, the Secretary of Agriculture, the 
     Administrator of the Environmental Protection Agency, and the 
     heads of other Federal agencies, as appropriate, shall 
     provide assistance on request, to the extent resources are 
     available, to the Secretary for the purposes of carrying out 
     this section.''.
       (c) Inspection of Transportation Records.--
       (1) Requirement.--Section 703 of the Federal Food, Drug, 
     and Cosmetic Act (21 U.S.C. 373) is amended--
       (A) by striking the section heading and all that follows 
     through ``For the purpose'' and inserting the following:

     ``SEC. 703. RECORDS.

       ``(a) In General.--For the purpose''; and
       (B) by adding at the end the following:
       ``(b) Food Transportation Records.--A shipper, carrier by 
     motor vehicle or rail vehicle, receiver, or other person 
     subject to section 416 shall, on request of an officer or 
     employee designated by the Secretary, permit the officer or 
     employee, at reasonable times, to have access to and to copy 
     all records that the Secretary requires to be kept under 
     section 416(c)(1)(E).''.
       (2) Conforming amendment.--Subsection (a) of section 703 of 
     the Federal Food, Drug, and Cosmetic Act (as designated by 
     paragraph (1)(A)) is amended by striking ``carriers.'' and 
     inserting ``carriers, except as provided in subsection (b)''.
       (d) Prohibited Acts.--
       (1) Records inspection.--Section 301(e) of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 331(e)) is amended by 
     inserting ``416,'' before ``504,'' each place it appears.
       (2) Unsafe food transportation.--Section 301 of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 331) is amended by 
     adding at the end the following:
       ``(hh) Noncompliance With Sanitary Transportation 
     Practices.--The failure by a shipper, carrier by motor 
     vehicle or rail vehicle, receiver, or any other person 
     engaged in the transportation of food to comply with the 
     sanitary transportation practices prescribed by the Secretary 
     under section 416.''.

     SEC. 7383. DEPARTMENT OF TRANSPORTATION REQUIREMENTS.

       Chapter 57, is amended to read as follows:

               ``CHAPTER 57--SANITARY FOOD TRANSPORTATION

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

     ``Sec. 5701. Food transportation safety inspections

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

     SEC. 7384. EFFECTIVE DATE.

       This chapter takes effect on October 1, 2005.

                   CHAPTER 4--HOUSEHOLD GOODS MOVERS

     SEC. 7401. SHORT TITLE.

       This chapter may be cited as the ``Household Goods Mover 
     Oversight Enforcement and Reform Act of 2005''.

     SEC. 7402. DEFINITIONS; APPLICATION OF PROVISIONS.

       (a) Terms Used in This Chapter.--In this chapter, the terms 
     ``carrier'', ``household goods'', ``motor carrier'', 
     ``Secretary'', and ``transportation'' have the meaning given 
     such terms in section 13102 of title 49, United States Code.
       (b) ``Household goods motor carrier'' in Part B of Subtitle 
     IV of Title 49.--Section 13102 is amended by redesignating 
     paragraphs (12) through (24) as paragraphs (13) through (25) 
     and by inserting after paragraph (11) the following:
       ``(12) Household goods motor carrier.--
       ``(A) In general.--The term `household goods motor carrier' 
     means a motor carrier described in subparagraph (B) that, in 
     the ordinary course of its business of providing 
     transportation of household goods, offers some or all of the 
     following additional services:
       ``(i) Binding and nonbinding estimates.
       ``(ii) Inventorying.
       ``(iii) Protective packing and unpacking of individual 
     items at personal residences.
       ``(iv) Loading and unloading at personal residences.
       ``(B) Registration requirement.--A motor carrier is 
     described in this subparagraph if its operations require it 
     to register as a household goods motor carrier under--
       ``(i) section 13902 of this title; and
       ``(ii) regulations prescribed by the Secretary consistent 
     with Federal agency determinations and decisions that were in 
     effect on the date of enactment of the Household Goods Mover 
     Oversight Enforcement and Reform Act of 2005.
       ``(C) Limited service exclusion.--The term `household goods 
     motor carrier' does not include a motor carrier solely 
     because it provides transportation of household goods 
     entirely packed in, and unpacked from, 1 or more containers 
     or trailers by the individual shipper.''.
       (c) Application of Certain Provisions of Law.--The 
     provisions of title 49, United States Code, or of this 
     chapter, relating to the transportation of household goods 
     apply only to a household goods motor carrier (as defined in 
     section 13102(12) of title 49, United States Code).

     SEC. 7403. PAYMENT OF RATES.

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

     SEC. 7404. HOUSEHOLD GOODS CARRIER OPERATIONS.

       Section 14104(b) is amended--
       (1) by striking ``135, upon request of a prospective 
     shipper, may provide'' in paragraph (1) and inserting `` 135 
     shall provide'';
       (2) by striking ``services.'' the first place it appears in 
     paragraph (1) and inserting ``services in accordance with the 
     requirements of sections 375.401, 375.403, 375.405, and 
     375.213 of title 49, Code of Federal Regulations, as those 
     requirements were in effect on the date of enactment of the 
     Surface Transportation Safety Improvement Act of 2005 or may 
     thereafter be revised.'';
       (3) by redesignating paragraph (2) as paragraph (4); and
       (4) by inserting after paragraph (1) the following:
       ``(2) Other information.--At the time that a motor carrier 
     provides the written estimate required by paragraph (1), the 
     motor carrier shall provide the shipper a copy of the 
     Department of Transportation publication FMCSA-ESA-03-005 (or 
     its successor edition or publication) entitled `Ready to 
     Move?'. Before the execution of a contract for service, a 
     motor carrier shall provide the shipper a copy of the 
     Department of Transportation publication OCE 100, entitled 
     `Your Rights and Responsibilities When You Move' required by 
     section 375.2 of title 49, Code of Federal Regulations (or 
     any corresponding similar regulation).
       ``(3) Binding and nonbinding estimates.--The written 
     estimate required by paragraph (1)

[[Page 10687]]

     may be either binding or nonbinding. The written estimate 
     shall be based on a visual inspection of the household goods 
     if the household goods are located within a 50-mile radius of 
     the location of the carrier's household goods agent preparing 
     the estimate. The Secretary may not prohibit any such carrier 
     from charging a prospective shipper for providing a written, 
     binding estimate for the transportation and related 
     services.''.

     SEC. 7405. LIABILITY OF CARRIERS UNDER RECEIPTS AND BILLS OF 
                   LADING.

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

     SEC. 7406. ARBITRATION REQUIREMENTS.

       (a) Offering Shippers Arbitration.--Section 14708(a) is 
     amended by inserting before the period at the end the 
     following: ``and to determine whether carrier charges, in 
     addition to those collected at delivery, must be paid by the 
     shipper for transportation and services related to the 
     transportation of household goods''.
       (b) Threshold for Binding Arbitration.--Section 14708(b)(6) 
     is amended by striking ``$5,000'' each place it appears and 
     inserting ``$10,000''.
       (c) Deadline for Decision.--Section 14708(b)(8) is 
     amended--
       (1) by striking ``and''; and
       (2) by inserting after ``for damages'' the following: ``, 
     and an order requiring the payment of additional carrier 
     charges''.
       (d) Attorney's Fees to Shippers.--Section 14708(d)(3) is 
     amended--
       (1) by redesignating subparagraphs (A) and (B) as 
     subparagraphs (B) and (C), respectively; and
       (2) by inserting before subparagraph (B) (as so 
     redesignated) the following:
       ``(A) the shipper was not advised by the carrier during the 
     claim settlement process that a dispute settlement program 
     was available to resolve the dispute;''
       (e) Review and Report on Dispute Settlement Programs.--
       (1) Review and report.--Not later than 18 months after the 
     date of enactment of this Act, the Secretary of 
     Transportation shall complete a review of the outcomes and 
     the effectiveness of the programs carried out under title 49, 
     United States Code, to settle disputes between motor carriers 
     and shippers and submit a report on the review to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure. The report shall describe--
       (A) the subject of, and amounts at issue in, the disputes;
       (B) patterns in disputes or settlements;
       (C) the prevailing party in disputes, if identifiable; and
       (D) any other matters the Secretary considers appropriate.
       (2) Requirement for public comment.--The Secretary shall 
     publish notice of the review required by paragraph (1) and 
     provide an opportunity for the public to submit comments on 
     the effectiveness of such programs. Notwithstanding any 
     confidentiality or non-disclosure provision in a settlement 
     agreement between a motor carrier and a shipper, it shall not 
     be a violation of that provision for a motor carrier or 
     shipper to submit a copy of the settlement agreement, or to 
     provide information included in the agreement, to the 
     Secretary for use in evaluating dispute settlement programs 
     under this subsection. Notwithstanding anything to the 
     contrary in section 552 of title 5, United States Code, the 
     Secretary may not post on the Department of Transportation's 
     electronic docket system, or make available to any requester 
     in paper or electronic format, any information submitted to 
     the Secretary by a motor carrier or shipper under the 
     preceding sentence. The Secretary shall use the settlement 
     agreements or other information submitted by a motor carrier 
     or shipper solely to evaluate the effectiveness of dispute 
     settlement programs and shall not include in the report 
     required by this subsection the names, or other identifying 
     information concerning, motor carriers or shippers that 
     submitted comments or information under this subsection.

     SEC. 7407. ENFORCEMENT OF REGULATIONS RELATED TO 
                   TRANSPORTATION OF HOUSEHOLD GOODS.

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

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

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

     ``Sec. 14711. Enforcement by State attorneys general

       ``(a) In General.--A State, as parens patriae, may bring a 
     civil action on behalf of its residents in an appropriate 
     district court of the United States to enforce the consumer 
     protection provisions that apply to individual shippers, as 
     determined by the Secretary of Transportation, of this title 
     that are related to the delivery and transportation of 
     household goods in interstate commerce, or regulations or 
     orders of the Secretary or the Board thereunder, or to impose 
     the civil penalties authorized by this part or such 
     regulation or order, whenever the attorney general of the 
     State has reason to believe that the interests of the 
     residents of the State have been or are being threatened or 
     adversely affected by a carrier or broker providing 
     transportation subject to jurisdiction under subchapter I or 
     III of chapter 135 of this title, or a foreign motor carrier 
     providing transportation registered under section 13902 of 
     this title, that is engaged in household goods transportation 
     that violates this part or a regulation or order of the 
     Secretary or Board, as applicable, promulgated under this 
     part.
       ``(b) Notice and Consent.--
       ``(1) In general.--The State shall serve written notice to 
     the Secretary or the Board, as the case may be, of any civil 
     action under subsection (a) prior to initiating such civil 
     action. The notice shall include a copy of the complaint to 
     be filed to initiate such civil action.
       ``(2) Conditions.--The Secretary or the Board--
       ``(A) shall review the initiation of the action by the 
     State if--
       ``(i) the carrier or broker (as such terms are defined in 
     section 13102 of this title) is not registered with the 
     Department of Transportation;
       ``(ii) the license of a carrier or broker for failure to 
     file proof of required bodily injury or cargo liability 
     insurance is pending, or the license has been revoked for any 
     other reason by the Department of Transportation;
       ``(iii) the carrier is not rated or has received a 
     conditional or unsatisfactory safety rating by the Department 
     of Transportation; or
       ``(iv) the carrier or broker has been licensed with the 
     Department of Transportation for less than 5 years; and
       ``(B) may review if the carrier or broker fails to meet 
     criteria developed by the Secretary that are consistent with 
     this section.
       ``(3) Congressional notification.--The Secretary shall 
     notify the Senate Committee on Commerce, Science, and 
     Transportation, and the House of Representatives Committee on 
     Transportation and Infrastructure of any criteria developed 
     by the Secretary under paragraph (2)(B).
       ``(4) 60-day deadline.--The Secretary or the Board shall be 
     considered to have consented to any such action if the 
     Secretary or the Board has taken no action with respect to 
     the notice within 60 calendar days after the date on which 
     the Secretary or the Board received notice under paragraph 
     (1).
       ``(c) Authority To Intervene.--
       ``(1) In general.--Upon receiving the notice required by 
     subsection (b), the Secretary or Board may intervene in such 
     civil action and upon intervening--
       ``(A) be heard on all matters arising in such civil action;
       ``(B) file petitions for appeal of a decision in such civil 
     action; and
       ``(C) be substituted, upon the filing of a motion with the 
     court, for the State as parens patriae in the action.
       ``(2) Substitution.--If the Secretary or the Board files a 
     motion under paragraph (1)(C), the court shall--
       ``(A) grant the motion without further hearing or 
     procedure;

[[Page 10688]]

       ``(B) substitute the Secretary or the Board, as 
     appropriate, for the State as plaintiff; and
       ``(C) if requested by the Secretary or the Board, dismiss 
     the State as a party to the action.
       ``(d) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this section shall--
       ``(1) convey a right to initiate or maintain a class action 
     lawsuit in the enforcement of a Federal law or regulation; or
       ``(2) prevent the attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of such State to conduct investigations or to 
     administer oaths or affirmations or to compel the attendance 
     of witnesses or the production of documentary and other 
     evidence.
       ``(e) Venue; Service of Process.--In a civil action brought 
     under subsection (a)--
       ``(1) the venue shall be a Federal judicial district in 
     which--
       ``(A) the carrier, foreign motor carrier, or broker 
     operates;
       ``(B) the carrier, foreign motor carrier, or broker was 
     authorized to provide transportation at the time the 
     complaint arose; or
       ``(C) where the defendant in the civil action is found;
       ``(2) process may be served without regard to the 
     territorial limits of the district or of the State in which 
     the civil action is instituted; and
       ``(3) a person who participated with a carrier or broker in 
     an alleged violation that is being litigated in the civil 
     action may be joined in the civil action without regard to 
     the residence of the person.
       ``(f) Enforcement of State Law.--Nothing contained in this 
     section shall prohibit an authorized State official from 
     proceeding in State court to enforce a criminal statute of 
     such State.''.
       (c) Individual Shipper Defined.--Section 13102 is amended 
     by redesignating paragraphs (12) through (24) as paragraphs 
     (13) through (25) and by inserting after paragraph (11) the 
     following:
       ``(12) Individual shipper.--The term `individual shipper' 
     means any person who--
       ``(A) is the shipper, consignor, or consignee of a 
     household goods shipment;
       ``(B) is identified as the shipper, consignor, or consignee 
     on the face of the bill of lading;
       ``(C) owns the goods being transported; and
       ``(D) pays his or her own tariff transportation charges.''.
       (d) Conforming Amendment.--The analysis for chapter 147 is 
     amended by inserting after the item relating to section 14709 
     the following:

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

     SEC. 7408. WORKING GROUP FOR DEVELOPMENT OF PRACTICES AND 
                   PROCEDURES TO ENHANCE FEDERAL-STATE RELATIONS.

       (a) In General.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall establish a 
     working group of State attorneys general, State authorities 
     that regulate the movement of household goods, and Federal 
     and local law enforcement officials for the purpose of 
     developing practices and procedures to enhance the Federal-
     State partnership in enforcement efforts, exchange of 
     information, and coordination of enforcement efforts with 
     respect to interstate transportation of household goods and 
     making legislative and regulatory recommendations to the 
     Secretary concerning such enforcement efforts.
       (b) Consultation.--In carrying out subsection (a), the 
     working group shall consult with industries involved in the 
     transportation of household goods, the public, and other 
     interested parties.

     SEC. 7409. INFORMATION ABOUT HOUSEHOLD GOODS TRANSPORTATION 
                   ON CARRIERS' WEBSITES.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary shall modify the regulations contained in 
     part 375 of title 49, Code of Federal Regulations, to require 
     a motor carrier or broker that is subject to such regulations 
     and that establishes (or has established) and maintains a 
     website to prominently display on the website--
       (1) the number assigned to the motor carrier or broker by 
     the Department of Transportation;
       (2) the OCE 100 publication referred to in section 
     14104(b)(2) of title 49, United States Code; and
       (3) in the case of a broker, a list of all motor carriers 
     providing transportation of household goods used by the 
     broker and a statement that the broker is not a motor carrier 
     providing transportation of household goods.

     SEC. 7410. CONSUMER COMPLAINTS.

       (a) Requirement for Database.--Subchapter II of chapter 141 
     is amended by adding at the end the following:

     ``Sec. 14124. Consumer complaints

       ``(a) Establishment of System and Database.--The Secretary 
     of Transportation shall--
       ``(1) establish a system to--
       ``(A) file and log a complaint made by a shipper that 
     relates to motor carrier transportation of household goods; 
     and
       ``(B) to solicit information gathered by a State regarding 
     the number and type of complaints involving the interstate 
     transportation of household goods;
       ``(2) establish a database of such complaints; and
       ``(3) develop a procedure--
       ``(A) to provide public access to the database, subject to 
     section 522a of title 5;
       ``(B) to forward a complaint, including the motor carrier 
     bill of lading number, if known, related to the complaint to 
     a motor carrier named in such complaint and to an appropriate 
     State authority (as defined in section 14710(c) in the State 
     in which the complainant resides; and
       ``(C) to permit a motor carrier to challenge information in 
     the database.
       ``(b) Summary to Congress.--The Secretary shall transmit a 
     summary each year of the complaints filed and logged under 
     subsection (a) for the preceding calendar year to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure.''.
       (b) Conforming Amendment.--The analysis for chapter 141 is 
     amended by inserting after the item relating to section 14123 
     the following:

``14124. Consumer complaints.''.

     SEC. 7411. REVIEW OF LIABILITY OF CARRIERS.

       (a) Review.--Not later than 1 year after the date of 
     enactment of this Act, the Surface Transportation Board shall 
     complete a review of the current Federal regulations 
     regarding the level of liability protection provided by motor 
     carriers that provide transportation of household goods and 
     revise such regulations, if necessary, to provide enhanced 
     protection in the case of loss or damage.
       (b) Determinations.--The review required by subsection (a) 
     shall include a determination of--
       (1) whether the current regulations provide adequate 
     protection;
       (2) the benefits of purchase by a shipper of insurance to 
     supplement the carrier's limitations on liability;
       (3) whether there are abuses of the current regulations 
     that leave the shipper unprotected in the event of loss and 
     damage to a shipment of household goods; and
       (4) whether the section 14706 of title 49, United States 
     Code, should be modified.

     SEC. 7412. CIVIL PENALTIES RELATING TO HOUSEHOLD GOODS 
                   BROKERS.

       Section 14901(d) is amended--
       (1) by resetting the text as a paragraph indented 2 ems 
     from the left margin and inserting ``(1) In general.--'' 
     before ``If a carrier''; and
       (2) by adding at the end the following:
       ``(2) Estimate of broker without carrier agreement.--If a 
     broker for transportation of household goods subject to 
     jurisdiction under subchapter I of chapter 135 of this title 
     makes an estimate of the cost of transporting any such goods 
     before entering into an agreement with a carrier to provide 
     transportation of household goods subject to such 
     jurisdiction, the broker is liable to the United States for a 
     civil penalty of not less than $10,000 for each violation.
       ``(3) Unauthorized transportation.--If a person provides 
     transportation of household goods subject to jurisdiction 
     under subchapter I of chapter 135 this title or provides 
     broker services for such transportation without being 
     registered under chapter 139 of this title to provide such 
     transportation or services as a motor carrier or broker, as 
     the case may be, such person is liable to the United States 
     for a civil penalty of not less than $25,000 for each 
     violation.''.

     SEC. 7413. CIVIL AND CRIMINAL PENALTY FOR FAILING TO GIVE UP 
                   POSSESSION OF HOUSEHOLD GOODS.

       (a) In General.--Chapter 149 is amended by adding at the 
     end the following:

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

       ``(a) Civil Penalty.--Whoever is found to have failed to 
     give up possession of household goods is liable to the United 
     States for a civil penalty of not less than $10,000. Each day 
     a carrier is found to have failed to give up possession of 
     household goods may constitute a separate violation. If such 
     person is a carrier or broker, the Secretary may suspend the 
     registration of such carrier or broker under chapter 139 of 
     this title for a period of not less than 12 months nor more 
     than 36 months. The force and effect of such suspension of a 
     carrier or broker shall extend to and include any carrier or 
     broker having the same ownership or operational control as 
     the suspended carrier or broker.
       ``(b) Criminal Penalty.--Whoever has been convicted of 
     having failed to give up possession of household goods shall 
     be fined under title 18 or imprisoned for not more than 5 
     years, or both.
       ``(c) Failure To Give Up Possession of Household Goods 
     Defined.--For purposes of this section, the term `failed to 
     give up possession of household goods' means the knowing and 
     willful failure, in violation of a contract, to deliver to, 
     or unload at, the destination of a shipment of household 
     goods that is subject to jurisdiction under subchapter I or 
     III of chapter 135 of this title, for which charges have been 
     estimated by the motor carrier providing transportation of 
     such goods, and for which the shipper has tendered a payment 
     described in clause (i), (ii), or (iii) of section 
     13707(b)(3)(A) of this title.''.
       (b) Conforming Amendment.--The analysis for such chapter is 
     amended by adding at the end the following:

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

     SEC. 7414. PROGRESS REPORT.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary shall transmit to Congress a report on the 
     progress being made in implementing the provisions of this 
     chapter.

     SEC. 7415. ADDITIONAL REGISTRATION REQUIREMENTS FOR MOTOR 
                   CARRIERS OF HOUSEHOLD GOODS.

       Section 13902(a) is amended--

[[Page 10689]]

       (1) by striking paragraphs (2) and (3);
       (2) by redesignating paragraph (4) as paragraph (5) and 
     inserting after paragraph (1) the following:
       ``(2) Additional registration requirements for household 
     goods transportation.--Notwithstanding paragraph (1), the 
     Secretary may register a person to provide transportation of 
     household goods (as defined in section 13102(10) of this 
     title) only after that person--
       ``(A) provides evidence of participation in an arbitration 
     program and provides a copy of the notice of that program as 
     required by section 14708(b)(2) of this title;
       ``(B) identifies its tariff and provides a copy of the 
     notice of the availability of that tariff for inspection as 
     required by section 13702(c) of this title;
       ``(C) provides evidence that it has access to, has read, is 
     familiar with, and will observe all laws relating to consumer 
     protection, estimating, consumers' rights and 
     responsibilities, and options for limitations of liability 
     for loss and damage; and
       ``(D) discloses any relationship involving common stock, 
     common ownership, common management, or common familial 
     relationships between that person and any other motor 
     carrier, freight forwarder, or broker of household goods 
     within the past 3 years.
       ``(3) Consideration of evidence; findings.--The Secretary 
     shall consider, and, to the extent applicable, make findings 
     on any evidence demonstrating that the registrant is unable 
     to comply with any applicable requirement of paragraph (1) 
     or, in the case of a registrant to which paragraph (2) 
     applies, paragraph (1) or (2).
       ``(4) Withholding.--If the Secretary determines that a 
     registrant under this section does not meet, or is not able 
     to meet, any requirement of paragraph (1) or, in the case of 
     a registrant to which paragraph (2) applies, paragraph (1) or 
     (2), the Secretary shall withhold registration.''; and
       (3) by adding at the end of paragraph (5), as redesignated, 
     ``In the case of a registration for the transportation of 
     household goods (as defined in section 13102(10 of this 
     title), the Secretary may also hear a complaint on the ground 
     that the registrant fails or will fail to comply with the 
     requirements of paragraph (2) of this subsection.''.

        Subtitle E--Sportfishing and Recreational Boating Safety

     SEC. 7501. SHORT TITLE.

       This subtitle may be cited as the ``Sportfishing and 
     Recreational Boating Safety Act of 2005''.

    CHAPTER 1--FEDERAL AID IN SPORT FISH RESTORATION ACT AMENDMENTS

     SEC. 7511. AMENDMENT OF FEDERAL AID IN SPORT FISH RESTORATION 
                   ACT.

       Except as otherwise expressly provided, whenever in this 
     chapter an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Dingell-Johnson Sport Fish Restoration 
     Act (16 U.S.C. 777 et seq.).

     SEC. 7512. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Section 3 (16 U.S.C. 777b) is amended--
       (1) by striking ``the succeeding fiscal year.'' in the 
     third sentence and inserting ``succeeding fiscal years.''; 
     and
       (2) by striking ``in carrying on the research program of 
     the Fish and Wildlife Service in respect to fish of material 
     value for sport and recreation.'' and inserting ``to 
     supplement the 57 percent of the balance of each annual 
     appropriation to be apportioned among the States, as provided 
     for in section 4(c).''.
       (b) Conforming Amendments.--
       (1) In general.--The first sentence of section 3 (16 U.S.C. 
     777b) is amended--
       (A) by striking ``Sport Fish Restoration Account'' and 
     inserting ``Sport Fish Restoration and Boating Trust Fund''; 
     and
       (B) by striking ``that Account'' and inserting ``that Trust 
     Fund, except as provided in section 9504(c) of the Internal 
     Revenue Code of 1986''.
       (2) Effective date.--The amendments made by paragraph (1) 
     take effect on October 1, 2005.

     SEC. 7513. DIVISION OF ANNUAL APPROPRIATIONS.

       Section 4 (16 U.S.C. 777c) is amended--
       (1) by striking subsections (a) through (c) and 
     redesignating subsections (d), (e), (f), and (g) as 
     subsections (b), (c), (d), and (e), respectively;
       (2) by inserting before subsection (b), as redesignated by 
     paragraph (1), the following:
       ``(a) In General.--For fiscal years 2005 through 2019, the 
     balance of each annual appropriation made in accordance with 
     the provisions of section 3 remaining after the distributions 
     for administrative expenses and other purposes under 
     subsection (b) and for multistate conservation grants under 
     section 14 shall be distributed as follows:
       ``(1) Coastal wetlands.--18.5 percent to the Secretary of 
     the Interior for distribution as provided in the Coastal 
     Wetlands Planning, Protection, and Restoration Act (16 U.S.C. 
     3951 et seq.).
       ``(2) Boating safety.--18.5 percent to the Secretary of 
     Homeland Security for State recreational boating safety 
     programs under section 13106 of title 46, United States Code.
       ``(3) Clean vessel act.--2.0 percent to the Secretary of 
     the Interior for qualified projects under section 5604(c) of 
     the Clean Vessel Act of 1992 (33 U.S.C. 1322 note).
       ``(4) Boating infrastructure.--2.0 percent to the Secretary 
     of the Interior for obligation for qualified projects under 
     section 7404(d) of the Sportfishing and Boating Safety Act of 
     1998 (16 U.S.C. 777g-1(d)).
       ``(5) National outreach and communications.--2.0 percent to 
     the Secretary of the Interior for the National Outreach and 
     Communications Program under section 8(d) of this Act. Such 
     amounts shall remain available for 3 fiscal years, after 
     which any portion thereof that is unobligated by the 
     Secretary for that program may be expended by the Secretary 
     under subsection (c) of this section.'';
       (3) by striking (b)(1)(A), as redesignated by paragraph 
     (1), and inserting the following:
       ``(A) Set-aside.--For fiscal year 2005 and each subsequent 
     fiscal year, the Secretary of the Interior may use no more 
     than the amount specified in subparagraph (B) for the fiscal 
     year for expenses of administration incurred in the 
     implementation of this Act, in accordance with this section 
     and section 9. The amount specified in subparagraph (B) for a 
     fiscal year may not be included in the amount of the annual 
     appropriation distributed under subsection (a) for the fiscal 
     year.'';
       (4) by striking ``Secretary of the Interior, after the 
     distribution, transfer, use, and deduction under subsections 
     (a), (b), (c), and (d), respectively, and after deducting 
     amounts used for grants under section 14, shall apportion the 
     remainder'' in subsection (c), as redesignated by paragraph 
     (1), and inserting ``Secretary, for fiscal year 2005 and each 
     subsequent fiscal year, after the distribution, transfer, use 
     and deduction under subsection (b), and after deducting 
     amounts used for grants under section 14 of this title, shall 
     apportion 57 percent of the balance'';
       (5) by striking ``per centum'' each place it appears in 
     subsection (c), as redesignated by paragraph (1), and 
     inserting ``percent'';
       (6) by striking ``subsections (a), (b)(3)(A), (b)(3)(B), 
     and (c)'' in paragraph (1) of subsection (e), as redesignated 
     by paragraph (1), and inserting ``paragraphs (1), (3), (4), 
     and (5) of subsection (a)''; and
       (7) by adding at the end the following:
       ``(f) Transfer of Certain Funds.--Amounts available under 
     paragraphs (3) and (4) of subsection (a) that are unobligated 
     by the Secretary of the Interior after 3 fiscal years shall 
     be transferred to the Secretary of Homeland Security and 
     shall be expended for State recreational boating safety 
     programs under section 13106(a) of title 46, United States 
     Code.''.

     SEC. 7514. MAINTENANCE OF PROJECTS.

       Section 8 (16 U.S.C. 777g) is amended--
       (1) by striking ``in carrying out the research program of 
     the Fish and Wildlife Service in respect to fish of material 
     value for sport or recreation.'' in subsection (b)(2) and 
     inserting ``to supplement the 57 percent of the balance of 
     each annual appropriation to be apportioned among the States 
     under section 4(c).''; and
       (2) by striking ``subsection (c) or (d)'' in subsection 
     (d)(3) and inserting ``subsection (a)(5) or subsection (b)''.

     SEC. 7515. BOATING INFRASTRUCTURE.

       Section 7404(d)(1) of the Sportfishing and Boating Safety 
     Act of 1998 (16 U.S.C. 777g-1(d)(1)) is amended by striking 
     ``section 4(b)(3)(B) of the Act entitled `An Act to provide 
     that the United States shall aid the States in fish 
     restoration and management projects, and for other purposes,' 
     approved August 9, 1950, as amended by this Act,'' and 
     inserting ``section 4(a)(4) of the Dingell-Johnson Sport Fish 
     Restoration Act''.

     SEC. 7516. REQUIREMENTS AND RESTRICTIONS CONCERNING USE OF 
                   AMOUNTS FOR EXPENSES FOR ADMINISTRATION.

       Section 9 (16 U.S.C. 777h) is amended--
       (1) by striking ``section 4(d)(1)'' in subsection (a) and 
     inserting ``section 4(b)''; and
       (2) by striking ``section 4(d)(1)'' in subsection (b)(1) 
     and inserting ``section 4(b)''.

     SEC. 7517. PAYMENTS OF FUNDS TO AND COOPERATION WITH PUERTO 
                   RICO, THE DISTRICT OF COLUMBIA, GUAM, AMERICAN 
                   SAMOA, THE COMMONWEALTH OF THE NORTHERN MARIANA 
                   ISLANDS, AND THE VIRGIN ISLANDS.

       Section 12 (16 U.S.C. 777k) is amended by striking ``in 
     carrying on the research program of the Fish and Wildlife 
     Service in respect to fish of material value for sport or 
     recreation.'' and inserting ``to supplement the 57 percent of 
     the balance of each annual appropriation to be apportioned 
     among the States under section 4(b) of this Act.''.

     SEC. 7518. MULTISTATE CONSERVATION GRANT PROGRAM.

       Section 14 (16 U.S.C. 777m) is amended--
       (1) by striking so much of subsection (a) as precedes 
     paragraph (2) and inserting the following:
       ``(a) In General.--
       ``(1) Amount for grants.--For fiscal year 2005 and each 
     subsequent fiscal year, not more than $3,000,000 of each 
     annual appropriation made in accordance with the provisions 
     of section 3 shall be distributed to the Secretary of the 
     Interior for making multistate conservation project grants in 
     accordance with this section.'';
       (2) by striking ``section 4(e)'' each place it appears in 
     subsection (a)(2)(B) and inserting ``section 4(c)''; and
       (3) by striking ``Of the balance of each annual 
     appropriation made under section 3 remaining after the 
     distribution and use under subsections (a), (b), and (c) of 
     section 4 for each fiscal year and after deducting amounts 
     used for grants under subsection (a)--'' in subsection (e) 
     and inserting ``Of amounts made available under section 4(b) 
     for each fiscal year--''.

     SEC. 7519. EXPENDITURES FROM BOAT SAFETY ACCOUNT.

       The Act is amended by adding at the end the following:

[[Page 10690]]



     ``SEC. 15. EXPENDITURES FROM BOAT SAFETY ACCOUNT.

       ``The following amounts in the boating safety account under 
     section 9504(c) of the Internal Revenue Code of 1986 shall be 
     made available without further appropriation and shall be 
     distributed as follows:
       ``(1) In fiscal year 2006, $28,155,000 shall be 
     distributed--
       ``(A) under section 4 of this Act in the following manner:
       ``(i) $11,200,000 to be added to funds available under 
     subsection (a)(2) of that section;
       ``(ii) $1,245,000 to be added to funds available under 
     subsection (a)(3) of that section;
       ``(iii) $1,245,000 to be added to funds available under 
     subsection (a)(4) of that section;
       ``(iv) $1,245,000 to be added to funds available under 
     subsection (a)(5) of that section; and
       ``(v) $12,800,000 to be added to funds available under 
     subsection (b) of that section; and
       ``(B) under section 14 of this Act, $420,000, to be added 
     to funds available under subsection (a)(1) of that section.
       ``(2) In fiscal year 2007, $22,419,000 shall be 
     distributed--
       ``(A) under section 4 of this Act in the following manner:
       ``(i) $8,075,000 to be added to funds available under 
     subsection (a)(2) of that section;
       ``(ii) $713,000 to be added to funds available under 
     subsection (a)(3) of that section;
       ``(iii) $713,000 to be added to funds available under 
     subsection (a)(4) of that section;
       ``(iv) $713,000 to be added to funds available under 
     subsection (a)(5) of that section; and
       ``(v) $11,925,000 to be added to funds available under 
     subsection (b) of this Act; and
       ``(B) under section 14 of this Act, $280,000 to be added to 
     funds available under subsection (a)(1) of that section.
       ``(3) In fiscal year 2008, $17,139,000 shall be 
     distributed--
       ``(A) under section 4 of this Act in the following manner:
       ``(i) $6,800,000 to be added to funds available under 
     subsection (a)(2) of that section;
       ``(ii) $333,000 to be added to funds available under 
     subsection (a)(3) of that section;
       ``(iii) $333,000 to be added to funds available under 
     subsection (a)(4) of that section;
       ``(iv) $333,000 to be added to funds available under 
     subsection (a)(5) of that section; and
       ``(v) $9,200,000 to be added to funds available under 
     subsection (b) of that section; and
       ``(B) under section 14 of this Act, $140,000, to be added 
     to funds available under subsection (a)(1) of that section.
       ``(4) In fiscal year 2009, $12,287,000 shall be 
     distributed--
       ``(A) under section 4 of this Act in the following manner:
       ``(i) $5,100,000 to be added to funds available under 
     subsection (a)(2) of that section;
       ``(ii) $48,000 to be added to funds available under 
     subsection (a)(3) of that section;
       ``(iii) $48,000 to be added to funds available under 
     subsection (a)(4) of that section;
       ``(iv) $48,000 to be added to funds available under 
     subsection (a)(5) of that section; and
       ``(v) $6,900,000 to be added to funds available under 
     subsection (b) of that section; and
       ``(B) under section 14 of this Act, $143,000, to be added 
     to funds available under subsection (a)(1) of that section.
       ``(5) In fiscal year 2010, all remaining funds in the 
     Account shall be distributed under section 4 of this Act in 
     the following manner:
       ``(A) one-third to be added to funds available under 
     subsection (b); and
       ``(B) two-thirds to be added to funds available under 
     subsection (h).''.

                 CHAPTER 2--CLEAN VESSEL ACT AMENDMENTS

     SEC. 7531. GRANT PROGRAM.

       Section 5604(c)(2) of the Clean Vessel Act of 1992 (33 
     U.S.C. 1322 note) is amended--
       (1) by striking subparagraph (A); and
       (2) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (A) and (B), respectively.

       CHAPTER 3--RECREATIONAL BOATING SAFETY PROGRAM AMENDMENTS

     SEC. 7551. STATE MATCHING FUNDS REQUIREMENT.

       Section 13103(b) of title 46, United States Code, is 
     amended by striking ``one-half'' and inserting ``75 
     percent''.

     SEC. 7552. AVAILABILITY OF ALLOCATIONS.

       Section 13104(a) of title 46, United States Code, is 
     amended--
       (1) by striking ``2 years'' in paragraph (1) and inserting 
     ``3 years''; and
       (2) by striking ``2-year'' in paragraph (2) and inserting 
     ``3-year''.

     SEC. 7553. AUTHORIZATION OF APPROPRIATIONS FOR STATE 
                   RECREATIONAL BOATING SAFETY PROGRAMS.

       Section 13106 of title 46, United States Code, is amended--
       (1) by striking ``section 4(b) of the Act of August 9, 1950 
     (16 U.S.C. 777c(b))''in subsection (a)(1) and inserting 
     ``subsections (a)(2) and (f) of section 4 of the Dingell-
     Johnson Sport Fish Restoration Act (16 U.S.C. 777c(a)(2) and 
     (f))'';
       (2) by striking ``not less than one percent and'' in 
     subsection (a)(2);
       (3) in subsection (c)(1)--
       (A) by striking ``Secretary of Transportation under 
     paragraph (5)(C) of section 4(b)'' and inserting ``Secretary 
     under subsection (a)(2) of section 4'';
       (B) by striking ``(16 U.S.C. 777c(b))'' and inserting ``(16 
     U.S.C. 777c(a)(2)'';
       (C) by striking ``$3,333,336'' and inserting ``not more 
     than 5 percent'';
       (D) by striking ``$1,333,336'' and inserting ``not less 
     than $2,000,000''; and
       (4) by striking ``until expended.'' in subsection (c)(3) 
     and inserting ``during the 2 succeeding fiscal years. Any 
     amount that is unexpected or unobligated at the end of the 3-
     year period during which it is available shall be withdrawn 
     by the Secretary and allocated to the States in addition to 
     any other amounts available for allocation in the fiscal year 
     in which they are withdrawn or the following fiscal year.''.

     SEC. 7554. MAINTENANCE OF EFFORT FOR STATE RECREATIONAL 
                   BOATING SAFETY PROGRAMS.

       (a) In General.--Chapter 131 of title 46, United States 
     Code, is amended by inserting after section 13106 the 
     following:

     ``Sec. 13107. Maintenance of effort for State recreational 
       boating safety programs

       ``(a) In General.--The amount payable to a State for a 
     fiscal year from an allocation under section 13103 of this 
     chapter shall be reduced if the usual amounts expended by the 
     State for the State's recreational boating safety program, as 
     determined under section 13105 of this chapter, for the 
     previous fiscal year is less than the average of the total of 
     such expenditures for the 3 fiscal years immediately 
     preceding that previous fiscal year. The reduction shall be 
     proportionate, as a percentage, to the amount by which the 
     level of State expenditures for such previous fiscal year is 
     less than the average of the total of such expenditures for 
     the 3 fiscal years immediately preceding that previous fiscal 
     year.
       ``(b) Reduction of Threshold.--If the total amount 
     available for allocation and distribution under this chapter 
     in a fiscal year for all participating State recreational 
     boating safety programs is less than such amount for the 
     preceding fiscal year, the level of State expenditures 
     required under subsection (a) of this section for the 
     preceding fiscal year shall be decreased proportionately.
       ``(c) Waiver.--
       ``(1) In general.--Upon the written request of a State, the 
     Secretary may waive the provisions of subsection (a) of this 
     section for 1 fiscal year if the Secretary determines that a 
     reduction in expenditures for the State's recreational 
     boating safety program is attributable to a non-selective 
     reduction in expenditures for the programs of all Executive 
     branch agencies of the State government, or for other reasons 
     if the State demonstrates to the Secretary's satisfaction 
     that such waiver is warranted.
       ``(2) 30-day decision.--The Secretary shall approve or deny 
     a request for a waiver not later than 30 days after the date 
     the request is received.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     131 of title 46, United States Code, is amended by inserting 
     after the item relating to section 13106 the following:

``13107. Maintenance of effort for State recreational boating safety 
              programs.''.

                  Subtitle F--Miscellaneous Provisions

     SEC. 7601. OFFICE OF INTERMODALISM.

       (a) In General.--Section 5503 is amended--
       (1) by inserting ``Amounts reserved under section 5504(d) 
     not awarded to States as grants may be used by the Director 
     to provide technical assistance under this subsection.'' 
     after ``organizations.'' in subsection (e);
       (2) by redesignating subsection (f) as subsection (h), and 
     inserting after subsection (e) the following:
       ``(f) National Intermodal System Improvement Plan.--
       ``(1) In general.--The Director, in consultation with the 
     advisory board established under section 5502 of this title 
     and other public and private transportation interests, shall 
     develop a plan to improve the national intermodal 
     transportation system. The plan shall include--
       ``(A) an assessment and forecast of the national intermodal 
     transportation system's impact on mobility, safety, energy 
     consumption, the environment, technology, international 
     trade, economic activity, and quality of life in the United 
     States;
       ``(B) an assessment of the operational and economic 
     attributes of each passenger and freight mode of 
     transportation and the optimal role of each mode in the 
     national intermodal transportation system;
       ``(C) a description of recommended intermodal and multi-
     modal research and development projects;
       ``(D) a description of emerging trends that have an impact 
     on the national intermodal transportation system;
       ``(E) recommendations for improving intermodal policy, 
     transportation decisionmaking, and financing to maximize 
     mobility and the return on investment of Federal spending on 
     transportation;
       ``(F) an estimate of the impact of current Federal and 
     State transportation policy on the national intermodal 
     transportation system; and
       ``(G) specific near and long-term goals for the national 
     intermodal transportation system.
       ``(2) Progress reports.--The Director shall submit an 
     initial report on the plan to improve the national intermodal 
     transportation system 2 years after the date of enactment of 
     the Surface Transportation Safety Improvement Act of 2005, 
     and a follow-up report 2 years after that, to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure. The progress report shall--
       ``(A) describe progress made toward achieving the plan's 
     goals;
       ``(B) describe challenges and obstacles to achieving the 
     plan's goals;
       ``(C) update the plan to reflect changed circumstances or 
     new developments; and

[[Page 10691]]

       ``(D) make policy and legislative recommendations the 
     Director believes are necessary and appropriate to achieve 
     the goals of the plan.
       ``(3) Plan development funding.--Such sums as may be 
     necessary from the administrative expenses of the Research 
     and Innovative Technology Administration shall be reserved 
     each year for the purpose of completing and updating the plan 
     to improve the national intermodal transportation plan.
       ``(g) Impact Measurement Methodology; Impact Review.--The 
     Director and the Director of the Bureau of Transportation 
     Statistics shall jointly--
       ``(1) develop, in consultation with the modal 
     administrations, and State and local planning organizations, 
     common measures to compare transportation investment 
     decisions across the various modes of transportation; and
       ``(2) formulate a methodology for measuring the impact of 
     intermodal transportation on--
       ``(A) the environment;
       ``(B) public health and welfare;
       ``(C) energy consumption;
       ``(D) the operation and efficiency of the transportation 
     system;
       ``(E) congestion, including congestion at the Nation's 
     ports; and
       ``(F) the economy and employment.''.

     SEC. 7602. 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 construction project for the improvement 
     of the route or structure of a rail line passing through a 
     municipality of the State that--
       ``(1) either--
       ``(A) is carried out for the purpose of mitigating the 
     adverse effects of rail traffic on safety, motor vehicle 
     traffic flow, community quality of life, or economic 
     development in the municipality; or
       ``(B) 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
       ``(2) 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, community 
     quality of life, 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, community 
     quality of life, 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 equal to a percentage of the shared costs of the project, 
     as determined under subsection (g)(4).
       ``(g) Non-federal Share.--
       ``(1) Percentage.--A State or other non-Federal entity 
     shall pay at least 10 percent of the shared costs of a 
     project that is funded in part by a grant awarded under this 
     section.
       ``(2) Forms of contributions.--The share required by 
     paragraph (1) may be paid in cash or in kind.
       ``(3) In-kind contributions.--The in-kind contributions 
     that are permitted to be counted under paragraph (2) for a 
     project for a State or other non-Federal entity are as 
     follows:
       ``(A) A contribution of real property or tangible personal 
     property (whether provided by the State or a person for the 
     State).
       ``(B) A contribution of the services of employees of the 
     State or other non-Federal entity, calculated on the basis of 
     costs incurred by the State or other non-Federal entity for 
     the pay and benefits of the employees, but excluding overhead 
     and general administrative costs.
       ``(C) A payment of any costs that were incurred for the 
     project before the filing of an application for a grant for 
     the project under this section, and any in-kind contributions 
     that 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) Federal percentage; costs not shared.--
       ``(A) In general.--The Secretary shall determine the 
     percentage of the shared costs of a project eligible for a 
     grant under this section, which may not exceed 90 percent of 
     those costs, after considering--
       ``(i) the level of participation by the State, local 
     government, and private sector participation in the project; 
     and
       ``(ii) the relative public and private benefits excepted to 
     be derived from the project.
       ``(B) Costs not shared.--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.
       ``(C) 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) Definitions.--In this section:
       ``(1) Construction.--The term `construction' means the 
     supervising, inspecting, actual building, and incurrence of 
     all costs incidental to the construction or reconstruction of 
     a project described under subsection (b)(1) or (2) of this 
     section, including bond costs and other costs relating to the 
     issuance of bonds or other debt financing instruments and 
     costs incurred by the State in performing project related 
     audits, and includes--
       ``(A) locating, surveying, and mapping;
       ``(B) track installment, restoration and rehabilitation;
       ``(C) acquisition of rights-of-way;
       ``(D) relocation assistance, acquisition of replacement 
     housing sites, and acquisition and rehabilitation, 
     relocation, and construction of replacement housing;
       ``(E) elimination of obstacles; and
       ``(G) and other activities defined by the Secretary.
       ``(2) State.--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 2006 through 2009.''.
       (2) Clerical amendment.--The chapter analysis for such 
     chapter is amended by adding at the end the following:

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

       (b) Regulations.--
       (1) Interim regulations.--Not later than April 1, 2006, the 
     Secretary of Transportation shall issue temporary regulations 
     to implement the grant program under section 20154 of title 
     49, United States Code, as added by subsection (a). 
     Subchapter II of chapter 5 of title 5, United States Code, 
     shall not apply to the issuance of a temporary regulation 
     under this subsection or of any amendment of such a temporary 
     regulation.
       (2) Final regulations.--Not later than October 1, 2006, the 
     Secretary shall issue final regulations implementing the 
     program.

     SEC. 7603. REHABILITATION AND IMPROVEMENT FINANCING.

       (a) Definitions.--Section 102(7) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     802(7)) is amended to read as follows:
       ``(7) `railroad' has the meaning given that term in section 
     20102 of title 49, United States Code; and''.
       (b) General Authority.--Section 502(a) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822(a)) is amended by striking ``Secretary may provide direct 
     loans and loan guarantees to State and local governments,'' 
     and inserting ``Secretary shall provide direct loans and loan 
     guarantees to State and local governments, agreements or 
     interstate compacts consented to by Congress under section 
     410(a) of Public Law 105-134 (49 U.S.C. 24101 nt),''.
       (c) Priority Projects.--Section 502(c) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822(c) is amended--

[[Page 10692]]

       (1) by striking ``or'' after the semicolon in subsection 
     (5);
       (2) by striking ``areas.'' in subsection (6) and inserting 
     ``areas; or''; and
       (3) by adding at the end the following:
       ``(7) enhance service and capacity in the national rail 
     system.''.
       (d) Extent of Authority.--Section 502(d) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822(d)) is amended--
       (1) by striking ``$3,500,000,000'' and inserting 
     ``$6,000,000,000'';
       (2) by striking ``$1,000,000,000'' and inserting 
     ``$3,000,000,000''; and
       (3) by adding at the end ``The Secretary shall not 
     establish any limit on the proportion of the unused amount 
     authorized under this subsection that may be used for 1 loan 
     or loan guarantee.''.
       (e) Cohorts of Loans.--Section 502(f) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822(f)) is amended--
       (1) by striking ``and'' after the semicolon in subparagraph 
     (D) of paragraph (1);
       (2) by redesignating subparagraph (E) of paragraph (1) as 
     subparagraph (F);
       (3) by inserting adding after subparagraph (D) of paragraph 
     (1) the following:
       ``(E) the size and characteristics of the cohort of which 
     the loan or loan guarantee is a member; and''; and
       (4) by adding at the end of paragraph (4) ``A cohort may 
     include loans and loan guarantees. The Secretary shall not 
     establish any limit on the proportion of a cohort that may be 
     used for 1 loan or loan guarantee.''.
       (f) Conditions of Assistance.--
       (1) Assurances.--Section 502(h) of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822) is amended--
       (A) by inserting ``(1)'' before ``The Secretary'';
       (B) by redesignating paragraphs (1), (2), and (3) as 
     subparagraphs (A), (B), and (C); and
       (C) by adding at the end the following:
       ``(2) The Secretary shall not require an applicant for a 
     direct loan or loan guarantee under this section to provide 
     collateral. Any collateral provided or thereafter enhanced 
     shall be valued as a going concern after giving effect to the 
     present value of improvements contemplated by the completion 
     and operation of the project. The Secretary shall not require 
     that an applicant for a direct loan or loan guarantee under 
     this section have previously sought the financial assistance 
     requested from another source.
       ``(3) The Secretary shall require recipients of direct 
     loans or loan guarantees under this section to comply with--
       ``(A) the standards of section 24312 of title 49, United 
     States Code, as in effect on September 1, 2002, with respect 
     to the project in the same manner that the National Railroad 
     Passenger Corporation is required to comply with such 
     standards for construction work financed under an agreement 
     made under section 24308(a) of that title, and
       ``(B) the protective arrangements established under section 
     504 of this Act,

     with respect to employees affected by actions taken in 
     connection with the project to be financed by the loan or 
     loan guarantee.''.
       (2) Technical correction.--Section 502 of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     822) is amended by striking ``offered;'' in subsection 
     (f)(2)(A) and inserting ``offered, if any;''.
       (g) Time Limit for Approval or Disapproval.--Section 502 of 
     the Railroad Revitalization and Regulatory Reform Act of 1976 
     (45 U.S.C. 822) is amended by adding at the end the 
     following:
       ``(i) Time Limit for Approval or Disapproval.--Not later 
     than 90 days after receiving a complete application for a 
     direct loan or loan guarantee under this section, the 
     Secretary shall approve or disapprove the application.
       ``(j) Construction Projects.--
       ``(1) In general.--For loans involving construction 
     projects that require more than one year to complete, the 
     Secretary shall establish a repayment schedule requiring 
     payments to commence not later than the sixth anniversary 
     date of the original loan issuance.
       ``(2) Additions.--The Secretary shall add to the 
     outstanding balance of the loan on the first anniversary date 
     of the original loan issuance on which payments are made, the 
     product of (A) the loan principal, (B) the annual rate of 
     interest on the loan, and (C) the number of years payments 
     were deferred under the repayment schedule.''.
       (h) Interest Rate.--Paragraph (1) of section 822(e) the 
     Railroad Revitalization and Regulatory Reform Act of 1976 (45 
     U.S.C. 822(e)) is amended to read as follows:
       ``(1) Direct Loans.--For Class III railroads, as defined by 
     the Surface Transportation Board, the Secretary shall require 
     interest to be paid on a direct loan made under this section 
     at a rate not more than 3 percentage points below the yield 
     on marketable United States Treasury securities of a maturity 
     similar to the maturity of the loan on the date on which the 
     loan agreement was executed.''.
       (i) Fees and Charges.--Section 503 of the Railroad 
     Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
     823) is amended by adding at the end the following new 
     subsection:
       ``(l) Fees and Charges.--Except as provided in this title, 
     the Secretary may not assess any fees, including user fees, 
     or charges in connection with a direct loan or loan guarantee 
     provided under section 502.''.
       (j) Substantive Criteria and Standards.--Not later than 30 
     days after the date of the enactment of this Act, the 
     Secretary of Transportation shall publish in the Federal 
     Register and post on the Department of Transportation website 
     the substantive criteria and standards used by the Secretary 
     to determine whether to approve or disapprove applications 
     submitted under section 502 of the Railroad Revitalization 
     and Regulatory Reform Act of 1976 (45 U.S.C. 822). The 
     Secretary of Transportation shall ensure adequate procedures 
     and guidelines are in place to permit the filing of complete 
     applications within 30 days of such publication.

     SEC. 7604. REPORT REGARDING IMPACT ON PUBLIC SAFETY OF TRAIN 
                   TRAVEL IN COMMUNITIES WITHOUT GRADE SEPARATION.

       (a) Study.--The Secretary of Transportation shall, in 
     consultation with State and local government officials, 
     conduct a study of the impact of blocked highway-railroad 
     grade crossings on the ability of emergency responders to 
     perform public safety and security duties.
       (b) Report on the Impact of Blocked Highway-Railroad Grade 
     Crossings on Emergency Responders.--Not later than 1 year 
     after the date of enactment of this Act, the Secretary shall 
     submit the results of the study and recommendations for 
     reducing the impact of blocked crossings on emergency 
     response to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure.

     SEC. 7605. FIRST RESPONDER VEHICLE SAFETY PROGRAM.

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

     SEC. 7606. FEDERAL SCHOOL BUS DRIVER QUALIFICATIONS.

       The effective date of section 383.123 of volume 49, Code of 
     Federal Regulations (as in effect on the date of enactment of 
     this Act), shall be September 30, 2006.

                          ____________________