[Congressional Record (Bound Edition), Volume 158 (2012), Part 8]
[House]
[Pages 10527-10703]
[From the U.S. Government Publishing Office, www.gpo.gov]




 CONFERENCE REPORT ON H.R. 4348, MOVING AHEAD FOR PROGRESS IN THE 21ST 
                              CENTURY ACT

  Mr. MICA (during the Special Order of Mr. Graves of Georgia) 
submitted the following conference report and statement on the bill 
(H.R. 4348) to provide an extension of Federal-aid highway, highway 
safety, motor carrier safety, transit, and other programs funded out of 
the Highway Trust Fund pending enactment of a multiyear law 
reauthorizing such programs, and for other purposes:

                  Conference Report (H. Rept. 112-557)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     4348), to provide an extension of Federal-aid highway, 
     highway safety, motor carrier safety, transit, and other 
     programs funded out of the Highway Trust Fund pending 
     enactment of a multiyear law reauthorizing such programs, and 
     for other purposes, having met, after full and free 
     conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate to the text of the bill and agree to 
     the same with an amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; ORGANIZATION OF ACT INTO DIVISIONS; 
                   TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Moving 
     Ahead for Progress in the 21st Century Act'' or the ``MAP-
     21''.
       (b) Divisions.--This Act is organized into 8 divisions as 
     follows:
       (1) Division A-Federal-aid Highways and Highway Safety 
     Construction Programs.
       (2) Division B-Public Transportation.
       (3) Division C-Transportation Safety and Surface 
     Transportation Policy.
       (4) Division D-Finance.
       (5) Division E-Research and Education.
       (6) Division F-Miscellaneous.
       (7) Division G-Surface Transportation Extension.
       (8) Division H-Budgetary Effects.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; organization of Act into divisions; table of 
              contents.
Sec. 2. Definitions.
Sec. 3. Effective date.

   DIVISION A--FEDERAL-AID HIGHWAYS AND HIGHWAY SAFETY CONSTRUCTION 
                                PROGRAMS

                     TITLE I--FEDERAL-AID HIGHWAYS

                Subtitle A--Authorizations and Programs

Sec. 1101. Authorization of appropriations.
Sec. 1102. Obligation ceiling.
Sec. 1103. Definitions.
Sec. 1104. National Highway System.
Sec. 1105. Apportionment.
Sec. 1106. National highway performance program.
Sec. 1107. Emergency relief.
Sec. 1108. Surface transportation program.
Sec. 1109. Workforce development.
Sec. 1110. Highway use tax evasion projects.
Sec. 1111. National bridge and tunnel inventory and inspection 
              standards.
Sec. 1112. Highway safety improvement program.
Sec. 1113. Congestion mitigation and air quality improvement program.
Sec. 1114. Territorial and Puerto Rico highway program.
Sec. 1115. National freight policy.
Sec. 1116. Prioritization of projects to improve freight movement.
Sec. 1117. State freight advisory committees.
Sec. 1118. State freight plans.
Sec. 1119. Federal lands and tribal transportation programs.
Sec. 1120. Projects of national and regional significance.
Sec. 1121. Construction of ferry boats and ferry terminal facilities.
Sec. 1122. Transportation alternatives.
Sec. 1123. Tribal high priority projects program.

                   Subtitle B--Performance Management

Sec. 1201. Metropolitan transportation planning.
Sec. 1202. Statewide and nonmetropolitan transportation planning.
Sec. 1203. National goals and performance management measures.

              Subtitle C--Acceleration of Project Delivery

Sec. 1301. Declaration of policy and project delivery initiative.
Sec. 1302. Advance acquisition of real property interests.
Sec. 1303. Letting of contracts.
Sec. 1304. Innovative project delivery methods.
Sec. 1305. Efficient environmental reviews for project decisionmaking.
Sec. 1306. Accelerated decisionmaking.
Sec. 1307. Assistance to affected Federal and State agencies.
Sec. 1308. Limitations on claims.
Sec. 1309. Accelerating completion of complex projects within 4 years.
Sec. 1310. Integration of planning and environmental review.
Sec. 1311. Development of programmatic mitigation plans.
Sec. 1312. State assumption of responsibility for categorical 
              exclusions.
Sec. 1313. Surface transportation project delivery program.
Sec. 1314. Application of categorical exclusions for multimodal 
              projects.
Sec. 1315. Categorical exclusions in emergencies.
Sec. 1316. Categorical exclusions for projects within the right-of-way.
Sec. 1317. Categorical exclusion for projects of limited Federal 
              assistance.
Sec. 1318. Programmatic agreements and additional categorical 
              exclusions.
Sec. 1319. Accelerated decisionmaking in environmental reviews.
Sec. 1320. Memoranda of agency agreements for early coordination.
Sec. 1321. Environmental procedures initiative.
Sec. 1322. Review of State environmental reviews and approvals for the 
              purpose of eliminating duplication of environmental 
              reviews.
Sec. 1323. Review of Federal project and program delivery.

                       Subtitle D--Highway Safety

Sec. 1401. Jason's law.
Sec. 1402. Open container requirements.
Sec. 1403. Minimum penalties for repeat offenders for driving while 
              intoxicated or driving under the influence.
Sec. 1404. Adjustments to penalty provisions.
Sec. 1405. Highway worker safety.

                       Subtitle E--Miscellaneous

Sec. 1501. Real-time ridesharing.
Sec. 1502. Program efficiencies.
Sec. 1503. Project approval and oversight.
Sec. 1504. Standards.
Sec. 1505. Justification reports for access points on the Interstate 
              System.
Sec. 1506. Construction.

[[Page 10528]]

Sec. 1507. Maintenance.
Sec. 1508. Federal share payable.
Sec. 1509. Transferability of Federal-aid highway funds.
Sec. 1510. Idle reduction technology.
Sec. 1511. Special permits during periods of national emergency.
Sec. 1512. Tolling.
Sec. 1513. Miscellaneous parking amendments.
Sec. 1514. HOV facilities.
Sec. 1515. Funding flexibility for transportation emergencies.
Sec. 1516. Defense access road program enhancements to address 
              transportation infrastructure in the vicinity of military 
              installations.
Sec. 1517. Mapping.
Sec. 1518. Buy America provisions.
Sec. 1519. Consolidation of programs; repeal of obsolete provisions.
Sec. 1520. Denali Commission.
Sec. 1521. Uniform Relocation Assistance and Real Property Acquisition 
              Policies Act of 1970 amendments.
Sec. 1522. Extension of public transit vehicle exemption from axle 
              weight restrictions.
Sec. 1523. Use of debris from demolished bridges and overpasses.
Sec. 1524. Use of youth service and conservation corps.
Sec. 1525. State autonomy for culvert pipe selection.
Sec. 1526. Evacuation routes.
Sec. 1527. Consolidation of grants.
Sec. 1528. Appalachian development highway system.
Sec. 1529. Engineering judgment.
Sec. 1530. Transportation training and employment programs.
Sec. 1531. Notice of certain grant awards.
Sec. 1532. Budget justification.
Sec. 1533. Prohibition on use of funds for automated traffic 
              enforcement.
Sec. 1534. Public-private partnerships.
Sec. 1535. Report on Highway Trust Fund expenditures.
Sec. 1536. Sense of Congress on harbor maintenance.
Sec. 1537. Estimate of harbor maintenance needs.
Sec. 1538. Asian carp.
Sec. 1539. Rest areas.

                   Subtitle F--Gulf Coast Restoration

Sec. 1601. Short title.
Sec. 1602. Gulf Coast Restoration Trust Fund.
Sec. 1603. Gulf Coast natural resources restoration and economic 
              recovery.
Sec. 1604. Gulf Coast Ecosystem Restoration Science, Observation, 
              Monitoring, and Technology program.
Sec. 1605. Centers of excellence research grants.
Sec. 1606. Effect.
Sec. 1607. Restoration and protection activity limitations.
Sec. 1608. Inspector General.

          TITLE II--AMERICA FAST FORWARD FINANCING INNOVATION

Sec. 2001. Short title.
Sec. 2002. Transportation Infrastructure Finance and Innovation Act of 
              1998 amendments.

                   DIVISION B--PUBLIC TRANSPORTATION

Sec. 20001. Short title.
Sec. 20002. Repeals.
Sec. 20003. Policies and purposes.
Sec. 20004. Definitions.
Sec. 20005. Metropolitan transportation planning.
Sec. 20006. Statewide and nonmetropolitan transportation planning.
Sec. 20007. Urbanized area formula grants.
Sec. 20008. Fixed guideway capital investment grants.
Sec. 20009. Mobility of seniors and individuals with disabilities.
Sec. 20010. Formula grants for rural areas.
Sec. 20011. Research, development, demonstration, and deployment 
              projects.
Sec. 20012. Technical assistance and standards development.
Sec. 20013. Private sector participation.
Sec. 20014. Bus testing facilities.
Sec. 20015. Human resources and training.
Sec. 20016. General provisions.
Sec. 20017. Public Transportation Emergency Relief Program.
Sec. 20018. Contract requirements.
Sec. 20019. Transit asset management.
Sec. 20020. Project management oversight.
Sec. 20021. Public transportation safety.
Sec. 20022. Alcohol and controlled substances testing.
Sec. 20023. Nondiscrimination.
Sec. 20024. Administrative provisions.
Sec. 20025. National transit database.
Sec. 20026. Apportionment of appropriations for formula grants.
Sec. 20027. State of good repair grants.
Sec. 20028. Authorizations.
Sec. 20029. Bus and bus facilities formula grants.
Sec. 20030. Technical and conforming amendments.

  DIVISION C--TRANSPORTATION SAFETY AND SURFACE TRANSPORTATION POLICY

   TITLE I--MOTOR VEHICLE AND HIGHWAY SAFETY IMPROVEMENT ACT OF 2012

Sec. 31001. Short title.
Sec. 31002. Definition.

                       Subtitle A--Highway Safety

Sec. 31101. Authorization of appropriations.
Sec. 31102. Highway safety programs.
Sec. 31103. Highway safety research and development.
Sec. 31104. National driver register.
Sec. 31105. National priority safety programs.
Sec. 31106. High visibility enforcement program.
Sec. 31107. Agency accountability.
Sec. 31108. Emergency medical services.
Sec. 31109. Repeal of programs.

                Subtitle B--Enhanced Safety Authorities

Sec. 31201. Definition of motor vehicle equipment.
Sec. 31202. Permit reminder system for non-use of safety belts.
Sec. 31203. Civil penalties.
Sec. 31204. Motor vehicle safety research and development.
Sec. 31205. Odometer requirements.
Sec. 31206. Increased penalties and damages for odometer fraud.
Sec. 31207. Extend prohibitions on importing noncompliant vehicles and 
              equipment to defective vehicles and equipment.
Sec. 31208. Conditions on importation of vehicles and equipment.
Sec. 31209. Port inspections; samples for examination or testing.

              Subtitle C--Transparency and Accountability

Sec. 31301. Public availability of recall information.
Sec. 31302. National Highway Traffic Safety Administration outreach to 
              manufacturer, dealer, and mechanic personnel.
Sec. 31303. Public availability of communications to dealers.
Sec. 31304. Corporate responsibility for National Highway Traffic 
              Safety Administration reports.
Sec. 31305. Passenger motor vehicle information program.
Sec. 31306. Promotion of vehicle defect reporting.
Sec. 31307. Whistleblower protections for motor vehicle manufacturers, 
              part suppliers, and dealership employees.
Sec. 31308. Anti-revolving door.
Sec. 31309. Study of crash data collection.
Sec. 31310. Update means of providing notification; improving efficacy 
              of recalls.
Sec. 31311. Expanding choices of remedy available to manufacturers of 
              replacement equipment.
Sec. 31312. Recall obligations and bankruptcy of manufacturer.
Sec. 31313. Repeal of insurance reports and information provision.
Sec. 31314. Monroney sticker to permit additional safety rating 
              categories.

          Subtitle D--Vehicle Electronics and Safety Standards

Sec. 31401. National Highway Traffic Safety Administration electronics, 
              software, and engineering expertise.
Sec. 31402. Electronic systems performance.

                   Subtitle E--Child Safety Standards

Sec. 31501. Child safety seats.
Sec. 31502. Child restraint anchorage systems.
Sec. 31503. Rear seat belt reminders.
Sec. 31504. Unattended passenger reminders.
Sec. 31505. New deadline.

 Subtitle F--Improved Daytime and Nighttime Visibility of Agricultural 
                               Equipment

Sec. 31601. Rulemaking on visibility of agricultural equipment.

   TITLE II--COMMERCIAL MOTOR VEHICLE SAFETY ENHANCEMENT ACT OF 2012

Sec. 32001. Short title.
Sec. 32002. References to title 49, United States Code.

           Subtitle A--Commercial Motor Vehicle Registration

Sec. 32101. Registration of motor carriers.
Sec. 32102. Safety fitness of new operators.
Sec. 32103. Reincarnated carriers.
Sec. 32104. Financial responsibility requirements.
Sec. 32105. USDOT number registration requirement.
Sec. 32106. Registration fee system.
Sec. 32107. Registration update.
Sec. 32108. Increased penalties for operating without registration.
Sec. 32109. Revocation of registration for imminent hazard.
Sec. 32110. Revocation of registration and other penalties for failure 
              to respond to subpoena.
Sec. 32111. Fleetwide out of service order for operating without 
              required registration.
Sec. 32112. Motor carrier and officer patterns of safety violations.

              Subtitle B--Commercial Motor Vehicle Safety

Sec. 32201. Crashworthiness standards.
Sec. 32202. Canadian safety rating reciprocity.
Sec. 32203. State reporting of foreign commercial driver convictions.
Sec. 32204. Authority to disqualify foreign commercial drivers.
Sec. 32205. Revocation of foreign motor carrier operating authority for 
              failure to pay civil penalties.
Sec. 32206. Rental truck accident study.

                       Subtitle C--Driver Safety

Sec. 32301. Hours of service study and electronic logging devices.
Sec. 32302. Driver medical qualifications.
Sec. 32303. Commercial driver's license notification system.
Sec. 32304. Commercial motor vehicle operator training.
Sec. 32305. Commercial driver's license program.
Sec. 32306. Commercial motor vehicle driver information systems.

[[Page 10529]]

Sec. 32307. Employer responsibilities.
Sec. 32308. Program to assist Veterans to acquire commercial driver's 
              licenses.

                   Subtitle D--Safe Roads Act of 2012

Sec. 32401. Short title.
Sec. 32402. National clearinghouse for controlled substance and alcohol 
              test results of commercial motor vehicle operators.

                        Subtitle E--Enforcement

Sec. 32501. Inspection demand and display of credentials.
Sec. 32502. Out of service penalty for denial of access to records.
Sec. 32503. Penalties for violation of operation out of service orders.
Sec. 32504. Impoundment and immobilization of commercial motor vehicles 
              for imminent hazard.
Sec. 32505. Increased penalties for evasion of regulations.
Sec. 32506. Violations relating to commercial motor vehicle safety 
              regulation and operators.
Sec. 32507. Emergency disqualification for imminent hazard.
Sec. 32508. Disclosure to State and local law enforcement agencies.
Sec. 32509. Grade crossing safety regulations.

             Subtitle F--Compliance, Safety, Accountability

Sec. 32601. Motor carrier safety assistance program.
Sec. 32602. Performance and registration information systems management 
              program.
Sec. 32603. Authorization of appropriations.
Sec. 32604. Grants for commercial driver's license program 
              implementation.
Sec. 32605. Commercial vehicle information systems and networks.

           Subtitle G--Motorcoach Enhanced Safety Act of 2012

Sec. 32701. Short title.
Sec. 32702. Definitions.
Sec. 32703. Regulations for improved occupant protection, passenger 
              evacuation, and crash avoidance.
Sec. 32704. Fire prevention and mitigation.
Sec. 32705. Occupant protection, collision avoidance, fire causation, 
              and fire extinguisher research and testing.
Sec. 32706. Concurrence of research and rulemaking.
Sec. 32707. Improved oversight of motorcoach service providers.
Sec. 32708. Report on feasibility, benefits, and costs of establishing 
              a system of certification of training programs.
Sec. 32709. Commercial driver's license passenger endorsement 
              requirements.
Sec. 32710. Safety inspection program for commercial motor vehicles of 
              passengers.
Sec. 32711. Regulations.

       Subtitle H--Safe Highways and Infrastructure Preservation

Sec. 32801. Comprehensive truck size and weight limits study.
Sec. 32802. Compilation of existing State truck size and weight limit 
              laws.

                       Subtitle I--Miscellaneous

                         PART I--Miscellaneous

Sec. 32911. Prohibition of coercion.
Sec. 32912. Motor carrier safety advisory committee.
Sec. 32913. Waivers, exemptions, and pilot programs.
Sec. 32914. Registration requirements.
Sec. 32915. Additional motor carrier registration requirements.
Sec. 32916. Registration of freight forwarders and brokers.
Sec. 32917. Effective periods of registration.
Sec. 32918. Financial security of brokers and freight forwarders.
Sec. 32919. Unlawful brokerage activities.

                PART II--Household Goods Transportation

Sec. 32921. Additional registration requirements for household goods 
              motor carriers.
Sec. 32922. Failure to give up possession of household goods.
Sec. 32923. Settlement authority.

                     PART III--Technical Amendments

Sec. 32931. Update of obsolete text.
Sec. 32932. Correction of interstate commerce commission references.
Sec. 32933. Technical and conforming amendments.
Sec. 32934. Exemptions from requirements for covered farm vehicles.

TITLE III--HAZARDOUS MATERIALS TRANSPORTATION SAFETY IMPROVEMENT ACT OF 
                                  2012

Sec. 33001. Short title.
Sec. 33002. Definition.
Sec. 33003. References to title 49, United States Code.
Sec. 33004. Training for emergency responders.
Sec. 33005. Paperless Hazard Communications Pilot Program.
Sec. 33006. Improving data collection, analysis, and reporting.
Sec. 33007. Hazardous material technical assessment, research and 
              development, and analysis program.
Sec. 33008. Hazardous Material Enforcement Training.
Sec. 33009. Inspections.
Sec. 33010. Civil penalties.
Sec. 33011. Reporting of fees.
Sec. 33012. Special permits, approvals, and exclusions.
Sec. 33013. Highway routing disclosures.
Sec. 33014. Motor carrier safety permits.
Sec. 33015. Wetlines.
Sec. 33016. Hazmat employee training requirements and grants.
Sec. 33017. Authorization of appropriations.

TITLE IV--SPORT FISH RESTORATION AND RECREATIONAL BOATING SAFETY ACT OF 
                                  2012

Sec. 34001. Short title.
Sec. 34002. Amendment of Federal Aid in Sport Fish Restoration Act.

                         TITLE V--MISCELLANEOUS

Sec. 35001. Overflights in Grand Canyon National Park.
Sec. 35002. Commercial air tour operations.
Sec. 35003. Qualifications for public aircraft status.

                          DIVISION D--FINANCE

Sec. 40001. Short title.

  TITLE I--EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND 
                             RELATED TAXES

Sec. 40101. Extension of trust fund expenditure authority.
Sec. 40102. Extension of highway-related taxes.

                      TITLE II--REVENUE PROVISIONS

        Subtitle A--Leaking Underground Storage Tank Trust Fund

Sec. 40201. Transfer from Leaking Underground Storage Tank Trust Fund 
              to Highway Trust Fund.

                     Subtitle B--Pension Provisions

                 PART I--Pension Funding Stabilization

Sec. 40211. Pension funding stabilization.

                         PART II--PBGC Premiums

Sec. 40221. Single employer plan annual premium rates.
Sec. 40222. Multiemployer annual premium rates.

                     PART III--Improvements of PBGC

Sec. 40231. Pension Benefit Guaranty Corporation Governance 
              Improvement.
Sec. 40232. Participant and plan sponsor advocate.
Sec. 40233. Quality control procedures for the Pension Benefit Guaranty 
              Corporation.
Sec. 40234. Line of credit repeal.

              PART IV--Transfers of Excess Pension Assets

Sec. 40241. Extension for transfers of excess pension assets to retiree 
              health accounts.
Sec. 40242. Transfer of excess pension assets to retiree group term 
              life insurance accounts.

         Subtitle C--Additional Transfers to Highway Trust Fund

Sec. 40251. Additional transfers to Highway Trust Fund.

                   DIVISION E--RESEARCH AND EDUCATION

Sec. 50001. Short title.

                            TITLE I--FUNDING

Sec. 51001. Authorization of appropriations.

             TITLE II--RESEARCH, TECHNOLOGY, AND EDUCATION

Sec. 52001. Research, technology, and education.
Sec. 52002. Surface transportation research, development, and 
              technology.
Sec. 52003. Research and technology development and deployment.
Sec. 52004. Training and education.
Sec. 52005. State planning and research.
Sec. 52006. International highway transportation program.
Sec. 52007. Surface transportation environmental cooperative research 
              program.
Sec. 52008. National cooperative freight research.
Sec. 52009. University transportation centers program.
Sec. 52010. University transportation research.
Sec. 52011. Bureau of Transportation Statistics.
Sec. 52012. Administrative authority.
Sec. 52013. Transportation research and development strategic planning.

         TITLE III--INTELLIGENT TRANSPORTATION SYSTEMS RESEARCH

Sec. 53001. Use of funds for ITS activities.
Sec. 53002. Goals and purposes.
Sec. 53003. General authorities and requirements.
Sec. 53004. Research and development.
Sec. 53005. National architecture and standards.
Sec. 53006. Vehicle-to-vehicle and vehicle-to-infrastructure 
              communications systems deployment.

                       DIVISION F--MISCELLANEOUS

              TITLE I--REAUTHORIZATION OF CERTAIN PROGRAMS

   Subtitle A--Secure Rural Schools and Community Self-determination 
                                Program

Sec. 100101. Secure Rural Schools and Community Self-Determination 
              Program.

              Subtitle B--Payment in Lieu of Taxes Program

Sec. 100111. Payments in lieu of taxes.

                          Subtitle C--Offsets

Sec. 100121. Phased retirement authority.
Sec. 100122. Roll-your-own cigarette machines.
Sec. 100123. Change in FMAP increase for disaster recovery states.
Sec. 100124. Repeals.
Sec. 100125. Limitation on payments from the Abandoned Mine Reclamation 
              Fund.

[[Page 10530]]

                       TITLE II--FLOOD INSURANCE

          Subtitle A--Flood Insurance Reform and Modernization

Sec. 100201. Short title.
Sec. 100202. Definitions.
Sec. 100203. Extension of National Flood Insurance Program.
Sec. 100204. Availability of insurance for multifamily properties.
Sec. 100205. Reform of premium rate structure.
Sec. 100207. Premium adjustment.
Sec. 100208. Enforcement.
Sec. 100209. Escrow of flood insurance payments.
Sec. 100210. Minimum deductibles for claims under the National Flood 
              Insurance Program.
Sec. 100211. Considerations in determining chargeable premium rates.
Sec. 100212. Reserve fund.
Sec. 100213. Repayment plan for borrowing authority.
Sec. 100214. Payment of condominium claims.
Sec. 100215. Technical mapping advisory council.
Sec. 100216. National flood mapping program.
Sec. 100217. Scope of appeals.
Sec. 100218. Scientific Resolution Panel.
Sec. 100219. Removal of limitation on State contributions for updating 
              flood maps.
Sec. 100220. Coordination.
Sec. 100221. Interagency coordination study.
Sec. 100222. Notice of flood insurance availability under RESPA.
Sec. 100223. Participation in State disaster claims mediation programs.
Sec. 100224. Oversight and expense reimbursements of insurance 
              companies.
Sec. 100225. Mitigation.
Sec. 100226. Flood Protection Structure Accreditation Task Force.
Sec. 100227. Flood in progress determinations.
Sec. 100228. Clarification of residential and commercial coverage 
              limits.
Sec. 100229. Local data requirement.
Sec. 100230. Eligibility for flood insurance for persons residing in 
              communities that have made adequate progress on the 
              reconstruction or improvement of a flood protection 
              system.
Sec. 100231. Studies and reports.
Sec. 100232. Reinsurance.
Sec. 100233. GAO study on business interruption and additional living 
              expenses coverages.
Sec. 100234. Policy disclosures.
Sec. 100235. Report on inclusion of building codes in floodplain 
              management criteria.
Sec. 100236. Study of participation and affordability for certain 
              policyholders.
Sec. 100237. Study and report concerning the participation of Indian 
              tribes and members of Indian tribes in the National Flood 
              Insurance Program.
Sec. 100238. Technical corrections.
Sec. 100239. Use of private insurance to satisfy mandatory purchase 
              requirement.
Sec. 100240. Levees constructed on certain properties.
Sec. 100241. Insurance coverage for private properties affected by 
              flooding from Federal lands.
Sec. 100242. Permissible land use under Federal flood insurance plan.
Sec. 100243. CDBG eligibility for flood insurance outreach activities 
              and community building code administration grants.
Sec. 100244. Termination of force-placed insurance.
Sec. 100245. FEMA authority on transfer of policies.
Sec. 100246. Reimbursement of certain expenses.
Sec. 100247. FIO study on risks, hazards, and insurance.
Sec. 100248. Flood protection improvements constructed on certain 
              properties.
Sec. 100249. No cause of action.

                Subtitle B--Alternative Loss Allocation

Sec. 100251. Short title.
Sec. 100252. Assessing and modeling named storms over coastal States.
Sec. 100253. Alternative loss allocation system for indeterminate 
              claims.

                    Subtitle C--HEARTH Act Amendment

Sec. 100261. HEARTH Act technical corrections.

            TITLE III--STUDENT LOAN INTEREST RATE EXTENSION

Sec. 100301. Federal Direct Stafford Loan interest rate extension.
Sec. 100302. Eligibility for, and interest charges on, Federal Direct 
              Stafford Loans for new borrowers on or after July 1, 
              2013.

              DIVISION G--SURFACE TRANSPORTATION EXTENSION

Sec. 110001. Short title.

                     TITLE I--FEDERAL-AID HIGHWAYS

Sec. 111001. Extension of Federal-aid highway programs.

             TITLE II--EXTENSION OF HIGHWAY SAFETY PROGRAMS

Sec. 112001. Extension of National Highway Traffic Safety 
              Administration highway safety programs.
Sec. 112002. Extension of Federal Motor Carrier Safety Administration 
              programs.
Sec. 112003. Additional programs.

               TITLE III--PUBLIC TRANSPORTATION PROGRAMS

Sec. 113001. Allocation of funds for planning programs.
Sec. 113002. Special rule for urbanized area formula grants.
Sec. 113003. Allocating amounts for capital investment grants.
Sec. 113004. Apportionment of formula grants for other than urbanized 
              areas.
Sec. 113005. Apportionment based on fixed guideway factors.
Sec. 113006. Authorizations for public transportation.
Sec. 113007. Amendments to SAFETEA-LU.

                        TITLE IV--EFFECTIVE DATE

Sec. 114001. Effective date.

                     DIVISION H--BUDGETARY EFFECTS

Sec. 120001. Budgetary effects.

     SEC. 2. DEFINITIONS.

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

     SEC. 3. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided, divisions A, 
     B, C (other than sections 32603(d), 32603(g), 32912, and 
     34002 of that division) and E, including the amendments made 
     by those divisions, take effect on October 1, 2012.
       (b) References.--Except as otherwise provided, any 
     reference to the date of enactment of the MAP-21 or to the 
     date of enactment of the Federal Public Transportation Act of 
     2012 in the divisions described in subsection (a) or in an 
     amendment made by those divisions shall be deemed to be a 
     reference to the effective date of those divisions.
   DIVISION A--FEDERAL-AID HIGHWAYS AND HIGHWAY SAFETY CONSTRUCTION 
                                PROGRAMS
                     TITLE I--FEDERAL-AID HIGHWAYS
                Subtitle A--Authorizations and Programs

     SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--The following sums are authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account):
       (1) Federal-aid highway program.--For the national highway 
     performance program under section 119 of title 23, United 
     States Code, the surface transportation program under section 
     133 of that title, the highway safety improvement program 
     under section 148 of that title, the congestion mitigation 
     and air quality improvement program under section 149 of that 
     title, and to carry out section 134 of that title--
       (A) $37,476,819,674 for fiscal year 2013; and
       (B) $37,798,000,000 for fiscal year 2014.
       (2) Transportation infrastructure finance and innovation 
     program.--For credit assistance under the transportation 
     infrastructure finance and innovation program under chapter 6 
     of title 23, United States Code--
       (A) $750,000,000 for fiscal year 2013; and
       (B) $1,000,000,000 for fiscal year 2014.
       (3) Federal lands and tribal transportation programs.--
       (A) Tribal transportation program.--For the tribal 
     transportation program under section 202 of title 23, United 
     States Code, $450,000,000 for each of fiscal years 2013 and 
     2014.
       (B) Federal lands transportation program.--For the Federal 
     lands transportation program under section 203 of title 23, 
     United States Code, $300,000,000 for each of fiscal years 
     2013 and 2014, of which $240,000,000 of the amount made 
     available for each fiscal year shall be the amount for the 
     National Park Service and $30,000,000 of the amount made 
     available for each fiscal year shall be the amount for the 
     United States Fish and Wildlife Service.
       (C) Federal lands access program.--For the Federal lands 
     access program under section 204 of title 23, United States 
     Code, $250,000,000 for each of fiscal years 2013 and 2014.
       (4) Territorial and puerto rico highway program.--For the 
     territorial and Puerto Rico highway program under section 165 
     of title 23, United States Code, $190,000,000 for each of 
     fiscal years 2013 and 2014.
       (b) Disadvantaged Business Enterprises.--
       (1) Findings.--Congress finds that--
       (A) while significant progress has occurred due to the 
     establishment of the disadvantaged business enterprise 
     program, discrimination and related barriers continue to pose 
     significant obstacles for minority- and women-owned 
     businesses seeking to do business in federally-assisted 
     surface transportation markets across the United States;
       (B) the continuing barriers described in subparagraph (A) 
     merit the continuation of the disadvantaged business 
     enterprise program;
       (C) Congress has received and reviewed testimony and 
     documentation of race and gender discrimination from numerous 
     sources, including congressional hearings and roundtables, 
     scientific reports, reports issued by public and private 
     agencies, news stories, reports of discrimination by 
     organizations and individuals, and discrimination lawsuits, 
     which show that race- and gender-neutral efforts alone are 
     insufficient to address the problem;
       (D) the testimony and documentation described in 
     subparagraph (C) demonstrate that discrimination across the 
     United States poses a barrier to full and fair participation 
     in surface transportation-related businesses of women 
     business owners and minority business owners and has impacted 
     firm development and many aspects of surface transportation-
     related business in the public and private markets; and

[[Page 10531]]

       (E) the testimony and documentation described in 
     subparagraph (C) provide a strong basis that there is a 
     compelling need for the continuation of the disadvantaged 
     business enterprise program to address race and gender 
     discrimination in surface transportation-related business.
       (2) Definitions.--In this subsection, the following 
     definitions apply:
       (A) Small business concern.--
       (i) In general.--The term ``small business concern'' means 
     a small business concern (as the term is used in section 3 of 
     the Small Business Act (15 U.S.C. 632)).
       (ii) Exclusions.--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 have average annual gross receipts during 
     the preceding 3 fiscal years in excess of $22,410,000, as 
     adjusted annually by the Secretary for inflation.
       (B) Socially and economically disadvantaged individuals.--
     The term ``socially and economically disadvantaged 
     individuals'' has the meaning given the term in section 8(d) 
     of the Small Business Act (15 U.S.C. 637(d)) and relevant 
     subcontracting regulations issued pursuant to that Act, 
     except that women shall be presumed to be socially and 
     economically disadvantaged individuals for purposes of this 
     subsection.
       (3) Amounts for small business concerns.--Except to the 
     extent that the Secretary determines otherwise, not less than 
     10 percent of the amounts made available for any program 
     under divisions A and B of this Act and section 403 of title 
     23, United States Code, shall be expended through small 
     business concerns owned and controlled by socially and 
     economically disadvantaged individuals.
       (4) Annual listing of disadvantaged business enterprises.--
     Each State shall annually--
       (A) survey and compile a list of the small business 
     concerns referred to in paragraph (2) in the State, including 
     the location of the small business concerns in the State; and
       (B) notify the Secretary, in writing, of the percentage of 
     the small business concerns that are controlled by--
       (i) women;
       (ii) socially and economically disadvantaged individuals 
     (other than women); and
       (iii) individuals who are women and are otherwise socially 
     and economically disadvantaged individuals.
       (5) Uniform certification.--
       (A) In general.--The Secretary shall establish minimum 
     uniform criteria for use by State governments in certifying 
     whether a concern qualifies as a small business concern for 
     the purpose of this subsection.
       (B) Inclusions.--The minimum uniform criteria established 
     under subparagraph (A) shall include, with respect to a 
     potential small business concern--
       (i) on-site visits;
       (ii) personal interviews with personnel;
       (iii) issuance or inspection of licenses;
       (iv) analyses of stock ownership;
       (v) listings of equipment;
       (vi) analyses of bonding capacity;
       (vii) listings of work completed;
       (viii) examination of the resumes of principal owners;
       (ix) analyses of financial capacity; and
       (x) analyses of the type of work preferred.
       (6) Reporting.--The Secretary shall establish minimum 
     requirements for use by State governments in reporting to the 
     Secretary--
       (A) information concerning disadvantaged business 
     enterprise awards, commitments, and achievements; and
       (B) such other information as the Secretary determines to 
     be appropriate for the proper monitoring of the disadvantaged 
     business enterprise program.
       (7) Compliance with court orders.--Nothing in this 
     subsection limits the eligibility of an individual or entity 
     to receive funds made available under divisions A and B of 
     this Act and section 403 of title 23, United States Code, if 
     the entity or person is prevented, in whole or in part, from 
     complying with paragraph (2) because a Federal court issues a 
     final order in which the court finds that a requirement or 
     the implementation of paragraph (2) is unconstitutional. 

     SEC. 1102. OBLIGATION CEILING.

       (a) General Limitation.--Subject to subsection (e), and 
     notwithstanding any other provision of law, the obligations 
     for Federal-aid highway and highway safety construction 
     programs shall not exceed--
       (1) $39,699,000,000 for fiscal year 2013; and
       (2) $40,256,000,000 for fiscal year 2014.
       (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 (95 
     Stat. 1701);
       (4) subsections (b) and (j) of section 131 of the Surface 
     Transportation Assistance Act of 1982 (96 Stat. 2119);
       (5) subsections (b) and (c) of section 149 of the Surface 
     Transportation and Uniform Relocation Assistance Act of 1987 
     (101 Stat. 198);
       (6) sections 1103 through 1108 of the Intermodal Surface 
     Transportation Efficiency Act of 1991 (105 Stat. 2027);
       (7) section 157 of title 23, United States Code (as in 
     effect on June 8, 1998);
       (8) section 105 of title 23, United States Code (as in 
     effect for fiscal years 1998 through 2004, but only in an 
     amount equal to $639,000,000 for each of those fiscal years);
       (9) Federal-aid highway programs for which obligation 
     authority was made available under the Transportation Equity 
     Act for the 21st Century (112 Stat. 107) or subsequent Acts 
     for multiple years or to remain available until expended, 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 2011, only in an amount 
     equal to $639,000,000 for each of those fiscal years);
       (11) section 1603 of SAFETEA-LU (23 U.S.C. 118 note; 119 
     Stat. 1248), 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; and
       (12) section 119 of title 23, United States Code (but, for 
     each of fiscal years 2013 through 2014, only in an amount 
     equal to $639,000,000 for each of those fiscal years).
       (c) Distribution of Obligation Authority.--For each of 
     fiscal years 2013 through 2014, 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; 
     and
       (B) amounts authorized for 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--
       (A) made available from the Highway Trust Fund (other than 
     the Mass Transit Account) for Federal-aid highway and highway 
     safety construction programs for previous fiscal years the 
     funds for which are allocated by the Secretary (or 
     apportioned by the Secretary under sections 202 or 204 of 
     title 23, United States Code); and
       (B) for which obligation authority was provided in a 
     previous fiscal year;
       (3) shall determine the proportion 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) of this subsection; 
     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 (11) of 
     subsection (b) and sums authorized to be appropriated for 
     section 119 of title 23, United States Code, equal to the 
     amount referred to in subsection (b)(12) for the fiscal 
     year), less the aggregate of the amounts not distributed 
     under paragraphs (1) and (2) of this subsection;
       (4) shall distribute the obligation authority provided by 
     subsection (a), less the aggregate amounts not distributed 
     under paragraphs (1) and (2), for each of the programs (other 
     than programs to which paragraph (1) applies) that are 
     allocated by the Secretary under this Act and title 23, 
     United States Code, or apportioned by the Secretary under 
     sections 202 or 204 of that title, by multiplying--
       (A) the proportion determined under paragraph (3); by
       (B) the amounts authorized to be appropriated for each such 
     program for the fiscal year; and
       (5) 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 paragraph (4), for Federal-aid highway and highway 
     safety construction programs that are apportioned by the 
     Secretary under title 23, United States Code (other than the 
     amounts apportioned for the national highway performance 
     program in section 119 of title 23, United States Code, that 
     are exempt from the limitation under subsection (b)(12) and 
     the amounts apportioned under section 204 of that title) in 
     the proportion that--
       (A) amounts authorized to be appropriated for the programs 
     that are apportioned under title 23, United States Code, to 
     each State for the fiscal year; bears to
       (B) the total of the amounts authorized to be appropriated 
     for the programs that are apportioned under title 23, United 
     States Code, 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 2013 through 2014--
       (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 144 (as in effect on the day before the date of 
     enactment of this Act) and 104 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) division E of this Act.

[[Page 10532]]

       (2) Exception.--Obligation authority made available under 
     paragraph (1) shall--
       (A) remain available for a period of 4 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 2013 through 2014, the Secretary shall 
     distribute to the States any funds (excluding funds 
     authorized for the program under section 202 of title 23, 
     United States Code) 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 (or will not be apportioned to the States under 
     section 204 of title 23, United States Code), and will not be 
     available for obligation, for the fiscal year because of the 
     imposition of any obligation limitation for the fiscal year.
       (2) Ratio.--Funds shall be distributed under paragraph (1) 
     in the same proportion as the distribution of obligation 
     authority under subsection (c)(5).
       (3) Availability.--Funds distributed to each State under 
     paragraph (1) shall be available for any purpose described in 
     section 133(c) of title 23, United States Code. 

     SEC. 1103. DEFINITIONS.

       (a) Definitions.--Section 101(a) of title 23, United States 
     Code, is amended--
       (1) by striking paragraphs (6), (7), (9), (12), (19), (20), 
     (24), (25), (26), (28), (38), and (39);
       (2) by redesignating paragraphs (2), (3), (4), (5), (8), 
     (13), (14), (15), (16), (17), (18), (21), (22), (23), (27), 
     (29), (30), (31), (32), (33), (34), (35), (36), and (37) as 
     paragraphs (3), (4), (5), (6), (9), (12), (13), (14), (15), 
     (16), (17), (18), (19), (20), (21), (22), (23), (24), (25), 
     (26), (28), (29), (33), and (34), respectively;
       (3) by inserting after paragraph (1) the following:
       ``(2) Asset management.--The term `asset management' means 
     a strategic and systematic process of operating, maintaining, 
     and improving physical assets, with a focus on both 
     engineering and economic analysis based upon quality 
     information, to identify a structured sequence of 
     maintenance, preservation, repair, rehabilitation, and 
     replacement actions that will achieve and sustain a desired 
     state of good repair over the lifecycle of the assets at 
     minimum practicable cost.'';
       (4) in paragraph (4) (as redesignated by paragraph (2))--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``or any project eligible for assistance under this title'' 
     after ``of a highway'';
       (B) by striking subparagraph (A) and inserting the 
     following:
       ``(A) preliminary engineering, engineering, and design-
     related services directly relating to the construction of a 
     highway project, including engineering, design, project 
     development and management, construction project management 
     and inspection, surveying, mapping (including the 
     establishment of temporary and permanent geodetic control in 
     accordance with specifications of the National Oceanic and 
     Atmospheric Administration), and architectural-related 
     services;'';
       (C) in subparagraph (B)--
       (i) by inserting ``reconstruction,'' before 
     ``resurfacing''; and
       (ii) by striking ``and rehabilitation'' and inserting 
     ``rehabilitation, and preservation'';
       (D) in subparagraph (E) by striking ``railway'' and 
     inserting ``railway-highway''; and
       (E) in subparagraph (F) by striking ``obstacles'' and 
     inserting ``hazards'';
       (5) in paragraph (6) (as so redesignated)--
       (A) by inserting ``public'' before ``highway eligible''; 
     and
       (B) by inserting ``functionally'' before ``classified'';
       (6) by inserting after paragraph (6) (as so redesignated) 
     the following:
       ``(7) Federal lands access transportation facility.--The 
     term `Federal Lands access transportation facility' means a 
     public highway, road, bridge, trail, or transit system that 
     is located on, is adjacent to, or provides access to Federal 
     lands for which title or maintenance responsibility is vested 
     in a State, county, town, township, tribal, municipal, or 
     local government.
       ``(8) Federal lands transportation facility.--The term 
     `Federal lands transportation facility' means a public 
     highway, road, bridge, trail, or transit system that is 
     located on, is adjacent to, or provides access to Federal 
     lands for which title and maintenance responsibility is 
     vested in the Federal Government, and that appears on the 
     national Federal lands transportation facility inventory 
     described in section 203(c).'';
       (7) in paragraph (11)(B) by inserting ``including public 
     roads on dams'' after ``drainage structure'';
       (8) in paragraph (14) (as so redesignated)--
       (A) by striking ``as a'' and inserting ``as an air 
     quality''; and
       (B) by inserting ``air quality'' before ``attainment 
     area'';
       (9) in paragraph (18) (as so redesignated) by striking ``an 
     undertaking to construct a particular portion of a highway, 
     or if the context so implies, the particular portion of a 
     highway so constructed or any other undertaking'' and 
     inserting ``any undertaking'';
       (10) in paragraph (19) (as so redesignated)--
       (A) by striking ``the State transportation department 
     and''; and
       (B) by inserting ``and the recipient'' after ``Secretary'';
       (11) by striking paragraph (23) (as so redesignated) and 
     inserting the following:
       ``(23) Safety improvement project.--The term `safety 
     improvement project' means a strategy, activity, or project 
     on a public road that is consistent with the State strategic 
     highway safety plan and corrects or improves a roadway 
     feature that constitutes a hazard to road users or addresses 
     a highway safety problem.'';
       (12) by inserting after paragraph (26) (as so redesignated) 
     the following:
       ``(27) State strategic highway safety plan.--The term 
     `State strategic highway safety plan' has the same meaning 
     given such term in section 148(a).'';
       (13) by striking paragraph (29) (as so redesignated) and 
     inserting the following:
       ``(29) Transportation alternatives.--The term 
     `transportation alternatives' means any of the following 
     activities when carried out as part of any program or project 
     authorized or funded under this title, or as an independent 
     program or project related to surface transportation:
       ``(A) Construction, planning, and design of on-road and 
     off-road trail facilities for pedestrians, bicyclists, and 
     other nonmotorized forms of transportation, including 
     sidewalks, bicycle infrastructure, pedestrian and bicycle 
     signals, traffic calming techniques, lighting and other 
     safety-related infrastructure, and transportation projects to 
     achieve compliance with the Americans with Disabilities Act 
     of 1990 (42 U.S.C. 12101 et seq.).
       ``(B) Construction, planning, and design of infrastructure-
     related projects and systems that will provide safe routes 
     for non-drivers, including children, older adults, and 
     individuals with disabilities to access daily needs.
       ``(C) Conversion and use of abandoned railroad corridors 
     for trails for pedestrians, bicyclists, or other nonmotorized 
     transportation users.
       ``(D) Construction of turnouts, overlooks, and viewing 
     areas.
       ``(E) Community improvement activities, including--
       ``(i) inventory, control, or removal of outdoor 
     advertising;
       ``(ii) historic preservation and rehabilitation of historic 
     transportation facilities;
       ``(iii) vegetation management practices in transportation 
     rights-of-way to improve roadway safety, prevent against 
     invasive species, and provide erosion control; and
       ``(iv) archaeological activities relating to impacts from 
     implementation of a transportation project eligible under 
     this title.
       ``(F) Any environmental mitigation activity, including 
     pollution prevention and pollution abatement activities and 
     mitigation to--
       ``(i) address stormwater management, control, and water 
     pollution prevention or abatement related to highway 
     construction or due to highway runoff, including activities 
     described in sections 133(b)(11), 328(a), and 329; or
       ``(ii) reduce vehicle-caused wildlife mortality or to 
     restore and maintain connectivity among terrestrial or 
     aquatic habitats.''; and
       (14) by inserting after paragraph (29) (as so redesignated) 
     the following:
       ``(30) Transportation systems management and operations.--
       ``(A) In general.--The term `transportation systems 
     management and operations' means integrated strategies 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) actions such as traffic detection and surveillance, 
     corridor management, freeway management, arterial management, 
     active transportation and demand management, work zone 
     management, emergency management, traveler information 
     services, congestion pricing, parking management, automated 
     enforcement, traffic control, commercial vehicle operations, 
     freight management, and coordination of highway, rail, 
     transit, bicycle, and pedestrian operations; and
       ``(ii) coordination of the implementation of regional 
     transportation system management and operations investments 
     (such as traffic incident management, traveler information 
     services, emergency management, roadway weather management, 
     intelligent transportation systems, communication networks, 
     and information sharing systems) requiring agreements, 
     integration, and interoperability to achieve targeted system 
     performance, reliability, safety, and customer service 
     levels.
       ``(31) Tribal transportation facility.--The term `tribal 
     transportation facility' means a public highway, road, 
     bridge, trail, or transit system that is located on or 
     provides access to tribal land and appears on the national 
     tribal transportation facility inventory described in section 
     202(b)(1).
       ``(32) Truck stop electrification system.--The term `truck 
     stop electrification system' means a system that delivers 
     heat, air conditioning, electricity, or communications to a 
     heavy-duty vehicle.''.
       (b) Sense of Congress.--Section 101(c) of title 23, United 
     States Code, is amended by striking ``system'' and inserting 
     ``highway''.

     SEC. 1104. NATIONAL HIGHWAY SYSTEM.

       (a) In General.--Section 103 of title 23, United States 
     Code, is amended to read as follows:

[[Page 10533]]



     ``Sec. 103. National Highway System

       ``(a) In General.--For the purposes of this title, the 
     Federal-aid system is the National Highway System, which 
     includes the Interstate System.
       ``(b) National Highway System.--
       ``(1) Description.--The National Highway System consists of 
     the highway routes and connections to transportation 
     facilities that shall--
       ``(A) serve major population centers, international border 
     crossings, ports, airports, public transportation facilities, 
     and other intermodal transportation facilities and other 
     major travel destinations;
       ``(B) meet national defense requirements; and
       ``(C) serve interstate and interregional travel and 
     commerce.
       ``(2) Components.--The National Highway System described in 
     paragraph (1) consists of the following:
       ``(A) The National Highway System depicted on the map 
     submitted by the Secretary of Transportation to Congress with 
     the report entitled `Pulling Together: The National Highway 
     System and its Connections to Major Intermodal Terminals' and 
     dated May 24, 1996, and modifications approved by the 
     Secretary before the date of enactment of the MAP-21.
       ``(B) Other urban and rural principal arterial routes, and 
     border crossings on those routes, that were not included on 
     the National Highway System before the date of enactment of 
     the MAP-21.
       ``(C) Other connector highways (including toll facilities) 
     that were not included in the National Highway System before 
     the date of enactment of the MAP-21 but that provide motor 
     vehicle access between arterial routes on the National 
     Highway System and a major intermodal transportation 
     facility.
       ``(D) A strategic highway network that--
       ``(i) consists of a network of highways that are important 
     to the United States strategic defense policy, that provide 
     defense access, continuity, and emergency capabilities for 
     the movement of personnel, materials, and equipment in both 
     peacetime and wartime, and that were not included on the 
     National Highway System before the date of enactment of the 
     MAP-21;
       ``(ii) may include highways on or off the Interstate 
     System; and
       ``(iii) shall be designated by the Secretary, in 
     consultation with appropriate Federal agencies and the 
     States.
       ``(E) Major strategic highway network connectors that--
       ``(i) consist of highways that provide motor vehicle access 
     between major military installations and highways that are 
     part of the strategic highway network but were not included 
     on the National Highway System before the date of enactment 
     of the MAP-21; and
       ``(ii) shall be designated by the Secretary, in 
     consultation with appropriate Federal agencies and the 
     States.
       ``(3) Modifications to nhs.--
       ``(A) In general.--The Secretary may make any modification, 
     including any modification consisting of a connector to a 
     major intermodal terminal, to the National Highway System 
     that is proposed by a State if the Secretary determines that 
     the modification--
       ``(i) meets the criteria established for the National 
     Highway System under this title after the date of enactment 
     of the MAP-21; and
       ``(ii) enhances the national transportation characteristics 
     of the National Highway System.
       ``(B) Cooperation.--
       ``(i) In general.--In proposing a modification under this 
     paragraph, a State shall cooperate with local and regional 
     officials.
       ``(ii) Urbanized areas.--In an urbanized area, the local 
     officials shall act through the metropolitan planning 
     organization designated for the area under section 134.
       ``(c) Interstate System.--
       ``(1) Description.--
       ``(A) In general.--The Dwight D. Eisenhower National System 
     of Interstate and Defense Highways within the United States 
     (including the District of Columbia and Puerto Rico) consists 
     of highways designed, located, and selected in accordance 
     with this paragraph.
       ``(B) Design.--
       ``(i) In general.--Except as provided in clause (ii), 
     highways on the Interstate System shall be designed in 
     accordance with the standards of section 109(b).
       ``(ii) Exception.--Highways on the Interstate System in 
     Alaska and Puerto Rico shall be designed in accordance with 
     such geometric and construction standards as are adequate for 
     current and probable future traffic demands and the needs of 
     the locality of the highway.
       ``(C) Location.--Highways on the Interstate System shall be 
     located so as--
       ``(i) to connect by routes, as direct as practicable, the 
     principal metropolitan areas, cities, and industrial centers;
       ``(ii) to serve the national defense; and
       ``(iii) to the maximum extent practicable, to connect at 
     suitable border points with routes of continental importance 
     in Canada and Mexico.
       ``(D) Selection of routes.--To the maximum extent 
     practicable, each route of the Interstate System shall be 
     selected by joint action of the State transportation 
     departments of the State in which the route is located and 
     the adjoining States, in cooperation with local and regional 
     officials, and subject to the approval of the Secretary.
       ``(2) Maximum mileage.--The mileage of highways on the 
     Interstate System shall not exceed 43,000 miles, exclusive of 
     designations under paragraph (4).
       ``(3) Modifications.--The Secretary may approve or require 
     modifications to the Interstate System in a manner consistent 
     with the policies and procedures established under this 
     subsection.
       ``(4) Interstate system designations.--
       ``(A) Additions.--If the Secretary determines that a 
     highway on the National Highway System meets all standards of 
     a highway on the Interstate System and that the highway is a 
     logical addition or connection to the Interstate System, the 
     Secretary may, upon the affirmative recommendation of the 
     State or States in which the highway is located, designate 
     the highway as a route on the Interstate System.
       ``(B) Designations as future interstate system routes.--
       ``(i) In general.--Subject to clauses (ii) through (vi), if 
     the Secretary determines that a highway on the National 
     Highway System would be a logical addition or connection to 
     the Interstate System and would qualify for designation as a 
     route on the Interstate System under subparagraph (A) if the 
     highway met all standards of a highway on the Interstate 
     System, the Secretary may, upon the affirmative 
     recommendation of the State or States in which the highway is 
     located, designate the highway as a future Interstate System 
     route.
       ``(ii) Written agreement.--A designation under clause (i) 
     shall be made only upon the written agreement of each State 
     described in that clause that the highway will be constructed 
     to meet all standards of a highway on the Interstate System 
     by not later than the date that is 25 years after the date of 
     the agreement.
       ``(iii) Failure to complete construction.--If a State 
     described in clause (i) has not substantially completed the 
     construction of a highway designated under this subparagraph 
     by the date specified in clause (ii), the Secretary shall 
     remove the designation of the highway as a future Interstate 
     System route.
       ``(iv) Effect of removal.--Removal of the designation of a 
     highway under clause (iii) shall not preclude the Secretary 
     from designating the highway as a route on the Interstate 
     System under subparagraph (A) or under any other provision of 
     law providing for addition to the Interstate System.
       ``(v) Retroactive effect.--An agreement described in clause 
     (ii) that is entered into before August 10, 2005, shall be 
     deemed to include the 25-year time limitation described in 
     that clause, regardless of any earlier construction 
     completion date in the agreement.
       ``(vi) References.--No law, rule, regulation, map, 
     document, or other record of the United States, or of any 
     State or political subdivision of a State, shall refer to any 
     highway designated as a future Interstate System route under 
     this subparagraph, and no such highway shall be signed or 
     marked, as a highway on the Interstate System, until such 
     time as the highway--

       ``(I) is constructed to the geometric and construction 
     standards for the Interstate System; and
       ``(II) has been designated as a route on the Interstate 
     System.

       ``(C) Financial responsibility.--Except as provided in this 
     title, the designation of a highway under this paragraph 
     shall create no additional Federal financial responsibility 
     with respect to the highway.
       ``(5) Exemption of interstate system.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Interstate System shall not be considered to be a 
     historic site under section 303 of title 49 or section 138 of 
     this title, regardless of whether the Interstate System or 
     portions or elements of the Interstate System are listed on, 
     or eligible for listing on, the National Register of Historic 
     Places.
       ``(B) Individual elements.--Subject to subparagraph (C)--
       ``(i) the Secretary shall determine, through the 
     administrative process established for exempting the 
     Interstate System from section 106 of the National Historic 
     Preservation Act (16 U.S.C. 470f), those individual elements 
     of the Interstate System that possess national or exceptional 
     historic significance (such as a historic bridge or a highly 
     significant engineering feature); and
       ``(ii) those elements shall be considered to be historic 
     sites under section 303 of title 49 or section 138 of this 
     title, as applicable.
       ``(C) Construction, maintenance, restoration, and 
     rehabilitation activities.--Subparagraph (B) does not 
     prohibit a State from carrying out construction, maintenance, 
     preservation, restoration, or rehabilitation activities for a 
     portion of the Interstate System referred to in subparagraph 
     (B) upon compliance with section 303 of title 49 or section 
     138 of this title, as applicable, and section 106 of the 
     National Historic Preservation Act (16 U.S.C. 470f).''.
       (b) Inclusion of Certain Route Segments on Interstate 
     System.--
       (1) In general.--Section 1105(e)(5)(A) of the Intermodal 
     Surface Transportation Efficiency Act of 1991 (105 Stat. 
     2031; 109 Stat. 597; 115 Stat. 872) is amended--
       (A) in the first sentence, by striking ``and in subsections 
     (c)(18) and (c)(20)'' and inserting ``, in subsections 
     (c)(18) and (c)(20), and in subparagraphs (A)(iii) and (B) of 
     subsection (c)(26)''; and
       (B) in the second sentence, by striking ``that the 
     segment'' and all that follows through the period and 
     inserting ``that the segment meets the Interstate System 
     design standards approved by the Secretary under section 
     109(b) of title 23, United States Code, and is planned to 
     connect to an existing Interstate System segment by the date 
     that is 25 years after the date of enactment of the MAP-
     21.''.

[[Page 10534]]

       (2) Route designation.--Section 1105(e)(5)(C)(i) of the 
     Intermodal Surface Transportation Efficiency Act of 1991 (105 
     Stat. 2032; 109 Stat. 598) is amended by adding at the end 
     the following: ``The routes referred to subparagraphs 
     (A)(iii) and (B)(i) of subsection (c)(26) are designated as 
     Interstate Route I-11.''.
       (c) Conforming Amendments.--
       (1) Analysis.--The analysis for chapter 1 of title 23, 
     United States Code, is amended by striking the item relating 
     to section 103 and inserting the following:

``103. National Highway System.''.

       (2) Section 113.--Section 113 of title 23, United States 
     Code, is amended--
       (A) in subsection (a) by striking ``the Federal-aid 
     systems'' and inserting ``Federal-aid highways''; and
       (B) in subsection (b), in the first sentence, by striking 
     ``of the Federal-aid systems'' and inserting ``Federal-aid 
     highway''.
       (3) Section 123.--Section 123(a) of title 23, United States 
     Code, is amended in the first sentence by striking ``Federal-
     aid system'' and inserting ``Federal-aid highway''.
       (4) Section 217.--Section 217(b) of title 23, United States 
     Code, is amended in the subsection heading by striking 
     ``National Highway System'' and inserting ``National Highway 
     Performance Program''.
       (5) Section 304.--Section 304 of title 23, United States 
     Code, is amended in the first sentence by striking ``the 
     Federal-aid highway systems'' and inserting ``Federal-aid 
     highways''.
       (6) Section 317.--Section 317(d) of title 23, United States 
     Code, is amended by striking ``system'' and inserting 
     ``highway''.

     SEC. 1105. APPORTIONMENT.

       (a) In General.--Section 104 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 104. Apportionment

       ``(a) Administrative Expenses.--
       ``(1) In general.--There are authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) to be made available to the Secretary for 
     administrative expenses of the Federal Highway 
     Administration--
       ``(A) $454,180,326 for fiscal year 2013; and
       ``(B) $440,000,000 for fiscal year 2014.
       ``(2) Purposes.--The amounts authorized to be appropriated 
     by this subsection shall be used--
       ``(A) to administer the provisions of law to be funded from 
     appropriations for the Federal-aid highway program and 
     programs authorized under chapter 2;
       ``(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; and
       ``(C) to reimburse, as appropriate, the Office of Inspector 
     General of the Department of Transportation for the conduct 
     of annual audits of financial statements in accordance with 
     section 3521 of title 31.
       ``(3) Availability.--The amounts made available under 
     paragraph (1) shall remain available until expended.
       ``(b) Division of State Apportionments Among Programs.--The 
     Secretary shall distribute the amount apportioned to a State 
     for a fiscal year under subsection (c) among the national 
     highway performance program, the surface transportation 
     program, the highway safety improvement program, and the 
     congestion mitigation and air quality improvement program, 
     and to carry out section 134 as follows:
       ``(1) National highway performance program.--For the 
     national highway performance program, 63.7 percent of the 
     amount remaining after distributing amounts under paragraphs 
     (4) and (5).
       ``(2) Surface transportation program.--For the surface 
     transportation program, 29.3 percent of the amount remaining 
     after distributing amounts under paragraphs (4) and (5).
       ``(3) Highway safety improvement program.--For the highway 
     safety improvement program, 7 percent of the amount remaining 
     after distributing amounts under paragraphs (4) and (5).
       ``(4) Congestion mitigation and air quality improvement 
     program.--For the congestion mitigation and air quality 
     improvement program, an amount determined by multiplying the 
     amount determined for the State under subsection (c) by the 
     proportion that--
       ``(A) the amount apportioned to the State for the 
     congestion mitigation and air quality improvement program for 
     fiscal year 2009; bears to
       ``(B) the total amount of funds apportioned to the State 
     for that fiscal year for the programs referred to in section 
     105(a)(2) (except for the high priority projects program 
     referred to in section 105(a)(2)(H)), as in effect on the day 
     before the date of enactment of the MAP-21.
       ``(5) Metropolitan planning.--To carry out section 134, an 
     amount determined by multiplying the amount determined for 
     the State under subsection (c) by the proportion that--
       ``(A) the amount apportioned to the State to carry out 
     section 134 for fiscal year 2009; bears to
       ``(B) the total amount of funds apportioned to the State 
     for that fiscal year for the programs referred to in section 
     105(a)(2) (except for the high priority projects program 
     referred to in section 105(a)(2)(H)), as in effect on the day 
     before the date of enactment of the MAP-21.
       ``(c) Calculation of State Amounts.--
       ``(1) For fiscal year 2013.--
       ``(A) Calculation of amount.--For fiscal year 2013, the 
     amount for each State of combined apportionments for the 
     national highway performance program under section 119, the 
     surface transportation program under section 133, the highway 
     safety improvement program under section 148, the congestion 
     mitigation and air quality improvement program under section 
     149, and to carry out section 134 shall be equal to the 
     combined amount of apportionments that the State received for 
     fiscal year 2012.
       ``(B) State apportionment.--On October 1 of such fiscal 
     year, the Secretary shall apportion the sum authorized to be 
     appropriated for expenditure on the national highway 
     performance program under section 119, the surface 
     transportation program under section 133, the highway safety 
     improvement program under section 148, the congestion 
     mitigation and air quality improvement program under section 
     149, and to carry out section 134 in accordance with 
     subparagraph (A).
       ``(2) For fiscal year 2014.--
       ``(A) State share.--For fiscal year 2014, the amount for 
     each State of combined apportionments for the national 
     highway performance program under section 119, the surface 
     transportation program under section 133, the highway safety 
     improvement program under section 148, the congestion 
     mitigation and air quality improvement program under section 
     149, and to carry out section 134 shall be determined as 
     follows:
       ``(i) Initial amount.--The initial amount for each State 
     shall be determined by multiplying the total amount available 
     for apportionment by the share for each State which shall be 
     equal to the proportion that--

       ``(I) the amount of apportionments that the State received 
     for fiscal year 2012; bears to
       ``(II) the amount of those apportionments received by all 
     States for that fiscal year.

       ``(ii) Adjustments to amounts.--The initial amounts 
     resulting from the calculation under clause (i) shall be 
     adjusted to ensure that, for each State, the amount of 
     combined apportionments for the programs shall not be less 
     than 95 percent of 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.
       ``(B) State apportionment.--On October 1 of such fiscal 
     year, the Secretary shall apportion the sum authorized to be 
     appropriated for expenditure on the national highway 
     performance program under section 119, the surface 
     transportation program under section 133, the highway safety 
     improvement program under section 148, the congestion 
     mitigation and air quality improvement program under section 
     149, and to carry out section 134 in accordance with 
     subparagraph (A).
       ``(d) Metropolitan Planning.--
       ``(1) Use of amounts.--
       ``(A) Use.--
       ``(i) In general.--Except as provided in clause (ii), the 
     amounts apportioned to a State under subsection (b)(5) shall 
     be made available by the State to the metropolitan planning 
     organizations responsible for carrying out section 134 in the 
     State.
       ``(ii) States receiving minimum apportionment.--A State 
     that received the minimum apportionment for use in carrying 
     out section 134 for fiscal year 2009 may, subject to the 
     approval of the Secretary, use the funds apportioned under 
     subsection (b)(5) to fund transportation planning outside of 
     urbanized areas.
       ``(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.
       ``(2) Distribution of amounts within states.--
       ``(A) In general.--The distribution within any State of the 
     planning funds made available to organizations under 
     paragraph (1) shall be in accordance with a formula that--
       ``(i) is developed by each State and approved by the 
     Secretary; and
       ``(ii) takes into consideration, at a minimum, population, 
     status of planning, attainment of air quality standards, 
     metropolitan area transportation needs, and other factors 
     necessary to provide for an appropriate distribution of funds 
     to carry out section 134 and other applicable requirements of 
     Federal law.
       ``(B) Reimbursement.--Not later than 15 business days after 
     the date of receipt by a State of a request for reimbursement 
     of expenditures made by a metropolitan planning organization 
     for carrying out section 134, the State shall reimburse, from 
     amounts distributed under this paragraph to the metropolitan 
     planning organization by the State, the metropolitan planning 
     organization for those expenditures.
       ``(3) Determination of population figures.--For the purpose 
     of determining population figures under this subsection, the 
     Secretary shall use the latest available data from the 
     decennial census conducted under section 141(a) of title 13, 
     United States Code.
       ``(e) Certification of Apportionments.--
       ``(1) In general.--The Secretary shall--
       ``(A) on October 1 of each fiscal year, certify to each of 
     the State transportation departments the amount that has been 
     apportioned to the State under this section for the fiscal 
     year; and
       ``(B) to permit the States to develop adequate plans for 
     the use of amounts apportioned under this section, advise 
     each State of the amount that will be apportioned to the 
     State under this section for a fiscal year not later than 90 
     days before the beginning of the fiscal year for which the 
     sums to be apportioned are authorized.
       ``(2) Notice to states.--If the Secretary has not made an 
     apportionment under this section

[[Page 10535]]

     for a fiscal year beginning after September 30, 1998, by not 
     later than the date that is the twenty-first day of that 
     fiscal year, the Secretary shall submit, by not later than 
     that date, to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Environment and Public Works of the Senate, a 
     written statement of the reason for not making the 
     apportionment in a timely manner.
       ``(3) Apportionment calculations.--
       ``(A) In general.--The calculation of official 
     apportionments of funds to the States under this title is a 
     primary responsibility of the Department and shall be carried 
     out only by employees (and not contractors) of the 
     Department.
       ``(B) Prohibition on use of funds to hire contractors.--
     None of the funds made available under this title shall be 
     used to hire contractors to calculate the apportionments of 
     funds to States.
       ``(f) Transfer of Highway and Transit Funds.--
       ``(1) Transfer of highway funds for transit projects.--
       ``(A) In general.--Subject to subparagraph (B), amounts 
     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 amounts 
     transferred under subparagraph (A).
       ``(2) Transfer of transit funds for highway projects.--
       ``(A) In general.--Subject to subparagraph (B), amounts 
     made available for highway projects or transportation 
     planning under chapter 53 of title 49 may be transferred to 
     and administered by the Secretary in accordance with this 
     title.
       ``(B) Non-federal share.--The provisions of chapter 53 of 
     title 49 relating to the non-Federal share shall apply to 
     amounts transferred under subparagraph (A).
       ``(3) Transfer of funds among states or to federal highway 
     administration.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary may, at the request of a State, transfer amounts 
     apportioned or allocated under this title to the State to 
     another State, or to the Federal Highway Administration, for 
     the purpose of funding 1 or more projects that are eligible 
     for assistance with amounts so apportioned or allocated.
       ``(B) Apportionment.--The transfer shall have no effect on 
     any apportionment of amounts to a State under this section.
       ``(C) Funds suballocated to urbanized areas.--Amounts that 
     are apportioned or allocated to a State under subsection 
     (b)(3) (as in effect on the day before the date of enactment 
     of the MAP-21) or subsection (b)(2) and attributed to an 
     urbanized area of a State with a population of more than 
     200,000 individuals under section 133(d) may be transferred 
     under this paragraph only if the metropolitan planning 
     organization designated for the area concurs, in writing, 
     with the transfer request.
       ``(4) Transfer of obligation authority.--Obligation 
     authority for amounts transferred under this subsection shall 
     be transferred in the same manner and amount as the amounts 
     for the projects that are transferred under this section.
       ``(g) Report to Congress.--For each fiscal year, the 
     Secretary shall make available to the public, in a user-
     friendly format via the Internet, a report that describes--
       ``(1) the amount obligated, by each State, for Federal-aid 
     highways and highway safety construction programs during the 
     preceding fiscal year;
       ``(2) the balance, as of the last day of the preceding 
     fiscal year, of the unobligated apportionment of each State 
     by fiscal year under this section;
       ``(3) the balance of unobligated sums available for 
     expenditure at the discretion of the Secretary for such 
     highways and programs for the fiscal year; and
       ``(4) the rates of obligation of funds apportioned or set 
     aside under this section, according to--
       ``(A) program;
       ``(B) funding category of subcategory;
       ``(C) type of improvement;
       ``(D) State; and
       ``(E) sub-State geographical area, including urbanized and 
     rural areas, on the basis of the population of each such 
     area.''.
       (b) Conforming Amendment.--Section 146(a) of title 23, 
     United States Code, is amended by striking ``sections 
     104(b)(l) and 104(b)(3)'' and inserting ``section 
     104(b)(2)''.

     SEC. 1106. NATIONAL HIGHWAY PERFORMANCE PROGRAM.

       (a) In General.--Section 119 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 119. National highway performance program

       ``(a) Establishment.--The Secretary shall establish and 
     implement a national highway performance program under this 
     section.
       ``(b) Purposes.--The purposes of the national highway 
     performance program shall be--
       ``(1) to provide support for the condition and performance 
     of the National Highway System;
       ``(2) to provide support for the construction of new 
     facilities on the National Highway System; and
       ``(3) to ensure that investments of Federal-aid funds in 
     highway construction are directed to support progress toward 
     the achievement of performance targets established in an 
     asset management plan of a State for the National Highway 
     System.
       ``(c) Eligible Facilities.--Except as provided in 
     subsection (d), to be eligible for funding apportioned under 
     section 104(b)(1) to carry out this section, a facility shall 
     be located on the National Highway System, as defined in 
     section 103.
       ``(d) Eligible Projects.--Funds apportioned to a State to 
     carry out the national highway performance program may be 
     obligated only for a project on an eligible facility that 
     is--
       ``(1)(A) a project or part of a program of projects 
     supporting progress toward the achievement of national 
     performance goals for improving infrastructure condition, 
     safety, mobility, or freight movement on the National Highway 
     System; and
       ``(B) consistent with sections 134 and 135; and
       ``(2) for 1 or more of the following purposes:
       ``(A) Construction, reconstruction, resurfacing, 
     restoration, rehabilitation, preservation, or operational 
     improvement of segments of the National Highway System.
       ``(B) Construction, replacement (including replacement with 
     fill material), rehabilitation, preservation, and protection 
     (including scour countermeasures, seismic retrofits, impact 
     protection measures, security countermeasures, and protection 
     against extreme events) of bridges on the National Highway 
     System.
       ``(C) Construction, replacement (including replacement with 
     fill material), rehabilitation, preservation, and protection 
     (including impact protection measures, security 
     countermeasures, and protection against extreme events) of 
     tunnels on the National Highway System.
       ``(D) Inspection and evaluation, as described in section 
     144, of bridges and tunnels on the National Highway System, 
     and inspection and evaluation of other highway infrastructure 
     assets on the National Highway System, including signs and 
     sign structures, earth retaining walls, and drainage 
     structures.
       ``(E) Training of bridge and tunnel inspectors, as 
     described in section 144.
       ``(F) Construction, rehabilitation, or replacement of 
     existing ferry boats and ferry boat facilities, including 
     approaches, that connect road segments of the National 
     Highway System.
       ``(G) Construction, reconstruction, resurfacing, 
     restoration, rehabilitation, and preservation of, and 
     operational improvements for, a Federal-aid highway not on 
     the National Highway System, and construction of a transit 
     project eligible for assistance under chapter 53 of title 49, 
     if--
       ``(i) the highway project or transit project is in the same 
     corridor as, and in proximity to, a fully access-controlled 
     highway designated as a part of the National Highway System;
       ``(ii) the construction or improvements will reduce delays 
     or produce travel time savings on the fully access-controlled 
     highway described in clause (i) and improve regional traffic 
     flow; and
       ``(iii) the construction or improvements are more cost-
     effective, as determined by benefit-cost analysis, than an 
     improvement to the fully access-controlled highway described 
     in clause (i).
       ``(H) Bicycle transportation and pedestrian walkways in 
     accordance with section 217.
       ``(I) Highway safety improvements for segments of the 
     National Highway System.
       ``(J) Capital and operating costs for traffic and traveler 
     information monitoring, management, and control facilities 
     and programs.
       ``(K) Development and implementation of a State asset 
     management plan for the National Highway System in accordance 
     with this section, including data collection, maintenance, 
     and integration and the cost associated with obtaining, 
     updating, and licensing software and equipment required for 
     risk-based asset management and performance-based management.
       ``(L) Infrastructure-based intelligent transportation 
     systems capital improvements.
       ``(M) Environmental restoration and pollution abatement in 
     accordance with section 328.
       ``(N) Control of noxious weeds and aquatic noxious weeds 
     and establishment of native species in accordance with 
     section 329.
       ``(O) Environmental mitigation efforts related to projects 
     funded under this section, as described in subsection (g).
       ``(P) Construction of publicly owned intracity or intercity 
     bus terminals servicing the National Highway System.
       ``(e) State Performance Management.--
       ``(1) In general.--A State shall develop a risk-based asset 
     management plan for the National Highway System to improve or 
     preserve the condition of the assets and the performance of 
     the system.
       ``(2) Performance driven plan.--A State asset management 
     plan shall include strategies leading to a program of 
     projects that would make progress toward achievement of the 
     State targets for asset condition and performance of the 
     National Highway System in accordance with section 150(d) and 
     supporting the progress toward the achievement of the 
     national goals identified in section 150(b).
       ``(3) Scope.--In developing a risk-based asset management 
     plan, the Secretary shall encourage States to include all 
     infrastructure assets within the right-of-way corridor in 
     such plan.
       ``(4) Plan contents.--A State asset management plan shall, 
     at a minimum, be in a form that the Secretary determines to 
     be appropriate and include--
       ``(A) a summary listing of the pavement and bridge assets 
     on the National Highway System in the State, including a 
     description of the condition of those assets;

[[Page 10536]]

       ``(B) asset management objectives and measures;
       ``(C) performance gap identification;
       ``(D) lifecycle cost and risk management analysis;
       ``(E) a financial plan; and
       ``(F) investment strategies.
       ``(5) Requirement for plan.--Notwithstanding section 120, 
     with respect to the second fiscal year beginning after the 
     date of establishment of the process established in paragraph 
     (8) or any subsequent fiscal year, if the Secretary 
     determines that a State has not developed and implemented a 
     State asset management plan consistent with this section, the 
     Federal share payable on account of any project or activity 
     carried out by the State in that fiscal year under this 
     section shall be 65 percent.
       ``(6) Certification of plan development process.--
       ``(A) In general.--Not later than 90 days after the date on 
     which a State submits a request for approval of the process 
     used by the State to develop the State asset management plan 
     for the National Highway System, the Secretary shall--
       ``(i) review the process; and
       ``(ii)(I) certify that the process meets the requirements 
     established by the Secretary; or
       ``(II) deny certification and specify actions necessary for 
     the State to take to correct deficiencies in the State 
     process.
       ``(B) Recertification.--Not less frequently than once every 
     4 years, the Secretary shall review and recertify that the 
     process used by a State to develop and maintain the State 
     asset management plan for the National Highway System meets 
     the requirements for the process, as established by the 
     Secretary.
       ``(C) Opportunity to cure.--If the Secretary denies 
     certification under subparagraph (A), the Secretary shall 
     provide the State with--
       ``(i) not less than 90 days to cure the deficiencies of the 
     plan, during which time period all penalties and other legal 
     impacts of a denial of certification shall be stayed; and
       ``(ii) a written statement of the specific actions the 
     Secretary determines to be necessary for the State to cure 
     the plan.
       ``(7) Performance achievement.--A State that does not 
     achieve or make significant progress toward achieving the 
     targets of the State for performance measures described in 
     section 150(d) for the National Highway System for 2 
     consecutive reports submitted under this paragraph shall 
     include in the next report submitted a description of the 
     actions the State will undertake to achieve the targets.
       ``(8) Process.--Not later than 18 months after the date of 
     enactment of the MAP-21, the Secretary shall, by regulation 
     and in consultation with State departments of transportation, 
     establish the process to develop the State asset management 
     plan described in paragraph (1).
       ``(f) Interstate System and NHS Bridge Conditions.--
       ``(1) Condition of interstate system.--
       ``(A) Penalty.--If, during 2 consecutive reporting periods, 
     the condition of the Interstate System, excluding bridges on 
     the Interstate System, in a State falls below the minimum 
     condition level established by the Secretary under section 
     150(c)(3), the State shall be required, during the following 
     fiscal year--
       ``(i) to obligate, from the amounts apportioned to the 
     State under section 104(b)(1), an amount that is not less 
     than the amount of funds apportioned to the State for fiscal 
     year 2009 under the Interstate maintenance program for the 
     purposes described in this section (as in effect on the day 
     before the date of enactment of the MAP-21), except that for 
     each year after fiscal year 2013, the amount required to be 
     obligated under this clause shall be increased by 2 percent 
     over the amount required to be obligated in the previous 
     fiscal year; and
       ``(ii) to transfer, from the amounts apportioned to the 
     State under section 104(b)(2) (other than amounts 
     suballocated to metropolitan areas and other areas of the 
     State under section 133(d)) to the apportionment of the State 
     under section 104(b)(1), an amount equal to 10 percent of the 
     amount of funds apportioned to the State for fiscal year 2009 
     under the Interstate maintenance program for the purposes 
     described in this section (as in effect on the day before the 
     date of enactment of the MAP-21).
       ``(B) Restoration.--The obligation requirement for the 
     Interstate System in a State required by subparagraph (A) for 
     a fiscal year shall remain in effect for each subsequent 
     fiscal year until such time as the condition of the 
     Interstate System in the State exceeds the minimum condition 
     level established by the Secretary.
       ``(2) Condition of nhs bridges.--
       ``(A) Penalty.--If the Secretary determines that, for the 
     3-year-period preceding the date of the determination, more 
     than 10 percent of the total deck area of bridges in the 
     State on the National Highway System is located on bridges 
     that have been classified as structurally deficient, an 
     amount equal to 50 percent of funds apportioned to such State 
     for fiscal year 2009 to carry out section 144 (as in effect 
     the day before enactment of MAP-21) shall be set aside from 
     amounts apportioned to a State for a fiscal year under 
     section 104(b)(1) only for eligible projects on bridges on 
     the National Highway System.
       ``(B) Restoration.--The set-aside requirement for bridges 
     on the National Highway System in a State under subparagraph 
     (A) for a fiscal year shall remain in effect for each 
     subsequent fiscal year until such time as less than 10 
     percent of the total deck area of bridges in the State on the 
     National Highway System is located on bridges that have been 
     classified as structurally deficient, as determined by the 
     Secretary.
       ``(g) Environmental Mitigation.--
       ``(1) Eligible activities.--In accordance with all 
     applicable Federal law (including regulations), environmental 
     mitigation efforts referred to in subsection (d)(2)(O) 
     include participation in natural habitat and wetlands 
     mitigation efforts relating to projects funded under this 
     title, which may include--
       ``(A) participation in mitigation banking or other third-
     party mitigation arrangements, such as--
       ``(i) the purchase of credits from commercial mitigation 
     banks;
       ``(ii) the establishment and management of agency-sponsored 
     mitigation banks; and
       ``(iii) the purchase of credits or establishment of in-lieu 
     fee mitigation programs;
       ``(B) contributions to statewide and regional efforts to 
     conserve, restore, enhance, and create natural habitats and 
     wetlands; and
       ``(C) the development of statewide and regional 
     environmental protection plans, including natural habitat and 
     wetland conservation and restoration plans.
       ``(2) Inclusion of other activities.--The banks, efforts, 
     and plans described in paragraph (1) include any such banks, 
     efforts, and plans developed in accordance with applicable 
     law (including regulations).
       ``(3) Terms and conditions.--The following terms and 
     conditions apply to natural habitat and wetlands mitigation 
     efforts under this subsection:
       ``(A) Contributions to the mitigation effort may--
       ``(i) take place concurrent with, or in advance of, 
     commitment of funding under this title to a project or 
     projects; and
       ``(ii) occur in advance of project construction only if the 
     efforts are consistent with all applicable requirements of 
     Federal law (including regulations) and State transportation 
     planning processes.
       ``(B) Credits from any agency-sponsored mitigation bank 
     that are attributable to funding under this section may be 
     used only for projects funded under this title, unless the 
     agency pays to the Secretary an amount equal to the Federal 
     funds attributable to the mitigation bank credits the agency 
     uses for purposes other than mitigation of a project funded 
     under this title.
       ``(4) Preference.--At the discretion of the project 
     sponsor, preference shall be given, to the maximum extent 
     practicable, to mitigating an environmental impact through 
     the use of a mitigation bank, in-lieu fee, or other third-
     party mitigation arrangement, if the use of credits from the 
     mitigation bank or in-lieu fee, or the other third-party 
     mitigation arrangement for the project, is approved by the 
     applicable Federal agency.''.
       (b) Transition Period.--
       (1) In general.--Except as provided in paragraph (2), until 
     such date as a State has in effect an approved asset 
     management plan and has established performance targets as 
     described in sections 119 and 150 of title 23, United States 
     Code, that will contribute to achieving the national goals 
     for the condition and performance of the National Highway 
     System, but not later than 18 months after the date on which 
     the Secretary promulgates the final regulation required under 
     section 150(c) of that title, the Secretary shall approve 
     obligations of funds apportioned to a State to carry out the 
     national highway performance program under section 119 of 
     that title, for projects that otherwise meet the requirements 
     of that section.
       (2) Extension.--The Secretary may extend the transition 
     period for a State under paragraph (1) if the Secretary 
     determines that the State has made a good faith effort to 
     establish an asset management plan and performance targets 
     referred to in that paragraph.
       (c) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 119 and inserting the following:

``119. National highway performance program.''.

     SEC. 1107. EMERGENCY RELIEF.

       Section 125 of title 23, United States Code, is amended to 
     read as follows:

     ``Sec. 125. Emergency relief

       ``(a) In General.--Subject to this section and section 120, 
     an emergency fund is authorized for expenditure by the 
     Secretary for the repair or reconstruction of highways, 
     roads, and trails, in any area of the United States, 
     including Indian reservations, that the Secretary finds have 
     suffered serious damage as a result of--
       ``(1) a natural disaster over a wide area, such as by a 
     flood, hurricane, tidal wave, earthquake, severe storm, or 
     landslide; or
       ``(2) catastrophic failure from any external cause.
       ``(b) Restriction on Eligibility.--
       ``(1) Definition of construction phase.--In this 
     subsection, the term `construction phase' means the phase of 
     physical construction of a highway or bridge facility that is 
     separate from any other identified phases, such as planning, 
     design, or right-of-way phases, in the State transportation 
     improvement program.
       ``(2) Restriction.--In no case shall funds be used under 
     this section for the repair or reconstruction of a bridge--
       ``(A) that has been permanently closed to all vehicular 
     traffic by the State or responsible local official because of 
     imminent danger of collapse due to a structural deficiency or 
     physical deterioration; or
       ``(B) if a construction phase of a replacement structure is 
     included in the approved Statewide

[[Page 10537]]

     transportation improvement program at the time of an event 
     described in subsection (a).
       ``(c) Funding.--
       ``(1) In general.--Subject to the limitations described in 
     paragraph (2), there are authorized to be appropriated from 
     the Highway Trust Fund (other than the Mass Transit Account) 
     such sums as are necessary to establish the fund authorized 
     by this section and to replenish that fund on an annual 
     basis.
       ``(2) Limitations.--The limitations referred to in 
     paragraph (1) are that--
       ``(A) not more than $100,000,000 is authorized to be 
     obligated in any 1 fiscal year commencing after September 30, 
     1980, to carry out this section, except that, if for any 
     fiscal year the total of all obligations under this section 
     is less than the amount authorized to be obligated for the 
     fiscal year, the unobligated balance of that amount shall--
       ``(i) remain available until expended; and
       ``(ii) be in addition to amounts otherwise available to 
     carry out this section for each year; and
       ``(B)(i) pending such appropriation or replenishment, the 
     Secretary may obligate from any funds appropriated at any 
     time for obligation in accordance with this title, including 
     existing Federal-aid appropriations, such sums as are 
     necessary for the immediate prosecution of the work herein 
     authorized; and
       ``(ii) funds obligated under this subparagraph shall be 
     reimbursed from the appropriation or replenishment.
       ``(d) Eligibility.--
       ``(1) In general.--The Secretary may expend funds from the 
     emergency fund authorized by this section only for the repair 
     or reconstruction of highways on Federal-aid highways in 
     accordance with this chapter, except that--
       ``(A) no funds shall be so expended unless an emergency has 
     been declared by the Governor of the State with concurrence 
     by the Secretary, unless the President has declared the 
     emergency to be a major disaster for the purposes of the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5121 et seq.) for which concurrence of the 
     Secretary is not required; and
       ``(B) the Secretary has received an application from the 
     State transportation department that includes a comprehensive 
     list of all eligible project sites and repair costs by not 
     later than 2 years after the natural disaster or catastrophic 
     failure.
       ``(2) Cost limitation.--
       ``(A) Definition of comparable facility.--In this 
     paragraph, the term `comparable facility' means a facility 
     that meets the current geometric and construction standards 
     required for the types and volume of traffic that the 
     facility will carry over its design life.
       ``(B) Limitation.--The total cost of a project funded under 
     this section may not exceed the cost of repair or 
     reconstruction of a comparable facility.
       ``(3) Debris removal.--The costs of debris removal shall be 
     an eligible expense under this section only for--
       ``(A) an event not declared a major disaster or emergency 
     by the President under the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5121 et seq.); or
       ``(B) an event declared a major disaster or emergency by 
     the President under that Act if the debris removal is not 
     eligible for assistance under section 403, 407, or 502 of 
     that Act (42 U.S.C. 5170b, 5173, 5192).
       ``(4) Territories.--The total obligations for projects 
     under this section for any fiscal year in the Virgin Islands, 
     Guam, American Samoa, and the Commonwealth of the Northern 
     Mariana Islands shall not exceed $20,000,000.
       ``(5) Substitute traffic.--Notwithstanding any other 
     provision of this section, actual and necessary costs of 
     maintenance and operation of ferryboats or additional transit 
     service providing temporary substitute highway traffic 
     service, less the amount of fares charged for comparable 
     service, may be expended from the emergency fund authorized 
     by this section for Federal-aid highways.
       ``(e) Tribal Transportation Facilities, Federal Lands 
     Transportation Facilities, and Public Roads on Federal 
     Lands.--
       ``(1) Definition of open to public travel.--In this 
     subsection, the term `open to public travel' means, with 
     respect to a road, that, except during scheduled periods, 
     extreme weather conditions, or emergencies, the road is open 
     to the general public for use with a standard passenger 
     vehicle, without restrictive gates or prohibitive signs or 
     regulations, other than for general traffic control or 
     restrictions based on size, weight, or class of registration.
       ``(2) Expenditure of funds.--Notwithstanding subsection 
     (d)(1), the Secretary may expend funds from the emergency 
     fund authorized by this section, independently or in 
     cooperation with any other branch of the Federal Government, 
     a State agency, a tribal government, an organization, or a 
     person, for the repair or reconstruction of tribal 
     transportation facilities, Federal lands transportation 
     facilities, and other federally owned roads that are open to 
     public travel, whether or not those facilities are Federal-
     aid highways.
       ``(3) Reimbursement.--
       ``(A) In general.--The Secretary may reimburse Federal and 
     State agencies (including political subdivisions) for 
     expenditures made for projects determined eligible under this 
     section, including expenditures for emergency repairs made 
     before a determination of eligibility.
       ``(B) Transfers.--With respect to reimbursements described 
     in subparagraph (A)--
       ``(i) those reimbursements to Federal agencies and Indian 
     tribal governments shall be transferred to the account from 
     which the expenditure was made, or to a similar account that 
     remains available for obligation; and
       ``(ii) the budget authority associated with the expenditure 
     shall be restored to the agency from which the authority was 
     derived and shall be available for obligation until the end 
     of the fiscal year following the year in which the transfer 
     occurs.
       ``(f) Treatment of Territories.--For purposes of this 
     section, the Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands shall be 
     considered to be States and parts of the United States, and 
     the chief executive officer of each such territory shall be 
     considered to be a Governor of a State.
       ``(g) Protecting Public Safety and Maintaining Roadways.--
     The Secretary may use not more than 5 percent of amounts from 
     the emergency fund authorized by this section to carry out 
     projects that the Secretary determines are necessary to 
     protect the public safety or to maintain or protect roadways 
     that are included within the scope of an emergency 
     declaration by the Governor of the State or by the President, 
     in accordance with this section, and the Governor deems to be 
     an ongoing concern in order to maintain vehicular traffic on 
     the roadway.''.

     SEC. 1108. SURFACE TRANSPORTATION PROGRAM.

       (a) Eligible Projects.--Section 133(b) of title 23, United 
     States Code, is amended--
       (1) in the matter preceding paragraph (1) by striking 
     ``section 104(b)(3)'' and inserting ``section 104(b)(2)'';
       (2) by striking paragraph (1);
       (3) by redesignating paragraphs (2) through (15) as 
     paragraphs (5) through (18), respectively;
       (4) by inserting before paragraph (5) (as so redesignated) 
     the following:
       ``(1) Construction, reconstruction, rehabilitation, 
     resurfacing, restoration, preservation, or operational 
     improvements for highways, including construction of 
     designated routes of the Appalachian development highway 
     system and local access roads under section 14501 of title 
     40.
       ``(2) Replacement (including replacement with fill 
     material), rehabilitation, preservation, protection 
     (including painting, scour countermeasures, seismic 
     retrofits, impact protection measures, security 
     countermeasures, and protection against extreme events) and 
     application of calcium magnesium acetate, sodium acetate/
     formate, or other environmentally acceptable, minimally 
     corrosive anti-icing and deicing compositions for bridges 
     (and approaches to bridges and other elevated structures) and 
     tunnels on public roads of all functional classifications, 
     including any such construction or reconstruction necessary 
     to accommodate other transportation modes.
       ``(3) Construction of a new bridge or tunnel at a new 
     location on a Federal-aid highway.
       ``(4) Inspection and evaluation of bridges and tunnels and 
     training of bridge and tunnel inspectors (as defined in 
     section 144), and inspection and evaluation of other highway 
     assets (including signs, retaining walls, and drainage 
     structures).'';
       (5) by striking paragraph (6) (as so redesignated) and 
     inserting the following:
       ``(6) Carpool projects, fringe and corridor parking 
     facilities and programs, including electric vehicle and 
     natural gas vehicle infrastructure in accordance with section 
     137, bicycle transportation and pedestrian walkways in 
     accordance with section 217, and the modifications of public 
     sidewalks to comply with the Americans with Disabilities Act 
     of 1990 (42 U.S.C. 12101 et seq.).'';
       (6) by striking paragraph (7) (as so redesignated) and 
     inserting the following:
       ``(7) Highway and transit safety infrastructure 
     improvements and programs, installation of safety barriers 
     and nets on bridges, hazard eliminations, projects to 
     mitigate hazards caused by wildlife, and railway-highway 
     grade crossings.'';
       (7) in paragraph (11) (as so redesignated) by striking 
     ``enhancement activities'' and inserting ``alternatives'';
       (8) by striking paragraph (14) (as so redesignated) and 
     inserting the following:
       ``(14) Environmental mitigation efforts relating to 
     projects funded under this title in the same manner and to 
     the same extent as such activities are eligible under section 
     119(g).''; and
       (9) by inserting after paragraph (18) (as so redesignated) 
     the following:
       ``(19) Projects and strategies designed to support 
     congestion pricing, including electric toll collection and 
     travel demand management strategies and programs.
       ``(20) Recreational trails projects eligible for funding 
     under section 206.
       ``(21) Construction of ferry boats and ferry terminal 
     facilities eligible for funding under section 129(c).
       ``(22) Border infrastructure projects eligible for funding 
     under section 1303 of the SAFETEA-LU (23 U.S.C. 101 note; 
     Public Law 109-59).
       ``(23) Truck parking facilities eligible for funding under 
     section 1401 of the MAP-21.
       ``(24) Development and implementation of a State asset 
     management plan for the National Highway System in accordance 
     with section 119, including data collection, maintenance, and 
     integration and the costs associated with obtaining, 
     updating, and licensing software and equipment required for 
     risk based asset management and performance based management, 
     and for similar activities related to the development and 
     implementation of a performance based management program for 
     other public roads.
       ``(25) A project that, if located within the boundaries of 
     a port terminal, includes only

[[Page 10538]]

     such surface transportation infrastructure modifications as 
     are necessary to facilitate direct intermodal interchange, 
     transfer, and access into and out of the port.
       ``(26) Construction and operational improvements for any 
     minor collector if--
       ``(A) the minor collector, and the project to be carried 
     out with respect to the minor collector, are in the same 
     corridor as, and in proximity to, a Federal-aid highway 
     designated as part of the National Highway System;
       ``(B) the construction or improvements will enhance the 
     level of service on the Federal-aid highway described in 
     subparagraph (A) and improve regional traffic flow; and
       ``(C) the construction or improvements are more cost-
     effective, as determined by a benefit-cost analysis, than an 
     improvement to the Federal-aid highway described in 
     subparagraph (A).''.
       (b) Location of Projects.--Section 133 of title 23, United 
     States Code, is amended by striking subsection (c) and 
     inserting the following:
       ``(c) Location of Projects.--Surface transportation program 
     projects may not be undertaken on roads functionally 
     classified as local or rural minor collectors unless the 
     roads were on a Federal-aid highway system on January 1, 
     1991, except--
       ``(1) as provided in subsection (g);
       ``(2) for projects described in paragraphs (2), (4), (6), 
     (7), (11), (20), (25), and (26) of subsection (b); and
       ``(3) as approved by the Secretary.''.
       (c) Allocation of Apportioned Funds.--Section 133 of the 
     title 23, United States Code, is amended by striking 
     subsection (d) and inserting the following:
       ``(d) Allocations of Apportioned Funds to Areas Based on 
     Population.--
       ``(1) Calculation.--Of the funds apportioned to a State 
     under section 104(b)(2)--
       ``(A) 50 percent for a fiscal year shall be obligated under 
     this section, in proportion to their relative shares of the 
     population of the State--
       ``(i) in urbanized areas of the State with an urbanized 
     area population of over 200,000;
       ``(ii) in areas of the State other than urban areas with a 
     population greater than 5,000; and
       ``(iii) in other areas of the State; and
       ``(B) 50 percent may be obligated in any area of the State.
       ``(2) Metropolitan areas.--Funds attributed to an urbanized 
     area under paragraph (1)(A)(i) may be obligated in the 
     metropolitan area established under section 134 that 
     encompasses the urbanized area.
       ``(3) Consultation with regional transportation planning 
     organizations.--For purposes of paragraph (1)(A)(ii), before 
     obligating funding attributed to an area with a population 
     greater than 5,000 and less than 200,000, a State shall 
     consult with the regional transportation planning 
     organizations that represent the area, if any.
       ``(4) Distribution among urbanized areas of over 200,000 
     population.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the amount of funds that a State is required to obligate 
     under paragraph (1)(A)(i) shall be obligated in urbanized 
     areas described in paragraph (1)(A)(i) based on the relative 
     population of the areas.
       ``(B) Other factors.--The State may obligate the funds 
     described in subparagraph (A) based on other factors if the 
     State and the relevant metropolitan planning organizations 
     jointly apply to the Secretary for the permission to base the 
     obligation on other factors and the Secretary grants the 
     request.
       ``(5) Applicability of planning requirements.--Programming 
     and expenditure of funds for projects under this section 
     shall be consistent with sections 134 and 135.''.
       (d) Administration.--Section 133 of title 23, United States 
     Code, is amended by striking subsection (e) and inserting the 
     following:
       ``(e) Administration.--
       ``(1) Submission of project agreement.--For each fiscal 
     year, each State shall submit a project agreement that--
       ``(A) certifies that the State will meet all the 
     requirements of this section; and
       ``(B) notifies the Secretary of the amount of obligations 
     needed to carry out the program under this section.
       ``(2) Request for adjustments of amounts.--Each State shall 
     request from the Secretary such adjustments to the amount of 
     obligations referred to in paragraph (1)(B) as the State 
     determines to be necessary.
       ``(3) Effect of approval by the secretary.--Approval by the 
     Secretary of a project agreement under paragraph (1) shall be 
     deemed a contractual obligation of the United States to pay 
     surface transportation program funds made available under 
     this title.''.
       (e) Obligation Authority.--Section 133(f)(1) of title 23, 
     United States Code, is amended by striking ``2004 through 
     2006 and the period of fiscal years 2007 through 2009'' and 
     inserting ``2011 through 2014''.
       (f) Bridges Not on Federal-aid Highways.--Section 133 of 
     the title 23, United States Code, is amended by adding at the 
     end the following:
       ``(g) Bridges Not on Federal-aid Highways.--
       ``(1) Definition of off-system bridge.--In this subsection, 
     the term `off-system bridge' means a highway bridge located 
     on a public road, other than a bridge on a Federal-aid 
     highway.
       ``(2) Special rule.--
       ``(A) Set-aside.--Of the amounts apportioned to a State for 
     fiscal year 2013 and each fiscal year thereafter under this 
     section, the State shall obligate for activities described in 
     subsection (b)(2) for off-system bridges an amount that is 
     not less than 15 percent of the amount of funds apportioned 
     to the State for the highway bridge program for fiscal year 
     2009, except that amounts allocated under subsection (d) 
     shall not be obligated to carry out this subsection.
       ``(B) Reduction of expenditures.--The Secretary, after 
     consultation with State and local officials, may reduce the 
     requirement for expenditures for off-system bridges under 
     subparagraph (A) with respect to the State if the Secretary 
     determines that the State has inadequate needs to justify the 
     expenditure.
       ``(3) Credit for bridges not on federal-aid highways.--
     Notwithstanding any other provision of law, with respect to 
     any project not on a Federal-aid highway for the replacement 
     of a bridge or rehabilitation of a bridge that is wholly 
     funded from State and local sources, is eligible for Federal 
     funds under this section, is noncontroversial, is certified 
     by the State to have been carried out in accordance with all 
     standards applicable to such projects under this section, and 
     is determined by the Secretary upon completion to be no 
     longer a deficient bridge--
       ``(A) any amount expended after the date of enactment of 
     this subsection from State and local sources for the project 
     in excess of 20 percent of the cost of construction of the 
     project may be credited to the non-Federal share of the cost 
     of other bridge projects in the State that are eligible for 
     Federal funds under this section; and
       ``(B) that crediting shall be conducted in accordance with 
     procedures established by the Secretary.
       ``(h) Special Rule for Areas of Less Than 5,000 
     Population.--
       ``(1) Special rule.--Notwithstanding subsection (c), and 
     except as provided in paragraph (2), up to 15 percent of the 
     amounts required to be obligated by a State under subsection 
     (d)(1)(A)(iii) for each of fiscal years 2013 through 2014 may 
     be obligated on roads functionally classified as minor 
     collectors.
       ``(2) Suspension.--The Secretary may suspend the 
     application of paragraph (1) with respect to a State if the 
     Secretary determines that the authority provided under 
     paragraph (1) is being used excessively by the State.''.

     SEC. 1109. WORKFORCE DEVELOPMENT.

       (a) On-the-job Training.--Section 140(b) of title 23, 
     United States Code, is amended--
       (1) in the second sentence, by striking ``Whenever 
     apportionments are made under section 104(b)(3) of this 
     title,'' and inserting ``From administrative funds made 
     available under section 104(a),''; and
       (2) in the fourth sentence, by striking ``and the bridge 
     program under section 144''.
       (b) Disadvantaged Business Enterprise.--Section 140(c) of 
     title 23, United States Code, is amended in the second 
     sentence by striking ``Whenever apportionments are made under 
     section 104(b)(3),'' and inserting ``From administrative 
     funds made available under section 104(a),''.

     SEC. 1110. HIGHWAY USE TAX EVASION PROJECTS.

       Section 143 of title 23, United States Code, is amended--
       (1) in subsection (b)--
       (A) by striking paragraph (2) and inserting the following:
       ``(2) Funding.--
       ``(A) In general.--From administrative funds made available 
     under section 104(a), the Secretary shall deduct such sums as 
     are necessary, not to exceed $10,000,000 for each of fiscal 
     years 2013 and 2014, to carry out this section.
       ``(B) Allocation of funds.--Funds made available to carry 
     out this section may be allocated to the Internal Revenue 
     Service and the States at the discretion of the Secretary, 
     except that of funds so made available for each fiscal year, 
     $2,000,000 shall be available only to carry out 
     intergovernmental enforcement efforts, including research and 
     training.''; and
       (B) in paragraph (8) by striking ``section 104(b)(3)'' and 
     inserting ``section 104(b)(2)''; and
       (2) in subsection (c)(3) by striking ``for each of fiscal 
     years 2005 through 2009,'' and inserting ``for each fiscal 
     year,''.

     SEC. 1111. NATIONAL BRIDGE AND TUNNEL INVENTORY AND 
                   INSPECTION STANDARDS.

       (a) In General.--Section 144 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 144. National bridge and tunnel inventory and 
       inspection standards

       ``(a) Findings and Declarations.--
       ``(1) Findings.--Congress finds that--
       ``(A) the condition of the bridges of the United States has 
     improved since the date of enactment of the Transportation 
     Equity Act for the 21st Century (Public Law 105-178; 112 
     Stat. 107), yet continued improvement to bridge conditions is 
     essential to protect the safety of the traveling public and 
     allow for the efficient movement of people and goods on which 
     the economy of the United States relies; and
       ``(B) the systematic preventative maintenance of bridges, 
     and replacement and rehabilitation of deficient bridges, 
     should be undertaken through an overall asset management 
     approach to transportation investment.
       ``(2) Declarations.--Congress declares that it is in the 
     vital interest of the United States--
       ``(A) to inventory, inspect, and improve the condition of 
     the highway bridges and tunnels of the United States;
       ``(B) to use a data-driven, risk-based approach and cost-
     effective strategy for systematic

[[Page 10539]]

     preventative maintenance, replacement, and rehabilitation of 
     highway bridges and tunnels to ensure safety and extended 
     service life;
       ``(C) to use performance-based bridge management systems to 
     assist States in making timely investments;
       ``(D) to ensure accountability and link performance 
     outcomes to investment decisions; and
       ``(E) to ensure connectivity and access for residents of 
     rural areas of the United States through strategic 
     investments in National Highway System bridges and bridges on 
     all public roads.
       ``(b) National Bridge and Tunnel Inventories.--The 
     Secretary, in consultation with the States and Federal 
     agencies with jurisdiction over highway bridges and tunnels, 
     shall--
       ``(1) inventory all highway bridges on public roads, on and 
     off Federal-aid highways, including tribally owned and 
     Federally owned bridges, that are bridges over waterways, 
     other topographical barriers, other highways, and railroads;
       ``(2) inventory all tunnels on public roads, on and off 
     Federal-aid highways, including tribally owned and Federally 
     owned tunnels;
       ``(3) classify the bridges according to serviceability, 
     safety, and essentiality for public use, including the 
     potential impacts to emergency evacuation routes and to 
     regional and national freight and passenger mobility if the 
     serviceability of the bridge is restricted or diminished;
       ``(4) based on that classification, assign each a risk-
     based priority for systematic preventative maintenance, 
     replacement, or rehabilitation; and
       ``(5) determine the cost of replacing each structurally 
     deficient bridge identified under this subsection with a 
     comparable facility or the cost of rehabilitating the bridge.
       ``(c) General Bridge Authority.--
       ``(1) In general.--Except as provided in paragraph (2) and 
     notwithstanding any other provision of law, the General 
     Bridge Act of 1946 (33 U.S.C. 525 et seq.) shall apply to 
     bridges authorized to be replaced, in whole or in part, by 
     this title.
       ``(2) Exception.--Section 502(b) of the General Bridge Act 
     of 1946 (33 U.S.C. 525(b)) and section 9 of the Act of March 
     3, 1899 (33 U.S.C. 401), shall not apply to any bridge 
     constructed, reconstructed, rehabilitated, or replaced with 
     assistance under this title, if the bridge is over waters 
     that--
       ``(A) are not used and are not susceptible to use in the 
     natural condition of the bridge or by reasonable improvement 
     as a means to transport interstate or foreign commerce; and
       ``(B) are--
       ``(i) not tidal; or
       ``(ii) if tidal, used only by recreational boating, 
     fishing, and other small vessels that are less than 21 feet 
     in length.
       ``(d) Inventory Updates and Reports.--
       ``(1) In general.--The Secretary shall--
       ``(A) annually revise the inventories authorized by 
     subsection (b); and
       ``(B) 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 inventories.
       ``(2) Inspection report.--Not later than 2 years after the 
     date of enactment of the MAP-21, each State and appropriate 
     Federal agency shall report element level data to the 
     Secretary, as each bridge is inspected pursuant to this 
     section, for all highway bridges on the National Highway 
     System.
       ``(3) Guidance.--The Secretary shall provide guidance to 
     States and Federal agencies for implementation of this 
     subsection, while respecting the existing inspection schedule 
     of each State.
       ``(4) Bridges not on national highway system.--The 
     Secretary shall--
       ``(A) conduct a study on the benefits, cost-effectiveness, 
     and feasibility of requiring element-level data collection 
     for bridges not on the National Highway System; and
       ``(B) 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.
       ``(e) Bridges Without Taxing Powers.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, any bridge that is owned and operated by an agency that 
     does not have taxing powers and whose functions include 
     operating a federally assisted public transit system 
     subsidized by toll revenues shall be eligible for assistance 
     under this title, but the amount of such assistance shall in 
     no event exceed the cumulative amount which such agency has 
     expended for capital and operating costs to subsidize such 
     transit system.
       ``(2) Insufficient assets.--Before authorizing an 
     expenditure of funds under this subsection, the Secretary 
     shall determine that the applicant agency has insufficient 
     reserves, surpluses, and projected revenues (over and above 
     those required for bridge and transit capital and operating 
     costs) to fund the bridge project or activity eligible for 
     assistance under this title.
       ``(3) Crediting of non-federal funds.--Any non-Federal 
     funds expended for the seismic retrofit of the bridge may be 
     credited toward the non-Federal share required as a condition 
     of receipt of any Federal funds for seismic retrofit of the 
     bridge made available after the date of the expenditure.
       ``(f) Replacement of Destroyed Bridges and Ferry Boat 
     Service.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, a State may use the funds apportioned under section 
     104(b)(2) to construct any bridge that replaces--
       ``(A) any low water crossing (regardless of the length of 
     the low water crossing);
       ``(B) any bridge that was destroyed prior to January 1, 
     1965;
       ``(C) any ferry that was in existence on January 1, 1984; 
     or
       ``(D) any road bridge that is rendered obsolete as a result 
     of a Corps of Engineers flood control or channelization 
     project and is not rebuilt with funds from the Corps of 
     Engineers.
       ``(2) Federal share.--The Federal share payable on any 
     bridge construction carried out under paragraph (1) shall be 
     80 percent of the cost of the construction.
       ``(g) Historic Bridges.--
       ``(1) Definition of historic bridge.--In this subsection, 
     the term `historic bridge' means any bridge that is listed 
     on, or eligible for listing on, the National Register of 
     Historic Places.
       ``(2) Coordination.--The Secretary shall, in cooperation 
     with the States, encourage the retention, rehabilitation, 
     adaptive reuse, and future study of historic bridges.
       ``(3) State inventory.--The Secretary shall require each 
     State to complete an inventory of all bridges on and off 
     Federal-aid highways to determine the historic significance 
     of the bridges.
       ``(4) Eligibility.--
       ``(A) In general.--Subject to subparagraph (B), reasonable 
     costs associated with actions to preserve, or reduce the 
     impact of a project under this chapter on, the historic 
     integrity of a historic bridge shall be eligible as 
     reimbursable project costs under section 133 if the load 
     capacity and safety features of the historic bridge are 
     adequate to serve the intended use for the life of the 
     historic bridge.
       ``(B) Bridges not used for vehicle traffic.--In the case of 
     a historic bridge that is no longer used for motorized 
     vehicular traffic, the costs eligible as reimbursable project 
     costs pursuant to this chapter shall not exceed the estimated 
     cost of demolition of the historic bridge.
       ``(5) Preservation.--Any State that proposes to demolish a 
     historic bridge for a replacement project with funds made 
     available to carry out this section shall first make the 
     historic bridge available for donation to a State, locality, 
     or responsible private entity if the State, locality, or 
     responsible entity enters into an agreement--
       ``(A) to maintain the bridge and the features that give the 
     historic bridge its historic significance; and
       ``(B) to assume all future legal and financial 
     responsibility for the historic bridge, which may include an 
     agreement to hold the State transportation department 
     harmless in any liability action.
       ``(6) Costs incurred.--
       ``(A) In general.--Costs incurred by the State to preserve 
     a historic bridge (including funds made available to the 
     State, locality, or private entity to enable it to accept the 
     bridge) shall be eligible as reimbursable project costs under 
     this chapter in an amount not to exceed the cost of 
     demolition.
       ``(B) Additional funding.--Any bridge preserved pursuant to 
     this paragraph shall not be eligible for any other funds 
     authorized pursuant to this title.
       ``(h) National Bridge and Tunnel Inspection Standards.--
       ``(1) Requirement.--
       ``(A) In general.--The Secretary shall establish and 
     maintain inspection standards for the proper inspection and 
     evaluation of all highway bridges and tunnels for safety and 
     serviceability.
       ``(B) Uniformity.--The standards under this subsection 
     shall be designed to ensure uniformity of the inspections and 
     evaluations.
       ``(2) Minimum requirements of inspection standards.--The 
     standards established under paragraph (1) shall, at a 
     minimum--
       ``(A) specify, in detail, the method by which the 
     inspections shall be carried out by the States, Federal 
     agencies, and tribal governments;
       ``(B) establish the maximum time period between 
     inspections;
       ``(C) establish the qualifications for those charged with 
     carrying out the inspections;
       ``(D) require each State, Federal agency, and tribal 
     government to maintain and make available to the Secretary on 
     request--
       ``(i) written reports on the results of highway bridge and 
     tunnel inspections and notations of any action taken pursuant 
     to the findings of the inspections; and
       ``(ii) current inventory data for all highway bridges and 
     tunnels reflecting the findings of the most recent highway 
     bridge and tunnel inspections conducted; and
       ``(E) establish a procedure for national certification of 
     highway bridge inspectors and tunnel inspectors.
       ``(3) State compliance with inspection standards.--The 
     Secretary shall, at a minimum--
       ``(A) establish, in consultation with the States, Federal 
     agencies, and interested and knowledgeable private 
     organizations and individuals, procedures to conduct reviews 
     of State compliance with--
       ``(i) the standards established under this subsection; and
       ``(ii) the calculation or reevaluation of bridge load 
     ratings; and
       ``(B) establish, in consultation with the States, Federal 
     agencies, and interested and knowledgeable private 
     organizations and individuals, procedures for States to 
     follow in reporting to the Secretary--
       ``(i) critical findings relating to structural or safety-
     related deficiencies of highway bridges and tunnels; and

[[Page 10540]]

       ``(ii) monitoring activities and corrective actions taken 
     in response to a critical finding described in clause (i).
       ``(4) Reviews of state compliance.--
       ``(A) In general.--The Secretary shall annually review 
     State compliance with the standards established under this 
     section.
       ``(B) Noncompliance.--If an annual review in accordance 
     with subparagraph (A) identifies noncompliance by a State, 
     the Secretary shall--
       ``(i) issue a report detailing the issues of the 
     noncompliance by December 31 of the calendar year in which 
     the review was made; and
       ``(ii) provide the State an opportunity to address the 
     noncompliance by--

       ``(I) developing a corrective action plan to remedy the 
     noncompliance; or
       ``(II) resolving the issues of noncompliance not later than 
     45 days after the date of notification.

       ``(5) Penalty for noncompliance.--
       ``(A) In general.--If a State fails to satisfy the 
     requirements of paragraph (4)(B) by August 1 of the calendar 
     year following the year of a finding of noncompliance, the 
     Secretary shall, on October 1 of that year, and each year 
     thereafter as may be necessary, require the State to dedicate 
     funds apportioned to the State under sections 119 and 133 
     after the date of enactment of the MAP-21 to correct the 
     noncompliance with the minimum inspection standards 
     established under this subsection.
       ``(B) Amount.--The amount of the funds to be directed to 
     correcting noncompliance in accordance with subparagraph (A) 
     shall--
       ``(i) be determined by the State based on an analysis of 
     the actions needed to address the noncompliance; and
       ``(ii) require approval by the Secretary.
       ``(6) Update of standards.--Not later than 3 years after 
     the date of enactment of the MAP-21, the Secretary shall 
     update inspection standards to cover--
       ``(A) the methodology, training, and qualifications for 
     inspectors; and
       ``(B) the frequency of inspection.
       ``(7) Risk-based approach.--In carrying out the revisions 
     required by paragraph (6), the Secretary shall consider a 
     risk-based approach to determining the frequency of bridge 
     inspections.
       ``(i) Training Program for Bridge and Tunnel Inspectors.--
       ``(1) In general.--The Secretary, in cooperation with the 
     State transportation departments, shall maintain a program 
     designed to train appropriate personnel to carry out highway 
     bridge and tunnel inspections.
       ``(2) Revisions.--The training program shall be revised 
     from time to time to take into account new and improved 
     techniques.
       ``(j) Availability of Funds.--In carrying out this 
     section--
       ``(1) the Secretary may use funds made available to the 
     Secretary under sections 104(a) and 503;
       ``(2) a State may use amounts apportioned to the State 
     under section 104(b)(1) and 104(b)(3);
       ``(3) an Indian tribe may use funds made available to the 
     Indian tribe under section 202; and
       ``(4) a Federal agency may use funds made available to the 
     agency under section 503.''.
       (b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 144 and inserting the following:

``144. National bridge and tunnel inventory and inspection 
              standards.''.

     SEC. 1112. HIGHWAY SAFETY IMPROVEMENT PROGRAM.

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

     ``Sec. 148. Highway safety improvement program

       ``(a) Definitions.--In this section, the following 
     definitions apply:
       ``(1) High risk rural road.--The term `high risk rural 
     road' means any roadway functionally classified as a rural 
     major or minor collector or a rural local road with 
     significant safety risks, as defined by a State in accordance 
     with an updated State strategic highway safety plan.
       ``(2) Highway basemap.--The term `highway basemap' means a 
     representation of all public roads that can be used to 
     geolocate attribute data on a roadway.
       ``(3) Highway safety improvement program.--The term 
     `highway safety improvement program' means projects, 
     activities, plans, and reports carried out under this 
     section.
       ``(4) Highway safety improvement project.--
       ``(A) In general.--The term `highway safety improvement 
     project' means strategies, activities, and projects on a 
     public road that are consistent with a State strategic 
     highway safety plan and--
       ``(i) correct or improve a hazardous road location or 
     feature; or
       ``(ii) address a highway safety problem.
       ``(B) Inclusions.--The term `highway safety improvement 
     project' includes, but is not limited to, a project for 1 or 
     more of the following:
       ``(i) An intersection safety improvement.
       ``(ii) Pavement and shoulder widening (including addition 
     of a passing lane to remedy an unsafe condition).
       ``(iii) Installation of rumble strips or another warning 
     device, if the rumble strips or other warning devices do not 
     adversely affect the safety or mobility of bicyclists and 
     pedestrians, including persons with disabilities.
       ``(iv) Installation of a skid-resistant surface at an 
     intersection or other location with a high frequency of 
     crashes.
       ``(v) An improvement for pedestrian or bicyclist safety or 
     safety of persons with disabilities.
       ``(vi) Construction and improvement of a railway-highway 
     grade crossing safety feature, including installation of 
     protective devices.
       ``(vii) The conduct of a model traffic enforcement activity 
     at a railway-highway crossing.
       ``(viii) Construction of a traffic calming feature.
       ``(ix) Elimination of a roadside hazard.
       ``(x) Installation, replacement, and other improvement of 
     highway signage and pavement markings, or a project to 
     maintain minimum levels of retroreflectivity, that addresses 
     a highway safety problem consistent with a State strategic 
     highway safety plan.
       ``(xi) Installation of a priority control system for 
     emergency vehicles at signalized intersections.
       ``(xii) Installation of a traffic control or other warning 
     device at a location with high crash potential.
       ``(xiii) Transportation safety planning.
       ``(xiv) Collection, analysis, and improvement of safety 
     data.
       ``(xv) Planning integrated interoperable emergency 
     communications equipment, operational activities, or traffic 
     enforcement activities (including police assistance) relating 
     to work zone safety.
       ``(xvi) Installation of guardrails, barriers (including 
     barriers between construction work zones and traffic lanes 
     for the safety of road users and workers), and crash 
     attenuators.
       ``(xvii) The addition or retrofitting of structures or 
     other measures to eliminate or reduce crashes involving 
     vehicles and wildlife.
       ``(xviii) Installation of yellow-green signs and signals at 
     pedestrian and bicycle crossings and in school zones.
       ``(xix) Construction and operational improvements on high 
     risk rural roads.
       ``(xx) Geometric improvements to a road for safety purposes 
     that improve safety.
       ``(xxi) A road safety audit.
       ``(xxii) Roadway safety infrastructure improvements 
     consistent with the recommendations included in the 
     publication of the Federal Highway Administration entitled 
     `Highway Design Handbook for Older Drivers and Pedestrians' 
     (FHWA-RD-01-103), dated May 2001 or as subsequently revised 
     and updated.
       ``(xxiii) Truck parking facilities eligible for funding 
     under section 1401 of the MAP-21.
       ``(xxiv) Systemic safety improvements.
       ``(5) Model inventory of roadway elements.--The term `model 
     inventory of roadway elements' means the listing and 
     standardized coding by the Federal Highway Administration of 
     roadway and traffic data elements critical to safety 
     management, analysis, and decisionmaking.
       ``(6) Project to maintain minimum levels of 
     retroreflectivity.--The term `project to maintain minimum 
     levels of retroreflectivity' means a project that is designed 
     to maintain a highway sign or pavement marking 
     retroreflectivity at or above the minimum levels prescribed 
     in Federal or State regulations.
       ``(7) Road safety audit.--The term `road safety audit' 
     means a formal safety performance examination of an existing 
     or future road or intersection by an independent 
     multidisciplinary audit team.
       ``(8) Road users.--The term `road user' means a motorist, 
     passenger, public transportation operator or user, truck 
     driver, bicyclist, motorcyclist, or pedestrian, including a 
     person with disabilities.
       ``(9) Safety data.--
       ``(A) In general.--The term `safety data' means crash, 
     roadway, and traffic data on a public road.
       ``(B) Inclusion.--The term `safety data' includes, in the 
     case of a railway-highway grade crossing, the characteristics 
     of highway and train traffic, licensing, and vehicle data.
       ``(10) 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--
       ``(i) a project consistent with the State strategic highway 
     safety plan that promotes the awareness of the public and 
     educates the public concerning highway safety matters 
     (including motorcycle safety);
       ``(ii) a project to enforce highway safety laws; and
       ``(iii) a project to provide infrastructure and 
     infrastructure-related equipment to support emergency 
     services.
       ``(11) State highway safety improvement program.--The term 
     `State highway safety improvement program' means a program of 
     highway safety improvement projects, activities, plans and 
     reports carried out as part of the Statewide transportation 
     improvement program under section 135(g).
       ``(12) State strategic highway safety plan.--The term 
     `State strategic highway safety plan' means a comprehensive 
     plan, based on safety data, developed by a 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) a highway-rail grade crossing safety representative 
     of the Governor of the State;

[[Page 10541]]

       ``(vi) representatives conducting a motor carrier safety 
     program under section 31102, 31106, or 31309 of title 49;
       ``(vii) motor vehicle administration agencies;
       ``(viii) county transportation officials;
       ``(ix) State representatives of nonmotorized users; and
       ``(x) other major Federal, State, tribal, and local safety 
     stakeholders;
       ``(B) analyzes and makes effective use of State, regional, 
     local, or tribal safety 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, all public roads, including non-State-owned public roads 
     and roads on tribal land;
       ``(E) considers the results of State, regional, or local 
     transportation and highway safety planning processes;
       ``(F) describes a program of strategies to reduce or 
     eliminate safety hazards;
       ``(G) is approved by the Governor of the State or a 
     responsible State agency;
       ``(H) is consistent with section 135(g); and
       ``(I) is updated and submitted to the Secretary for 
     approval as required under subsection (d)(2).
       ``(13) Systemic safety improvement.--The term `systemic 
     safety improvement' means an improvement that is widely 
     implemented based on high-risk roadway features that are 
     correlated with particular crash types, rather than crash 
     frequency.
       ``(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 all 
     public roads, including non-State-owned public roads and 
     roads on tribal land.
       ``(c) Eligibility.--
       ``(1) In general.--To obligate funds apportioned under 
     section 104(b)(3) to carry out this section, a State shall 
     have in effect a State highway safety improvement program 
     under which the State--
       ``(A) develops, implements, and updates a State strategic 
     highway safety plan that identifies and analyzes highway 
     safety problems and opportunities as provided in subsections 
     (a)(12) and (d);
       ``(B) produces a program of projects or strategies to 
     reduce identified safety problems; and
       ``(C) evaluates the strategic highway safety plan on a 
     regularly recurring basis in accordance with subsection 
     (d)(1) to ensure the accuracy of the data and priority of 
     proposed strategies.
       ``(2) Identification and analysis of highway safety 
     problems and opportunities.--As part of the State highway 
     safety improvement program, a State shall--
       ``(A) have in place a safety data system with the ability 
     to perform safety problem identification and countermeasure 
     analysis--
       ``(i) to improve the timeliness, accuracy, completeness, 
     uniformity, integration, and accessibility of the safety data 
     on all public roads, including non-State-owned public roads 
     and roads on tribal land in the State;
       ``(ii) to evaluate the effectiveness of data improvement 
     efforts;
       ``(iii) to link State data systems, including traffic 
     records, with other data systems within the State;
       ``(iv) to improve the compatibility and interoperability of 
     safety data with other State transportation-related data 
     systems and the compatibility and interoperability of State 
     safety data systems with data systems of other States and 
     national data systems;
       ``(v) to enhance the ability of the Secretary to observe 
     and analyze national trends in crash occurrences, rates, 
     outcomes, and circumstances; and
       ``(vi) to improve the collection of data on nonmotorized 
     crashes;
       ``(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;
       ``(ii) using such criteria as the State determines to be 
     appropriate, establish the relative severity of those 
     locations, in terms of crashes (including crash rates), 
     fatalities, serious injuries, traffic volume levels, and 
     other relevant data;
       ``(iii) identify the number of fatalities and serious 
     injuries on all public roads by location in the State;
       ``(iv) identify highway safety improvement projects on the 
     basis of crash experience, crash potential, crash rate, or 
     other data-supported means; and
       ``(v) consider which projects maximize opportunities to 
     advance safety;
       ``(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 safety data 
     collection, analysis, and integration 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, including public non-
     State-owned roads and roads on tribal land;
       ``(iii) identifies hazardous locations, sections, and 
     elements on all public roads that constitute a danger to 
     motorists (including motorcyclists), bicyclists, pedestrians, 
     persons with disabilities, and other highway users;
       ``(iv) includes a means of identifying the relative 
     severity of hazardous locations described in clause (iii) in 
     terms of crashes (including crash rate), serious injuries, 
     fatalities, and traffic volume levels; and
       ``(v) improves the ability of the State to identify the 
     number of fatalities and serious injuries on all public roads 
     in the State with a breakdown by functional classification 
     and ownership in the State;
       ``(E)(i) determine priorities for the correction of 
     hazardous road locations, sections, and elements (including 
     railway-highway crossing improvements), as identified through 
     safety 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) Updates to Strategic Highway Safety Plans.--
       ``(1) Establishment of requirements.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of the MAP-21, the Secretary shall establish 
     requirements for regularly recurring State updates of 
     strategic highway safety plans.
       ``(B) Contents of updated strategic highway safety plans.--
     In establishing requirements under this subsection, the 
     Secretary shall ensure that States take into consideration, 
     with respect to updated strategic highway safety plans--
       ``(i) the findings of road safety audits;
       ``(ii) the locations of fatalities and serious injuries;
       ``(iii) the locations that do not have an empirical history 
     of fatalities and serious injuries, but possess risk factors 
     for potential crashes;
       ``(iv) rural roads, including all public roads, 
     commensurate with fatality data;
       ``(v) motor vehicle crashes that include fatalities or 
     serious injuries to pedestrians and bicyclists;
       ``(vi) the cost-effectiveness of improvements;
       ``(vii) improvements to rail-highway grade crossings; and
       ``(viii) safety on all public roads, including non-State-
     owned public roads and roads on tribal land.
       ``(2) Approval of updated strategic highway safety plans.--
       ``(A) In general.--Each State shall--
       ``(i) update the strategic highway safety plans of the 
     State in accordance with the requirements established by the 
     Secretary under this subsection; and
       ``(ii) submit the updated plans to the Secretary, along 
     with a detailed description of the process used to update the 
     plan.
       ``(B) Requirements for approval.--The Secretary shall not 
     approve the process for an updated strategic highway safety 
     plan unless--
       ``(i) the updated strategic highway safety plan is 
     consistent with the requirements of this subsection and 
     subsection (a)(12); and
       ``(ii) the process used is consistent with the requirements 
     of this subsection.
       ``(3) Penalty for failure to have an approved updated 
     strategic highway safety plan.--If a State does not have an 
     updated strategic highway safety plan with a process approved 
     by the Secretary by August 1 of the fiscal year beginning 
     after the date of establishment of the requirements under 
     paragraph (1), the State shall not be eligible to receive any 
     additional limitation pursuant to the redistribution of the 
     limitation on obligations for Federal-aid highway and highway 
     safety construction programs that occurs after August 1 for 
     each succeeding fiscal year until the fiscal year during 
     which the plan is approved.
       ``(e) Eligible Projects.--
       ``(1) In general.--Funds apportioned to the State under 
     section 104(b)(3) may be obligated to carry out--
       ``(A) any highway safety improvement project on any public 
     road or publicly owned bicycle or pedestrian pathway or 
     trail;
       ``(B) as provided in subsection (g); or
       ``(C) any project to maintain minimum levels of 
     retroreflectivity with respect to a public road, without 
     regard to whether the project is included in an applicable 
     State strategic highway safety plan.
       ``(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 the safety needs and opportunities of the 
     States by using funds made available under other provisions 
     of this title (except a provision that specifically prohibits 
     that use).

[[Page 10542]]

       ``(f) Data Improvement.--
       ``(1) Definition of data improvement activities.--In this 
     subsection, the following definitions apply:
       ``(A) In general.--The term `data improvement activities' 
     means a project or activity to further the capacity of a 
     State to make more informed and effective safety 
     infrastructure investment decisions.
       ``(B) Inclusions.--The term `data improvement activities' 
     includes a project or activity--
       ``(i) to create, update, or enhance a highway basemap of 
     all public roads in a State;
       ``(ii) to collect safety data, including data identified as 
     part of the model inventory for roadway elements, for 
     creation of or use on a highway basemap of all public roads 
     in a State;
       ``(iii) to store and maintain safety data in an electronic 
     manner;
       ``(iv) to develop analytical processes for safety data 
     elements;
       ``(v) to acquire and implement roadway safety analysis 
     tools; and
       ``(vi) to support the collection, maintenance, and sharing 
     of safety data on all public roads and related systems 
     associated with the analytical usage of that data.
       ``(2) Model inventory of roadway elements.--The Secretary 
     shall--
       ``(A) establish a subset of the model inventory of roadway 
     elements that are useful for the inventory of roadway safety; 
     and
       ``(B) ensure that States adopt and use the subset to 
     improve data collection.
       ``(g) Special Rules.--
       ``(1) High-risk rural road safety.--If the fatality rate on 
     rural roads in a State increases over the most recent 2-year 
     period for which data are available, that State shall be 
     required to obligate in the next fiscal year for projects on 
     high risk rural roads an amount equal to at least 200 percent 
     of the amount of funds the State received for fiscal year 
     2009 for high risk rural roads under subsection (f) of this 
     section, as in effect on the day before the date of enactment 
     of the MAP-21.
       ``(2) Older drivers.--If traffic fatalities and serious 
     injuries per capita for drivers and pedestrians over the age 
     of 65 in a State increases during the most recent 2-year 
     period for which data are available, that State shall be 
     required to include, in the subsequent Strategic Highway 
     Safety Plan of the State, strategies to address the increases 
     in those rates, taking into account the recommendations 
     included in the publication of the Federal Highway 
     Administration entitled `Highway Design Handbook for Older 
     Drivers and Pedestrians' (FHWA-RD-01-103), and dated May 
     2001, or as subsequently revised and updated.
       ``(h) 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 have contributed to reducing--
       ``(i) the number and rate of fatalities on all public roads 
     with, to the maximum extent practicable, a breakdown by 
     functional classification and ownership in the State;
       ``(ii) the number and rate of serious injuries on all 
     public roads with, to the maximum extent practicable, a 
     breakdown by functional classification and ownership in the 
     State; and
       ``(iii) the occurrences of fatalities and serious injuries 
     at railway-highway crossings.
       ``(2) Contents; schedule.--The Secretary shall establish 
     the content and schedule for the submission of the report 
     under paragraph (1).
       ``(3) Transparency.--The Secretary shall make strategic 
     highway safety plans submitted under subsection (d) and 
     reports submitted under this subsection available to the 
     public through--
       ``(A) the website 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 relating to this 
     section, 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 the 
     reports, surveys, schedules, lists, or other data.
       ``(i) State Performance Targets.--If the Secretary 
     determines that a State has not met or made significant 
     progress toward meeting the performance targets of the State 
     established under section 150(d) by the date that is 2 years 
     after the date of the establishment of the performance 
     targets, the State shall--
       ``(1) use obligation authority equal to the apportionment 
     of the State for the prior year under section 104(b)(3) only 
     for highway safety improvement projects under this section 
     until the Secretary determines that the State has met or made 
     significant progress toward meeting the performance targets 
     of the State; and
       ``(2) submit annually to the Secretary, until the Secretary 
     determines that the State has met or made significant 
     progress toward meeting the performance targets of the State, 
     an implementation plan that--
       ``(A) identifies roadway features that constitute a hazard 
     to road users;
       ``(B) identifies highway safety improvement projects on the 
     basis of crash experience, crash potential, or other data-
     supported means;
       ``(C) describes how highway safety improvement program 
     funds will be allocated, including projects, activities, and 
     strategies to be implemented;
       ``(D) describes how the proposed projects, activities, and 
     strategies funded under the State highway safety improvement 
     program will allow the State to make progress toward 
     achieving the safety performance targets of the State; and
       ``(E) describes the actions the State will undertake to 
     meet the performance targets of the State.
       ``(j) Federal Share of Highway Safety Improvement 
     Projects.--Except as provided in sections 120 and 130, the 
     Federal share of the cost of a highway safety improvement 
     project carried out with funds apportioned to a State under 
     section 104(b)(3) shall be 90 percent.''.
       (b) Study of High-risk Rural Roads Best Practices.--
       (1) Study.--
       (A) In general.--The Secretary shall conduct a study of the 
     best practices for implementing cost-effective roadway safety 
     infrastructure improvements on high-risk rural roads.
       (B) Methodology.--In carrying out the study, the Secretary 
     shall--
       (i) conduct a thorough literature review;
       (ii) survey current practices of State departments of 
     transportation; and
       (iii) survey current practices of local units of 
     government, as appropriate.
       (C) Consultation.--In carrying out the study, the Secretary 
     shall consult with--
       (i) State departments of transportation;
       (ii) county engineers and public works professionals;
       (iii) appropriate local officials; and
       (iv) appropriate private sector experts in the field of 
     roadway safety infrastructure.
       (2) Report.--
       (A) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Environment and Public Works of the Senate and 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives a report on the results of the 
     study.
       (B) Contents.--The report shall include--
       (i) a summary of cost-effective roadway safety 
     infrastructure improvements;
       (ii) a summary of the latest research on the financial 
     savings and reduction in fatalities and serious bodily injury 
     crashes from the implementation of cost-effective roadway 
     safety infrastructure improvements; and
       (iii) recommendations for State and local governments on 
     best practice methods to install cost-effective roadway 
     safety infrastructure on high-risk rural roads.
       (3) Manual.--
       (A) Development.--Based on the results of the study under 
     paragraph (2), the Secretary, in consultation with the 
     individuals and entities described in paragraph (1)(C), shall 
     develop a best practices manual to support Federal, State, 
     and local efforts to reduce fatalities and serious bodily 
     injury crashes on high-risk rural roads through the use of 
     cost-effective roadway safety infrastructure improvements.
       (B) Availability.--The manual shall be made available to 
     State and local governments not later than 180 days after the 
     date of submission of the report under paragraph (2).
       (C) Contents.--The manual shall include, at a minimum, a 
     list of cost-effective roadway safety infrastructure 
     improvements and best practices on the installation of cost-
     effective roadway safety infrastructure improvements on high-
     risk rural roads.
       (D) Use of manual.--Use of the manual shall be voluntary 
     and the manual shall not establish any binding standards or 
     legal duties on State or local governments, or any other 
     person.

     SEC. 1113. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT 
                   PROGRAM.

       (a) Eligible Projects.--Section 149(b) of title 23, United 
     States Code, is amended--
       (1) in the matter preceding paragraph (1)--
       (A) by striking ``in subsection (c)'' and inserting ``in 
     subsection (d)''; and
       (B) by striking ``section 104(b)(2)'' and inserting 
     ``section 104(b)(4)'';
       (2) in paragraph (5)--
       (A) by inserting ``add turning lanes,'' after ``improve 
     intersections,''; and
       (B) by striking ``paragraph;'' and inserting ``paragraph, 
     including programs or projects to improve incident and 
     emergency response or improve mobility, such as through real-
     time traffic, transit, and multimodal traveler 
     information;'';
       (3) in paragraph (6) by striking ``or'' at the end;
       (4) in paragraph (7)(A)(ii) by striking ``published in the 
     list under subsection (f)(2)'' and inserting ``verified 
     technologies (as defined in section 791 of the Energy Policy 
     Act of 2005 (42 U.S.C. 16131))'';
       (5) by striking the matter following paragraph (7);
       (6) by redesignating paragraph (7) as paragraph (8); and
       (7) by inserting after paragraph (6) the following:
       ``(7) if the project or program shifts traffic demand to 
     nonpeak hours or other transportation modes, increases 
     vehicle occupancy rates, or otherwise reduces demand for 
     roads through such means as telecommuting, ridesharing, 
     carsharing, alternative work hours, and pricing; or''.
       (b) Special Rules.--Section 149 of title 23, United States 
     Code, is amended--

[[Page 10543]]

       (1) by redesignating subsections (c) through (h) as 
     subsections (d) through (i) respectively;
       (2) by inserting after subsection (b) the following:
       ``(c) Special Rules.--
       ``(1) Projects for pm-10 nonattainment areas.--A State may 
     obligate funds apportioned to the State under section 
     104(b)(4) for a project or program for an area that is 
     nonattainment for ozone or carbon monoxide, or both, and for 
     PM-10 resulting from transportation activities, without 
     regard to any limitation of the Department of Transportation 
     relating to the type of ambient air quality standard such 
     project or program addresses.
       ``(2) Electric vehicle and natural gas vehicle 
     infrastructure.--A State may obligate funds apportioned under 
     section 104(b)(4) for a project or program to establish 
     electric vehicle charging stations or natural gas vehicle 
     refueling stations for the use of battery powered or natural 
     gas fueled trucks or other motor vehicles at any location in 
     the State except that such stations may not be established or 
     supported where commercial establishments serving motor 
     vehicle users are prohibited by section 111 of title 23, 
     United States Code.
       ``(3) HOV facilities.--No funds may be provided under this 
     section for a project which will result in the construction 
     of new capacity available to single occupant vehicles unless 
     the project consists of a high occupancy vehicle facility 
     available to single occupant vehicles only at other than peak 
     travel times.'';
       (3) by striking subsection (d) (as redesignated by 
     paragraph (1)) and inserting the following:
       ``(d) States Flexibility.--
       ``(1) States without a nonattainment area.--If a State does 
     not have, and never has had, a nonattainment area designated 
     under the Clean Air Act (42 U.S.C. 7401 et seq.), the State 
     may use funds apportioned to the State under section 
     104(b)(4) for any project in the State that--
       ``(A) would otherwise be eligible under subsection (b) 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.
       ``(2) States with a nonattainment area.--
       ``(A) In general.--If a State has a nonattainment area or 
     maintenance area and received funds in fiscal year 2009 under 
     section 104(b)(2)(D), as in effect on the day before the date 
     of enactment of the MAP-21, above the amount of funds that 
     the State would have received based on the nonattainment and 
     maintenance area population of the State under subparagraphs 
     (B) and (C) of section 104(b)(2), as in effect on the day 
     before the date of enactment of the MAP-21, the State may use 
     for any project that is eligible under the surface 
     transportation program under section 133 an amount of funds 
     apportioned to such State under section 104(b)(4) that is 
     equal to the product obtained by multiplying--
       ``(i) the amount apportioned to such State under section 
     104(b)(4) (excluding the amount of funds reserved under 
     paragraph (l)); by
       ``(ii) the ratio calculated under subparagraph (B).
       ``(B) Ratio.--For purposes of this paragraph, the ratio 
     shall be calculated as the proportion that--
       ``(i) the amount for fiscal year 2009 such State was 
     permitted by section 149(c)(2), as in effect on the day 
     before the date of enactment of the MAP-21, to obligate in 
     any area of the State for projects eligible under section 
     133, as in effect on the day before the date of enactment of 
     the MAP-21t; bears to
       ``(ii) the total apportionment to such State for fiscal 
     year 2009 under section 104(b)(2), as in effect on the day 
     before the date of enactment of the MAP-21.
       ``(3) Changes in designation.--If a new nonattainment area 
     is designated or a previously designated nonattainment area 
     is redesignated as an attainment area in a State under the 
     Clean Air Act (42 U.S.C. 7401 et seq.), the Secretary shall 
     modify the amount such State is permitted to obligate in any 
     area of the State for projects eligible under section 133.'';
       (4) in subsection (f)(3) (as redesignated by paragraph (1)) 
     by striking ``104(b)(2)'' and inserting ``104(b)(4)'';
       (5) in subsection (g) (as redesignated by paragraph (1)) by 
     striking paragraph (3) and inserting the following:
       ``(3) Priority consideration.--States and metropolitan 
     planning organizations shall give priority in areas 
     designated as nonattainment or maintenance for PM2.5 under 
     the Clean Air Act (42 U.S.C. 7401 et seq.) in distributing 
     funds received for congestion mitigation and air quality 
     projects and programs from apportionments under section 
     104(b)(4) to projects that are proven to reduce PM2.5, 
     including diesel retrofits.'';
       (6) by striking subsection (i) (as redesignated by 
     paragraph (1)) and inserting the following:
       ``(i) Evaluation and Assessment of Projects.--
       ``(1) Database.--
       ``(A) In general.--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, including 
     specific information about each project, such as the project 
     name, location, sponsor, cost, and, to the extent already 
     measured by the project sponsor, cost-effectiveness, based on 
     reductions in congestion and emissions.
       ``(B) Availability.--The database shall be published or 
     otherwise made readily available by the Secretary in 
     electronically accessible format and means, such as the 
     Internet, for public review.
       ``(2) Cost effectiveness.--
       ``(A) In general.--The Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency, shall 
     evaluate projects on a periodic basis and develop a table or 
     other similar medium that illustrates the cost-effectiveness 
     of a range of project types eligible for funding under this 
     section as to how the projects mitigate congestion and 
     improve air quality.
       ``(B) Contents.--The table described in subparagraph (A) 
     shall show measures of cost-effectiveness, such as dollars 
     per ton of emissions reduced, and assess those measures over 
     a variety of timeframes to capture impacts on the planning 
     timeframes outlined in section 134.
       ``(C) Use of table.--States and metropolitan planning 
     organizations shall consider the information in the table 
     when selecting projects or developing performance plans under 
     subsection (l).
       ``(j) Optional Programmatic Eligibility.--
       ``(1) In general.--At the discretion of a metropolitan 
     planning organization, a technical assessment of a selected 
     program of projects may be conducted through modeling or 
     other means to demonstrate the emissions reduction projection 
     required under this section.
       ``(2) Applicability.--If an assessment described in 
     paragraph (1) successfully demonstrates an emissions 
     reduction, all projects included in such assessment shall be 
     eligible for obligation under this section without further 
     demonstration of emissions reduction of individual projects 
     included in such assessment.
       ``(k) Priority for Use of Funds in PM2.5 Areas.--
       ``(1) In general.--For any State that has a nonattainment 
     or maintenance area for fine particulate matter, an amount 
     equal to 25 percent of the funds apportioned to each State 
     under section 104(b)(4) for a nonattainment or maintenance 
     area that are based all or in part on the weighted population 
     of such area in fine particulate matter nonattainment shall 
     be obligated to projects that reduce such fine particulate 
     matter emissions in such area, including diesel retrofits.
       ``(2) Construction equipment and vehicles.--In order to 
     meet the requirements of paragraph (1), a State or 
     metropolitan planning organization may elect to obligate 
     funds to install diesel emission control technology on 
     nonroad diesel equipment or on-road diesel equipment that is 
     operated on a highway construction project within a PM2.5 
     nonattainment or maintenance area.
       ``(l) Performance Plan.--
       ``(1) In general.--Each metropolitan planning organization 
     serving a transportation management area (as defined in 
     section 134) with a population over 1,000,000 people 
     representing a nonattainment or maintenance area shall 
     develop a performance plan that--
       ``(A) includes an area baseline level for traffic 
     congestion and on-road mobile source emissions for which the 
     area is in nonattainment or maintenance;
       ``(B) describes progress made in achieving the performance 
     targets described in section 150(d); and
       ``(C) includes a description of projects identified for 
     funding under this section and how such projects will 
     contribute to achieving emission and traffic congestion 
     reduction targets.
       ``(2) Updated plans.--Performance plans shall be updated 
     biennially and include a separate report that assesses the 
     progress of the program of projects under the previous plan 
     in achieving the air quality and traffic congestion targets 
     of the previous plan.
       ``(m) Operating Assistance.--A State may obligate funds 
     apportioned under section 104(b)(2) in an area of such State 
     that is otherwise eligible for obligations of such funds for 
     operating costs under chapter 53 of title 49 or on a system 
     that was previously eligible under this section.''.
       (c) Air Quality and Congestion Mitigation Measure Outcomes 
     Assessment Study.--
       (1) In general.--The Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency, shall 
     examine the outcomes of actions funded under the congestion 
     mitigation and air quality improvement program since the date 
     of enactment of the SAFETEA-LU (Public Law 109-59).
       (2) Goals.--The goals of the program shall include--
       (A) the assessment and documentation, through outcomes 
     research conducted on a representative sample of cases, of--
       (i) the emission reductions achieved by federally supported 
     surface transportation actions intended to reduce emissions 
     or lessen traffic congestion; and
       (ii) the air quality and human health impacts of those 
     actions, including potential unrecognized or indirect 
     consequences, attributable to those actions;
       (B) an expanded base of empirical evidence on the air 
     quality and human health impacts of actions described in 
     paragraph (1); and
       (C) an increase in knowledge of--
       (i) the factors determining the air quality and human 
     health changes associated with transportation emission 
     reduction actions; and
       (ii) other information to more accurately understand the 
     validity of current estimation and modeling routines and ways 
     to improve those routines.
       (3) Administrative elements.--To carry out this subsection, 
     the Secretary shall--
       (A) make a grant for the coordination, selection, 
     management, and reporting of component

[[Page 10544]]

     studies to an independent scientific research organization 
     with the necessary experience in successfully conducting 
     accountability and other studies on mobile source air 
     pollutants and associated health effects;
       (B) ensure that case studies are identified and conducted 
     by teams selected through a competitive solicitation overseen 
     by an independent committee of unbiased experts; and
       (C) ensure that all findings and reports are peer-reviewed 
     and published in a form that presents the findings together 
     with reviewer comments.
       (4) Report.--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) not later than 1 year after the date of enactment of 
     the MAP-21, and for the following year, a report providing an 
     initial scoping and plan, and status updates, respectively, 
     for the program under this subsection; and
       (B) not later than 2 years after the date of enactment of 
     the MAP-21, a final report that describes the findings of, 
     and recommendations resulting from, the program under this 
     subsection.
       (5) Funding.--Of the amounts made available to carry out 
     section 104(a) for fiscal year 2013, the Secretary shall make 
     available to carry out this subsection not more than 
     $1,000,000.

     SEC. 1114. TERRITORIAL AND PUERTO RICO HIGHWAY PROGRAM.

       (a) In General.--Section 165 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 165. Territorial and Puerto Rico highway program

       ``(a) Division of Funds.--Of funds made available in a 
     fiscal year for the territorial and Puerto Rico highway 
     program--
       ``(1) $150,000,000 shall be for the Puerto Rico highway 
     program under subsection (b); and
       ``(2) $40,000,000 shall be for the territorial highway 
     program under subsection (c).
       ``(b) Puerto Rico Highway Program.--
       ``(1) In general.--The Secretary shall allocate funds made 
     available to carry out this subsection to the Commonwealth of 
     Puerto Rico to carry out a highway program in the 
     Commonwealth.
       ``(2) Treatment of funds.--Amounts made available to carry 
     out this subsection for a fiscal year shall be administered 
     as follows:
       ``(A) Apportionment.--
       ``(i) In general.--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 (as in effect for fiscal year 1997) for each program 
     funded under those sections in an amount determined by 
     multiplying--

       ``(I) the aggregate of the amounts for the fiscal year; by
       ``(II) the proportion that--

       ``(aa) the amount of funds apportioned to Puerto Rico for 
     each such program for fiscal year 1997; bears to
       ``(bb) the total amount of funds apportioned to Puerto Rico 
     for all such programs for fiscal year 1997.
       ``(ii) Exception.--Funds identified under clause (i) as 
     having been apportioned for the national highway system, the 
     surface transportation program, and the Interstate 
     maintenance program shall be deemed to have been apportioned 
     50 percent for the national highway performance program and 
     50 percent for the surface transportation program for 
     purposes of imposing such penalties.
       ``(B) Penalty.--The amounts treated as being apportioned to 
     Puerto Rico under each section referred to in subparagraph 
     (A) shall be deemed to be required to be apportioned to 
     Puerto Rico under that section for purposes of the imposition 
     of any penalty under this title or title 49.
       ``(C) Eligible uses of funds.--Of amounts allocated to 
     Puerto Rico for the Puerto Rico Highway Program for a fiscal 
     year--
       ``(i) at least 50 percent shall be available only for 
     purposes eligible under section 119;
       ``(ii) at least 25 percent shall be available only for 
     purposes eligible under section 148; and
       ``(iii) any remaining funds may be obligated for activities 
     eligible under chapter 1.
       ``(3) Effect on apportionments.--Except as otherwise 
     specifically provided, Puerto Rico shall not be eligible to 
     receive funds apportioned to States under this title.
       ``(c) Territorial Highway Program.--
       ``(1) Territory defined.--In this subsection, the term 
     `territory' means 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.
       ``(2) Program.--
       ``(A) In general.--Recognizing the mutual benefits that 
     will accrue to the territories and the United States from the 
     improvement of highways in the territories, the Secretary may 
     carry out a program to assist each government of a territory 
     in the construction and improvement of a system of arterial 
     and collector highways, and necessary inter-island 
     connectors, that is--
       ``(i) designated by the Governor or chief executive officer 
     of each territory; and
       ``(ii) approved by the Secretary.
       ``(B) Federal share.--The Federal share of Federal 
     financial assistance provided to territories under this 
     subsection shall be in accordance with section 120(g).
       ``(3) Technical assistance.--
       ``(A) 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, on a continuing basis--
       ``(i) to engage in highway planning;
       ``(ii) to conduct environmental evaluations;
       ``(iii) to administer right-of-way acquisition and 
     relocation assistance programs; and
       ``(iv) to design, construct, operate, and maintain a system 
     of arterial and collector highways, including necessary 
     inter-island connectors.
       ``(B) Form and terms of assistance.--Technical assistance 
     provided under subparagraph (A), and the terms for the 
     sharing of information among territories receiving the 
     technical assistance, shall be included in the agreement 
     required by paragraph (5).
       ``(4) Nonapplicability of certain provisions.--
       ``(A) In general.--Except to the extent that provisions of 
     this chapter are determined by the Secretary to be 
     inconsistent with the needs of the territories and the intent 
     of this subsection, this chapter (other than provisions of 
     this chapter relating to the apportionment and allocation of 
     funds) shall apply to funds made available under this 
     subsection.
       ``(B) Applicable provisions.--The agreement required by 
     paragraph (5) for each territory shall identify the sections 
     of this chapter that are applicable to that territory and the 
     extent of the applicability of those sections.
       ``(5) Agreement.--
       ``(A) In general.--Except as provided in subparagraph (D), 
     none of the funds made available under this subsection shall 
     be available for obligation or expenditure with respect to 
     any territory until the chief executive officer of the 
     territory has entered into an agreement (including an 
     agreement entered into under section 215 as in effect on the 
     day before the enactment of this section) with the Secretary 
     providing that the government of the territory shall--
       ``(i) implement the program in accordance with applicable 
     provisions of this chapter and paragraph (4);
       ``(ii) 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;

       ``(iii) provide for the maintenance of facilities 
     constructed or operated under this subsection in a condition 
     to adequately serve the needs of present and future traffic; 
     and
       ``(iv) implement standards for traffic operations and 
     uniform traffic control devices that are approved by the 
     Secretary.
       ``(B) Technical assistance.--The agreement required by 
     subparagraph (A) shall--
       ``(i) specify the kind of technical assistance to be 
     provided under the program;
       ``(ii) include appropriate provisions regarding information 
     sharing among the territories; and
       ``(iii) delineate the oversight role and responsibilities 
     of the territories and the Secretary.
       ``(C) Review and revision of agreement.--The agreement 
     entered into under subparagraph (A) shall be reevaluated and, 
     as necessary, revised, at least every 2 years.
       ``(D) Existing agreements.--With respect to an agreement 
     under this subsection or an agreement entered into under 
     section 215 of this title as in effect on the day before the 
     date of enactment of this subsection--
       ``(i) the agreement shall continue in force until replaced 
     by an agreement entered into in accordance with subparagraph 
     (A); and
       ``(ii) amounts made available under this subsection under 
     the existing agreement shall be available for obligation or 
     expenditure so long as the agreement, or the existing 
     agreement entered into under subparagraph (A), is in effect.
       ``(6) Eligible uses of funds.--
       ``(A) In general.--Funds made available under this 
     subsection may be used only for the following projects and 
     activities carried out in a territory:
       ``(i) Eligible surface transportation program projects 
     described in section 133(b).
       ``(ii) Cost-effective, preventive maintenance consistent 
     with section 116(e).
       ``(iii) Ferry boats, terminal facilities, and approaches, 
     in accordance with subsections (b) and (c) of section 129.
       ``(iv) Engineering and economic surveys and investigations 
     for the planning, and the financing, of future highway 
     programs.
       ``(v) Studies of the economy, safety, and convenience of 
     highway use.
       ``(vi) The regulation and equitable taxation of highway 
     use.
       ``(vii) Such research and development as are necessary in 
     connection with the planning, design, and maintenance of the 
     highway system.
       ``(B) Prohibition on use of funds for routine 
     maintenance.--None of the funds made available under this 
     subsection shall be obligated or expended for routine 
     maintenance.
       ``(7) Location of projects.--Territorial highway program 
     projects (other than those described in paragraphs (2), (4), 
     (7), (8), (14), and (19) of section 133(b)) may not be 
     undertaken on roads functionally classified as local.''.
       (b) Conforming Amendments.--
       (1) Technical and conforming amendment.--The analysis for 
     chapter 1 of title 23, United States Code, is amended by 
     striking the item relating to section 165 and inserting the 
     following:

``165. Territorial and Puerto Rico highway program.''.
       (2) Territorial highway program.--
       (A) Repeal.--Section 215 of title 23, United States Code, 
     is repealed.
       (B) Technical and conforming amendment.--The analysis for 
     chapter 2 of title 23,

[[Page 10545]]

     United States Code, is amended by striking the item relating 
     to section 215.
       (C) Duncan hunter national defense authorization act for 
     fiscal year 2009.--Section 3512(e) of the Duncan Hunter 
     National Defense Authorization Act for Fiscal Year 2009 (48 
     U.S.C. 1421r(e)) is amended by striking ``section 215'' and 
     inserting ``section 165''.

     SEC. 1115. NATIONAL FREIGHT POLICY.

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

     ``Sec. 167. National freight policy

       ``(a) In General.--It is the policy of the United States to 
     improve the condition and performance of the national freight 
     network to ensure that the national freight network provides 
     the foundation for the United States to compete in the global 
     economy and achieve each goal described in subsection (b).
       ``(b) Goals.--The goals of the national freight policy 
     are--
       ``(1) to invest in infrastructure improvements and to 
     implement operational improvements that--
       ``(A) strengthen the contribution of the national freight 
     network to the economic competitiveness of the United States;
       ``(B) reduce congestion; and
       ``(C) increase productivity, particularly for domestic 
     industries and businesses that create high-value jobs;
       ``(2) to improve the safety, security, and resilience of 
     freight transportation;
       ``(3) to improve the state of good repair of the national 
     freight network;
       ``(4) to use advanced technology to improve the safety and 
     efficiency of the national freight network;
       ``(5) to incorporate concepts of performance, innovation, 
     competition, and accountability into the operation and 
     maintenance of the national freight network; and
       ``(6) to improve the economic efficiency of the national 
     freight network.
       ``(7) to reduce the environmental impacts of freight 
     movement on the national freight network;
       ``(c) Establishment of a National Freight Network.--
       ``(1) In general.--The Secretary shall establish a national 
     freight network in accordance with this section to assist 
     States in strategically directing resources toward improved 
     system performance for efficient movement of freight on 
     highways, including national highway system, freight 
     intermodal connectors and aerotropolis transportation 
     systems.
       ``(2) Network components.--The national freight network 
     shall consist of--
       ``(A) the primary freight network, as designated by the 
     Secretary under subsection (d) (referred to in this section 
     as the `primary freight network') as most critical to the 
     movement of freight;
       ``(B) the portions of the Interstate System not designated 
     as part of the primary freight network; and
       ``(C) critical rural freight corridors established under 
     subsection (e).
       ``(d) Designation of Primary Freight Network.--
       ``(1) Initial designation of primary freight network.--
       ``(A) Designation.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall designate a 
     primary freight network--
       ``(i) based on an inventory of national freight volume 
     conducted by the Administrator of the Federal Highway 
     Administration, in consultation with stakeholders, including 
     system users, transport providers, and States; and
       ``(ii) that shall be comprised of not more than 27,000 
     centerline miles of existing roadways that are most critical 
     to the movement of freight.
       ``(B) Factors for designation.--In designating the primary 
     freight network, the Secretary shall consider--
       ``(i) the origins and destinations of freight movement in 
     the United States;
       ``(ii) the total freight tonnage and value of freight moved 
     by highways;
       ``(iii) the percentage of annual average daily truck 
     traffic in the annual average daily traffic on principal 
     arterials;
       ``(iv) the annual average daily truck traffic on principal 
     arterials;
       ``(v) land and maritime ports of entry;
       ``(vi) access to energy exploration, development, 
     installation, or production areas;
       ``(vii) population centers; and
       ``(viii) network connectivity.
       ``(2) Additional miles on primary freight network.--In 
     addition to the miles initially designated under paragraph 
     (1), the Secretary may increase the number of miles 
     designated as part of the primary freight network by not more 
     than 3,000 additional centerline miles of roadways (which may 
     include existing or planned roads) critical to future 
     efficient movement of goods on the primary freight network.
       ``(3) Redesignation of primary freight network.--Effective 
     beginning 10 years after the designation of the primary 
     freight network and every 10 years thereafter, using the 
     designation factors described in paragraph (1), the Secretary 
     shall redesignate the primary freight network (including 
     additional mileage described in paragraph (2)).
       ``(e) Critical Rural Freight Corridors.--A State may 
     designate a road within the borders of the State as a 
     critical rural freight corridor if the road--
       ``(1) is a rural principal arterial roadway and has a 
     minimum of 25 percent of the annual average daily traffic of 
     the road measured in passenger vehicle equivalent units from 
     trucks (FHWA vehicle class 8 to 13);
       ``(2) provides access to energy exploration, development, 
     installation, or production areas;
       ``(3) connects the primary freight network, a roadway 
     described in paragraph (1) or (2), or Interstate System to 
     facilities that handle more than--
       ``(A) 50,000 20-foot equivalent units per year; or
       ``(B) 500,000 tons per year of bulk commodities.
       ``(f) National Freight Strategic Plan.--
       ``(1) Initial development of national freight strategic 
     plan.--Not later than 3 years after the date of enactment of 
     this section, the Secretary shall, in consultation with State 
     departments of transportation and other appropriate public 
     and private transportation stakeholders, develop and post on 
     the Department of Transportation public website a national 
     freight strategic plan that shall include--
       ``(A) an assessment of the condition and performance of the 
     national freight network;
       ``(B) an identification of highway bottlenecks on the 
     national freight network that create significant freight 
     congestion problems, based on a quantitative methodology 
     developed by the Secretary, which shall, at a minimum, 
     include--
       ``(i) information from the Freight Analysis Network of the 
     Federal Highway Administration; and
       ``(ii) to the maximum extent practicable, an estimate of 
     the cost of addressing each bottleneck and any operational 
     improvements that could be implemented;
       ``(C) forecasts of freight volumes for the 20-year period 
     beginning in the year during which the plan is issued;
       ``(D) an identification of major trade gateways and 
     national freight corridors that connect major population 
     centers, trade gateways, and other major freight generators 
     for current and forecasted traffic and freight volumes, the 
     identification of which shall be revised, as appropriate, in 
     subsequent plans;
       ``(E) an assessment of statutory, regulatory, 
     technological, institutional, financial, and other barriers 
     to improved freight transportation performance (including 
     opportunities for overcoming the barriers);
       ``(F) an identification of routes providing access to 
     energy exploration, development, installation, or production 
     areas;
       ``(G) best practices for improving the performance of the 
     national freight network;
       ``(H) best practices to mitigate the impacts of freight 
     movement on communities;
       ``(I) a process for addressing multistate projects and 
     encouraging jurisdictions to collaborate; and
       ``(J) strategies to improve freight intermodal 
     connectivity.
       ``(2) Updates to national freight strategic plan.--Not 
     later than 5 years after the date of completion of the first 
     national freight strategic plan under paragraph (1), and 
     every 5 years thereafter, the Secretary shall update and 
     repost on the Department of Transportation public website a 
     revised national freight strategic plan.
       ``(g) Freight Transportation Conditions and Performance 
     Reports.--Not later than 2 years after the date of enactment 
     of this section, and biennially thereafter, the Secretary 
     shall prepare a report that contains a description of the 
     conditions and performance of the national freight network in 
     the United States.
       ``(h) Transportation Investment Data and Planning Tools.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall--
       ``(A) begin development of new tools and improvement of 
     existing tools or improve existing tools to support an 
     outcome-oriented, performance-based approach to evaluate 
     proposed freight-related and other transportation projects, 
     including--
       ``(i) methodologies for systematic analysis of benefits and 
     costs;
       ``(ii) tools for ensuring that the evaluation of freight-
     related and other transportation projects could consider 
     safety, economic competitiveness, environmental 
     sustainability, and system condition in the project selection 
     process; and
       ``(iii) other elements to assist in effective 
     transportation planning;
       ``(B) identify transportation-related model data elements 
     to support a broad range of evaluation methods and techniques 
     to assist in making transportation investment decisions; and
       ``(C) at a minimum, in consultation with other relevant 
     Federal agencies, consider any improvements to existing 
     freight flow data collection efforts that could reduce 
     identified freight data gaps and deficiencies and help 
     improve forecasts of freight transportation demand.
       ``(2) Consultation.--The Secretary shall consult with 
     Federal, State, and other stakeholders to develop, improve, 
     and implement the tools and collect the data in paragraph 
     (1).
       ``(i) Definition of Aerotropolis Transportation System.--In 
     this section, the term `aerotropolis transportation system' 
     means a planned and coordinated multimodal freight and 
     passenger transportation network that, as determined by the 
     Secretary, provides efficient, cost-effective, sustainable, 
     and intermodal connectivity to a defined region of economic 
     significance centered around a major airport.''.
       (b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by adding at the end 
     the following:

``167. National freight program.''.

     SEC. 1116. PRIORITIZATION OF PROJECTS TO IMPROVE FREIGHT 
                   MOVEMENT.

       (a) In General.--Notwithstanding section 120 of title 23, 
     United States Code, the Secretary

[[Page 10546]]

     may increase the Federal share payable for any project to 95 
     percent for projects on the Interstate System and 90 percent 
     for any other project if the Secretary certifies that the 
     project meets the requirements of this section.
       (b) Increased Funding.--To be eligible for the increased 
     Federal funding share under this section, a project shall--
       (1) demonstrate the improvement made by the project to the 
     efficient movement of freight, including making progress 
     towards meeting performance targets for freight movement 
     established under section 150(d) of title 23, United States 
     Code; and
       (2) be identified in a State freight plan developed 
     pursuant to section 1118.
       (c) Eligible Projects.--Eligible projects to improve the 
     movement of freight under this section may include, but are 
     not limited to--
       (1) construction, reconstruction, rehabilitation, and 
     operational improvements directly relating to improving 
     freight movement;
       (2) intelligent transportation systems and other technology 
     to improve the flow of freight;
       (3) efforts to reduce the environmental impacts of freight 
     movement on the primary freight network;
       (4) railway-highway grade separation;
       (5) geometric improvements to interchanges and ramps.
       (6) truck-only lanes;
       (7) climbing and runaway truck lanes;
       (8) truck parking facilities eligible for funding under 
     section 1401;
       (9) real-time traffic, truck parking, roadway condition, 
     and multimodal transportation information systems;
       (10) improvements to freight intermodal connectors; and
       (11) improvements to truck bottlenecks.

     SEC. 1117. STATE FREIGHT ADVISORY COMMITTEES.

       (a) In General.--The Secretary shall encourage each State 
     to establish a freight advisory committee consisting of a 
     representative cross-section of public and private sector 
     freight stakeholders, including representatives of ports, 
     shippers, carriers, freight-related associations, the freight 
     industry workforce, the transportation department of the 
     State, and local governments.
       (b) Role of Committee.--A freight advisory committee of a 
     State described in subsection (a) shall--
       (1) advise the State on freight-related priorities, issues, 
     projects, and funding needs;
       (2) serve as a forum for discussion for State 
     transportation decisions affecting freight mobility;
       (3) communicate and coordinate regional priorities with 
     other organizations;
       (4) promote the sharing of information between the private 
     and public sectors on freight issues; and
       (5) participate in the development of the freight plan of 
     the State described in section 1118.

     SEC. 1118. STATE FREIGHT PLANS.

       (a) In General.--The Secretary shall encourage each State 
     to develop a freight plan that provides a comprehensive plan 
     for the immediate and long-range planning activities and 
     investments of the State with respect to freight.
       (b) Plan Contents.--A freight plan described in subsection 
     (a) shall include, at a minimum--
       (1) an identification of significant freight system trends, 
     needs, and issues with respect to the State;
       (2) a description of the freight policies, strategies, and 
     performance measures that will guide the freight-related 
     transportation investment decisions of the State;
       (3) a description of how the plan will improve the ability 
     of the State to meet the national freight goals established 
     under section 167 of title 23, United States Code;
       (4) evidence of consideration of innovative technologies 
     and operational strategies, including intelligent 
     transportation systems, that improve the safety and 
     efficiency of freight movement;
       (5) in the case of routes on which travel by heavy vehicles 
     (including mining, agricultural, energy cargo or equipment, 
     and timber vehicles) is projected to substantially 
     deteriorate the condition of roadways, a description of 
     improvements that may be required to reduce or impede the 
     deterioration; and
       (6) an inventory of facilities with freight mobility 
     issues, such as truck bottlenecks, within the State, and a 
     description of the strategies the State is employing to 
     address those freight mobility issues.
       (c) Relationship to Long-range Plan.--A freight plan 
     described in subsection (a) may be developed separate from or 
     incorporated into the statewide strategic long-range 
     transportation plan required by section 135 of title 23, 
     United States Code.

     SEC. 1119. FEDERAL LANDS AND TRIBAL TRANSPORTATION PROGRAMS.

       (a) In General.--Chapter 2 of title 23, United States Code, 
     is amended by striking sections 201 through 204 and inserting 
     the following:

     ``Sec. 201. Federal lands and tribal transportation programs

       ``(a) Purpose.--Recognizing the need for all public Federal 
     and tribal transportation facilities to be treated under 
     uniform policies similar to the policies that apply to 
     Federal-aid highways and other public transportation 
     facilities, the Secretary of Transportation, in collaboration 
     with the Secretaries of the appropriate Federal land 
     management agencies, shall coordinate a uniform policy for 
     all public Federal and tribal transportation facilities that 
     shall apply to Federal lands transportation facilities, 
     tribal transportation facilities, and Federal lands access 
     transportation facilities.
       ``(b) Availability of Funds.--
       ``(1) Availability.--Funds authorized for the tribal 
     transportation program, the Federal lands transportation 
     program, and the Federal lands access program shall be 
     available for contract upon apportionment, or on October 1 of 
     the fiscal year for which the funds were authorized if no 
     apportionment is required.
       ``(2) Amount remaining.--Any amount remaining unexpended 
     for a period of 3 years after the close of the fiscal year 
     for which the funds were authorized shall lapse.
       ``(3) Obligations.--The Secretary of the department 
     responsible for the administration of funds under this 
     subsection may incur obligations, approve projects, and enter 
     into contracts under such authorizations, which shall be 
     considered to be contractual obligations of the United States 
     for the payment of the cost thereof, the funds of which shall 
     be considered to have been expended when obligated.
       ``(4) Expenditure.--
       ``(A) In general.--Any funds authorized for any fiscal year 
     after the date of enactment of this section under the Federal 
     lands transportation program, the Federal lands access 
     program, and the tribal transportation program shall be 
     considered to have been expended if a sum equal to the total 
     of the sums authorized for the fiscal year and previous 
     fiscal years have been obligated.
       ``(B) Credited funds.--Any funds described in subparagraph 
     (A) that are released by payment of final voucher or 
     modification of project authorizations shall be--
       ``(i) credited to the balance of unobligated 
     authorizations; and
       ``(ii) immediately available for expenditure.
       ``(5) Applicability.--This section shall not apply to funds 
     authorized before the date of enactment of this paragraph.
       ``(6) Contractual obligation.--
       ``(A) In general.--Notwithstanding any other provision of 
     law (including regulations), the authorization by the 
     Secretary, or the Secretary of the appropriate Federal land 
     management agency if the agency is the contracting office, of 
     engineering and related work for the development, design, and 
     acquisition associated with a construction project, whether 
     performed by contract or agreement authorized by law, or the 
     approval by the Secretary of plans, specifications, and 
     estimates for construction of a project, shall be considered 
     to constitute a contractual obligation of the Federal 
     Government to pay the total eligible cost of--
       ``(i) any project funded under this title; and
       ``(ii) any project funded pursuant to agreements authorized 
     by this title or any other title.
       ``(B) Effect.--Nothing in this paragraph--
       ``(i) affects the application of the Federal share 
     associated with the project being undertaken under this 
     section; or
       ``(ii) modifies the point of obligation associated with 
     Federal salaries and expenses.
       ``(7) Federal share.--
       ``(A) Tribal and federal lands transportation program.--The 
     Federal share of the cost of a project carried out under the 
     Federal lands transportation program or the tribal 
     transportation program shall be 100 percent.
       ``(B) Federal lands access program.--The Federal share of 
     the cost of a project carried out under the Federal lands 
     access program shall be determined in accordance with section 
     120.
       ``(c) Transportation Planning.--
       ``(1) Transportation planning procedures.--In consultation 
     with the Secretary of each appropriate Federal land 
     management agency, the Secretary shall implement 
     transportation planning procedures for Federal lands and 
     tribal transportation facilities that are consistent with the 
     planning processes required under sections 134 and 135.
       ``(2) Approval of transportation improvement program.--The 
     transportation improvement program developed as a part of the 
     transportation planning process under this section shall be 
     approved by the Secretary.
       ``(3) Inclusion in other plans.--Each regionally 
     significant tribal transportation program, Federal lands 
     transportation program, and Federal lands access program 
     project shall be--
       ``(A) developed in cooperation with State and metropolitan 
     planning organizations; and
       ``(B) included in appropriate tribal transportation program 
     plans, Federal lands transportation program plans, Federal 
     lands access program plans, State and metropolitan plans, and 
     transportation improvement programs.
       ``(4) Inclusion in state programs.--The approved tribal 
     transportation program, Federal lands transportation program, 
     and Federal lands access program transportation improvement 
     programs shall be included in appropriate State and 
     metropolitan planning organization plans and programs without 
     further action on the transportation improvement program.
       ``(5) Asset management.--The Secretary and the Secretary of 
     each appropriate Federal land management agency shall, to the 
     extent appropriate, implement safety, bridge, pavement, and 
     congestion management systems for facilities funded under the 
     tribal transportation program and the Federal lands 
     transportation program in support of asset management.
       ``(6) Data collection.--
       ``(A) Data collection.--The Secretaries of the appropriate 
     Federal land management agencies shall collect and report 
     data necessary to implement the Federal lands transportation 
     program, the Federal lands access program, and the tribal 
     transportation program in accordance with the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450 et 
     seq.), including--

[[Page 10547]]

       ``(i) inventory and condition information on Federal lands 
     transportation facilities and tribal transportation 
     facilities; and
       ``(ii) bridge inspection and inventory information on any 
     Federal bridge open to the public.
       ``(B) Standards.--The Secretary, in coordination with the 
     Secretaries of the appropriate Federal land management 
     agencies, shall define the collection and reporting data 
     standards.
       ``(7) Administrative expenses.--To implement the activities 
     described in this subsection, including direct support of 
     transportation planning activities among Federal land 
     management agencies, the Secretary may use not more than 5 
     percent for each fiscal year of the funds authorized for 
     programs under sections 203 and 204.
       ``(d) Reimbursable Agreements.--In carrying out work under 
     reimbursable agreements with any State, local, or tribal 
     government under this title, the Secretary--
       ``(1) may, without regard to any other provision of law 
     (including regulations), record obligations against accounts 
     receivable from the entity; and
       ``(2) shall credit amounts received from the entity to the 
     appropriate account, which shall occur not later than 90 days 
     after the date of the original request by the Secretary for 
     payment.
       ``(e) Transfers.--
       ``(1) In general.--To enable the efficient use of funds 
     made available for the Federal lands transportation program 
     and the Federal lands access program, the funds may be 
     transferred by the Secretary within and between each program 
     with the concurrence of, as appropriate--
       ``(A) the Secretary;
       ``(B) the affected Secretaries of the respective Federal 
     land management agencies;
       ``(C) State departments of transportation; and
       ``(D) local government agencies.
       ``(2) Credit.--The funds described in paragraph (1) shall 
     be credited back to the loaning entity with funds that are 
     currently available for obligation at the time of the credit.

     ``Sec. 202. Tribal transportation program

       ``(a) Use of Funds.--
       ``(1) In general.--Funds made available under the tribal 
     transportation program shall be used by the Secretary of 
     Transportation and the Secretary of the Interior to pay the 
     costs of--
       ``(A)(i) transportation planning, research, maintenance, 
     engineering, rehabilitation, restoration, construction, and 
     reconstruction of tribal transportation facilities;
       ``(ii) adjacent vehicular parking areas;
       ``(iii) interpretive signage;
       ``(iv) acquisition of necessary scenic easements and scenic 
     or historic sites;
       ``(v) provisions for pedestrians and bicycles;
       ``(vi) environmental mitigation in or adjacent to tribal 
     land--
       ``(I) to improve public safety and reduce vehicle-caused 
     wildlife mortality while maintaining habitat connectivity; 
     and
       ``(II) to mitigate the damage to wildlife, aquatic organism 
     passage, habitat, and ecosystem connectivity, including the 
     costs of constructing, maintaining, replacing, or removing 
     culverts and bridges, as appropriate;
       ``(vii) construction and reconstruction of roadside rest 
     areas, including sanitary and water facilities; and
       ``(viii) other appropriate public road facilities as 
     determined by the Secretary;
       ``(B) operation and maintenance of transit programs and 
     facilities that are located on, or provide access to, tribal 
     land, or are administered by a tribal government; and
       ``(C) any transportation project eligible for assistance 
     under this title that is located within, or that provides 
     access to, tribal land, or is associated with a tribal 
     government.
       ``(2) Contract.--In connection with an activity described 
     in paragraph (1), the Secretary and the Secretary of the 
     Interior may enter into a contract or other appropriate 
     agreement with respect to the activity with--
       ``(A) a State (including a political subdivision of a 
     State); or
       ``(B) an Indian tribe.
       ``(3) Indian labor.--Indian labor may be employed, in 
     accordance with such rules and regulations as may be 
     promulgated by the Secretary of the Interior, to carry out 
     any construction or other activity described in paragraph 
     (1).
       ``(4) Federal employment.--No maximum limitation on Federal 
     employment shall be applicable to the construction or 
     improvement of tribal transportation facilities.
       ``(5) Funds for construction and improvement.--All funds 
     made available for the construction and improvement of tribal 
     transportation facilities shall be administered in conformity 
     with regulations and agreements jointly approved by the 
     Secretary and the Secretary of the Interior.
       ``(6) Administrative expenses.--Of the funds authorized to 
     be appropriated for the tribal transportation program, not 
     more than 6 percent may be used by the Secretary or the 
     Secretary of the Interior for program management and 
     oversight and project-related administrative expenses.
       ``(7) Tribal technical assistance centers.--The Secretary 
     of the Interior may reserve amounts from administrative funds 
     of the Bureau of Indian Affairs that are associated with the 
     tribal transportation program to fund tribal technical 
     assistance centers under section 504(b).
       ``(8) Maintenance.--
       ``(A) Use of funds.--Notwithstanding any other provision of 
     this title, of the amount of funds allocated to an Indian 
     tribe from the tribal transportation program, for the purpose 
     of maintenance (excluding road sealing, which shall not be 
     subject to any limitation), the Secretary shall not use an 
     amount more than the greater of--
       ``(i) an amount equal to 25 percent; or
       ``(ii) $500,000.
       ``(B) Responsibility of bureau of indian affairs and 
     secretary of the interior.--
       ``(i) Bureau of indian affairs.--The Bureau of Indian 
     Affairs shall retain primary responsibility, including annual 
     funding request responsibility, for Bureau of Indian Affairs 
     road maintenance programs on Indian reservations.
       ``(ii) Secretary of the interior.--The Secretary of the 
     Interior shall ensure that funding made available under this 
     subsection for maintenance of tribal transportation 
     facilities 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.
       ``(C) Tribal-state road maintenance agreements.--
       ``(i) In general.--An Indian tribe and a State may enter 
     into a road maintenance agreement under which an Indian tribe 
     shall assume the responsibility of the State for--

       ``(I) tribal transportation facilities; and
       ``(II) roads providing access to tribal transportation 
     facilities.

       ``(ii) Requirements.--Agreements entered into under clause 
     (i) shall--

       ``(I) be negotiated between the State and the Indian tribe; 
     and
       ``(II) not require the approval of the Secretary.

       ``(9) Cooperation.--
       ``(A) In general.--The cooperation of States, counties, or 
     other local subdivisions may be accepted in construction and 
     improvement.
       ``(B) Funds received.--Any funds received from a State, 
     county, or local subdivision shall be credited to 
     appropriations available for the tribal transportation 
     program.
       ``(10) Competitive bidding.--
       ``(A) Construction.--
       ``(i) In general.--Subject to clause (ii) and subparagraph 
     (B), construction of each project shall be performed by 
     contract awarded by competitive bidding.
       ``(ii) Exception.--Clause (i) shall not apply if the 
     Secretary or the Secretary of the Interior affirmatively 
     finds that, under the circumstances relating to the project, 
     a different method is in the public interest.
       ``(B) Applicability.--Notwithstanding subparagraph (A), 
     section 23 of the Act of June 25, 1910 (25 U.S.C. 47) and 
     section 7(b) of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450e(b)) shall apply to all funds 
     administered by the Secretary of the Interior that are 
     appropriated for the construction and improvement of tribal 
     transportation facilities.
       ``(b) Funds Distribution.--
       ``(1) National tribal transportation facility inventory.--
       ``(A) In general.--The Secretary of the Interior, in 
     cooperation with the Secretary, shall maintain a 
     comprehensive national inventory of tribal transportation 
     facilities that are eligible for assistance under the tribal 
     transportation program.
       ``(B) Transportation facilities included in the 
     inventory.--For purposes of identifying the tribal 
     transportation system and determining the relative 
     transportation needs among Indian tribes, the Secretary shall 
     include, at a minimum, transportation facilities that are 
     eligible for assistance under the tribal transportation 
     program that an Indian tribe has requested, including 
     facilities that--
       ``(i) were included in the Bureau of Indian Affairs system 
     inventory prior to October 1, 2004;
       ``(ii) are owned by an Indian tribal government;
       ``(iii) are owned by the Bureau of Indian Affairs;
       ``(iv) were constructed or reconstructed with funds from 
     the Highway Trust Fund under the Indian reservation roads 
     program since 1983;
       ``(v) are public roads or bridges within the exterior 
     boundary of Indian reservations, Alaska Native villages, and 
     other recognized Indian communities (including communities in 
     former Indian reservations in the State of Oklahoma) in which 
     the majority of residents are American Indians or Alaska 
     Natives;
       ``(vi) are public roads within or providing access to an 
     Indian reservation or Indian trust land or restricted Indian 
     land that is not subject to fee title alienation without the 
     approval of the Federal Government, or Indian or Alaska 
     Native villages, groups, or communities in which Indians and 
     Alaska Natives reside, whom the Secretary of the Interior has 
     determined are eligible for services generally available to 
     Indians under Federal laws specifically applicable to 
     Indians; or
       ``(vii) are primary access routes proposed by tribal 
     governments, including roads between villages, roads to 
     landfills, roads to drinking water sources, roads to natural 
     resources identified for economic development, and roads that 
     provide access to intermodal terminals, such as airports, 
     harbors, or boat landings.
       ``(C) Limitation on primary access routes.--For purposes of 
     this paragraph, a proposed primary access route is the 
     shortest practicable route connecting 2 points of the 
     proposed route.
       ``(D) Additional facilities.--Nothing in this paragraph 
     precludes the Secretary from including additional 
     transportation facilities that are

[[Page 10548]]

     eligible for funding under the tribal transportation program 
     in the inventory used for the national funding allocation if 
     such additional facilities are included in the inventory in a 
     uniform and consistent manner nationally.
       ``(E) Bridges.--All bridges in the inventory shall be 
     recorded in the national bridge inventory administered by the 
     Secretary under section 144.
       ``(2) Regulations.--Notwithstanding sections 563(a) and 
     565(a) of title 5, the Secretary of the Interior shall 
     maintain any regulations governing the tribal transportation 
     program.
       ``(3) Basis for funding formula.--
       ``(A) Basis.--
       ``(i) In general.--After making the set asides authorized 
     under subparagraph (C) and subsections (c), (d), and (e) on 
     October 1 of each fiscal year, the Secretary shall distribute 
     the remainder authorized to be appropriated for the tribal 
     transportation program under this section among Indian tribes 
     as follows:

       ``(I) For fiscal year 2013--

       ``(aa) for each Indian tribe, 80 percent of the total 
     relative need distribution factor and population adjustment 
     factor for the fiscal year 2011 funding amount made available 
     to that Indian tribe; and
       ``(bb) the remainder using tribal shares as described in 
     subparagraphs (B) and (C).

       ``(II) For fiscal year 2014--

       ``(aa) for each Indian tribe, 60 percent of the total 
     relative need distribution factor and population adjustment 
     factor for the fiscal year 2011 funding amount made available 
     to that Indian tribe; and
       ``(bb) the remainder using tribal shares as described in 
     subparagraphs (B) and (C).

       ``(III) For fiscal year 2015--

       ``(aa) for each Indian tribe, 40 percent of the total 
     relative need distribution factor and population adjustment 
     factor for the fiscal year 2011 funding amount made available 
     to that Indian tribe; and
       ``(bb) the remainder using tribal shares as described in 
     subparagraphs (B) and (C).

       ``(IV) For fiscal year 2016 and thereafter--

       ``(aa) for each Indian tribe, 20 percent of the total 
     relative need distribution factor and population adjustment 
     factor for the fiscal year 2011 funding amount made available 
     to that Indian tribe; and
       ``(bb) the remainder using tribal shares as described in 
     subparagraphs (B) and (C).
       ``(ii) Tribal high priority projects.--The High Priority 
     Projects program as included in the Tribal Transportation 
     Allocation Methodology of part 170 of title 25, Code of 
     Federal Regulations (as in effect on the date of enactment of 
     the MAP-21), shall not continue in effect.
       ``(B) Tribal shares.--Tribal shares under this program 
     shall be determined using the national tribal transportation 
     facility inventory as calculated for fiscal year 2012, and 
     the most recent data on American Indian and Alaska Native 
     population within each Indian tribe's American Indian/Alaska 
     Native Reservation or Statistical Area, as computed under the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (25 U.S.C. 4101 et seq.), in the following manner:
       ``(i) 27 percent in the ratio that the total eligible road 
     mileage in each tribe bears to the total eligible road 
     mileage of all American Indians and Alaskan Natives. For the 
     purposes of this calculation, eligible road mileage shall be 
     computed based on the inventory described in paragraph (1), 
     using only facilities included in the inventory described in 
     clause (i), (ii), or (iii) of paragraph (1)(B).
       ``(ii) 39 percent in the ratio that the total population in 
     each tribe bears to the total population of all American 
     Indians and Alaskan Natives.
       ``(iii) 34 percent shall be divided equally among each 
     Bureau of Indian Affairs region. Within each region, such 
     share of funds shall be distributed to each Indian tribe in 
     the ratio that the average total relative need distribution 
     factors and population adjustment factors from fiscal years 
     2005 through 2011 for a tribe bears to the average total of 
     relative need distribution factors and population adjustment 
     factors for fiscal years 2005 through 2011 in that region.
       ``(C) Tribal supplemental funding.--
       ``(i) Tribal supplemental funding amount.--Of funds made 
     available for each fiscal year for the tribal transportation 
     program, the Secretary shall set aside the following amount 
     for a tribal supplemental program:

       ``(I) If the amount made available for the tribal 
     transportation program is less than or equal to $275,000,000, 
     30 percent of such amount.
       ``(II) If the amount made available for the tribal 
     transportation program exceeds $275,000,000--

       ``(aa) $82,500,000; plus
       ``(bb) 12.5 percent of the amount made available for the 
     tribal transportation program in excess of $275,000,000.
       ``(ii) Tribal supplemental allocation.--The Secretary shall 
     distribute tribal supplemental funds as follows:

       ``(I) Distribution among regions.--Of the amounts set aside 
     under clause (i), the Secretary shall distribute to each 
     region of the Bureau of Indian Affairs a share of tribal 
     supplemental funds in proportion to the regional total of 
     tribal shares based on the cumulative tribal shares of all 
     Indian tribes within such region under subparagraph (B).
       ``(II) Distribution within a region.--Of the amount that a 
     region receives under subclause (I), the Secretary shall 
     distribute tribal supplemental funding among Indian tribes 
     within such region as follows:

       ``(aa) Tribal supplemental amounts.--The Secretary shall 
     determine--
       ``(AA) which such Indian tribes would be entitled under 
     subparagraph (A) to receive in a fiscal year less funding 
     than they would receive in fiscal year 2011 pursuant to the 
     relative need distribution factor and population adjustment 
     factor, as described in subpart C of part 170 of title 25, 
     Code of Federal Regulations (as in effect on the date of 
     enactment of the MAP-21); and
       ``(BB) the combined amount that such Indian tribes would be 
     entitled to receive in fiscal year 2011 pursuant to such 
     relative need distribution factor and population adjustment 
     factor in excess of the amount that they would be entitled to 
     receive in the fiscal year under subparagraph (B).
       ``(bb) Combined amount.--Subject to subclause (III), the 
     Secretary shall distribute to each Indian tribe that meets 
     the criteria described in item (aa)(AA) a share of funding 
     under this subparagraph in proportion to the share of the 
     combined amount determined under item (aa)(BB) attributable 
     to such Indian tribe.

       ``(III) Ceiling.--An Indian tribe may not receive under 
     subclause (II) and based on its tribal share under 
     subparagraph (A) a combined amount that exceeds the amount 
     that such Indian tribe would be entitled to receive in fiscal 
     year 2011 pursuant to the relative need distribution factor 
     and population adjustment factor, as described in subpart C 
     of part 170 of title 25, Code of Federal Regulations (as in 
     effect on the date of enactment of the MAP-21).
       ``(IV) Other amounts.--If the amount made available for a 
     region under subclause (I) exceeds the amount distributed 
     among Indian tribes within that region under subclause (II), 
     the Secretary shall distribute the remainder of such region's 
     funding under such subclause among all Indian tribes in that 
     region in proportion to the combined amount that each such 
     Indian tribe received under subparagraph (A) and subclauses 
     (I), (II), and (III).]

       ``(4) Transferred funds.--
       ``(A) 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 made available for immediate use by, eligible Indian 
     tribes, in accordance with the formula for distribution of 
     funds under the tribal transportation program.
       ``(B) Use of funds.--Notwithstanding any other provision of 
     this section, funds made available to Indian tribes for 
     tribal transportation facilities shall be expended on 
     projects identified in a transportation improvement program 
     approved by the Secretary.
       ``(5) Health and safety assurances.--Notwithstanding any 
     other provision of law, an Indian tribal government may 
     approve plans, specifications, and estimates and commence 
     road and bridge construction with funds made available from 
     the tribal transportation program through a contract or 
     agreement under Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450 et seq.), if the Indian tribal 
     government--
       ``(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 State-licensed civil engineer 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 (A) to the Deputy Assistant Secretary for Tribal 
     Government Affairs, Department of Transportation, or the 
     Assistant Secretary for Indian Affairs, Department of the 
     Interior, as appropriate.
       ``(6) Contracts and agreements with indian tribes.--
       ``(A) In general.--Notwithstanding any other provision of 
     law or any interagency agreement, program guideline, manual, 
     or policy directive, all funds made available through the 
     Secretary of the Interior under this chapter and section 
     125(e) for tribal transportation facilities to pay for the 
     costs of programs, services, functions, and activities, or 
     portions of programs, services, functions, or activities, 
     that are specifically or functionally related to the cost of 
     planning, research, engineering, and construction of any 
     tribal transportation facility shall be made available, upon 
     request of the Indian tribal government, to the Indian tribal 
     government for contracts and agreements for such planning, 
     research, engineering, and construction in accordance with 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450 et seq.).
       ``(B) Exclusion of agency participation.--All funds, 
     including contract support costs, for programs, functions, 
     services, or activities, or portions of programs, services, 
     functions, or activities, including supportive administrative 
     functions that are otherwise contractible to which 
     subparagraph (A) applies, shall be paid in accordance with 
     subparagraph (A), without regard to the organizational level 
     at which the Department of the Interior has previously 
     carried out such programs, functions, services, or 
     activities.
       ``(7) Contracts and agreements with indian tribes.--
       ``(A) In general.--Notwithstanding any other provision of 
     law or any interagency agreement, program guideline, manual, 
     or policy directive, all funds made available to an Indian 
     tribal government under this chapter for a tribal 
     transportation facility program or project shall be made 
     available, on the request of the Indian tribal government, to 
     the Indian tribal government for use in carrying out, in 
     accordance with

[[Page 10549]]

     the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450 et seq.), contracts and agreements for the 
     planning, research, design, engineering, construction, and 
     maintenance relating to the program or project.
       ``(B) Exclusion of agency participation.--In accordance 
     with subparagraph (A), all funds, including contract support 
     costs, for a program or project to which subparagraph (A) 
     applies shall be paid to the Indian tribal government without 
     regard to the organizational level at which the Department of 
     the Interior has previously carried out, or the Department of 
     Transportation has previously carried out under the tribal 
     transportation program, the programs, functions, services, or 
     activities involved.
       ``(C) Consortia.--Two or more Indian tribes that are 
     otherwise eligible to participate in a program or project to 
     which this chapter applies may form a consortium to be 
     considered as a single Indian tribe for the purpose of 
     participating in the project under this section.
       ``(D) Secretary as signatory.--Notwithstanding any other 
     provision of law, the Secretary is authorized to enter into a 
     funding agreement with an Indian tribal government to carry 
     out a tribal transportation facility program or project under 
     subparagraph (A) that is located on an Indian reservation or 
     provides access to the reservation or a community of the 
     Indian tribe.
       ``(E) Funding.--The amount an Indian tribal government 
     receives for a program or project under subparagraph (A) 
     shall equal the sum of the funding that the Indian tribal 
     government would otherwise receive for the program or project 
     in accordance with the funding formula established under this 
     subsection and such additional amounts as the Secretary 
     determines equal the amounts that would have been withheld 
     for the costs of the Bureau of Indian Affairs for 
     administration of the program or project.
       ``(F) Eligibility.--
       ``(i) In general.--Subject to clause (ii) and the approval 
     of the Secretary, funds may be made available under 
     subparagraph (A) to an Indian tribal government for a program 
     or project in a fiscal year only if the Indian tribal 
     government requesting such funds demonstrates to the 
     satisfaction of the Secretary financial stability and 
     financial management capability during the 3 fiscal years 
     immediately preceding the fiscal year for which the request 
     is being made.
       ``(ii) Considerations.--An Indian tribal government that 
     had no uncorrected significant and material audit exceptions 
     in the required annual audit of the contracts or self-
     governance funding agreements made by the Indian tribe with 
     any Federal agency under the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450 et seq.) during the 
     3-fiscal year period referred in clause (i) shall be 
     conclusive evidence of the financial stability and financial 
     management capability of the Indian tribe for purposes of 
     clause (i).
       ``(G) Assumption of functions and duties.--An Indian tribal 
     government receiving funding under subparagraph (A) for a 
     program or project shall assume all functions and duties that 
     the Secretary of the Interior would have performed with 
     respect to a program or project under this chapter, other 
     than those functions and duties that inherently cannot be 
     legally transferred under the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450 et seq.).
       ``(H) Powers.--An Indian tribal government receiving 
     funding under subparagraph (A) for a program or project shall 
     have all powers that the Secretary of the Interior would have 
     exercised in administering the funds transferred to the 
     Indian tribal government for such program or project under 
     this section if the funds had not been transferred, except to 
     the extent that such powers are powers that inherently cannot 
     be legally transferred under the Indian Self-Determination 
     and Education Assistance Act (25 U.S.C. 450 et seq.).
       ``(I) Dispute resolution.--In the event of a disagreement 
     between the Secretary or the Secretary of the Interior and an 
     Indian tribe over whether a particular function, duty, or 
     power may be lawfully transferred to the Indian tribe under 
     the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450 et seq.), the Indian tribe shall have the 
     right to pursue all alternative dispute resolution and appeal 
     procedures authorized by that Act, including regulations 
     issued to carry out the Act.
       ``(J) Termination of contract or agreement.--On the date of 
     the termination of a contract or agreement under this section 
     by an Indian tribal government, the Secretary shall transfer 
     all funds that would have been allocated to the Indian tribal 
     government under the contract or agreement to the Secretary 
     of the Interior to provide continued transportation services 
     in accordance with applicable law.
       ``(c) Planning.--
       ``(1) In general.--For each fiscal year, not more than 2 
     percent of the funds made available for the tribal 
     transportation program shall be allocated among Indian tribal 
     governments that apply for transportation planning pursuant 
     to the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450 et seq.).
       ``(2) Requirement.--An Indian tribal government, in 
     cooperation with the Secretary of the Interior and, as 
     appropriate, with a State, local government, or metropolitan 
     planning organization, shall carry out a transportation 
     planning process in accordance with section 201(c).
       ``(3) Selection and approval of projects.--A project funded 
     under this section shall be--
       ``(A) selected by the Indian tribal government from the 
     transportation improvement program; and
       ``(B) subject to the approval of the Secretary of the 
     Interior and the Secretary.
       ``(d) Tribal Transportation Facility Bridges.--
       ``(1) Nationwide priority program.--The Secretary shall 
     maintain a nationwide priority program for improving 
     deficient bridges eligible for the tribal transportation 
     program.
       ``(2) Funding.--Before making any distribution under 
     subsection (b), the Secretary shall set aside not more than 2 
     percent of the funds made available under the tribal 
     transportation program for each fiscal year to be allocated--
       ``(A) to carry out any planning, design, engineering, 
     preconstruction, construction, and inspection of a project to 
     replace, rehabilitate, seismically retrofit, paint, apply 
     calcium magnesium acetate, sodium acetate/formate, or other 
     environmentally acceptable, minimally corrosive anti-icing 
     and deicing composition; or
       ``(B) to implement any countermeasure for deficient tribal 
     transportation facility bridges, including multiple-pipe 
     culverts.
       ``(3) Eligible bridges.--To be eligible to receive funding 
     under this subsection, a bridge described in paragraph (1) 
     shall--
       ``(A) have an opening of not less than 20 feet;
       ``(B) be classified as a tribal transportation facility; 
     and
       ``(C) be structurally deficient or functionally obsolete.
       ``(4) Approval requirement.--The Secretary may make funds 
     available under this subsection for preliminary engineering, 
     construction, and construction engineering activities after 
     approval of required documentation and verification of 
     eligibility in accordance with this title.
       ``(e) Safety.--
       ``(1) Funding.--Before making any distribution under 
     subsection (b), the Secretary shall set aside not more than 2 
     percent of the funds made available under the tribal 
     transportation program for each fiscal year to be allocated 
     based on an identification and analysis of highway safety 
     issues and opportunities on tribal land, as determined by the 
     Secretary, on application of the Indian tribal governments 
     for eligible projects described in section 148(a)(4).
       ``(2) Project selection.--An Indian tribal government, in 
     cooperation with the Secretary of the Interior and, as 
     appropriate, with a State, local government, or metropolitan 
     planning organization, shall select projects from the 
     transportation improvement program, subject to the approval 
     of the Secretary and the Secretary of the Interior.
       ``(f) Federal-aid Eligible Projects.--Before approving as a 
     project on a tribal transportation facility any project 
     eligible for funds apportioned under section 104 in a State, 
     the Secretary shall, for projects on tribal transportation 
     facilities, determine that the obligation of funds for the 
     project is supplementary to and not in lieu of the obligation 
     of a fair and equitable share of funds apportioned to the 
     State under section 104.

     ``Sec. 203. Federal lands transportation program

       ``(a) Use of Funds.--
       ``(1) In general.--Funds made available under the Federal 
     lands transportation program shall be used by the Secretary 
     of Transportation and the Secretary of the appropriate 
     Federal land management agency to pay the costs of--
       ``(A) program administration, transportation planning, 
     research, preventive maintenance, engineering, 
     rehabilitation, restoration, construction, and reconstruction 
     of Federal lands transportation facilities, and--
       ``(i) adjacent vehicular parking areas;
       ``(ii) acquisition of necessary scenic easements and scenic 
     or historic sites;
       ``(iii) provision for pedestrians and bicycles;
       ``(iv) environmental mitigation in or adjacent to Federal 
     land open to the public--

       ``(I) to improve public safety and reduce vehicle-caused 
     wildlife mortality while maintaining habitat connectivity; 
     and
       ``(II) to mitigate the damage to wildlife, aquatic organism 
     passage, habitat, and ecosystem connectivity, including the 
     costs of constructing, maintaining, replacing, or removing 
     culverts and bridges, as appropriate;

       ``(v) construction and reconstruction of roadside rest 
     areas, including sanitary and water facilities;
       ``(vi) congestion mitigation; and
       ``(vii) other appropriate public road facilities, as 
     determined by the Secretary;
       ``(B) operation and maintenance of transit facilities;
       ``(C) any transportation project eligible for assistance 
     under this title that is on a public road within or adjacent 
     to, or that provides access to, Federal lands open to the 
     public; and
       ``(D) not more $10,000,000 of the amounts made available 
     per fiscal year to carry out this section for activities 
     eligible under subparagraph (A)(iv).
       ``(2) Contract.--In connection with an activity described 
     in paragraph (1), the Secretary and the Secretary of the 
     appropriate Federal land management agency may enter into a 
     contract or other appropriate agreement with respect to the 
     activity with--
       ``(A) a State (including a political subdivision of a 
     State); or
       ``(B) an Indian tribe.
       ``(3) Administration.--All appropriations for the 
     construction and improvement of Federal lands transportation 
     facilities shall be administered in conformity with 
     regulations and agreements jointly approved by the Secretary 
     and the Secretary of the appropriate Federal land managing 
     agency.

[[Page 10550]]

       ``(4) Cooperation.--
       ``(A) In general.--The cooperation of States, counties, or 
     other local subdivisions may be accepted in construction and 
     improvement.
       ``(B) Funds received.--Any funds received from a State, 
     county, or local subdivision shall be credited to 
     appropriations available for the class of Federal lands 
     transportation facilities to which the funds were 
     contributed.
       ``(5) Competitive bidding.--
       ``(A) In general.--Subject to subparagraph (B), 
     construction of each project shall be performed by contract 
     awarded by competitive bidding.
       ``(B) Exception.--Subparagraph (A) shall not apply if the 
     Secretary or the Secretary of the appropriate Federal land 
     management agency affirmatively finds that, under the 
     circumstances relating to the project, a different method is 
     in the public interest.
       ``(b) Agency Program Distributions.--
       ``(1) In general.--On October 1, 2011, and on October 1 of 
     each fiscal year thereafter, the Secretary shall allocate the 
     sums authorized to be appropriated for the fiscal year for 
     the Federal lands transportation program on the basis of 
     applications of need, as determined by the Secretary--
       ``(A) in consultation with the Secretaries of the 
     applicable Federal land management agencies; and
       ``(B) in coordination with the transportation plans 
     required under section 201 of the respective transportation 
     systems of--
       ``(i) the National Park Service;
       ``(ii) the Forest Service;
       ``(iii) the United States Fish and Wildlife Service;
       ``(iv) the Corps of Engineers; and
       ``(v) the Bureau of Land Management.
       ``(2) Applications.--
       ``(A) Requirements.--Each application submitted by a 
     Federal land management agency shall include proposed 
     programs at various potential funding levels, as defined by 
     the Secretary following collaborative discussions with 
     applicable Federal land management agencies.
       ``(B) Consideration by secretary.--In evaluating an 
     application submitted under subparagraph (A), the Secretary 
     shall consider the extent to which the programs support--
       ``(i) the transportation goals of--

       ``(I) a state of good repair of transportation facilities;
       ``(II) a reduction of bridge deficiencies, and
       ``(III) an improvement of safety;

       ``(ii) high-use Federal recreational sites or Federal 
     economic generators; and
       ``(iii) the resource and asset management goals of the 
     Secretary of the respective Federal land management agency.
       ``(C) Permissive contents.--Applications may include 
     proposed programs the duration of which extend over a 
     multiple-year period to support long-term transportation 
     planning and resource management initiatives.
       ``(c) National Federal Lands Transportation Facility 
     Inventory.--
       ``(1) In general.--The Secretaries of the appropriate 
     Federal land management agencies, in cooperation with the 
     Secretary, shall maintain a comprehensive national inventory 
     of public Federal lands transportation facilities.
       ``(2) Transportation facilities included in the 
     inventories.--To identify the Federal lands transportation 
     system and determine the relative transportation needs among 
     Federal land management agencies, the inventories shall 
     include, at a minimum, facilities that--
       ``(A) provide access to high-use Federal recreation sites 
     or Federal economic generators, as determined by the 
     Secretary in coordination with the respective Secretaries of 
     the appropriate Federal land management agencies; and
       ``(B) are owned by 1 of the following agencies:
       ``(i) The National Park Service.
       ``(ii) The Forest Service.
       ``(iii) The United States Fish and Wildlife Service.
       ``(iv) The Bureau of Land Management.
       ``(v) The Corps of Engineers.
       ``(3) Availability.--The inventories shall be made 
     available to the Secretary.
       ``(4) Updates.--The Secretaries of the appropriate Federal 
     land management agencies shall update the inventories of the 
     appropriate Federal land management agencies, as determined 
     by the Secretary after collaborative discussions with the 
     Secretaries of the appropriate Federal land management 
     agencies.
       ``(5) Review.--A decision to add or remove a facility from 
     the inventory shall not be considered a Federal action for 
     purposes of review under the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.).
       ``(d) Bicycle Safety.--The Secretary of the appropriate 
     Federal land management agency shall prohibit the use of 
     bicycles on each federally owned road that has a speed limit 
     of 30 miles per hour or greater and an adjacent paved path 
     for use by bicycles within 100 yards of the road unless the 
     Secretary determines that the bicycle level of service on 
     that roadway is rated B or higher.

     ``Sec. 204. Federal lands access program

       ``(a) Use of Funds.--
       ``(1) In general.--Funds made available under the Federal 
     lands access program shall be used by the Secretary of 
     Transportation and the Secretary of the appropriate Federal 
     land management agency to pay the cost of--
       ``(A) transportation planning, research, engineering, 
     preventive maintenance, rehabilitation, restoration, 
     construction, and reconstruction of Federal lands access 
     transportation facilities located on or adjacent to, or that 
     provide access to, Federal land, and--
       ``(i) adjacent vehicular parking areas;
       ``(ii) acquisition of necessary scenic easements and scenic 
     or historic sites;
       ``(iii) provisions for pedestrians and bicycles;
       ``(iv) environmental mitigation in or adjacent to Federal 
     land to improve public safety and reduce vehicle-caused 
     wildlife mortality while maintaining habitat connectivity;
       ``(v) construction and reconstruction of roadside rest 
     areas, including sanitary and water facilities; and
       ``(vi) other appropriate public road facilities, as 
     determined by the Secretary;
       ``(B) operation and maintenance of transit facilities; and
       ``(C) any transportation project eligible for assistance 
     under this title that is within or adjacent to, or that 
     provides access to, Federal land.
       ``(2) Contract.--In connection with an activity described 
     in paragraph (1), the Secretary and the Secretary of the 
     appropriate Federal land management agency may enter into a 
     contract or other appropriate agreement with respect to the 
     activity with--
       ``(A) a State (including a political subdivision of a 
     State); or
       ``(B) an Indian tribe.
       ``(3) Administration.--All appropriations for the 
     construction and improvement of Federal lands access 
     transportation facilities shall be administered in conformity 
     with regulations and agreements approved by the Secretary.
       ``(4) Cooperation.--
       ``(A) In general.--The cooperation of States, counties, or 
     other local subdivisions may be accepted in construction and 
     improvement.
       ``(B) Funds received.--Any funds received from a State, 
     county, or local subdivision for a Federal lands access 
     transportation facility project shall be credited to 
     appropriations available under the Federal lands access 
     program.
       ``(5) Competitive bidding.--
       ``(A) In general.--Subject to subparagraph (B), 
     construction of each project shall be performed by contract 
     awarded by competitive bidding.
       ``(B) Exception.--Subparagraph (A) shall not apply if the 
     Secretary or the Secretary of the appropriate Federal land 
     management agency affirmatively finds that, under the 
     circumstances relating to the project, a different method is 
     in the public interest.
       ``(b) Program Distributions.--
       ``(1) In general.--Funding made available to carry out the 
     Federal lands access program shall be allocated among those 
     States that have Federal land, in accordance with the 
     following formula:
       ``(A) 80 percent of the available funding for use in those 
     States that contain at least 1\1/2\ percent of the total 
     public land in the United States managed by the agencies 
     described in paragraph (2), to be distributed as follows:
       ``(i) 30 percent in the ratio that--

       ``(I) recreational visitation within each such State; bears 
     to
       ``(II) the recreational visitation within all such States.

       ``(ii) 5 percent in the ratio that--

       ``(I) the Federal land area within each such State; bears 
     to
       ``(II) the Federal land area in all such States.

       ``(iii) 55 percent in the ratio that--

       ``(I) the Federal public road miles within each such State; 
     bears to
       ``(II) the Federal public road miles in all such States.

       ``(iv) 10 percent in the ratio that--

       ``(I) the number of Federal public bridges within each such 
     State; bears to
       ``(II) the number of Federal public bridges in all such 
     States.

       ``(B) 20 percent of the available funding for use in those 
     States that do not contain at least 1\1/2\ percent of the 
     total public land in the United States managed by the 
     agencies described in paragraph (2), to be distributed as 
     follows:
       ``(i) 30 percent in the ratio that--

       ``(I) recreational visitation within each such State; bears 
     to
       ``(II) the recreational visitation within all such States.

       ``(ii) 5 percent in the ratio that--

       ``(I) the Federal land area within each such State; bears 
     to
       ``(II) the Federal land area in all such States.

       ``(iii) 55 percent in the ratio that--

       ``(I) the Federal public road miles within each such State; 
     bears to
       ``(II) the Federal public road miles in all such States.

       ``(iv) 10 percent in the ratio that--

       ``(I) the number of Federal public bridges within each such 
     State; bears to
       ``(II) the number of Federal public bridges in all such 
     States.

       ``(2) Data source.--Data necessary to distribute funding 
     under paragraph (1) shall be provided by the following 
     Federal land management agencies:
       ``(A) The National Park Service.
       ``(B) The Forest Service.
       ``(C) The United States Fish and Wildlife Service.
       ``(D) The Bureau of Land Management.
       ``(E) The Corps of Engineers.
       ``(c) Programming Decisions Committee.--
       ``(1) In general.--Programming decisions shall be made 
     within each State by a committee comprised of--
       ``(A) a representative of the Federal Highway 
     Administration;
       ``(B) a representative of the State Department of 
     Transportation; and
       ``(C) a representative of any appropriate political 
     subdivision of the State.

[[Page 10551]]

       ``(2) Consultation requirement.--The committee described in 
     paragraph (1) shall cooperate with each applicable Federal 
     agency in each State before any joint discussion or final 
     programming decision.
       ``(3) Project preference.--In making a programming decision 
     under paragraph (1), the committee shall give preference to 
     projects that provide access to, are adjacent to, or are 
     located within high-use Federal recreation sites or Federal 
     economic generators, as identified by the Secretaries of the 
     appropriate Federal land management agencies.''.
       (b) Public Lands Development Roads and Trails.--Section 214 
     of title 23, United States Code, is repealed.
       (c) Conforming Amendments.--
       (1) Chapter 2 analysis.--The analysis for chapter 2 of 
     title 23, United States Code, is amended--
       (A) by striking the items relating to sections 201 through 
     204 and inserting the following:

``201. Federal lands and tribal transportation programs.
``202. Tribal transportation program.
``203. Federal lands transportation program.
``204. Federal lands access program.''; and
       (B) by striking the item relating to section 214.
       (2) Definition.--Section 138(a) of title 23, United States 
     Code, is amended in the third sentence by striking ``park 
     road or parkway under section 204 of this title'' and 
     inserting ``Federal lands transportation facility''.
       (3) Rules, regulations, and recommendations.--Section 315 
     of title 23, United States Code, is amended by striking 
     ``204(f)'' and inserting ``202(a)(5), 203(a)(3),''.

     SEC. 1120. PROJECTS OF NATIONAL AND REGIONAL SIGNIFICANCE.

       Section 1301 of the SAFETEA-LU (23 U.S.C. 101 note; 119 
     Stat. 1198) is amended--
       (1) in subsection (b), by striking ``States'' and inserting 
     ``eligible applicants'';
       (2) in subsection (c), by striking paragraph (3) and 
     inserting the following:
       ``(3) Eligible applicant.--The term `eligible applicant' 
     means--
       ``(A) a State department of transportation or a group of 
     State departments of transportation;
       ``(B) a tribal government or consortium of tribal 
     governments;
       ``(C) a transit agency; or
       ``(D) a multi-State or multi-jurisdictional group of the 
     agencies described in subparagraphs (A) through (C).'';
       (3) in subsection (d)(2), by striking ``75'' and inserting 
     ``50'';
       (4) in subsection (e), by striking ``State'' and inserting 
     ``eligible applicant'';
       (5) in subsection (f)(3) by striking subparagraph (B) and 
     inserting the following:
       ``(B) improves roadways vital to national energy security; 
     and'';
       (6) in subsection (g)(1) by adding at the end the 
     following:
       ``(E) Congressional approval.--The Secretary may not issue 
     a letter of intent, enter into a full funding grant agreement 
     under paragraph (2), or make any other obligation or 
     commitment to fund a project under this section if a joint 
     resolution of disapproval is enacted disapproving funding for 
     the project before the last day of the 60-day period 
     described in subparagraph (B).'';
       (7) in subsection (k), by adding at the end the following:
       ``(3) Project selection justifications.--
       ``(A) In general.--Not later than 30 days after the date on 
     which the Secretary selects a project for funding under this 
     section, the Secretary shall submit to the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives and the Committee on Environment and Public 
     Works of the Senate a report that describes the reasons for 
     selecting the project, based on the criteria described in 
     subsection (f).
       ``(B) Inclusions.--The report submitted under subparagraph 
     (A) shall specify each criteria described in subsection (f) 
     that the project meets.
       ``(C) Availability.--The Secretary shall make available on 
     the website of the Department the report submitted under 
     subparagraph (A).''; and
       (8) by striking subsections (l) and (m) and inserting the 
     following:
       ``(l) Report.--
       ``(1) In general.--Not later than 2 years after the date of 
     enactment of the MAP-21, the Secretary shall submit a report 
     to the Committee on Transportation and Infrastructure of the 
     House of Representatives and the Committee on Environment and 
     Public Works of the Senate regarding projects of national and 
     regional significance.
       ``(2) Purpose.--The purpose of the report issued under this 
     subsection shall be to identify projects of national and 
     regional significance that--
       ``(A) will significantly improve the performance of the 
     Federal-aid highway system, nationally or regionally;
       ``(B) is able to--
       ``(i) generate national economic benefits that reasonably 
     exceed the costs of the projects, including increased access 
     to jobs, labor, and other critical economic inputs;
       ``(ii) reduce long-term congestion, including impacts in 
     the State, region, and the United States, and increase speed, 
     reliability, and accessibility of the movement of people or 
     freight; and
       ``(iii) improve transportation safety, including reducing 
     transportation accidents, and serious injuries and 
     fatalities; and
       ``(C) can be supported by an acceptable degree of non-
     Federal financial commitments.
       ``(3) Contents.--The report issued under this subsection 
     shall include--
       ``(A) a comprehensive list of each project of national and 
     regional significance that--
       ``(i) has been complied through a survey of State 
     departments of transportation; and
       ``(ii) has been classified by the Secretary as a project of 
     regional or national significance in accordance with this 
     section;
       ``(B) an analysis of the information collected under 
     paragraph (1), including a discussion of the factors 
     supporting each classification of a project as a project of 
     regional or national significance; and
       ``(C) recommendations on financing for eligible project 
     costs.
       ``(m) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $500,000,000 for 
     fiscal year 2013, to remain available until expended.''.

     SEC. 1121. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL 
                   FACILITIES.

       (a) Construction of Ferry Boats and Ferry Terminal 
     Facilities.--Section 147 of title 23, United States Code, is 
     amended--
       (1) by striking subsections (c) and (d);
       (2) by redesignating subsections (e) and (f) as subsections 
     (f) and (g), respectively; and
       (3) by inserting after subsection (b) the following:
       ``(c) Distribution of Funds.--Of the amounts made available 
     to ferry systems and public entities responsible for 
     developing ferries under this section for a fiscal year, 100 
     percent shall be allocated in accordance with the formula set 
     forth in subsection (d).
       ``(d) Formula.--Of the amounts allocated pursuant to 
     subsection (c)--
       ``(1) 20 percent shall be allocated among eligible entities 
     in the proportion that--
       ``(A) the number of ferry passengers carried by each ferry 
     system in the most recent fiscal year; bears to
       ``(B) the number of ferry passengers carried by all ferry 
     systems in the most recent fiscal year;
       ``(2) 45 percent shall be allocated among eligible entities 
     in the proportion that--
       ``(A) the number of vehicles carried by each ferry system 
     in the most recent fiscal year; bears to
       ``(B) the number of vehicles carried by all ferry systems 
     in the most recent fiscal year; and
       ``(3) 35 percent shall be allocated among eligible entities 
     in the proportion that--
       ``(A) the total route miles serviced by each ferry system; 
     bears to
       ``(B) the total route miles serviced by all ferry systems.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated out of the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out this section 
     $67,000,000 for each of fiscal years 2013 and 2014.''.
       (b) National Ferry Database.--Section 1801(e) of the 
     SAFETEA-LU (23 U.S.C. 129 note; Public Law 109-59) is 
     amended--
       (1) in paragraph (2), by inserting ``, including any 
     Federal, State, and local government funding sources,'' after 
     ``sources''; and
       (2) in paragraph (4)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) by redesignating subparagraph (C) as subparagraph (D);
       (C) by inserting after subparagraph (B), the following:
       ``(C) ensure that the database is consistent with the 
     national transit database maintained by the Federal Transit 
     Administration; and''; and
       (D) in subparagraph (D) (as redesignated by subparagraph 
     (B)), by striking ``2009'' and inserting ``2014''.

     SEC. 1122. TRANSPORTATION ALTERNATIVES.

       (a) In General.--Section 213 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 213. Transportation alternatives

       ``(a) Reservation of Funds.--
       ``(1) In general.--On October 1 of each of fiscal years 
     2013 and 2014, the Secretary shall proportionally reserve 
     from the funds apportioned to a State under section 104(b) to 
     carry out the requirements of this section an amount equal to 
     the amount obtained by multiplying the amount determined 
     under paragraph (2) by the ratio that--
       ``(A) the amount apportioned to the State for the 
     transportation enhancements program for fiscal year 2009 
     under section 133(d)(2), as in effect on the day before the 
     date of enactment of the MAP-21; bears to
       ``(B) the total amount of funds apportioned to all States 
     for that fiscal year for the transportation enhancements 
     program for fiscal year 2009.
       ``(2) Calculation of national amount.--The Secretary shall 
     determine an amount for each fiscal year that is equal to 2 
     percent of the amounts authorized to be appropriated for such 
     fiscal year from the Highway Trust Fund (other than the Mass 
     Transit Account) to carry out chapters 1, 2, 5, and 6 of this 
     title.
       ``(b) Eligible Projects.--A State may obligate the funds 
     reserved under this section for any of the following projects 
     or activities:
       ``(1) Transportation alternatives, as defined in section 
     101.
       ``(2) The recreational trails program under section 206.
       ``(3) The safe routes to school program under section 1404 
     of the SAFETEA-LU (23 U.S.C. 402 note; Public Law 109-59).
       ``(4) Planning, designing, or constructing boulevards and 
     other roadways largely in the right-

[[Page 10552]]

     of-way of former Interstate System routes or other divided 
     highways.
       ``(c) Allocations of Funds.--
       ``(1) Calculation.--Of the funds reserved in a State under 
     this section--
       ``(A) 50 percent for a fiscal year shall be obligated under 
     this section to any eligible entity in proportion to their 
     relative shares of the population of the State--
       ``(i) in urbanized areas of the State with an urbanized 
     area population of over 200,000;
       ``(ii) in areas of the State other than urban areas with a 
     population greater than 5,000; and
       ``(iii) in other areas of the State; and
       ``(B) 50 percent shall be obligated in any area of the 
     State.
       ``(2) Metropolitan areas.--Funds attributed to an urbanized 
     area under paragraph (1)(A)(i) may be obligated in the 
     metropolitan area established under section 134 that 
     encompasses the urbanized area.
       ``(3) Distribution among urbanized areas of over 200,000 
     population.--
       ``(A) In general.--Except as provided in paragraph (1)(B), 
     the amount of funds that a State is required to obligate 
     under paragraph (1)(A)(i) shall be obligated in urbanized 
     areas described in paragraph (1)(A)(i) based on the relative 
     population of the areas.
       ``(B) Other factors.--A State may obligate the funds 
     described in subparagraph (A) based on other factors if the 
     State and the relevant metropolitan planning organizations 
     jointly apply to the Secretary for the permission to base the 
     obligation on other factors and the Secretary grants the 
     request.
       ``(4) Access to funds.--
       ``(A) In general.--Each State or metropolitan planning 
     organization required to obligate funds in accordance with 
     paragraph (1) shall develop a competitive process to allow 
     eligible entities to submit projects for funding that achieve 
     the objectives of this subsection.
       ``(B) Definition of eligible entity.--In this paragraph, 
     the term `eligible entity' means--
       ``(i) a local government;
       ``(ii) a regional transportation authority;
       ``(iii) a transit agency;
       ``(iv) a natural resource or public land agency;
       ``(v) a school district, local education agency, or school;
       ``(vi) a tribal government; and
       ``(vii) any other local or regional governmental entity 
     with responsibility for or oversight of transportation or 
     recreational trails (other than a metropolitan planning 
     organization or a State agency) that the State determines to 
     be eligible, consistent with the goals of this subsection.
       ``(5) Selection of projects.--For funds reserved in a State 
     under this section and suballocated to a metropolitan 
     planning area under paragraph (1)(A)(i), each such 
     metropolitan planning organization shall select projects 
     carried out within the boundaries of the applicable 
     metropolitan planning area, in consultation with the relevant 
     State.
       ``(d) Flexibility of Excess Reserved Funding.--Beginning in 
     the second fiscal year after the date of enactment of the 
     MAP-21, if on August 1 of that fiscal year the unobligated 
     balance of available funds reserved by a State under this 
     section exceeds 100 percent of such reserved amount in such 
     fiscal year, the State may thereafter obligate the amount of 
     excess funds for any activity--
       ``(1) that is eligible to receive funding under this 
     section; or
       ``(2) for which the Secretary has approved the obligation 
     of funds for any State under section 149.
       ``(e) Treatment of Projects.--Notwithstanding any other 
     provision of law, projects funded under this section 
     (excluding those carried out under subsection (f)) shall be 
     treated as projects on a Federal-aid highway under this 
     chapter.
       ``(f) Continuation of Certain Recreational Trails 
     Projects.--Each State shall--
       ``(1) obligate an amount of funds reserved under this 
     section equal to the amount of the funds apportioned to the 
     State for fiscal year 2009 under section 104(h)(2) for 
     projects relating to recreational trails under section 206;
       ``(2) return 1 percent of those funds to the Secretary for 
     the administration of that program; and
       ``(3) comply with the provisions of the administration of 
     the recreational trails program under section 206, including 
     the use of apportioned funds described under subsection 
     (d)(3)(A) of that section.
       ``(g) State Flexibility.--A State may opt out of the 
     recreational trails program under subsection (f) if the 
     Governor of the State notifies the Secretary not later than 
     30 days prior to apportionments being made for any fiscal 
     year.''.
       (b) Conforming Amendment.--The analysis for chapter 2 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 213 and inserting the following:

``213. Transportation alternatives''.

     SEC. 1123. TRIBAL HIGH PRIORITY PROJECTS PROGRAM.

       (a) Definitions.--In this section:
       (1) Emergency or disaster.--The term ``emergency or 
     disaster'' means damage to a tribal transportation facility 
     that--
       (A) renders the tribal transportation facility impassable 
     or unusable;
       (B) is caused by--
       (i) a natural disaster over a widespread area; or
       (ii) a catastrophic failure from an external cause; and
       (C) would be eligible under the emergency relief program 
     under section 125 of title 23, United States Code, but does 
     not meet the funding thresholds required by that section.
       (2) List.--The term ``list'' means the funding priority 
     list developed under subsection (c)(5).
       (3) Program.--The term ``program'' means the Tribal High 
     Priority Projects program established under subsection 
     (b)(1).
       (4) Project.--The term ``project'' means a project provided 
     funds under the program.
       (b) Program.--
       (1) In general.--The Secretary shall use amounts made 
     available under subsection (h) to carry out a Tribal High 
     Priority Projects program under which funds shall be provided 
     to eligible applicants in accordance with this section.
       (2) Eligible applicants.--Applicants eligible for program 
     funds under this section include--
       (A) an Indian tribe whose annual allocation of funding 
     under section 202 of title 23, United States Code, is 
     insufficient to complete the highest priority project of the 
     Indian tribe;
       (B) a governmental subdivision of an Indian tribe--
       (i) that is authorized to administer the funding of the 
     Indian tribe under section 202 of title 23, United States 
     Code; and
       (ii) for which the annual allocation under that section is 
     insufficient to complete the highest priority project of the 
     Indian tribe; or
       (C) any Indian tribe that has an emergency or disaster with 
     respect to a transportation facility included on the national 
     inventory of tribal transportation facilities under section 
     202(b)(1) of title 23, United States Code.
       (c) Project Applications; Funding.--
       (1) In general.--To apply for funds under this section, an 
     eligible applicant shall submit to the Department of the 
     Interior or the Department an application that includes--
       (A) project scope of work, including deliverables, budget, 
     and timeline;
       (B) the amount of funds requested;
       (C) project information addressing--
       (i) the ranking criteria identified in paragraph (3); or
       (ii) the nature of the emergency or disaster;
       (D) documentation that the project meets the definition of 
     a tribal transportation facility and is included in the 
     national inventory of tribal transportation facilities under 
     section 202(b)(1) of title 23, United States Code;
       (E) documentation of official tribal action requesting the 
     project;
       (F) documentation from the Indian tribe providing authority 
     for the Secretary of the Interior to place the project on a 
     transportation improvement program if the project is selected 
     and approved; and
       (G) any other information the Secretary of the Interior or 
     Secretary considers appropriate to make a determination.
       (2) Limitation on applications.--An applicant for funds 
     under the program may only have 1 application for assistance 
     under this section pending at any 1 time, including any 
     emergency or disaster application.
       (3) Application ranking.--
       (A) In general.--The Secretary of the Interior and the 
     Secretary shall determine the eligibility of, and fund, 
     program applications, subject to the availability of funds.
       (B) Ranking criteria.--The project ranking criteria for 
     applications under this section shall include--
       (i) the existence of safety hazards with documented 
     fatality and injury accidents;
       (ii) the number of years since the Indian tribe last 
     completed a construction project funded by section 202 of 
     title 23, United States Code;
       (iii) the readiness of the Indian tribe to proceed to 
     construction or bridge design need;
       (iv) the percentage of project costs matched by funds that 
     are not provided under section 202 of title 23, United States 
     Code, with projects with a greater percentage of other 
     sources of matching funds ranked ahead of lesser matches);
       (v) the amount of funds requested, with requests for lesser 
     amounts given greater priority;
       (vi) the challenges caused by geographic isolation; and
       (vii) all weather access for employment, commerce, health, 
     safety, educational resources, or housing.
       (4) Project scoring matrix.--The project scoring matrix 
     established in the appendix to part 170 of title 25, Code of 
     Regulations (as in effect on the date of enactment of this 
     Act) shall be used to rank all applications accepted under 
     this section.
       (5) Funding priority list.--
       (A) In general.--The Secretary of the Interior and the 
     Secretary shall jointly produce a funding priority list that 
     ranks the projects approved for funding under the program.
       (B) Limitation.--The number of projects on the list shall 
     be limited by the amount of funding made available.
       (6) Timeline.--The Secretary of the Interior and the 
     Secretary shall--
       (A) require applications for funding no sooner than 60 days 
     after funding is made available pursuant to subsection (a);
       (B) notify all applicants and Regions in writing of 
     acceptance of applications;
       (C) rank all accepted applications in accordance with the 
     project scoring matrix, develop the funding priority list, 
     and return unaccepted applications to the applicant with an 
     explanation of deficiencies;
       (D) notify all accepted applicants of the projects included 
     on the funding priority list no later than 180 days after the 
     application deadline has passed pursuant to subparagraph (A); 
     and
       (E) distribute funds to successful applicants.

[[Page 10553]]

       (d) Emergency or Disaster Project Applications.--
       (1) In general.--Notwithstanding subsection (c)(6), an 
     eligible applicant may submit an emergency or disaster 
     project application at any time during the fiscal year.
       (2) Consideration as priority.--The Secretary shall--
       (A) consider project applications submitted under paragraph 
     (1) to be a priority; and
       (B) fund the project applications in accordance with 
     paragraph (3).
       (3) Funding.--
       (A) In general.--If an eligible applicant submits an 
     application for a project under this subsection before the 
     issuance of the list under subsection (c)(5) and the project 
     is determined to be eligible for program funds, the Secretary 
     of the Interior shall provide funding for the project before 
     providing funding for other approved projects on the list.
       (B) Submission after issuance of list.--If an eligible 
     applicant submits an application under this subsection after 
     the issuance of the list under subsection (c)(5) and the 
     distribution of program funds in accordance with the list, 
     the Secretary of the Interior shall provide funding for the 
     project on the date on which unobligated funds provided to 
     projects on the list are returned to the Department of the 
     Interior.
       (C) Effect on other projects.--If the Secretary of the 
     Interior uses funding previously designated for a project on 
     the list to fund an emergency or disaster project under this 
     subsection, the project on the list that did not receive 
     funding as a result of the redesignation of funds shall move 
     to the top of the list the following year.
       (4) Emergency or disaster project cost.--The cost of a 
     project submitted as an emergency or disaster under this 
     subsection shall be at least 10 percent of the distribution 
     of funds of the Indian tribe under section 202(b) of title 
     23, United States Code.
       (e) Limitation on Use of Funds.--Program funds shall not be 
     used for--
       (1) transportation planning;
       (2) research;
       (3) routine maintenance activities;
       (4) structures and erosion protection unrelated to 
     transportation and roadways;
       (5) general reservation planning not involving 
     transportation;
       (6) landscaping and irrigation systems not involving 
     transportation programs and projects;
       (7) work performed on projects that are not included on a 
     transportation improvement program approved by the Federal 
     Highway Administration, unless otherwise authorized by the 
     Secretary of the Interior and the Secretary;
       (8) the purchase of equipment unless otherwise authorized 
     by Federal law; or
       (9) the condemnation of land for recreational trails.
       (f) Limitation on Project Amounts.--Project funding shall 
     be limited to a maximum of $1,000,000 per application, except 
     that funding for disaster or emergency projects shall also be 
     limited to the estimated cost of repairing damage to the 
     tribal transportation facility.
       (g) Cost Estimate Certification.--All cost estimates 
     prepared for a project shall be required to be submitted by 
     the applicant to the Secretary of the Interior and the 
     Secretary for certification and approval.
       (h) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated 
     $30,000,000 out of the general fund of the Treasury to carry 
     out the program for each of fiscal years 2013 and 2014.
       (2) Administration.--The funds made available under 
     paragraph (1) shall be administered in the same manner as 
     funds made available for the tribal transportation program 
     under section 202 of title 23, United States Code, except 
     that--
       (A) the funds made available for the program shall remain 
     available until September 30 of the third fiscal year after 
     the year appropriated; and
       (B) the Federal share of the cost of a project shall be 100 
     percent.
                   Subtitle B--Performance Management

     SEC. 1201. METROPOLITAN TRANSPORTATION PLANNING.

       (a) In General.--Section 134 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 134. Metropolitan transportation planning

       ``(a) Policy.--It is in the national interest--
       ``(1) to encourage and promote the safe and efficient 
     management, operation, and development of surface 
     transportation systems that will serve the mobility needs of 
     people and freight and foster economic growth and development 
     within and between States and urbanized areas, while 
     minimizing transportation-related fuel consumption and air 
     pollution through metropolitan and statewide transportation 
     planning processes identified in this chapter; and
       ``(2) to encourage the continued improvement and evolution 
     of the metropolitan and statewide transportation planning 
     processes by metropolitan planning organizations, State 
     departments of transportation, and public transit operators 
     as guided by the planning factors identified in subsection 
     (h) and section 135(d).
       ``(b) Definitions.--In this section and section 135, the 
     following definitions apply:
       ``(1) Metropolitan planning area.--The term `metropolitan 
     planning area' means the geographic area determined by 
     agreement between the metropolitan planning organization for 
     the area and the Governor under subsection (e).
       ``(2) Metropolitan planning organization.--The term 
     `metropolitan planning organization' means the policy board 
     of an organization established as a result of the designation 
     process under subsection (d).
       ``(3) Nonmetropolitan area.--The term `nonmetropolitan 
     area' means a geographic area outside designated metropolitan 
     planning areas.
       ``(4) Nonmetropolitan local official.--The term 
     `nonmetropolitan local official' means elected and appointed 
     officials of general purpose local government in a 
     nonmetropolitan area with responsibility for transportation.
       ``(5) Regional transportation planning organization.--The 
     term `regional transportation planning organization' means a 
     policy board of an organization established as the result of 
     a designation under section 135(m).
       ``(6) TIP.--The term `TIP' means a transportation 
     improvement program developed by a metropolitan planning 
     organization under subsection (j).
       ``(7) Urbanized area.--The term `urbanized area' means a 
     geographic area with a population of 50,000 or more, as 
     determined by the Bureau of the Census.
       ``(c) General Requirements.--
       ``(1) Development of long-range plans and tips.--To 
     accomplish the objectives in subsection (a), metropolitan 
     planning organizations designated under subsection (d), in 
     cooperation with the State and public transportation 
     operators, shall develop long-range transportation plans and 
     transportation improvement programs through a performance-
     driven, outcome-based approach to planning for metropolitan 
     areas of the State.
       ``(2) Contents.--The plans and TIPs for each metropolitan 
     area shall provide for the development and integrated 
     management and operation of transportation systems and 
     facilities (including accessible pedestrian walkways and 
     bicycle transportation facilities) that will function as an 
     intermodal transportation system for the metropolitan 
     planning area and as an integral part of an intermodal 
     transportation system for the State and the United States.
       ``(3) Process of development.--The process for developing 
     the plans and TIPs shall provide for consideration of all 
     modes of transportation and shall be continuing, cooperative, 
     and comprehensive to the degree appropriate, based on the 
     complexity of the transportation problems to be addressed.
       ``(d) Designation of Metropolitan Planning Organizations.--
       ``(1) In general.--To carry out the transportation planning 
     process required by this section, a metropolitan planning 
     organization shall be designated for each urbanized area with 
     a population of more than 50,000 individuals--
       ``(A) by agreement between the Governor and units of 
     general purpose local government that together represent at 
     least 75 percent of the affected population (including the 
     largest incorporated city (based on population) as determined 
     by the Bureau of the Census); or
       ``(B) in accordance with procedures established by 
     applicable State or local law.
       ``(2) Structure.--Not later than 2 years after the date of 
     enactment of MAP-21, each metropolitan planning organization 
     that serves an area designated 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, including representation by providers of public 
     transportation; 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 the plans and TIPs 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.--A designation of a 
     metropolitan planning organization under this subsection or 
     any other provision of law shall remain in effect until the 
     metropolitan planning organization is redesignated under 
     paragraph (5).
       ``(5) Redesignation procedures.--
       ``(A) In general.--A metropolitan planning organization may 
     be redesignated by agreement between the Governor and units 
     of general purpose local government that together represent 
     at least 75 percent of the existing planning area population 
     (including the largest incorporated city (based on 
     population) as determined by the Bureau of the Census) as 
     appropriate to carry out this section.
       ``(B) Restructuring.--A metropolitan planning organization 
     may be restructured to meet the requirements of paragraph (2) 
     without undertaking a redesignation.
       ``(6) Designation of more than 1 metropolitan planning 
     organization.--More than 1 metropolitan planning organization 
     may be designated within an existing metropolitan planning 
     area only if the Governor and the existing metropolitan 
     planning organization determine that the size and complexity 
     of the existing metropolitan planning area make designation 
     of more than 1 metropolitan planning organization for the 
     area appropriate.
       ``(e) Metropolitan Planning Area Boundaries.--
       ``(1) In general.--For the purposes of this section, the 
     boundaries of a metropolitan planning area shall be 
     determined by agreement between the metropolitan planning 
     organization and the Governor.

[[Page 10554]]

       ``(2) Included area.--Each metropolitan planning area--
       ``(A) shall encompass at least the existing urbanized area 
     and the contiguous area expected to become urbanized within a 
     20-year forecast period for the transportation plan; and
       ``(B) may encompass the entire metropolitan statistical 
     area or consolidated metropolitan statistical area, as 
     defined by the Bureau of the Census.
       ``(3) Identification of new urbanized areas within existing 
     planning area boundaries.--The designation by the Bureau of 
     the Census of new urbanized areas within an existing 
     metropolitan planning area shall not require the 
     redesignation of the existing metropolitan planning 
     organization.
       ``(4) Existing metropolitan planning areas in 
     nonattainment.--
       ``(A) In general.--Notwithstanding paragraph (2), except as 
     provided in subparagraph (B), in the case of an urbanized 
     area designated as a nonattainment area for ozone or carbon 
     monoxide under the Clean Air Act (42 U.S.C. 7401 et seq.) as 
     of the date of enactment of the SAFETEA-LU, the boundaries of 
     the metropolitan planning area in existence as of such date 
     of enactment shall be retained.
       ``(B) Exception.--The boundaries described in subparagraph 
     (A) may be adjusted by agreement of the Governor and affected 
     metropolitan planning organizations in the manner described 
     in subsection (d)(5).
       ``(5) New metropolitan planning areas in nonattainment.--In 
     the case of an urbanized area designated after the date of 
     enactment of the SAFETEA-LU, as a nonattainment area for 
     ozone or carbon monoxide, the boundaries of the metropolitan 
     planning area--
       ``(A) shall be established in the manner described in 
     subsection (d)(1);
       ``(B) shall encompass the areas described in paragraph 
     (2)(A);
       ``(C) may encompass the areas described in paragraph 
     (2)(B); and
       ``(D) may address any nonattainment area identified under 
     the Clean Air Act (42 U.S.C. 7401 et seq.) for ozone or 
     carbon monoxide.
       ``(f) Coordination in Multistate Areas.--
       ``(1) In general.--The Secretary shall encourage each 
     Governor with responsibility for a portion of a multistate 
     metropolitan area and the appropriate metropolitan planning 
     organizations to provide coordinated transportation planning 
     for the entire metropolitan area.
       ``(2) Interstate compacts.--The consent of Congress is 
     granted to any 2 or more States--
       ``(A) to enter into agreements or compacts, not in conflict 
     with any law of the United States, for cooperative efforts 
     and mutual assistance in support of activities authorized 
     under this section as the activities pertain to interstate 
     areas and localities within the States; and
       ``(B) to establish such agencies, joint or otherwise, as 
     the States may determine desirable for making the agreements 
     and compacts effective.
       ``(3) Reservation of rights.--The right to alter, amend, or 
     repeal interstate compacts entered into under this subsection 
     is expressly reserved.
       ``(g) MPO Consultation in Plan and TIP Coordination.--
       ``(1) Nonattainment areas.--If more than 1 metropolitan 
     planning organization has authority within a metropolitan 
     area or an area which is designated as a nonattainment area 
     for ozone or carbon monoxide under the Clean Air Act (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 and TIPs required by this section.
       ``(2) Transportation improvements located in multiple 
     mpos.--If a transportation improvement, funded from the 
     Highway Trust Fund or authorized under chapter 53 of title 
     49, is located within the boundaries of more than 1 
     metropolitan planning area, the metropolitan planning 
     organizations shall coordinate plans and TIPs regarding the 
     transportation improvement.
       ``(3) Relationship with other planning officials.--
       ``(A) In general.--The Secretary shall encourage each 
     metropolitan planning organization to consult with officials 
     responsible for other types of planning activities that are 
     affected by transportation in the area (including State and 
     local planned growth, economic development, environmental 
     protection, airport operations, and freight movements) or to 
     coordinate its planning process, to the maximum extent 
     practicable, with such planning activities.
       ``(B) Requirements.--Under the metropolitan planning 
     process, transportation plans and TIPs shall be developed 
     with due consideration of other related planning activities 
     within the metropolitan area, and the process shall provide 
     for the design and delivery of transportation services within 
     the metropolitan area that are provided by--
       ``(i) recipients of assistance under chapter 53 of title 
     49;
       ``(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.
       ``(h) Scope of Planning Process.--
       ``(1) In general.--The metropolitan planning process for a 
     metropolitan planning area under this section shall provide 
     for consideration of projects and strategies that will--
       ``(A) support the economic vitality of the metropolitan 
     area, especially by enabling global competitiveness, 
     productivity, and efficiency;
       ``(B) increase the safety of the transportation system for 
     motorized and nonmotorized users;
       ``(C) increase the security of the transportation system 
     for motorized and nonmotorized users;
       ``(D) increase the accessibility and mobility of people and 
     for freight;
       ``(E) protect and enhance the environment, promote energy 
     conservation, improve the quality of life, and promote 
     consistency between transportation improvements and State and 
     local planned growth and economic development patterns;
       ``(F) enhance the integration and connectivity of the 
     transportation system, across and between modes, for people 
     and freight;
       ``(G) promote efficient system management and operation; 
     and
       ``(H) emphasize the preservation of the existing 
     transportation system.
       ``(2) Performance-based approach.--
       ``(A) In general.--The metropolitan transportation planning 
     process shall provide for the establishment and use of a 
     performance-based approach to transportation decisionmaking 
     to support the national goals described in section 150(b) of 
     this title and in section 5301(c) of title 49.
       ``(B) Performance targets.--
       ``(i) Surface transportation performance targets.--

       ``(I) In general.--Each metropolitan planning organization 
     shall establish performance targets that address the 
     performance measures described in section 150(c), where 
     applicable, to use in tracking progress towards attainment of 
     critical outcomes for the region of the metropolitan planning 
     organization.
       ``(II) Coordination.--Selection of performance targets by a 
     metropolitan planning organization shall be coordinated with 
     the relevant State to ensure consistency, to the maximum 
     extent practicable.

       ``(ii) Public transportation performance targets.--
     Selection of performance targets by a metropolitan planning 
     organization shall be coordinated, to the maximum extent 
     practicable, with providers of public transportation to 
     ensure consistency with sections 5326(c) and 5329(d) of title 
     49.
       ``(C) Timing.--Each metropolitan planning organization 
     shall establish the performance targets under subparagraph 
     (B) not later than 180 days after the date on which the 
     relevant State or provider of public transportation 
     establishes the performance targets.
       ``(D) Integration of other performance-based plans.--A 
     metropolitan planning organization shall integrate in the 
     metropolitan transportation planning process, directly or by 
     reference, the goals, objectives, performance measures, and 
     targets described in other State transportation plans and 
     transportation processes, as well as any plans developed 
     under chapter 53 of title 49 by providers of public 
     transportation, required as part of a performance-based 
     program.
       ``(3) Failure to consider factors.--The failure to consider 
     any factor specified in paragraphs (1) and (2) shall not be 
     reviewable by any court under this title or chapter 53 of 
     title 49, subchapter II of chapter 5 of title 5, or chapter 7 
     of title 5 in any matter affecting a transportation plan, a 
     TIP, a project or strategy, or the certification of a 
     planning process.
       ``(i) Development of Transportation Plan.--
       ``(1) Requirements.--
       ``(A) In general.--Each metropolitan planning organization 
     shall prepare and update a transportation plan for its 
     metropolitan planning area in accordance with the 
     requirements of this subsection.
       ``(B) Frequency.--
       ``(i) In general.--The metropolitan planning organization 
     shall prepare and update such plan every 4 years (or more 
     frequently, if the metropolitan planning organization elects 
     to update more frequently) in the case of each of the 
     following:

       ``(I) Any area designated as nonattainment, as defined in 
     section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)).
       ``(II) Any area that was nonattainment and subsequently 
     designated to attainment in accordance with section 107(d)(3) 
     of that Act (42 U.S.C. 7407(d)(3)) and that is subject to a 
     maintenance plan under section 175A of that Act (42 U.S.C. 
     7505a).

       ``(ii) Other areas.--In the case of any other area required 
     to have a transportation plan in accordance with the 
     requirements of this subsection, the metropolitan planning 
     organization shall prepare and update such plan every 5 years 
     unless the metropolitan planning organization elects to 
     update more frequently.
       ``(2) Transportation plan.--A transportation plan under 
     this section shall be in a form that the Secretary determines 
     to be appropriate and shall contain, at a minimum, the 
     following:
       ``(A) Identification of transportation facilities.--
       ``(i) In general.--An identification of transportation 
     facilities (including major roadways, transit, multimodal and 
     intermodal facilities, nonmotorized transportation 
     facilities, and intermodal connectors) that should function 
     as an integrated metropolitan transportation system, giving 
     emphasis to those facilities that serve important national 
     and regional transportation functions.
       ``(ii) Factors.--In formulating the transportation plan, 
     the metropolitan planning organization shall consider factors 
     described in subsection (h) as the factors relate to a 20-
     year forecast period.

[[Page 10555]]

       ``(B) Performance measures and targets.--A description of 
     the performance measures and performance targets used in 
     assessing the performance of the transportation system in 
     accordance with subsection (h)(2).
       ``(C) System performance report.--A system performance 
     report and subsequent updates evaluating the condition and 
     performance of the transportation system with respect to the 
     performance targets described in subsection (h)(2), 
     including--
       ``(i) progress achieved by the metropolitan planning 
     organization in meeting the performance targets in comparison 
     with system performance recorded in previous reports; and
       ``(ii) for metropolitan planning organizations that 
     voluntarily elect to develop multiple scenarios, an analysis 
     of how the preferred scenario has improved the conditions and 
     performance of the transportation system and how changes in 
     local policies and investments have impacted the costs 
     necessary to achieve the identified performance targets.
       ``(D) Mitigation activities.--
       ``(i) In general.--A long-range transportation plan shall 
     include a discussion of types of potential environmental 
     mitigation activities and potential areas to carry out these 
     activities, including activities that may have the greatest 
     potential to restore and maintain the environmental functions 
     affected by the plan.
       ``(ii) Consultation.--The discussion shall be developed in 
     consultation with Federal, State, and tribal wildlife, land 
     management, and regulatory agencies.
       ``(E) Financial plan.--
       ``(i) In general.--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; and
       ``(III) recommends any additional financing strategies for 
     needed projects and programs.

       ``(ii) Inclusions.--The financial plan may include, for 
     illustrative purposes, additional projects that would be 
     included in the adopted transportation plan if reasonable 
     additional resources beyond those identified in the financial 
     plan were available.
       ``(iii) Cooperative development.--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.
       ``(F) Operational and management strategies.--Operational 
     and management strategies to improve the performance of 
     existing transportation facilities to relieve vehicular 
     congestion and maximize the safety and mobility of people and 
     goods.
       ``(G) Capital investment and other strategies.--Capital 
     investment and other strategies to preserve the existing and 
     projected future metropolitan transportation infrastructure 
     and provide for multimodal capacity increases based on 
     regional priorities and needs.
       ``(H) Transportation and transit enhancement activities.--
     Proposed transportation and transit enhancement activities.
       ``(3) Coordination with clean air act agencies.--In 
     metropolitan areas that are 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 that 
     Act.
       ``(4) Optional scenario development.--
       ``(A) In general.--A metropolitan planning organization 
     may, while fitting the needs and complexity of its community, 
     voluntarily elect to develop multiple scenarios for 
     consideration as part of the development of the metropolitan 
     transportation plan, in accordance with subparagraph (B).
       ``(B) Recommended components.--A metropolitan planning 
     organization that chooses to develop multiple scenarios under 
     subparagraph (A) shall be encouraged to consider--
       ``(i) potential regional investment strategies for the 
     planning horizon;
       ``(ii) assumed distribution of population and employment;
       ``(iii) a scenario that, to the maximum extent practicable, 
     maintains baseline conditions for the performance measures 
     identified in subsection (h)(2);
       ``(iv) a scenario that improves the baseline conditions for 
     as many of the performance measures identified in subsection 
     (h)(2) as possible;
       ``(v) revenue constrained scenarios based on the total 
     revenues expected to be available over the forecast period of 
     the plan; and
       ``(vi) estimated costs and potential revenues available to 
     support each scenario.
       ``(C) Metrics.--In addition to the performance measures 
     identified in section 150(c), metropolitan planning 
     organizations may evaluate scenarios developed under this 
     paragraph using locally-developed measures.
       ``(5) Consultation.--
       ``(A) In general.--In each metropolitan area, the 
     metropolitan planning organization shall consult, as 
     appropriate, with State and local agencies responsible for 
     land use management, natural resources, environmental 
     protection, conservation, and historic preservation 
     concerning the development of a long-range transportation 
     plan.
       ``(B) Issues.--The consultation shall involve, as 
     appropriate--
       ``(i) comparison of transportation plans with State 
     conservation plans or maps, if available; or
       ``(ii) comparison of transportation plans to inventories of 
     natural or historic resources, if available.
       ``(6) Participation by interested parties.--
       ``(A) In general.--Each metropolitan planning organization 
     shall provide citizens, affected public agencies, 
     representatives of public transportation employees, freight 
     shippers, providers of freight transportation services, 
     private providers of transportation, representatives of users 
     of public transportation, representatives of users of 
     pedestrian walkways and bicycle transportation facilities, 
     representatives of the disabled, and other interested parties 
     with a reasonable opportunity to comment on the 
     transportation plan.
       ``(B) Contents of participation plan.--A participation 
     plan--
       ``(i) shall be developed in consultation with all 
     interested parties; and
       ``(ii) shall provide that all interested parties have 
     reasonable opportunities to comment on the contents of the 
     transportation plan.
       ``(C) Methods.--In carrying out subparagraph (A), the 
     metropolitan planning organization shall, to the maximum 
     extent practicable--
       ``(i) hold any public meetings at convenient and accessible 
     locations and times;
       ``(ii) employ visualization techniques to describe plans; 
     and
       ``(iii) make public information available in electronically 
     accessible format and means, such as the World Wide Web, as 
     appropriate to afford reasonable opportunity for 
     consideration of public information under subparagraph (A).
       ``(7) Publication.--A transportation plan involving Federal 
     participation shall be published or otherwise made readily 
     available by the metropolitan planning organization for 
     public review, including (to the maximum extent practicable) 
     in electronically accessible formats and means, such as the 
     World Wide Web, approved by the metropolitan planning 
     organization and submitted for information purposes to the 
     Governor at such times and in such manner as the Secretary 
     shall establish.
       ``(8) Selection of projects from illustrative list.--
     Notwithstanding paragraph (2)(C), a State or metropolitan 
     planning organization shall not be required to select any 
     project from the illustrative list of additional projects 
     included in the financial plan under paragraph (2)(C).
       ``(j) Metropolitan TIP.--
       ``(1) Development.--
       ``(A) In general.--In cooperation with the State and any 
     affected public transportation operator, the metropolitan 
     planning organization designated for a metropolitan area 
     shall develop a TIP for the metropolitan planning area that--
       ``(i) contains projects consistent with the current 
     metropolitan transportation plan;
       ``(ii) reflects the investment priorities established in 
     the current metropolitan transportation plan; and
       ``(iii) once implemented, is designed to make progress 
     toward achieving the performance targets established under 
     subsection (h)(2).
       ``(B) Opportunity for comment.--In developing the TIP, the 
     metropolitan planning organization, in cooperation with the 
     State and any affected public transportation operator, shall 
     provide an opportunity for participation by interested 
     parties in the development of the program, in accordance with 
     subsection (i)(5).
       ``(C) Funding estimates.--For the purpose of developing the 
     TIP, the metropolitan planning organization, public 
     transportation agency, and State shall cooperatively develop 
     estimates of funds that are reasonably expected to be 
     available to support program implementation.
       ``(D) Updating and approval.--The TIP shall be--
       ``(i) updated at least once every 4 years; and
       ``(ii) approved by the metropolitan planning organization 
     and the Governor.
       ``(2) Contents.--
       ``(A) Priority list.--The TIP shall include a priority list 
     of proposed Federally supported projects and strategies to be 
     carried out within each 4-year period after the initial 
     adoption of the TIP.
       ``(B) Financial plan.--The TIP shall include a financial 
     plan that--
       ``(i) demonstrates how the TIP can be implemented;
       ``(ii) indicates resources from public and private sources 
     that are reasonably expected to be available to carry out the 
     program;
       ``(iii) identifies innovative financing techniques to 
     finance projects, programs, and strategies; and
       ``(iv) may include, for illustrative purposes, additional 
     projects that would be included in the approved TIP if 
     reasonable additional resources beyond those identified in 
     the financial plan were available.
       ``(C) Descriptions.--Each project in the TIP shall include 
     sufficient descriptive material (such as type of work, 
     termini, length, and other similar factors) to identify the 
     project or phase of the project.
       ``(D) Performance target achievement.--The transportation 
     improvement program shall include, to the maximum extent 
     practicable, a description of the anticipated effect of the 
     transportation improvement program toward achieving the 
     performance targets established in the metropolitan 
     transportation plan, linking investment priorities to those 
     performance targets.
       ``(3) Included projects.--
       ``(A) Projects under this title and chapter 53 of title 
     49.--A TIP developed under this subsection for a metropolitan 
     area shall include the projects within the area that are 
     proposed for

[[Page 10556]]

     funding under chapter 1 of this title and chapter 53 of title 
     49.
       ``(B) Projects under chapter 2.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 
     shall be identified individually in the transportation 
     improvement program.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 that are not determined to be regionally 
     significant shall be grouped in 1 line item or identified 
     individually in the transportation improvement program.
       ``(C) Consistency with long-range transportation plan.--
     Each project shall be consistent with the long-range 
     transportation plan developed under subsection (i) for the 
     area.
       ``(D) Requirement of anticipated full funding.--The program 
     shall include a project, or an identified phase of a project, 
     only if full funding can reasonably be anticipated to be 
     available for the project or the identified phase within the 
     time period contemplated for completion of the project or the 
     identified phase.
       ``(4) Notice and comment.--Before approving a TIP, a 
     metropolitan planning organization, in cooperation with the 
     State and any affected public transportation operator, shall 
     provide an opportunity for participation by interested 
     parties in the development of the program, in accordance with 
     subsection (i)(5).
       ``(5) Selection of projects.--
       ``(A) In general.--Except as otherwise provided in 
     subsection (k)(4) and in addition to the TIP development 
     required under paragraph (1), the selection of Federally 
     funded projects in metropolitan areas shall be carried out, 
     from the approved TIP--
       ``(i) by--

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

       ``(ii) in cooperation with the metropolitan planning 
     organization.
       ``(B) Modifications to project priority.--Notwithstanding 
     any other provision of law, action by the Secretary shall not 
     be required to advance a project included in the approved TIP 
     in place of another project in the program.
       ``(6) Selection of projects from illustrative list.--
       ``(A) No required selection.--Notwithstanding paragraph 
     (2)(B)(iv), a State or metropolitan planning organization 
     shall not be required to select any project from the 
     illustrative list of additional projects included in the 
     financial plan under paragraph (2)(B)(iv).
       ``(B) Required action by the secretary.--Action by the 
     Secretary shall be required for a State or metropolitan 
     planning organization to select any project from the 
     illustrative list of additional projects included in the 
     financial plan under paragraph (2)(B)(iv) for inclusion in an 
     approved TIP.
       ``(7) Publication.--
       ``(A) Publication of tips.--A TIP involving Federal 
     participation shall be published or otherwise made readily 
     available by the metropolitan planning organization for 
     public review.
       ``(B) Publication of annual listings of projects.--
       ``(i) In general.--An annual listing of projects, including 
     investments in pedestrian walkways and bicycle transportation 
     facilities, for which Federal funds have been obligated in 
     the preceding year shall be published or otherwise made 
     available by the cooperative effort of the State, transit 
     operator, and metropolitan planning organization for public 
     review.
       ``(ii) Requirement.--The listing shall be consistent with 
     the categories identified in the TIP.
       ``(k) Transportation Management Areas.--
       ``(1) Identification and designation.--
       ``(A) Required identification.--The Secretary shall 
     identify as a transportation management area each urbanized 
     area (as defined by the Bureau of the Census) with a 
     population of over 200,000 individuals.
       ``(B) Designations on request.--The Secretary shall 
     designate any additional area as a transportation management 
     area on the request of the Governor and the metropolitan 
     planning organization designated for the area.
       ``(2) Transportation plans.--In a transportation management 
     area, transportation plans shall be based on a continuing and 
     comprehensive transportation planning process carried out by 
     the metropolitan planning organization in cooperation with 
     the State and public transportation operators.
       ``(3) Congestion management process.--
       ``(A) In general.--Within a metropolitan planning area 
     serving a transportation management area, the transportation 
     planning process under this section shall address congestion 
     management through a process that provides for effective 
     management and operation, based on a cooperatively developed 
     and implemented metropolitan-wide strategy, of new and 
     existing transportation facilities eligible for funding under 
     this title and chapter 53 of title 49 through the use of 
     travel demand reduction and operational management 
     strategies.
       ``(B) Schedule.--The Secretary shall establish an 
     appropriate phase-in schedule for compliance with the 
     requirements of this section but no sooner than 1 year after 
     the identification of a transportation management area.
       ``(4) Selection of projects.--
       ``(A) In general.--All Federally funded projects carried 
     out within the boundaries of a metropolitan planning area 
     serving a transportation management area under this title 
     (excluding projects carried out on the National Highway 
     System) or under chapter 53 of title 49 shall be selected for 
     implementation from the approved TIP by the metropolitan 
     planning organization designated for the area in consultation 
     with the State and any affected public transportation 
     operator.
       ``(B) National highway system projects.--Projects carried 
     out within the boundaries of a metropolitan planning area 
     serving a transportation management area on the National 
     Highway System shall be selected for implementation from the 
     approved TIP by the State in cooperation with the 
     metropolitan planning organization designated for the area.
       ``(5) Certification.--
       ``(A) In general.--The Secretary shall--
       ``(i) ensure that the metropolitan planning process of a 
     metropolitan planning organization serving a transportation 
     management area is being carried out in accordance with 
     applicable provisions of Federal law; and
       ``(ii) subject to subparagraph (B), certify, not less often 
     than once every 4 years, that the requirements of this 
     paragraph are met with respect to the metropolitan planning 
     process.
       ``(B) Requirements for certification.--The Secretary may 
     make the certification under subparagraph (A) if--
       ``(i) the transportation planning process complies with the 
     requirements of this section and other applicable 
     requirements of Federal law; and
       ``(ii) there is a TIP for the metropolitan planning area 
     that has been approved by the metropolitan planning 
     organization and the Governor.
       ``(C) Effect of failure to certify.--
       ``(i) Withholding of project funds.--If a metropolitan 
     planning process of a metropolitan planning organization 
     serving a transportation management area is not certified, 
     the Secretary may withhold up to 20 percent of the funds 
     attributable to the metropolitan planning area of the 
     metropolitan planning organization for projects funded under 
     this title and chapter 53 of title 49.
       ``(ii) Restoration of withheld funds.--The withheld funds 
     shall be restored to the metropolitan planning area at such 
     time as the metropolitan planning process is certified by the 
     Secretary.
       ``(D) Review of certification.--In making certification 
     determinations under this paragraph, the Secretary shall 
     provide for public involvement appropriate to the 
     metropolitan area under review.
       ``(l) Report on Performance-based Planning Processes.--
       ``(1) In general.--The Secretary shall submit to Congress a 
     report on the effectiveness of the performance-based planning 
     processes of metropolitan planning organizations under this 
     section, taking into consideration the requirements of this 
     subsection
       ``(2) Report.--Not later than 5 years after the date of 
     enactment of the MAP-21, the Secretary shall submit to 
     Congress a report evaluating--
       ``(A) the overall effectiveness of performance-based 
     planning as a tool for guiding transportation investments;
       ``(B) the effectiveness of the performance-based planning 
     process of each metropolitan planning organization under this 
     section;
       ``(C) the extent to which metropolitan planning 
     organizations have achieved, or are currently making 
     substantial progress toward achieving, the performance 
     targets specified under this section and whether metropolitan 
     planning organizations are developing meaningful performance 
     targets; and
       ``(D) the technical capacity of metropolitan planning 
     organizations that operate within a metropolitan planning 
     area of less than 200,000 and their ability to carry out the 
     requirements of this section.
       ``(3) Publication.--The report under paragraph (2) shall be 
     published or otherwise made available in electronically 
     accessible formats and means, including on the Internet.
       ``(m) Abbreviated Plans for Certain Areas.--
       ``(1) In general.--Subject to paragraph (2), in the case of 
     a metropolitan area not designated as a transportation 
     management area under this section, the Secretary may provide 
     for the development of an abbreviated transportation plan and 
     TIP for the metropolitan planning area that the Secretary 
     determines is appropriate to achieve the purposes of this 
     section, taking into account the complexity of transportation 
     problems in the area.
       ``(2) Nonattainment areas.--The Secretary may not permit 
     abbreviated plans or TIPs for a metropolitan area that is in 
     nonattainment for ozone or carbon monoxide under the Clean 
     Air Act (42 U.S.C. 7401 et seq.).
       ``(n) Additional Requirements for Certain Nonattainment 
     Areas.--
       ``(1) In general.--Notwithstanding any other provisions of 
     this title or chapter 53 of title, 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.), Federal funds may not be advanced in such area for 
     any highway project that will result in a significant 
     increase in the carrying capacity for single-occupant 
     vehicles unless the project is addressed through a congestion 
     management process.
       ``(2) Applicability.--This subsection applies to a 
     nonattainment area within the metropolitan planning area 
     boundaries determined under subsection (e).
       ``(o) 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,

[[Page 10557]]

     or project not eligible under this title or chapter 53 of 
     title 49.
       ``(p) Funding.--Funds set aside under section 104(f) of 
     this title or section 5305(g) of title 49 shall be available 
     to carry out this section.
       ``(q) Continuation of Current Review Practice.--Since plans 
     and TIPs described in this section are subject to a 
     reasonable opportunity for public comment, since individual 
     projects included in plans and TIPs are subject to review 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), and since decisions by the Secretary 
     concerning plans and TIPs described in this section have not 
     been reviewed under that Act as of January 1, 1997, any 
     decision by the Secretary concerning a plan or TIP described 
     in this section shall not be considered to be a Federal 
     action subject to review under that Act.''.
       (b) Study on Metropolitan Planning Scenario Development.--
       (1) In general.--The Secretary shall evaluate the costs and 
     benefits associated with metropolitan planning organizations 
     developing multiple scenarios for consideration as a part of 
     the development of their metropolitan transportation plan.
       (2) Inclusions.--The evaluation shall include an analysis 
     of the technical and financial capacity of the metropolitan 
     planning organization needed to develop scenarios described 
     in paragraph (1).

     SEC. 1202. STATEWIDE AND NONMETROPOLITAN TRANSPORTATION 
                   PLANNING.

       (a) In General.--Section 135 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 135. Statewide and nonmetropolitan transportation 
       planning

       ``(a) General Requirements.--
       ``(1) Development of plans and programs.--Subject to 
     section 134, to accomplish the objectives stated in section 
     134(a), each State shall develop a statewide transportation 
     plan and a statewide transportation improvement program for 
     all areas of the State.
       ``(2) Contents.--The statewide transportation plan and the 
     transportation improvement program developed for each State 
     shall provide for the development and integrated management 
     and operation of transportation systems and facilities 
     (including accessible pedestrian walkways and bicycle 
     transportation facilities) that will function as an 
     intermodal transportation system for the State and an 
     integral part of an intermodal transportation system for the 
     United States.
       ``(3) Process of development.--The process for developing 
     the statewide plan and the transportation improvement program 
     shall provide for consideration of all modes of 
     transportation and the policies stated in section 134(a) and 
     shall be continuing, cooperative, and comprehensive to the 
     degree appropriate, based on the complexity of the 
     transportation problems to be addressed.
       ``(b) Coordination With Metropolitan Planning; State 
     Implementation Plan.--A State shall--
       ``(1) coordinate planning carried out under this section 
     with the transportation planning activities carried out under 
     section 134 for metropolitan areas of the State and with 
     statewide trade and economic development planning activities 
     and related multistate planning efforts; and
       ``(2) develop the transportation portion of the State 
     implementation plan as required by the Clean Air Act (42 
     U.S.C. 7401 et seq.).
       ``(c) Interstate Agreements.--
       ``(1) In general.--Two or more States may enter into 
     agreements or compacts, not in conflict with any law of the 
     United States, for cooperative efforts and mutual assistance 
     in support of activities authorized under this section 
     related to interstate areas and localities in the States and 
     establishing authorities the States consider desirable for 
     making the agreements and compacts effective.
       ``(2) Reservation of rights.--The right to alter, amend, or 
     repeal interstate compacts entered into under this subsection 
     is expressly reserved.
       ``(d) Scope of Planning Process.--
       ``(1) In general.--Each State shall carry out a statewide 
     transportation planning process that provides for 
     consideration and implementation of projects, strategies, and 
     services that will--
       ``(A) support the economic vitality of the United States, 
     the States, nonmetropolitan areas, and metropolitan areas, 
     especially by enabling global competitiveness, productivity, 
     and efficiency;
       ``(B) increase the safety of the transportation system for 
     motorized and nonmotorized users;
       ``(C) increase the security of the transportation system 
     for motorized and nonmotorized users;
       ``(D) increase the accessibility and mobility of people and 
     freight;
       ``(E) protect and enhance the environment, promote energy 
     conservation, improve the quality of life, and promote 
     consistency between transportation improvements and State and 
     local planned growth and economic development patterns;
       ``(F) enhance the integration and connectivity of the 
     transportation system, across and between modes throughout 
     the State, for people and freight;
       ``(G) promote efficient system management and operation; 
     and
       ``(H) emphasize the preservation of the existing 
     transportation system.
       ``(2) Performance-based approach.--
       ``(A) In general.--The statewide transportation planning 
     process shall provide for the establishment and use of a 
     performance-based approach to transportation decisionmaking 
     to support the national goals described in section 150(b) of 
     this title and in section 5301(c) of title 49.
       ``(B) Performance targets.--
       ``(i) Surface transportation performance targets.--

       ``(I) In general.--Each State shall establish performance 
     targets that address the performance measures described in 
     section 150(c), where applicable, to use in tracking progress 
     towards attainment of critical outcomes for the State.
       ``(II) Coordination.--Selection of performance targets by a 
     State shall be coordinated with the relevant metropolitan 
     planning organizations to ensure consistency, to the maximum 
     extent practicable.

       ``(ii) Public transportation performance targets.--In 
     urbanized areas not represented by a metropolitan planning 
     organization, selection of performance targets by a State 
     shall be coordinated, to the maximum extent practicable, with 
     providers of public transportation to ensure consistency with 
     sections 5326(c) and 5329(d) of title 49.
       ``(C) Integration of other performance-based plans.--A 
     State shall integrate into the statewide transportation 
     planning process, directly or by reference, the goals, 
     objectives, performance measures, and targets described in 
     this paragraph, in other State transportation plans and 
     transportation processes, as well as any plans developed 
     pursuant to chapter 53 of title 49 by providers of public 
     transportation in urbanized areas not represented by a 
     metropolitan planning organization required as part of a 
     performance-based program.
       ``(D) Use of performance measures and targets.--The 
     performance measures and targets established under this 
     paragraph shall be considered by a State when developing 
     policies, programs, and investment priorities reflected in 
     the statewide transportation plan and statewide 
     transportation improvement program.
       ``(3) Failure to consider factors.--The failure to take 
     into consideration the factors specified in paragraphs (1) 
     and (2) shall not be subject to review by any court under 
     this title, chapter 53 of title 49, subchapter II of chapter 
     5 of title 5, or chapter 7 of title 5 in any matter affecting 
     a statewide transportation plan, a statewide transportation 
     improvement program, a project or strategy, or the 
     certification of a planning process.
       ``(e) Additional Requirements.--In carrying out planning 
     under this section, each State shall, at a minimum--
       ``(1) with respect to nonmetropolitan areas, cooperate with 
     affected local officials with responsibility for 
     transportation or, if applicable, through regional 
     transportation planning organizations described in subsection 
     (m);
       ``(2) consider the concerns of Indian tribal governments 
     and Federal land management agencies that have jurisdiction 
     over land within the boundaries of the State; and
       ``(3) consider coordination of transportation plans, the 
     transportation improvement program, and planning activities 
     with related planning activities being carried out outside of 
     metropolitan planning areas and between States.
       ``(f) Long-range Statewide Transportation Plan.--
       ``(1) Development.--Each State shall develop a long-range 
     statewide transportation plan, with a minimum 20-year 
     forecast period for all areas of the State, that provides for 
     the development and implementation of the intermodal 
     transportation system of the State.
       ``(2) Consultation with governments.--
       ``(A) Metropolitan areas.--The statewide transportation 
     plan shall be developed for each metropolitan area in the 
     State in cooperation with the metropolitan planning 
     organization designated for the metropolitan area under 
     section 134.
       ``(B) Nonmetropolitan areas.--
       ``(i) In general.--With respect to nonmetropolitan areas, 
     the statewide transportation plan shall be developed in 
     cooperation with affected nonmetropolitan officials with 
     responsibility for transportation or, if applicable, through 
     regional transportation planning organizations described in 
     subsection (m).
       ``(ii) Role of secretary.--The Secretary shall not review 
     or approve the consultation process in each State.
       ``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the statewide transportation plan shall be 
     developed in consultation with the tribal government and the 
     Secretary of the Interior.
       ``(D) Consultation, comparison, and consideration.--
       ``(i) In general.--The long-range transportation plan shall 
     be developed, as appropriate, in consultation with State, 
     tribal, and local agencies responsible for land use 
     management, natural resources, environmental protection, 
     conservation, and historic preservation.
       ``(ii) Comparison and consideration.--Consultation under 
     clause (i) shall involve comparison of transportation plans 
     to State and tribal conservation plans or maps, if available, 
     and comparison of transportation plans to inventories of 
     natural or historic resources, if available.
       ``(3) Participation by interested parties.--
       ``(A) In general.--In developing the statewide 
     transportation plan, the State shall provide to--
       ``(i) nonmetropolitan local elected officials or, if 
     applicable, through regional transportation

[[Page 10558]]

     planning organizations described in subsection (m), an 
     opportunity to participate in accordance with subparagraph 
     (B)(i); and
       ``(ii) citizens, affected public agencies, representatives 
     of public transportation employees, freight shippers, private 
     providers of transportation, representatives of users of 
     public transportation, representatives of users of pedestrian 
     walkways and bicycle transportation facilities, 
     representatives of the disabled, providers of freight 
     transportation services, and other interested parties a 
     reasonable opportunity to comment on the proposed plan.
       ``(B) Methods.--In carrying out subparagraph (A), the State 
     shall, to the maximum extent practicable--
       ``(i) develop and document a consultative process to carry 
     out subparagraph (A)(i) that is separate and discrete from 
     the public involvement process developed under clause (ii);
       ``(ii) hold any public meetings at convenient and 
     accessible locations and times;
       ``(iii) employ visualization techniques to describe plans; 
     and
       ``(iv) make public information available in electronically 
     accessible format and means, such as the World Wide Web, as 
     appropriate to afford reasonable opportunity for 
     consideration of public information under subparagraph (A).
       ``(4) Mitigation activities.--
       ``(A) In general.--A long-range transportation plan shall 
     include a discussion of potential environmental mitigation 
     activities and potential areas to carry out these activities, 
     including activities that may have the greatest potential to 
     restore and maintain the environmental functions affected by 
     the plan.
       ``(B) Consultation.--The discussion shall be developed in 
     consultation with Federal, State, and tribal wildlife, land 
     management, and regulatory agencies.
       ``(5) Financial plan.--The statewide transportation plan 
     may include--
       ``(A) a financial plan that--
       ``(i) demonstrates how the adopted statewide 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; and
       ``(iii) recommends any additional financing strategies for 
     needed projects and programs; and
       ``(B) for illustrative purposes, additional projects that 
     would be included in the adopted statewide transportation 
     plan if reasonable additional resources beyond those 
     identified in the financial plan were available.
       ``(6) Selection of projects from illustrative list.--A 
     State shall not be required to select any project from the 
     illustrative list of additional projects included in the 
     financial plan described in paragraph (5).
       ``(7) Performance-based approach.--The statewide 
     transportation plan should include--
       ``(A) a description of the performance measures and 
     performance targets used in assessing the performance of the 
     transportation system in accordance with subsection (d)(2); 
     and
       ``(B) a system performance report and subsequent updates 
     evaluating the condition and performance of the 
     transportation system with respect to the performance targets 
     described in subsection (d)(2), including progress achieved 
     by the metropolitan planning organization in meeting the 
     performance targets in comparison with system performance 
     recorded in previous reports;
       ``(8) Existing system.--The statewide transportation plan 
     should include capital, operations and management strategies, 
     investments, procedures, and other measures to ensure the 
     preservation and most efficient use of the existing 
     transportation system.
       ``(9) Publication of long-range transportation plans.--Each 
     long-range transportation plan prepared by a State shall be 
     published or otherwise made available, including (to the 
     maximum extent practicable) in electronically accessible 
     formats and means, such as the World Wide Web.
       ``(g) Statewide Transportation Improvement Program.--
       ``(1) Development.--
       ``(A) In general.--Each State shall develop a statewide 
     transportation improvement program for all areas of the 
     State.
       ``(B) Duration and updating of program.--Each program 
     developed under subparagraph (A) shall cover a period of 4 
     years and shall be updated every 4 years or more frequently 
     if the Governor of the State elects to update more 
     frequently.
       ``(2) Consultation with governments.--
       ``(A) Metropolitan areas.--With respect to each 
     metropolitan area in the State, the program shall be 
     developed in cooperation with the metropolitan planning 
     organization designated for the metropolitan area under 
     section 134.
       ``(B) Nonmetropolitan areas.--
       ``(i) In general.--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 or, if applicable, 
     through regional transportation planning organizations 
     described in subsection (m).
       ``(ii) Role of secretary.--The Secretary shall not review 
     or approve the specific consultation process in the State.
       ``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the program shall be developed in consultation 
     with the tribal government and the Secretary of the Interior.
       ``(3) Participation by interested parties.--In developing 
     the program, the State shall provide citizens, affected 
     public agencies, representatives of public transportation 
     employees, freight shippers, private providers of 
     transportation, providers of freight transportation services, 
     representatives of users of public transportation, 
     representatives of users of pedestrian walkways and bicycle 
     transportation facilities, representatives of the disabled, 
     and other interested parties with a reasonable opportunity to 
     comment on the proposed program.
       ``(4) Performance target achievement.--A statewide 
     transportation improvement program shall include, to the 
     maximum extent practicable, a discussion of the anticipated 
     effect of the statewide transportation improvement program 
     toward achieving the performance targets established in the 
     statewide transportation plan, linking investment priorities 
     to those performance targets.
       ``(5) Included projects.--
       ``(A) In general.--A transportation improvement program 
     developed under this subsection for a State shall include 
     Federally supported surface transportation expenditures 
     within the boundaries of the State.
       ``(B) Listing of projects.--
       ``(i) In general.--An annual listing of projects for which 
     funds have been obligated for the preceding year in each 
     metropolitan planning area shall be published or otherwise 
     made available by the cooperative effort of the State, 
     transit operator, and the metropolitan planning organization 
     for public review.
       ``(ii) Funding categories.--The listing described in clause 
     (i) shall be consistent with the funding categories 
     identified in each metropolitan transportation improvement 
     program.
       ``(C) Projects under chapter 2.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 
     shall be identified individually in the transportation 
     improvement program.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 that are not determined to be regionally 
     significant shall be grouped in 1 line item or identified 
     individually in the transportation improvement program.
       ``(D) Consistency with statewide transportation plan.--Each 
     project shall be--
       ``(i) consistent with the statewide transportation plan 
     developed under this section for the State;
       ``(ii) identical to the project or phase of the project as 
     described in an approved metropolitan transportation plan; 
     and
       ``(iii) in conformance with the applicable State air 
     quality implementation plan developed under the Clean Air Act 
     (42 U.S.C. 7401 et seq.), if the project is carried out in an 
     area designated as a nonattainment area for ozone, 
     particulate matter, or carbon monoxide under part D of title 
     I of that Act (42 U.S.C. 7501 et seq.).
       ``(E) Requirement of anticipated full funding.--The 
     transportation improvement program shall include a project, 
     or an identified phase of a project, only if full funding can 
     reasonably be anticipated to be available for the project 
     within the time period contemplated for completion of the 
     project.
       ``(F) Financial plan.--
       ``(i) In general.--The transportation improvement program 
     may include a financial plan that demonstrates how the 
     approved transportation improvement program can be 
     implemented, indicates resources from public and private 
     sources that are reasonably expected to be made available to 
     carry out the transportation improvement program, and 
     recommends any additional financing strategies for needed 
     projects and programs.
       ``(ii) Additional projects.--The financial plan may 
     include, for illustrative purposes, additional projects that 
     would be included in the adopted transportation plan if 
     reasonable additional resources beyond those identified in 
     the financial plan were available.
       ``(G) Selection of projects from illustrative list.--
       ``(i) No required selection.--Notwithstanding subparagraph 
     (F), a State shall not be required to select any project from 
     the illustrative list of additional projects included in the 
     financial plan under subparagraph (F).
       ``(ii) Required action by the secretary.--Action by the 
     Secretary shall be required for a State to select any project 
     from the illustrative list of additional projects included in 
     the financial plan under subparagraph (F) for inclusion in an 
     approved transportation improvement program.
       ``(H) Priorities.--The transportation improvement program 
     shall reflect the priorities for programming and expenditures 
     of funds, including transportation enhancement activities, 
     required by this title and chapter 53 of title 49.
       ``(6) Project selection for areas of less than 50,000 
     population.--
       ``(A) In general.--Projects carried out in areas with 
     populations of less than 50,000 individuals shall be 
     selected, from the approved transportation improvement 
     program (excluding projects carried out on the National 
     Highway System and projects carried out under the bridge 
     program or the Interstate maintenance program under this 
     title or under sections 5310 and 5311 of title 49), by the 
     State in cooperation with the affected nonmetropolitan local 
     officials with responsibility for transportation or, if 
     applicable, through regional transportation planning 
     organizations described in subsection (m).
       ``(B) Other projects.--Projects carried out in areas with 
     populations of less than 50,000 individuals on the National 
     Highway System or under the bridge program or the Interstate 
     maintenance program under this title or under sections 5310, 
     5311, 5316, and 5317 of title 49

[[Page 10559]]

     shall be selected, from the approved statewide transportation 
     improvement program, by the State in consultation with the 
     affected nonmetropolitan local officials with responsibility 
     for transportation.
       ``(7) Transportation improvement program approval.--Every 4 
     years, a transportation improvement program developed under 
     this subsection shall be reviewed and approved by the 
     Secretary if based on a current planning finding.
       ``(8) Planning finding.--A finding shall be made by the 
     Secretary at least every 4 years that the transportation 
     planning process through which statewide transportation plans 
     and programs are developed is consistent with this section 
     and section 134.
       ``(9) Modifications to project priority.--Notwithstanding 
     any other provision of law, action by the Secretary shall not 
     be required to advance a project included in the approved 
     transportation improvement program in place of another 
     project in the program.
       ``(h) Performance-based Planning Processes Evaluation.--
       ``(1) In general.--The Secretary shall establish criteria 
     to evaluate the effectiveness of the performance-based 
     planning processes of States, taking into consideration the 
     following:
       ``(A) The extent to which the State is making progress 
     toward achieving, the performance targets described in 
     subsection (d)(2), taking into account whether the State 
     developed appropriate performance targets.
       ``(B) The extent to which the State has made transportation 
     investments that are efficient and cost-effective.
       ``(C) The extent to which the State--
       ``(i) has developed an investment process that relies on 
     public input and awareness to ensure that investments are 
     transparent and accountable; and
       ``(ii) provides reports allowing the public to access the 
     information being collected in a format that allows the 
     public to meaningfully assess the performance of the State.
       ``(2) Report.--
       ``(A) In general.--Not later than 5 years after the date of 
     enactment of the MAP-21, the Secretary shall submit to 
     Congress a report evaluating--
       ``(i) the overall effectiveness of performance-based 
     planning as a tool for guiding transportation investments; 
     and
       ``(ii) the effectiveness of the performance-based planning 
     process of each State.
       ``(B) Publication.--The report under subparagraph (A) shall 
     be published or otherwise made available in electronically 
     accessible formats and means, including on the Internet.
       ``(i) Funding.--Funds apportioned under section 104(b)(5) 
     of this title and set aside under section 5305(g) of title 49 
     shall be available to carry out this section.
       ``(j) Treatment of Certain State Laws as Congestion 
     Management Processes.--For purposes of this section and 
     section 134, and sections 5303 and 5304 of title 49, State 
     laws, rules, or regulations pertaining to congestion 
     management systems or programs may constitute the congestion 
     management process under this section and section 134, and 
     sections 5303 and 5304 of title 49, if the Secretary finds 
     that the State laws, rules, or regulations are consistent 
     with, and fulfill the intent of, the purposes of this section 
     and section 134 and sections 5303 and 5304 of title 49, as 
     appropriate.
       ``(k) Continuation of Current Review Practice.--Since the 
     statewide transportation plan and the transportation 
     improvement program described in this section are subject to 
     a reasonable opportunity for public comment, since individual 
     projects included in the statewide transportation plans and 
     the transportation improvement program are subject to review 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), and since decisions by the Secretary 
     concerning statewide transportation plans or the 
     transportation improvement program described in this section 
     have not been reviewed under that Act as of January 1, 1997, 
     any decision by the Secretary concerning a metropolitan or 
     statewide transportation plan or the transportation 
     improvement program described in this section shall not be 
     considered to be a Federal action subject to review under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.).
       ``(l) Schedule for Implementation.--The Secretary shall 
     issue guidance on a schedule for implementation of the 
     changes made by this section, taking into consideration the 
     established planning update cycle for States. The Secretary 
     shall not require a State to deviate from its established 
     planning update cycle to implement changes made by this 
     section. States shall reflect changes made to their 
     transportation plan or transportation improvement program 
     updates not later than 2 years after the date of issuance of 
     guidance by the Secretary under this subsection.
       ``(m) Designation of Regional Transportation Planning 
     Organizations.--
       ``(1) In general.--To carry out the transportation planning 
     process required by this section, a State may establish and 
     designate regional transportation planning organizations to 
     enhance the planning, coordination, and implementation of 
     statewide strategic long-range transportation plans and 
     transportation improvement programs, with an emphasis on 
     addressing the needs of nonmetropolitan areas of the State.
       ``(2) Structure.--A regional transportation planning 
     organization shall be established as a multijurisdictional 
     organization of nonmetropolitan local officials or their 
     designees who volunteer for such organization and 
     representatives of local transportation systems who volunteer 
     for such organization.
       ``(3) Requirements.--A regional transportation planning 
     organization shall establish, at a minimum--
       ``(A) a policy committee, the majority of which shall 
     consist of nonmetropolitan local officials, or their 
     designees, and, as appropriate, additional representatives 
     from the State, private business, transportation service 
     providers, economic development practitioners, and the public 
     in the region; and
       ``(B) a fiscal and administrative agent, such as an 
     existing regional planning and development organization, to 
     provide professional planning, management, and administrative 
     support.
       ``(4) Duties.--The duties of a regional transportation 
     planning organization shall include--
       ``(A) developing and maintaining, in cooperation with the 
     State, regional long-range multimodal transportation plans;
       ``(B) developing a regional transportation improvement 
     program for consideration by the State;
       ``(C) fostering the coordination of local planning, land 
     use, and economic development plans with State, regional, and 
     local transportation plans and programs;
       ``(D) providing technical assistance to local officials;
       ``(E) participating in national, multistate, and State 
     policy and planning development processes to ensure the 
     regional and local input of nonmetropolitan areas;
       ``(F) providing a forum for public participation in the 
     statewide and regional transportation planning processes;
       ``(G) considering and sharing plans and programs with 
     neighboring regional transportation planning organizations, 
     metropolitan planning organizations, and, where appropriate, 
     tribal organizations; and
       ``(H) conducting other duties, as necessary, to support and 
     enhance the statewide planning process under subsection (d).
       ``(5) States without regional transportation planning 
     organizations.--If a State chooses not to establish or 
     designate a regional transportation planning organization, 
     the State shall consult with affected nonmetropolitan local 
     officials to determine projects that may be of regional 
     significance.''.
       (b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 135 and inserting the following:

``135. Statewide and nonmetropolitan transportation planning.''.

     SEC. 1203. NATIONAL GOALS AND PERFORMANCE MANAGEMENT 
                   MEASURES.

       (a) In General.--Section 150 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 150. National goals and performance management 
       measures

       ``(a) Declaration of Policy.--Performance management will 
     transform the Federal-aid highway program and provide a means 
     to the most efficient investment of Federal transportation 
     funds by refocusing on national transportation goals, 
     increasing the accountability and transparency of the 
     Federal-aid highway program, and improving project 
     decisionmaking through performance-based planning and 
     programming.
       ``(b) National Goals.--It is in the interest of the United 
     States to focus the Federal-aid highway program on the 
     following national goals:
       ``(1) Safety.--To achieve a significant reduction in 
     traffic fatalities and serious injuries on all public roads.
       ``(2) Infrastructure condition.--To maintain the highway 
     infrastructure asset system in a state of good repair.
       ``(3) Congestion reduction.--To achieve a significant 
     reduction in congestion on the National Highway System.
       ``(4) System reliability.--To improve the efficiency of the 
     surface transportation system.
       ``(5) Freight movement and economic vitality.--To improve 
     the national freight network, strengthen the ability of rural 
     communities to access national and international trade 
     markets, and support regional economic development.
       ``(6) Environmental sustainability.--To enhance the 
     performance of the transportation system while protecting and 
     enhancing the natural environment.
       ``(7) Reduced project delivery delays.--To reduce project 
     costs, promote jobs and the economy, and expedite the 
     movement of people and goods by accelerating project 
     completion through eliminating delays in the project 
     development and delivery process, including reducing 
     regulatory burdens and improving agencies' work practices.
       ``(c) Establishment of Performance Measures.--
       ``(1) In general.--Not later than 18 months after the date 
     of enactment of the MAP-21, the Secretary, in consultation 
     with State departments of transportation, metropolitan 
     planning organizations, and other stakeholders, shall 
     promulgate a rulemaking that establishes performance measures 
     and standards.
       ``(2) Administration.--In carrying out paragraph (1), the 
     Secretary shall--
       ``(A) provide States, metropolitan planning organizations, 
     and other stakeholders not less than 90 days to comment on 
     any regulation proposed by the Secretary under that 
     paragraph;
       ``(B) take into consideration any comments relating to a 
     proposed regulation received during that comment period; and

[[Page 10560]]

       ``(C) limit performance measures only to those described in 
     this subsection.
       ``(3) National highway performance program.--
       ``(A) In general.--Subject to subparagraph (B), for the 
     purpose of carrying out section 119, the Secretary shall 
     establish --
       ``(i) minimum standards for States to use in developing and 
     operating bridge and pavement management systems;
       ``(ii) measures for States to use to assess--

       ``(I) the condition of pavements on the Interstate system;
       ``(II) the condition of pavements on the National Highway 
     System (excluding the Interstate);
       ``(III) the condition of bridges on the National Highway 
     System;
       ``(IV) the performance of the Interstate System; and
       ``(V) the performance of the National Highway System 
     (excluding the Interstate System);

       ``(iii) minimum levels for the condition of pavement on the 
     Interstate System, only for the purposes of carrying out 
     section 119(f)(1); and
       ``(iv) the data elements that are necessary to collect and 
     maintain standardized data to carry out a performance-based 
     approach.
       ``(B) Regions.--In establishing minimum condition levels 
     under subparagraph (A)(iii), if the Secretary determines that 
     various geographic regions of the United States experience 
     disparate factors contributing to the condition of pavement 
     on the Interstate System in those regions, the Secretary may 
     establish different minimum levels for each region;
       ``(4) Highway safety improvement program.--For the purpose 
     of carrying out section 148, the Secretary shall establish 
     measures for States to use to assess--
       ``(A) serious injuries and fatalities per vehicle mile 
     traveled; and
       ``(B) the number of serious injuries and fatalities.
       ``(5) Congestion mitigation and air quality program.--For 
     the purpose of carrying out section 149, the Secretary shall 
     establish measures for States to use to assess--
       ``(A) traffic congestion; and
       ``(B) on-road mobile source emissions.
       ``(6) National freight movement.--The Secretary shall 
     establish measures for States to use to assess freight 
     movement on the Interstate System.
       ``(d) Establishment of Performance Targets.--
       ``(1) In general.--Not later than 1 year after the 
     Secretary has promulgated the final rulemaking under 
     subsection (c), each State shall set performance targets that 
     reflect the measures identified in paragraphs (3), (4), (5), 
     and (6) of subsection (c).
       ``(2) Different approaches for urban and rural areas.--In 
     the development and implementation of any performance target, 
     a State may, as appropriate, provide for different 
     performance targets for urbanized and rural areas.
       ``(e) Reporting on Performance Targets.--Not later than 4 
     years after the date of enactment of the MAP-21 and 
     biennially thereafter, a State shall submit to the Secretary 
     a report that describes--
       ``(1) the condition and performance of the National Highway 
     System in the State;
       ``(2) the effectiveness of the investment strategy document 
     in the State asset management plan for the National Highway 
     System;
       ``(3) progress in achieving performance targets identified 
     under subsection (d); and
       ``(4) the ways in which the State is addressing congestion 
     at freight bottlenecks, including those identified in the 
     National Freight Strategic Plan, within the State.''.
       (b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 150 and inserting the following:

``150. National goals and performance management measures.''.
              Subtitle C--Acceleration of Project Delivery

     SEC. 1301. DECLARATION OF POLICY AND PROJECT DELIVERY 
                   INITIATIVE.

       (a) In General.--It is the policy of the United States 
     that--
       (1) it is in the national interest for the Department, 
     State departments of transportation, transit agencies, and 
     all other recipients of Federal transportation funds--
       (A) to accelerate project delivery and reduce costs; and
       (B) to ensure that the planning, design, engineering, 
     construction, and financing of transportation projects is 
     done in an efficient and effective manner, promoting 
     accountability for public investments and encouraging greater 
     private sector involvement in project financing and delivery 
     while enhancing safety and protecting the environment;
       (2) delay in the delivery of transportation projects 
     increases project costs, harms the economy of the United 
     States, and impedes the travel of the people of the United 
     States and the shipment of goods for the conduct of commerce; 
     and
       (3) the Secretary shall identify and promote the deployment 
     of innovation aimed at reducing the time and money required 
     to deliver transportation projects while enhancing safety and 
     protecting the environment.
       (b) Project Delivery Initiative.--
       (1) In general.--To advance the policy described in 
     subsection (a), the Secretary shall carry out a project 
     delivery initiative under this section.
       (2) Purposes.--The purposes of the project delivery 
     initiative shall be--
       (A) to develop and advance the use of best practices to 
     accelerate project delivery and reduce costs across all modes 
     of transportation and expedite the deployment of technology 
     and innovation;
       (B) to implement provisions of law designed to accelerate 
     project delivery; and
       (C) to select eligible projects for applying experimental 
     features to test innovative project delivery techniques.
       (3) Advancing the use of best practices.--
       (A) In general.--In carrying out the initiative under this 
     section, the Secretary shall identify and advance best 
     practices to reduce delivery time and project costs, from 
     planning through construction, for transportation projects 
     and programs of projects regardless of mode and project size.
       (B) Administration.--To advance the use of best practices, 
     the Secretary shall--
       (i) engage interested parties, affected communities, 
     resource agencies, and other stakeholders to gather 
     information regarding opportunities for accelerating project 
     delivery and reducing costs;
       (ii) establish a clearinghouse for the collection, 
     documentation, and advancement of existing and new innovative 
     approaches and best practices;
       (iii) disseminate information through a variety of means to 
     transportation stakeholders on new innovative approaches and 
     best practices; and
       (iv) provide technical assistance to assist transportation 
     stakeholders in the use of flexibility authority to resolve 
     project delays and accelerate project delivery if feasible.
       (4) Implementation of accelerated project delivery.--The 
     Secretary shall ensure that the provisions of this subtitle 
     designed to accelerate project delivery are fully 
     implemented, including--
       (A) expanding eligibility of early acquisition of property 
     prior to completion of environmental review under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.);
       (B) allowing the use of the construction manager or general 
     contractor method of contracting in the Federal-aid highway 
     system; and
       (C) establishing a demonstration program to streamline the 
     relocation process by permitting a lump-sum payment for 
     acquisition and relocation if elected by the displaced 
     occupant.
       (c) Expedited Project Delivery.--Section 101(b) of title 
     23, United States Code, is amended by adding at the end the 
     following:
       ``(4) Expedited project delivery.--
       ``(A) In general.--Congress declares that it is in the 
     national interest to expedite the delivery of surface 
     transportation projects by substantially reducing the average 
     length of the environmental review process.
       ``(B) Policy of the united states.--Accordingly, it is the 
     policy of the United States that--
       ``(i) the Secretary shall have the lead role among Federal 
     agencies in carrying out the environmental review process for 
     surface transportation projects;
       ``(ii) each Federal agency shall cooperate with the 
     Secretary to expedite the environmental review process for 
     surface transportation projects;
       ``(iii) project sponsors shall not be prohibited from 
     carrying out preconstruction project development activities 
     concurrently with the environmental review process;
       ``(iv) programmatic approaches shall be used to reduce the 
     need for project-by-project reviews and decisions by Federal 
     agencies; and
       ``(v) the Secretary shall identify opportunities for 
     project sponsors to assume responsibilities of the Secretary 
     where such responsibilities can be assumed in a manner that 
     protects public health, the environment, and public 
     participation.''.

     SEC. 1302. ADVANCE ACQUISITION OF REAL PROPERTY INTERESTS.

       (a) Real Property Interests.--Section 108 of title 23, 
     United States Code, is amended--
       (1) by striking ``real property'' each place it appears and 
     inserting ``real property interests'';
       (2) by striking ``right-of-way'' each place it appears and 
     inserting ``real property interest''; and
       (3) by striking ``rights-of-way'' each place it appears and 
     inserting ``real property interests''.
       (b) State-funded Early Acquisition of Real Property 
     Interests.--Section 108(c) of title 23, United States Code, 
     is amended--
       (1) in the subsection heading, by striking ``Early 
     Acquisition of Rights-of-way'' and inserting ``State-funded 
     Early Acquisition of Real Property Interests'';
       (2) by redesignating paragraphs (1) and (2) as paragraphs 
     (2) and (3), respectively;
       (3) in paragraph (2) (as so redesignated)--
       (A) in the heading, by striking ``General rule'' and 
     inserting ``Eligibility for reimbursement''; and
       (B) by striking ``Subject to paragraph (2)'' and inserting 
     ``Subject to paragraph (3)'';
       (4) by inserting before paragraph (2) (as so redesignated) 
     the following:
       ``(1) In general.--A State may carry out, at the expense of 
     the State, acquisitions of interests in real property for a 
     project before completion of the review process required for 
     the project under the National Environmental Policy Act of 
     1969 (42 U.S.C. 4321 et seq.) without affecting subsequent 
     approvals required for the project by the State or any 
     Federal agency.''; and
       (5) in paragraph (3) (as so redesignated)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``in paragraph (1)'' and inserting ``in paragraph (2)''; and
       (B) in subparagraph (G), by striking ``both the Secretary 
     and the Administrator of the Environmental Protection Agency 
     have concurred'' and inserting ``the Secretary has 
     determined''.
       (c) Federally Funded Acquisition of Real Property 
     Interests.--Section 108 of title 23,

[[Page 10561]]

     United States Code, is amended by adding at the end the 
     following:
       ``(d) Federally Funded Early Acquisition of Real Property 
     Interests.--
       ``(1) Definition of acquisition of a real property 
     interest.--In this subsection, the term `acquisition of a 
     real property interest' includes the acquisition of--
       ``(A) any interest in land;
       ``(B) a contractual right to acquire any interest in land; 
     or
       ``(C) any other similar action to acquire or preserve 
     rights-of-way for a transportation facility.
       ``(2) Authorization.--The Secretary may authorize the use 
     of funds apportioned to a State under this title for the 
     acquisition of a real property interest by a State.
       ``(3) State certification.--A State requesting Federal 
     funding for an acquisition of a real property interest shall 
     certify in writing, with concurrence by the Secretary, that--
       ``(A) the State has authority to acquire the real property 
     interest under State law; and
       ``(B) the acquisition of the real property interest--
       ``(i) is for a transportation purpose;
       ``(ii) will not cause any significant adverse environmental 
     impact;
       ``(iii) will not limit the choice of reasonable 
     alternatives for the project or otherwise influence the 
     decision of the Secretary on any approval required for the 
     project;
       ``(iv) does not prevent the lead agency from making an 
     impartial decision as to whether to accept an alternative 
     that is being considered in the environmental review process;
       ``(v) is consistent with the State transportation planning 
     process under section 135;
       ``(vi) complies with other applicable Federal laws 
     (including regulations);
       ``(vii) will be acquired through negotiation, without the 
     threat of condemnation; and
       ``(viii) will not result in a reduction or elimination of 
     benefits or assistance to a displaced person required by the 
     Uniform Relocation Assistance and Real Property Acquisition 
     Policies Act of 1970 (42 U.S.C. 4601 et seq.) and title VI of 
     the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).
       ``(4) Environmental compliance.--
       ``(A) In general.--Before authorizing Federal funding for 
     an acquisition of a real property interest, the Secretary 
     shall complete the review process under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
     with respect to the acquisition of the real property 
     interest.
       ``(B) Independent utility.--The acquisition of a real 
     property interest--
       ``(i) shall be treated as having independent utility for 
     purposes of the review process under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); 
     and
       ``(ii) shall not limit consideration of alternatives for 
     future transportation improvements with respect to the real 
     property interest.
       ``(5) Programming.--
       ``(A) In general.--The acquisition of a real property 
     interest for which Federal funding is requested shall be 
     included as a project in an applicable transportation 
     improvement program under sections 134 and 135 and sections 
     5303 and 5304 of title 49.
       ``(B) Acquisition project.--The acquisition project may 
     consist of the acquisition of a specific parcel, a portion of 
     a transportation corridor, or an entire transportation 
     corridor.
       ``(6) Development.--Real property interests acquired under 
     this subsection may not be developed in anticipation of a 
     project until all required environmental reviews for the 
     project have been completed.
       ``(7) Reimbursement.--If Federal-aid reimbursement is made 
     for real property interests acquired early under this section 
     and the real property interests are not subsequently 
     incorporated into a project eligible for surface 
     transportation funds within the time allowed by subsection 
     (a)(2), the Secretary shall offset the amount reimbursed 
     against funds apportioned to the State.
       ``(8) Other requirements and conditions.--
       ``(A) Applicable law.--The acquisition of a real property 
     interest shall be carried out in compliance with all 
     requirements applicable to the acquisition of real property 
     interests for federally funded transportation projects.
       ``(B) Additional conditions.--The Secretary may establish 
     such other conditions or restrictions on acquisitions under 
     this subsection as the Secretary determines to be 
     appropriate.''.

     SEC. 1303. LETTING OF CONTRACTS.

       (a) Efficiencies in Contracting.--Section 112(b) of title 
     23, United States Code, is amended by adding at the end the 
     following:
       ``(4) Method of contracting.--
       ``(A) In general.--
       ``(i) 2-phase contract.--A contracting agency may award a 
     2-phase contract to a construction manager or general 
     contractor for preconstruction and construction services.
       ``(ii) Preconstruction services phase.--In the 
     preconstruction services phase of a contract under this 
     paragraph, the contractor shall provide the contracting 
     agency with advice for scheduling, work sequencing, cost 
     engineering, constructability, cost estimating, and risk 
     identification.
       ``(iii) Agreement.--Prior to the start of the construction 
     services phase, the contracting agency and the contractor may 
     agree to a price and other factors specified in regulation 
     for the construction of the project or a portion of the 
     project.
       ``(iv) Construction phase.--If an agreement is reached 
     under clause (iii), the contractor shall be responsible for 
     the construction of the project or portion of the project at 
     the negotiated price and in compliance with the other factors 
     specified in the agreement.
       ``(B) Selection.--A contract shall be awarded to a 
     contractor under this paragraph using a competitive selection 
     process based on qualifications, experience, best value, or 
     any other combination of factors considered appropriate by 
     the contracting agency.
       ``(C) Timing.--
       ``(i) Relationship to nepa process.--Prior to the 
     completion of the environmental review process required under 
     section 102 of the National Environmental Policy Act of 1969 
     (42 U.S.C. 4332), a contracting agency may--

       ``(I) issue requests for proposals;
       ``(II) proceed with the award of a contract for 
     preconstruction services under subparagraph (A)(ii); and
       ``(III) issue notices to proceed with a preliminary design 
     and any work related to preliminary design, to the extent 
     that those actions do not limit any reasonable range of 
     alternatives.

       ``(ii) Construction services phase.--A contracting agency 
     shall not proceed with the award of the construction services 
     phase of a contract under subparagraph (A)(iv) and shall not 
     proceed, or permit any consultant or contractor to proceed, 
     with final design or construction until completion of the 
     environmental review process required under section 102 of 
     the National Environmental Policy Act of 1969 (42 U.S.C. 
     4332).
       ``(iii) Approval requirement.--Prior to authorizing 
     construction activities, the Secretary shall approve--

       ``(I) the price estimate of the contracting agency for the 
     entire project; and
       ``(II) any price agreement with the general contractor for 
     the project or a portion of the project.

       ``(iv) Design activities.--

       ``(I) In general.--A contracting agency may proceed, at the 
     expense of the contracting agency, with design activities at 
     any level of detail for a project before completion of the 
     review process required for the project under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
     without affecting subsequent approvals required for the 
     project.
       ``(II) Reimbursement.--Design activities carried out under 
     subclause (I) shall be eligible for Federal reimbursement as 
     a project expense in accordance with the requirements under 
     section 109(r).

       ``(v) Termination provision.--The Secretary shall require a 
     contract to include an appropriate termination provision in 
     the event that a no-build alternative is selected.''.
       (b) Regulations.--The Secretary shall promulgate such 
     regulations as are necessary to carry out the amendment made 
     by subsection (a).
       (c) Effect on Experimental Program.--Nothing in this 
     section or the amendment made by this section affects the 
     authority to carry out, or any project carried out under, any 
     experimental program concerning construction manager risk 
     that is being carried out by the Secretary as of the date of 
     enactment of this Act.

     SEC. 1304. INNOVATIVE PROJECT DELIVERY METHODS.

       (a) Declaration of Policy.--
       (1) In general.--Congress declares that it is in the 
     national interest to promote the use of innovative 
     technologies and practices that increase the efficiency of 
     construction of, improve the safety of, and extend the 
     service life of highways and bridges.
       (2) Inclusions.--The innovative technologies and practices 
     described in paragraph (1) include state-of-the-art 
     intelligent transportation system technologies, elevated 
     performance standards, and new highway construction business 
     practices that improve highway safety and quality, accelerate 
     project delivery, and reduce congestion related to highway 
     construction.
       (b) Federal Share.--Section 120(c) of title 23, United 
     States Code, is amended by adding at the end the following:
       ``(3) Innovative project delivery.--
       ``(A) In general.--Except as provided in subparagraph (C), 
     the Federal share payable on account of a project, program, 
     or activity carried out with funds apportioned under 
     paragraph (1), (2), or (5) of section 104(b) may, at the 
     discretion of the State, be up to 100 percent for any such 
     project, program, or activity that the Secretary determines--
       ``(i) contains innovative project delivery methods that 
     improve work zone safety for motorists or workers and the 
     quality of the facility;
       ``(ii) contains innovative technologies, manufacturing 
     processes, financing, or contracting methods that improve the 
     quality of, extend the service life of, or decrease the long-
     term costs of maintaining highways and bridges;
       ``(iii) accelerates project delivery while complying with 
     other applicable Federal laws (including regulations) and not 
     causing any significant adverse environmental impact; or
       ``(iv) reduces congestion related to highway construction.
       ``(B) Examples.--Projects, programs, and activities 
     described in subparagraph (A) may include the use of--
       ``(i) prefabricated bridge elements and systems and other 
     technologies to reduce bridge construction time;
       ``(ii) innovative construction equipment, materials, or 
     techniques, including the use of in-place recycling 
     technology and digital 3-dimensional modeling technologies;
       ``(iii) innovative contracting methods, including the 
     design-build and the construction manager-general contractor 
     contracting methods;

[[Page 10562]]

       ``(iv) intelligent compaction equipment; or
       ``(v) contractual provisions that offer a contractor an 
     incentive payment for early completion of the project, 
     program, or activity, subject to the condition that the 
     incentives are accounted for in the financial plan of the 
     project, when applicable.
       ``(C) Limitations.--
       ``(i) In general.--In each fiscal year, a State may use the 
     authority under subparagraph (A) for up to 10 percent of the 
     combined apportionments of the State under paragraphs (1), 
     (2), and (5) of section 104(b).
       ``(ii) Federal share increase.--The Federal share payable 
     on account of a project, program, or activity described in 
     subparagraph (A) may be increased by up to 5 percent of the 
     total project cost.''.

     SEC. 1305. EFFICIENT ENVIRONMENTAL REVIEWS FOR PROJECT 
                   DECISIONMAKING.

       (a) Flexibility.--Section 139(b) of title 23, United States 
     Code, is amended--
       (1) in paragraph (2) by inserting ``, and any requirements 
     established under this section may be satisfied,'' after 
     ``exercised''; and
       (2) by adding at the end the following:
       ``(3) Programmatic compliance.--
       ``(A) In general.--The Secretary shall initiate a 
     rulemaking to allow for the use of programmatic approaches to 
     conduct environmental reviews that--
       ``(i) eliminate repetitive discussions of the same issues;
       ``(ii) focus on the actual issues ripe for analyses at each 
     level of review; and
       ``(iii) are consistent with--

       ``(I) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.); and
       ``(II) other applicable laws.

       ``(B) Requirements.--In carrying out subparagraph (A), the 
     Secretary shall--
       ``(i) before initiating the rulemaking under that 
     subparagraph, consult with relevant Federal agencies and 
     State resource agencies, State departments of transportation, 
     Indian tribes, and the public on the appropriate use and 
     scope of the programmatic approaches;
       ``(ii) emphasize the importance of collaboration among 
     relevant Federal agencies, State agencies, and Indian tribes 
     in undertaking programmatic reviews, especially with respect 
     to including reviews with a broad geographic scope;
       ``(iii) ensure that the programmatic reviews--

       ``(I) promote transparency, including of the analyses and 
     data used in the environmental reviews, the treatment of any 
     deferred issues raised by agencies or the public, and the 
     temporal and special scales to be used to analyze such 
     issues;
       ``(II) use accurate and timely information in reviews, 
     including--

       ``(aa) criteria for determining the general duration of the 
     usefulness of the review; and
       ``(bb) the timeline for updating any out-of-date review;

       ``(III) describe--

       ``(aa) the relationship between programmatic analysis and 
     future tiered analysis; and
       ``(bb) the role of the public in the creation of future 
     tiered analysis; and

       ``(IV) are available to other relevant Federal and State 
     agencies, Indian tribes, and the public;

       ``(iv) allow not fewer than 60 days of public notice and 
     comment on any proposed rule; and
       ``(v) address any comments received under clause (iv).''.
       (b) Federal Lead Agency.--Section 139(c) of title 23, 
     United States Code, is amended--
       (1) in paragraph (1)--
       (A) by striking ``The Department of Transportation'' and 
     inserting the following:
       ``(A) In general.--The Department of Transportation''; and
       (B) by adding at the end the following:
       ``(B) Modal administration.--If the project requires 
     approval from more than 1 modal administration within the 
     Department, the Secretary may designate a single modal 
     administration to serve as the Federal lead agency for the 
     Department in the environmental review process for the 
     project.''.
       (c) Participating Agencies.--Section 139(d) of title 23, 
     United States Code, is amended--
       (1) by striking paragraph (4) and inserting the following:
       ``(4) Effect of designation.--
       ``(A) Requirement.--A participating agency shall comply 
     with the requirements of this section.
       ``(B) Implication.--Designation as a participating agency 
     under this subsection shall not imply that the participating 
     agency--
       ``(i) supports a proposed project; or
       ``(ii) has any jurisdiction over, or special expertise with 
     respect to evaluation of, the project.''; and
       (2) by striking paragraph (7) and inserting the following:
       ``(7) Concurrent reviews.--Each participating agency and 
     cooperating agency shall--
       ``(A) carry out the obligations of that 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 conduct needed 
     analysis or otherwise 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.''.
       (d) Project Initiation.--Section 139(e) of title 23, United 
     States Code, is amended--
       (1) by striking ``The project sponsor'' and inserting the 
     following:
       ``(1) In general.--The project sponsor''; and
       (2) by adding at the end the following:
       ``(2) Submission of documents.--The project sponsor may 
     satisfy the requirement under paragraph (1) by submitting to 
     the Secretary any relevant documents containing the 
     information described in that paragraph, including a draft 
     notice for publication in the Federal Register announcing the 
     preparation of an environmental review for the project.''.
       (e) Coordination and Scheduling.--Section 139(g)(1)(B)(i) 
     of title 23, United States Code, is amended by inserting 
     ``and the concurrence of'' after ``consultation with''.

     SEC. 1306. ACCELERATED DECISIONMAKING.

       Section 139(h) of title 23, United States Code, is amended 
     by striking paragraph (4) and inserting the following:
       ``(4) Interim decision on achieving accelerated 
     decisionmaking.--
       ``(A) In general.--Not later than 30 days after the close 
     of the public comment period on a draft environmental impact 
     statement, the Secretary may convene a meeting with the 
     project sponsor, lead agency, resource agencies, and any 
     relevant State agencies to ensure that all parties are on 
     schedule to meet deadlines for decisions to be made regarding 
     the project.
       ``(B) Deadlines.--The deadlines referred to in subparagraph 
     (A) shall be those established under subsection (g), or any 
     other deadlines established by the lead agency, in 
     consultation with the project sponsor and other relevant 
     agencies.
       ``(C) Failure to assure.--If the relevant agencies cannot 
     provide reasonable assurances that the deadlines described in 
     subparagraph (B) will be met, the Secretary may initiate the 
     issue resolution and referral process described under 
     paragraph (5) and before the completion of the record of 
     decision.
       ``(5) Accelerated issue resolution and referral.--
       ``(A) Agency issue resolution meeting.--
       ``(i) In general.--A Federal agency of jurisdiction, 
     project sponsor, or the Governor of a State in which a 
     project is located may request an issue resolution meeting to 
     be conducted by the lead agency.
       ``(ii) Action by lead agency.--The lead agency shall 
     convene an issue resolution meeting under clause (i) with the 
     relevant participating agencies and the project sponsor, 
     including the Governor only if the meeting was requested by 
     the Governor, to resolve issues that could--

       ``(I) delay completion of the environmental review process; 
     or
       ``(II) result in denial of any approvals required for the 
     project under applicable laws.

       ``(iii) Date.--A meeting requested under this subparagraph 
     shall be held by not later than 21 days after the date of 
     receipt of the request for the meeting, unless the lead 
     agency determines that there is good cause to extend the time 
     for the meeting.
       ``(iv) Notification.--On receipt of a request for a meeting 
     under this subparagraph, the lead agency shall notify all 
     relevant participating agencies of the request, including the 
     issue to be resolved, and the date for the meeting.
       ``(v) Disputes.--If a relevant participating agency with 
     jurisdiction over an approval required for a project under 
     applicable law determines that the relevant information 
     necessary to resolve the issue has not been obtained and 
     could not have been obtained within a reasonable time, but 
     the lead agency disagrees, the resolution of the dispute 
     shall be forwarded to the heads of the relevant agencies for 
     resolution.
       ``(vi) Convention by lead agency.--A lead agency may 
     convene an issue resolution meeting under this subsection at 
     any time without the request of the Federal agency of 
     jurisdiction, project sponsor, or the Governor of a State.
       ``(B) Elevation of issue resolution.--
       ``(i) In general.--If issue resolution is not achieved by 
     not later than 30 days after the date of a relevant meeting 
     under subparagraph (A), the Secretary shall notify the lead 
     agency, the heads of the relevant participating agencies, and 
     the project sponsor (including the Governor only if the 
     initial issue resolution meeting request came from the 
     Governor) that an issue resolution meeting will be convened.
       ``(ii) Requirements.--The Secretary shall identify the 
     issues to be addressed at the meeting and convene the meeting 
     not later than 30 days after the date of issuance of the 
     notice.
       ``(C) Referral of issue resolution.--
       ``(i) Referral to council on environmental quality.--

       ``(I) In general.--If resolution is not achieved by not 
     later than 30 days after the date of an issue resolution 
     meeting under subparagraph (B), the Secretary shall refer the 
     matter to the Council on Environmental Quality.
       ``(II) Meeting.--Not later than 30 days after the date of 
     receipt of a referral from the Secretary under subclause (I), 
     the Council on Environmental Quality shall hold an issue 
     resolution meeting with the lead agency, the heads of 
     relevant participating agencies, and the project sponsor 
     (including the Governor only if an initial request for an 
     issue resolution meeting came from the Governor).

       ``(ii) Referral to the president.--If a resolution is not 
     achieved by not later than 30 days after the date of the 
     meeting convened by the Council on Environmental Quality 
     under clause (i)(II), the Secretary shall refer the matter 
     directly to the President.
       ``(6) Financial penalty provisions.--
       ``(A) In general.--A Federal agency of jurisdiction over an 
     approval required for a project

[[Page 10563]]

     under applicable laws shall complete any required approval on 
     an expeditious basis using the shortest existing applicable 
     process.
       ``(B) Failure to decide.--
       ``(i) In general.--If an agency described in subparagraph 
     (A) fails to render a decision under any Federal law relating 
     to a project that requires the preparation of an 
     environmental impact statement or environmental assessment, 
     including the issuance or denial of a permit, license, or 
     other approval by the date described in clause (ii), an 
     amount of funding equal to the amounts specified in subclause 
     (I) or (II) shall be rescinded from the applicable office of 
     the head of the agency, or equivalent office to which the 
     authority for rendering the decision has been delegated by 
     law by not later than 1 day after the applicable date under 
     clause (ii), and once each week thereafter until a final 
     decision is rendered, subject to subparagraph (C)--

       ``(I) $20,000 for any project for which an annual financial 
     plan under section 106(i) is required; or
       ``(II) $10,000 for any other project requiring preparation 
     of an environmental assessment or environmental impact 
     statement.

       ``(ii) Description of date.--The date referred to in clause 
     (i) is the later of--

       ``(I) the date that is 180 days after the date on which an 
     application for the permit, license, or approval is complete; 
     and
       ``(II) the date that is 180 days after the date on which 
     the Federal lead agency issues a decision on the project 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.).

       ``(C) Limitations.--
       ``(i) In general.--No rescission of funds under 
     subparagraph (B) relating to an individual project shall 
     exceed, in any fiscal year, an amount equal to 2.5 percent of 
     the funds made available for the applicable agency office.
       ``(ii) Failure to decide.--The total amount rescinded in a 
     fiscal year as a result of a failure by an agency to make a 
     decision by an applicable deadline shall not exceed an amount 
     equal to 7 percent of the funds made available for the 
     applicable agency office for that fiscal year.
       ``(D) No fault of agency.--A rescission of funds under this 
     paragraph shall not be made if the lead agency for the 
     project certifies that--
       ``(i) the agency has not received necessary information or 
     approvals from another entity, such as the project sponsor, 
     in a manner that affects the ability of the agency to meet 
     any requirements under State, local, or Federal law; or
       ``(ii) significant new information or circumstances, 
     including a major modification to an aspect of the project, 
     requires additional analysis for the agency to make a 
     decision on the project application.
       ``(E) Limitation.--The Federal agency with jurisdiction for 
     the decision from which funds are rescinded pursuant to this 
     paragraph shall not reprogram funds to the office of the head 
     of the agency, or equivalent office, to reimburse that office 
     for the loss of the funds.
       ``(F) Audits.--In any fiscal year in which any funds are 
     rescinded from a Federal agency pursuant to this paragraph, 
     the Inspector General of that agency shall--
       ``(i) conduct an audit to assess compliance with the 
     requirements of this paragraph; and
       ``(ii) not later than 120 days after the end of the fiscal 
     year during which the rescission occurred, submit to the 
     Committee on Environment and Public Works of the Senate and 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives a report describing the reasons why 
     the transfers were levied, including allocations of 
     resources.
       ``(G) Effect of paragraph.--Nothing in this paragraph 
     affects or limits the application of, or obligation to comply 
     with, any Federal, State, local, or tribal law.
       ``(7) Expedient decisions and reviews.--To ensure that 
     Federal environmental decisions and reviews are expeditiously 
     made--
       ``(A) adequate resources made available under this title 
     shall be devoted to ensuring that applicable environmental 
     reviews under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.) are completed on an expeditious 
     basis and that the shortest existing applicable process under 
     that Act is implemented; and
       ``(B) the President 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, not less frequently than once every 120 
     days after the date of enactment of the MAP-21, a report on 
     the status and progress of the following projects and 
     activities funded under this title with respect to compliance 
     with applicable requirements under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.):
       ``(i) Projects and activities required to prepare an annual 
     financial plan under section 106(i).
       ``(ii) A sample of not less than 5 percent of the projects 
     requiring preparation of an environmental impact statement or 
     environmental assessment in each State.''.

     SEC. 1307. ASSISTANCE TO AFFECTED FEDERAL AND STATE AGENCIES.

       Section 139(j) of title 23, United States Code, is amended 
     by adding at the end the following:
       ``(6) Memorandum of understanding.--Prior to providing 
     funds approved by the Secretary for dedicated staffing at an 
     affected Federal agency under paragraphs (1) and (2), the 
     affected Federal agency and the State agency shall enter into 
     a memorandum of understanding that establishes the projects 
     and priorities to be addressed by the use of the funds.''.

     SEC. 1308. LIMITATIONS ON CLAIMS.

       Section 139(l) of title 23, United States Code, is 
     amended--
       (1) in paragraph (1) by striking ``180 days'' and inserting 
     ``150 days''; and
       (2) in paragraph (2) by striking ``180 days'' and inserting 
     ``150 days''.

     SEC. 1309. ACCELERATING COMPLETION OF COMPLEX PROJECTS WITHIN 
                   4 YEARS.

       Section 139 of title 23, United States Code, is amended by 
     adding at the end the following:
       ``(m) Enhanced Technical Assistance and Accelerated Project 
     Completion.--
       ``(1) Definition of covered project.--In this subsection, 
     the term `covered project' means a project--
       ``(A) that has an ongoing environmental impact statement 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.); and
       ``(B) for which at least 2 years, beginning on the date on 
     which a notice of intent is issued, have elapsed without the 
     issuance of a record of decision.
       ``(2) Technical assistance.--At the request of a project 
     sponsor or the Governor of a State in which a project is 
     located, the Secretary shall provide additional technical 
     assistance to resolve for a covered project any outstanding 
     issues and project delay, including by--
       ``(A) providing additional staff, training, and expertise;
       ``(B) facilitating interagency coordination;
       ``(C) promoting more efficient collaboration; and
       ``(D) supplying specialized onsite assistance.
       ``(3) Scope of work.--
       ``(A) In general.--In providing technical assistance for a 
     covered project under this subsection, the Secretary shall 
     establish a scope of work that describes the actions that the 
     Secretary will take to resolve the outstanding issues and 
     project delays, including establishing a schedule under 
     subparagraph (B).
       ``(B) Schedule.--
       ``(i) In general.--The Secretary shall establish and meet a 
     schedule for the completion of any permit, approval, review, 
     or study, required for the covered project by the date that 
     is not later than 4 years after the date on which a notice of 
     intent for the covered project is issued.
       ``(ii) Inclusions.--The schedule under clause (i) shall--

       ``(I) comply with all applicable laws;
       ``(II) require the concurrence of the Council on 
     Environmental Quality and each participating agency for the 
     project with the State in which the project is located or the 
     project sponsor, as applicable; and
       ``(III) reflect any new information that becomes available 
     and any changes in circumstances that may result in new 
     significant impacts that could affect the timeline for 
     completion of any permit, approval, review, or study required 
     for the covered project.

       ``(4) Consultation.--In providing technical assistance for 
     a covered project under this subsection, the Secretary shall 
     consult, if appropriate, with resource and participating 
     agencies on all methods available to resolve the outstanding 
     issues and project delays for a covered project as 
     expeditiously as possible.
       ``(5) Enforcement.--
       ``(A) In general.--All provisions of this section shall 
     apply to this subsection, including the financial penalty 
     provisions under subsection (h)(6).
       ``(B) Restriction.--If the Secretary enforces this 
     subsection under subsection (h)(6), the Secretary may use a 
     date included in a schedule under paragraph (3)(B) that is 
     created pursuant to and is in compliance with this subsection 
     in lieu of the dates under subsection (h)(6)(B)(ii).''.

     SEC. 1310. INTEGRATION OF PLANNING AND ENVIRONMENTAL REVIEW.

       (a) In General.--Chapter 1 of title 23, United States Code 
     (as amended by section 1115(a)), is amended by adding at the 
     end the following:

     ``Sec. 168. Integration of planning and environmental review

       ``(a) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Environmental review process.--The term 
     `environmental review process' means the process for 
     preparing for a project an environmental impact statement, 
     environmental assessment, categorical exclusion, or other 
     document prepared under the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.).
       ``(2) Planning product.--The term `planning product' means 
     a detailed and timely decision, analysis, study, or other 
     documented information that--
       ``(A) is the result of an evaluation or decisionmaking 
     process carried out during transportation planning, including 
     a detailed corridor plan or a transportation plan developed 
     under section 134 that fully analyzes impacts on mobility, 
     adjacent communities, and the environment;
       ``(B) is intended to be carried into the transportation 
     project development process; and
       ``(C) has been approved by the State, all local and tribal 
     governments where the project is located, and by any relevant 
     metropolitan planning organization.
       ``(3) Project.--The term `project' has the meaning given 
     the term in section 139(a).
       ``(4) Project sponsor.--The term `project sponsor' has the 
     meaning given the term in section 139(a).
       ``(b) Adoption of Planning Products for Use in NEPA 
     Proceedings.--
       ``(1) In general.--Subject to the conditions set forth in 
     subsection (d), the Federal lead agency for a project may 
     adopt and use a planning product in proceedings relating to 
     any class of action in the environmental review process of 
     the project.
       ``(2) Identification.--When the Federal lead agency makes a 
     determination to adopt and use

[[Page 10564]]

     a planning product, the Federal lead agency shall identify 
     those agencies that participated in the development of the 
     planning products.
       ``(3) Partial adoption of planning products.--The Federal 
     lead agency may adopt a planning product under paragraph (1) 
     in its entirety or may select portions for adoption.
       ``(4) Timing.--A determination under paragraph (1) with 
     respect to the adoption of a planning product may be made at 
     the time the lead agencies decide the appropriate scope of 
     environmental review for the project but may also occur later 
     in the environmental review process, as appropriate.
       ``(c) Applicability.--
       ``(1) Planning decisions.--Planning decisions that may be 
     adopted pursuant to this section include--
       ``(A) whether tolling, private financial assistance, or 
     other special financial measures are necessary to implement 
     the project;
       ``(B) a decision with respect to modal choice, including a 
     decision to implement corridor or subarea study 
     recommendations to advance different modal solutions as 
     separate projects with independent utility;
       ``(C) a basic description of the environmental setting;
       ``(D) a decision with respect to methodologies for 
     analysis; and
       ``(E) an identification of programmatic level mitigation 
     for potential impacts that the Federal lead agency, in 
     consultation with Federal, State, local, and tribal resource 
     agencies, determines are most effectively addressed at a 
     regional or national program level, including--
       ``(i) system-level measures to avoid, minimize, or mitigate 
     impacts of proposed transportation investments on 
     environmental resources, including regional ecosystem and 
     water resources; and
       ``(ii) potential mitigation activities, locations, and 
     investments.
       ``(2) Planning analyses.--Planning analyses that may be 
     adopted pursuant to this section include studies with respect 
     to--
       ``(A) travel demands;
       ``(B) regional development and growth;
       ``(C) local land use, growth management, and development;
       ``(D) population and employment;
       ``(E) natural and built environmental conditions;
       ``(F) environmental resources and environmentally sensitive 
     areas;
       ``(G) potential environmental effects, including the 
     identification of resources of concern and potential 
     cumulative effects on those resources, identified as a result 
     of a statewide or regional cumulative effects assessment; and
       ``(H) mitigation needs for a proposed action, or for 
     programmatic level mitigation, for potential effects that the 
     Federal lead agency determines are most effectively addressed 
     at a regional or national program level.
       ``(d) Conditions.--Adoption and use of a planning product 
     under this section is subject to a determination by the 
     Federal lead agency, with the concurrence of other 
     participating agencies with relevant expertise and project 
     sponsors as appropriate, and with an opportunity for public 
     notice and comment and consideration of those comments by the 
     Federal lead agency, that the following conditions have been 
     met:
       ``(1) The planning product was developed through a planning 
     process conducted pursuant to applicable Federal law.
       ``(2) The planning product was developed by engaging in 
     active consultation with appropriate Federal and State 
     resource agencies and Indian tribes.
       ``(3) The planning process included broad multidisciplinary 
     consideration of systems-level or corridor-wide 
     transportation needs and potential effects, including effects 
     on the human and natural environment.
       ``(4) During the planning process, notice was provided 
     through publication or other means to Federal, State, local, 
     and tribal governments that might have an interest in the 
     proposed project, and to members of the general public, of 
     the planning products that the planning process might produce 
     and that might be relied on during any subsequent 
     environmental review process, and such entities have been 
     provided an appropriate opportunity to participate in the 
     planning process leading to such planning product.
       ``(5) After initiation of the environmental review process, 
     but prior to determining whether to rely on and use the 
     planning product, the lead Federal agency has made 
     documentation relating to the planning product available to 
     Federal, State, local, and tribal governments that may have 
     an interest in the proposed action, and to members of the 
     general public, and has considered any resulting comments.
       ``(6) There is no significant new information or new 
     circumstance that has a reasonable likelihood of affecting 
     the continued validity or appropriateness of the planning 
     product.
       ``(7) The planning product has a rational basis and is 
     based on reliable and reasonably current data and reasonable 
     and scientifically acceptable methodologies.
       ``(8) The planning product is documented in sufficient 
     detail to support the decision or the results of the analysis 
     and to meet requirements for use of the information in the 
     environmental review process.
       ``(9) The planning product is appropriate for adoption and 
     use in the environmental review process for the project.
       ``(10) The planning product was approved not later than 5 
     years prior to date on which the information is adopted 
     pursuant to this section.
       ``(e) Effect of Adoption.--Any planning product adopted by 
     the Federal lead agency in accordance with this section may 
     be incorporated directly into an environmental review process 
     document or other environmental document and may be relied 
     upon and used by other Federal agencies in carrying out 
     reviews of the project.
       ``(f) Rules of Construction.--
       ``(1) In general.--This section shall not be construed to 
     make the environmental review process applicable to the 
     transportation planning process conducted under this title 
     and chapter 53 of title 49.
       ``(2) Transportation planning activities.--Initiation of 
     the environmental review process as a part of, or 
     concurrently with, transportation planning activities does 
     not subject transportation plans and programs to the 
     environmental review process.
       ``(3) Planning products.--This section shall not be 
     construed to affect the use of planning products in the 
     environmental review process pursuant to other authorities 
     under any other provision of law or to restrict the 
     initiation of the environmental review process during 
     planning.''.
       (b) Technical and Conforming Amendment.--The analysis for 
     chapter 1 of title 23, United States Code (as amended by 
     section 1115(b)), is amended by adding at end the following:

``Sec. 168. Integration of planning and environmental review.''.

     SEC. 1311. DEVELOPMENT OF PROGRAMMATIC MITIGATION PLANS.

       (a) In General.--Chapter 1 of title 23, United States Code 
     (as amended by section 1310(a)), is amended by adding at the 
     end the following:

     ``Sec. 169. Development of programmatic mitigation plans

       ``(a) In General.--As part of the statewide or metropolitan 
     transportation planning process, a State or metropolitan 
     planning organization may develop 1 or more programmatic 
     mitigation plans to address the potential environmental 
     impacts of future transportation projects.
       ``(b) Scope.--
       ``(1) Scale.--A programmatic mitigation plan may be 
     developed on a regional, ecosystem, watershed, or statewide 
     scale.
       ``(2) Resources.--The plan may encompass multiple 
     environmental resources within a defined geographic area or 
     may focus on a specific resource, such as aquatic resources, 
     parkland, or wildlife habitat.
       ``(3) Project impacts.--The plan may address impacts from 
     all projects in a defined geographic area or may focus on a 
     specific type of project.
       ``(4) Consultation.--The scope of the plan shall be 
     determined by the State or metropolitan planning 
     organization, as appropriate, in consultation with the agency 
     or agencies with jurisdiction over the resources being 
     addressed in the mitigation plan.
       ``(c) Contents.--A programmatic mitigation plan may 
     include--
       ``(1) an assessment of the condition of environmental 
     resources in the geographic area covered by the plan, 
     including an assessment of recent trends and any potential 
     threats to those resources;
       ``(2) an assessment of potential opportunities to improve 
     the overall quality of environmental resources in the 
     geographic area covered by the plan, through strategic 
     mitigation for impacts of transportation projects;
       ``(3) standard measures for mitigating certain types of 
     impacts;
       ``(4) parameters for determining appropriate mitigation for 
     certain types of impacts, such as mitigation ratios or 
     criteria for determining appropriate mitigation sites;
       ``(5) adaptive management procedures, such as protocols 
     that involve monitoring predicted impacts over time and 
     adjusting mitigation measures in response to information 
     gathered through the monitoring; and
       ``(6) acknowledgment of specific statutory or regulatory 
     requirements that must be satisfied when determining 
     appropriate mitigation for certain types of resources.
       ``(d) Process.--Before adopting a programmatic mitigation 
     plan, a State or metropolitan planning organization shall--
       ``(1) consult with each agency with jurisdiction over the 
     environmental resources considered in the programmatic 
     mitigation plan;
       ``(2) make a draft of the plan available for review and 
     comment by applicable environmental resource agencies and the 
     public;
       ``(3) consider any comments received from such agencies and 
     the public on the draft plan; and
       ``(4) address such comments in the final plan.
       ``(e) Integration With Other Plans.--A programmatic 
     mitigation plan may be integrated with other plans, including 
     watershed plans, ecosystem plans, species recovery plans, 
     growth management plans, and land use plans.
       ``(f) Consideration in Project Development and 
     Permitting.--If a programmatic mitigation plan has been 
     developed pursuant to this section, any Federal agency 
     responsible for environmental reviews, permits, or approvals 
     for a transportation project may use the recommendations in a 
     programmatic mitigation plan when carrying out the 
     responsibilities under the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.).
       ``(g) Preservation of Existing Authorities.--Nothing in 
     this section limits the use of programmatic approaches to 
     reviews under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.).''.
       (b) Technical and Conforming Amendment.--The analysis for 
     chapter 1 of title 23,

[[Page 10565]]

     United States Code (as amended by section 1309(b)), is 
     amended by adding at the end the following:

``Sec. 169. Development of programmatic mitigation plans.''.

     SEC. 1312. STATE ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL 
                   EXCLUSIONS.

       Section 326 of title 23, United States Code, is amended--
       (1) in subsection (a) by adding at the end the following:
       ``(4) Preservation of flexibility.--The Secretary shall not 
     require a State, as a condition of assuming responsibility 
     under this section, to forego project delivery methods that 
     are otherwise permissible for highway projects.'';
       (2) by striking subsection (d) and inserting the following:
       ``(d) Termination.--
       ``(1) Termination by the secretary.--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.
       ``(2) Termination by the state.--The State may terminate 
     the participation of the State in the program at any time by 
     providing to the Secretary a notice not later than the date 
     that is 90 days before the date of termination, and subject 
     to such terms and conditions as the Secretary may provide.''; 
     and
       (3) by adding at the end the following:
       ``(f) Legal Fees.--A State assuming the responsibilities of 
     the Secretary under this section for a specific project may 
     use funds apportioned to the State under section 104(b)(2) 
     for attorney's fees directly attributable to eligible 
     activities associated with the project.''.

     SEC. 1313. SURFACE TRANSPORTATION PROJECT DELIVERY PROGRAM.

       (a) Program Name.--Section 327 of title 23, United States 
     Code, is amended--
       (1) in the section heading by striking 
     ``pilot''; and
       (2) in subsection (a)(1) by striking ``pilot''.
       (b) Assumption of Responsibility.--Section 327(a)(2) of 
     title 23, United States Code, is amended--
       (1) in subparagraph (B)--
       (A) in clause (i) by striking ``but''; and
       (B) by striking clause (ii) and inserting the following:
       ``(ii) at the request of the State, the Secretary may also 
     assign to the State, and the State may assume, the 
     responsibilities of the Secretary with respect to 1 or more 
     railroad, public transportation, or multimodal projects 
     within the State under the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.);
       ``(iii) in a State that has assumed the responsibilities of 
     the Secretary under clause (ii), a recipient of assistance 
     under chapter 53 of title 49 may request that the Secretary 
     maintain the responsibilities of the Secretary with respect 
     to 1 or more public transportation projects within the State 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 13 4321 et seq.); but
       ``(iv) the Secretary may not assign--

       ``(I) any responsibility imposed on the Secretary by 
     section 134 or 135 or section 5303 or 5304 of title 49; or
       ``(II) responsibility for any conformity determination 
     required under section 176 of the Clean Air Act (42 U.S.C. 
     7506).''; and

       (2) by adding at the end the following:
       ``(F) Preservation of flexibility.--The Secretary may not 
     require a State, as a condition of participation in the 
     program, to forego project delivery methods that are 
     otherwise permissible for projects.
       ``(G) Legal fees.--A State assuming the responsibilities of 
     the Secretary under this section for a specific project may 
     use funds apportioned to the State under section 104(b)(2) 
     for attorneys' fees directly attributable to eligible 
     activities associated with the project.''.
       (c) State Participation.--Section 327(b) of title 23, 
     United States Code, is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) Participating states.--All States are eligible to 
     participate in the program.''; and
       (2) in paragraph (2) by striking ``date of enactment of 
     this section, the Secretary shall promulgate'' and inserting 
     ``date on which amendments to this section by the MAP-21 take 
     effect, the Secretary shall amend, as appropriate,''.
       (d) Written Agreement.--Section 327(c) of title 23, United 
     States Code, is amended--
       (1) in paragraph (3)(D) by striking the period at the end 
     and inserting a semicolon; and
       (2) by adding at the end the following:
       ``(4) require the State to provide to the Secretary any 
     information the Secretary considers necessary to ensure that 
     the State is adequately carrying out the responsibilities 
     assigned to the State;
       ``(5) have a term of not more than 5 years; and
       ``(6) be renewable.''.
       (e) Conforming Amendment.--Section 327(e) of title 23, 
     United States Code, is amended by striking ``subsection (i)'' 
     and inserting ``subsection (j)''.
       (f) Audits.--Section 327(g)(1)(B) of title 23, United 
     States Code, is amended by striking ``subsequent year'' and 
     inserting ``of the third and fourth years''.
       (g) Monitoring.--Section 327 of title 23, United States 
     Code, is amended--
       (1) by redesignating subsections (h) and (i) as subsections 
     (i) and (j), respectively; and
       (2) by inserting after subsection (g) the following:
       ``(h) Monitoring.--After the fourth year of the 
     participation of a State in the program, the Secretary shall 
     monitor compliance by the State with the written agreement, 
     including the provision by the State of financial resources 
     to carry out the written agreement.''.
       (h) Termination.--Section 327(j) of title 23, United States 
     Code (as so redesignated), is amended to read as follows:
       ``(j) Termination.--
       ``(1) Termination by the 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 the Secretary.
       ``(2) Termination by the state.--The State may terminate 
     the participation of the State in the program at any time by 
     providing to the Secretary a notice by not later than the 
     date that is 90 days before the date of termination, and 
     subject to such terms and conditions as the Secretary may 
     provide.''.
       (i) Clerical Amendment.--The item relating to section 327 
     in the analysis of title 23, United States Code, is amended 
     to read as follows:

``327. Surface transportation project delivery program.''.

     SEC. 1314. APPLICATION OF CATEGORICAL EXCLUSIONS FOR 
                   MULTIMODAL PROJECTS.

       (a) In General.--Section 304 of title 49, United States 
     Code, is amended to read as follows:

     ``Sec. 304. Application of categorical exclusions for 
       multimodal projects

       ``(a) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Cooperating authority.--The term `cooperating 
     authority' means a Department of Transportation operating 
     authority that is not the lead authority with respect to a 
     project.
       ``(2) Lead authority.--The term `lead authority' means a 
     Department of Transportation operating administration or 
     secretarial office that--
       ``(A) is the lead authority over a proposed multimodal 
     project; and
       ``(B) has determined that the components of the project 
     that fall under the modal expertise of the lead authority--
       ``(i) satisfy the conditions for a categorical exclusion 
     under implementing regulations or procedures of the lead 
     authority under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.); and
       ``(ii) do not require the preparation of an environmental 
     assessment or environmental impact statement under that Act.
       ``(3) Multimodal project.--The term `multimodal project' 
     has the meaning given the term in section 139(a) of title 23.
       ``(b) Exercise of Authorities.--The authorities granted in 
     this section may be exercised for a multimodal project, class 
     of projects, or program of projects that are carried out 
     under this title.
       ``(c) Application of Categorical Exclusions for Multimodal 
     Projects.--In considering the environmental impacts of a 
     proposed multimodal project, a lead authority may apply a 
     categorical exclusion designated under the implementing 
     regulations or procedures of a cooperating authority for 
     other components of the project, subject to the conditions 
     that--
       ``(1) the multimodal project is funded under 1 grant 
     agreement administered by the lead authority;
       ``(2) the multimodal project has components that require 
     the expertise of a cooperating authority to assess the 
     environmental impacts of the components;
       ``(3) the component of the project to be covered by the 
     categorical exclusion of the cooperating authority has 
     independent utility;
       ``(4) the cooperating authority, in consultation with the 
     lead authority--
       ``(A) follows implementing regulations or procedures under 
     the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
     et seq.); and
       ``(B) determines that a categorical exclusion under that 
     Act applies to the components; and
       ``(5) the lead authority has determined that--
       ``(A) the project, using the categorical exclusions of the 
     lead authority and each applicable cooperating authority, 
     does not individually or cumulatively have a significant 
     impact on the environment; and
       ``(B) extraordinary circumstances do not exist that merit 
     additional analysis and documentation in an environmental 
     impact statement or environmental assessment required under 
     the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
     et seq.).
       ``(d) Modal Cooperation.--
       ``(1) In general.--A cooperating authority shall provide 
     modal expertise to the lead authority on such aspects of the 
     multimodal project in which the cooperating authority has 
     expertise.
       ``(2) Use of categorical exclusion.--In a case described in 
     paragraph (1), the 1 or more categorical exclusions of a 
     cooperating authority may be applied by the lead authority 
     once the cooperating authority reviews the project on behalf 
     of the lead authority and determines the project satisfies 
     the conditions for a categorical exclusion under the 
     implementing regulations or procedures of the cooperating 
     authority under

[[Page 10566]]

     the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
     et seq.) and this section.''.
       (b) Conforming Amendment.--The item relating to section 304 
     in the analysis for title 49, United States Code, is amended 
     to read as follows:

``304. Application of categorical exclusions for multimodal projects''.

     SEC. 1315. CATEGORICAL EXCLUSIONS IN EMERGENCIES.

       (a) In General.--Not later than 30 days after the date of 
     enactment of this Act, for the repair or reconstruction of 
     any road, highway, or bridge that is in operation or under 
     construction when damaged by an emergency declared by the 
     Governor of the State and concurred in by the Secretary, or 
     for a disaster or emergency declared by the President 
     pursuant to the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5121 et seq.), the 
     Secretary shall publish a notice of proposed rulemaking to 
     treat any such repair or reconstruction activity as a class 
     of action categorically excluded from the requirements 
     relating to environmental assessments or environmental impact 
     statements under section 1508.4 of title 40, Code of Federal 
     Regulations, and section 771.117 of title 23, Code of Federal 
     Regulations (as in effect on the date of enactment of this 
     Act) if such repair or reconstruction activity is--
       (1) in the same location with the same capacity, 
     dimensions, and design as the original road, highway, or 
     bridge as before the declaration described in this section; 
     and
       (2) commenced within a 2-year period beginning on the date 
     of a declaration described in this section.
       (b) Rulemaking.--
       (1) In general.--The Secretary shall ensure that the 
     rulemaking helps to conserve Federal resources and protects 
     public safety and health by providing for periodic 
     evaluations to determine if reasonable alternatives exist to 
     roads, highways, or bridges that repeatedly require repair 
     and reconstruction activities.
       (2) Reasonable alternatives.--The reasonable alternatives 
     described in paragraph (1) include actions that could reduce 
     the need for Federal funds to be expended on such repair and 
     reconstruction activities, better protect public safety and 
     health and the environment, and meet transportation needs as 
     described in relevant and applicable Federal, State, local 
     and tribal plans.

     SEC. 1316. CATEGORICAL EXCLUSIONS FOR PROJECTS WITHIN THE 
                   RIGHT-OF-WAY.

       (a) In General.--The Secretary shall--
       (1) not later than 180 days after the date of enactment of 
     this Act, designate any project (as defined in section 101(a) 
     of title 23, United States Code) within an existing 
     operational right-of-way as an action categorically excluded 
     from the requirements relating to environmental assessments 
     or environmental impact statements under section 1508.4 of 
     title 40, Code of Federal Regulations, and section 771.117(c) 
     of title 23, Code of Federal Regulations; and
       (2) not later than 150 days after the date of enactment of 
     this Act, promulgate regulations to carry out paragraph (1).
       (b) Definition of an Operational Right-of-way.--In this 
     section, the term ``operational right-of-way'' means all real 
     property interests acquired for the construction, operation, 
     or mitigation of a project (as defined in section 101(a) of 
     title 23, United States Code), including the locations of the 
     roadway, bridges, interchanges, culverts, drainage, clear 
     zone, traffic control signage, landscaping, and any rest 
     areas with direct access to a controlled access highway.

     SEC. 1317. CATEGORICAL EXCLUSION FOR PROJECTS OF LIMITED 
                   FEDERAL ASSISTANCE.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary shall--
       (1) designate as an action categorically excluded from the 
     requirements relating to environmental assessments or 
     environmental impact statements under section 1508.4 of title 
     40, Code of Federal Regulations, and section 771.117(c) of 
     title 23, Code of Federal Regulations, any project--
       (A) that receives less than $5,000,000 of Federal funds; or
       (B) with a total estimated cost of not more than 
     $30,000,000 and Federal funds comprising less than 15 percent 
     of the total estimated project cost; and
       (2) not later than 150 days after the date of enactment of 
     this Act, promulgate regulations to carry out paragraph (1).

     SEC. 1318. PROGRAMMATIC AGREEMENTS AND ADDITIONAL CATEGORICAL 
                   EXCLUSIONS.

       (a) In General.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary shall--
       (1) survey the use by the Department of categorical 
     exclusions in transportation projects since 2005;
       (2) publish a review of the survey that includes a 
     description of--
       (A) the types of actions categorically excluded; and
       (B) any requests previously received by the Secretary for 
     new categorical exclusions; and
       (3) solicit requests from State departments of 
     transportation, transit authorities, metropolitan planning 
     organizations, or other government agencies for new 
     categorical exclusions.
       (b) New Categorical Exclusions.--Not later than 120 days 
     after the date of enactment of this Act, the Secretary shall 
     publish a notice of proposed rulemaking to propose new 
     categorical exclusions received by the Secretary under 
     subsection (a), to the extent that the categorical exclusions 
     meet the criteria for a categorical exclusion under section 
     1508.4 of title 40, Code of Federal Regulations, and section 
     771.117(a) of title 23, Code of Federal Regulations (as those 
     regulations are in effect on the date of the notice).
       (c) Additional Actions.--The Secretary shall issue a 
     proposed rulemaking to move the following types of actions 
     from subsection (d) of section 771.117 of title 23, Code of 
     Federal Regulations (as in effect on the date of enactment of 
     this Act), to subsection (c) of that section, to the extent 
     that such movement complies with the criteria for a 
     categorical exclusion under section 1508.4 of title 40, Code 
     of Federal Regulations (as in effect on the date of enactment 
     of this Act):
       (1) Modernization of a highway by resurfacing, restoration, 
     rehabilitation, reconstruction, adding shoulders, or adding 
     auxiliary lanes (including parking, weaving, turning, and 
     climbing).
       (2) Highway safety or traffic operations improvement 
     projects, including the installation of ramp metering control 
     devices and lighting.
       (3) Bridge rehabilitation, reconstruction, or replacement 
     or the construction of grade separation to replace existing 
     at-grade railroad crossings.
       (d) Programmatic Agreements.--
       (1) In general.--The Secretary shall seek opportunities to 
     enter into programmatic agreements with the States that 
     establish efficient administrative procedures for carrying 
     out environmental and other required project reviews.
       (2) Inclusions.--Programmatic agreements authorized under 
     paragraph (1) may include agreements that allow a State to 
     determine on behalf of the Federal Highway Administration 
     whether a project is categorically excluded from the 
     preparation of an environmental assessment or environmental 
     impact statement under the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.).
       (3) Determinations.--An agreement described in paragraph 
     (2) may include determinations by the Secretary of the types 
     of projects categorically excluded (consistent with section 
     1508.4 of title 40, Code of Federal Regulations) in the State 
     in addition to the types listed in subsections (c) and (d) of 
     section 771.117 of title 23, Code of Federal Regulations (as 
     in effect on the date of enactment of this Act).

     SEC. 1319. ACCELERATED DECISIONMAKING IN ENVIRONMENTAL 
                   REVIEWS.

       (a) In General.--In preparing a final environmental impact 
     statement under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.), if the lead agency modifies the 
     statement in response to comments that are minor and are 
     confined to factual corrections or explanations of why the 
     comments do not warrant additional agency response, the lead 
     agency may write on errata sheets attached to the statement 
     instead of rewriting the draft statement, subject to the 
     condition that the errata sheets--
       (1) cite the sources, authorities, or reasons that support 
     the position of the agency; and
       (2) if appropriate, indicate the circumstances that would 
     trigger agency reappraisal or further response.
       (b) Incorporation.--To the maximum extent practicable, the 
     lead agency shall expeditiously develop a single document 
     that consists of a final environmental impact statement and a 
     record of decision, unless--
       (1) the final environmental impact statement makes 
     substantial changes to the proposed action that are relevant 
     to environmental or safety concerns; or
       (2) there are significant new circumstances or information 
     relevant to environmental concerns and that bear on the 
     proposed action or the impacts of the proposed action.

     SEC. 1320. MEMORANDA OF AGENCY AGREEMENTS FOR EARLY 
                   COORDINATION.

       (a) In General.--It is the sense of Congress that--
       (1) the Secretary and other Federal agencies with relevant 
     jurisdiction in the environmental review process should 
     cooperate with each other and other agencies on environmental 
     review and project delivery activities at the earliest 
     practicable time to avoid delays and duplication of effort 
     later in the process, head off potential conflicts, and 
     ensure that planning and project development decisions 
     reflect environmental values; and
       (2) such cooperation should include the development of 
     policies and the designation of staff that advise planning 
     agencies or project sponsors of studies or other information 
     foreseeably required for later Federal action and early 
     consultation with appropriate State and local agencies and 
     Indian tribes.
       (b) Technical Assistance.--If requested at any time by a 
     State or local planning agency, the Secretary and other 
     Federal agencies with relevant jurisdiction in the 
     environmental review process, shall, to the extent 
     practicable and appropriate, as determined by the agencies, 
     provide technical assistance to the State or local planning 
     agency on accomplishing the early coordination activities 
     described in subsection (d).
       (c) Memorandum of Agency Agreement.--If requested at any 
     time by a State or local planning agency, the lead agency, in 
     consultation with other Federal agencies with relevant 
     jurisdiction in the environmental review process, may 
     establish memoranda of agreement with the project sponsor, 
     State, and local governments and other appropriate entities 
     to accomplish the early coordination activities described in 
     subsection (d).
       (d) Early Coordination Activities.--Early coordination 
     activities shall include, to the maximum extent practicable, 
     the following:
       (1) Technical assistance on identifying potential impacts 
     and mitigation issues in an integrated fashion.

[[Page 10567]]

       (2) The potential appropriateness of using planning 
     products and decisions in later environmental reviews.
       (3) The identification and elimination from detailed study 
     in the environmental review process of the issues that are 
     not significant or that have been covered by prior 
     environmental reviews.
       (4) The identification of other environmental review and 
     consultation requirements so that the lead and cooperating 
     agencies may prepare, as appropriate, other required analyses 
     and studies concurrently with planning activities.
       (5) The identification by agencies with jurisdiction over 
     any permits related to the project of any and all relevant 
     information that will reasonably be required for the project.
       (6) The reduction of duplication between requirements under 
     the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
     et seq.) and State and local planning and environmental 
     review requirements, unless the agencies are specifically 
     barred from doing so by applicable law.
       (7) Timelines for the completion of agency actions during 
     the planning and environmental review processes.
       (8) Other appropriate factors.

     SEC. 1321. ENVIRONMENTAL PROCEDURES INITIATIVE.

       (a) Establishment.--For grant programs under which funds 
     are distributed by formula by the Department, the Secretary 
     shall establish an initiative to review and develop 
     consistent procedures for environmental permitting and 
     procurement requirements that apply to a project carried out 
     under title 23, United States Code, or chapter 53 of title 
     49, United States Code.
       (b) Report.--The Secretary shall publish the results of the 
     initiative described in subsection (a) in an electronically 
     accessible format.

     SEC. 1322. REVIEW OF STATE ENVIRONMENTAL REVIEWS AND 
                   APPROVALS FOR THE PURPOSE OF ELIMINATING 
                   DUPLICATION OF ENVIRONMENTAL REVIEWS.

       For environmental reviews and approvals carried out on 
     projects funded under title 23, United States Code, the 
     Comptroller General of the United States shall--
       (1) review State laws and procedures for conducting 
     environmental reviews with regard to such projects and 
     identify the States that have environmental laws that provide 
     environmental protections and opportunities for public 
     involvement that are equivalent to those provided by Federal 
     environmental laws;
       (2) determine the frequency and cost of environmental 
     reviews carried out at the Federal level that are duplicative 
     of State reviews that provide equivalent environmental 
     protections and opportunities for public involvement; and
       (3) not later than 2 years after the date of enactment of 
     this Act, submit to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Environment and Public Works of the Senate a 
     report that describes the results of the review and 
     determination made under this section.

     SEC. 1323. REVIEW OF FEDERAL PROJECT AND PROGRAM DELIVERY.

       (a) Completion Time Assessments and Reports.--
       (1) In general.--For projects funded under title 23, United 
     States Code, the Secretary shall compare--
       (A)(i) the completion times of categorical exclusions, 
     environmental assessments, and environmental impact 
     statements initiated after calendar year 2005; to
       (ii) the completion times of categorical exclusions, 
     environmental assessments, and environmental impact 
     statements initiated during a period prior to calendar year 
     2005; and
       (B)(i) the completion times of categorical exclusions, 
     environmental assessments, and environmental impact 
     statements initiated during the period beginning on January 
     1, 2005, and ending on the date of enactment of this Act; to
       (ii) the completion times of categorical exclusions, 
     environmental assessments, and environmental impact 
     statements initiated after the date of enactment of this Act.
       (2) Report.--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) not later than 1 year after the date of enactment of 
     this Act, a report that--
       (i) describes the results of the review conducted under 
     paragraph (1)(A); and
       (ii) identifies any change in the timing for completions, 
     including the reasons for any such change and the reasons for 
     delays in excess of 5 years; and
       (B) not later than 5 years after the date of enactment of 
     this Act, a report that--
       (i) describes the results of the review conducted under 
     paragraph (1)(B); and
       (ii) identifies any change in the timing for completions, 
     including the reasons for any such change and the reasons for 
     delays in excess of 5 years.
       (b) Additional Report.--Not later than 2 years after the 
     date of enactment of this Act, the Secretary shall submit to 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives and the Committee on Environment and 
     Public Works of the Senate a report on the types and 
     justification for the additional categorical exclusions 
     granted under the authority provided under sections 1316 and 
     1317.
       (c) GAO Report.--The Comptroller General of the United 
     States shall--
       (1) assess the reforms carried out under this subtitle 
     (including the amendments made by this subtitle); and
       (2) not later than 5 years after the date of enactment of 
     this Act, submit to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Environment and Public Works of the Senate a 
     report that describes the results of the assessment.
       (d) Inspector General Report.--The Inspector General of the 
     Department of Transportation shall--
       (1) assess the reforms carried out under this subtitle 
     (including the amendments made by this subtitle); and
       (2) 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) not later than 2 years after the date of enactment of 
     this Act, an initial report of the findings of the Inspector 
     General; and
       (B) not later than 4 years after the date of enactment of 
     this Act, a final report of the findings.
                       Subtitle D--Highway Safety

     SEC. 1401. JASON'S LAW.

       (a) In General.--It is the sense of Congress that it is a 
     national priority to address projects under this section for 
     the shortage of long-term parking for commercial motor 
     vehicles on the National Highway System to improve the safety 
     of motorized and nonmotorized users and for commercial motor 
     vehicle operators.
       (b) Eligible Projects.--Eligible projects under this 
     section are those that--
       (1) serve the National Highway System; and
       (2) may include the following:
       (A) Constructing safety rest areas (as defined in section 
     120(c) of title 23, United States Code) that include parking 
     for commercial motor vehicles.
       (B) Constructing commercial motor vehicle parking 
     facilities adjacent to commercial truck stops and travel 
     plazas.
       (C) Opening existing facilities to commercial motor vehicle 
     parking, including inspection and weigh stations and park-
     and-ride facilities.
       (D) Promoting the availability of publicly or privately 
     provided commercial motor vehicle parking on the National 
     Highway System using intelligent transportation systems and 
     other means.
       (E) Constructing turnouts along the National Highway System 
     for commercial motor vehicles.
       (F) Making capital improvements to public commercial motor 
     vehicle parking facilities currently closed on a seasonal 
     basis to allow the facilities to remain open year-round.
       (G) Improving the geometric design of interchanges on the 
     National Highway System to improve access to commercial motor 
     vehicle parking facilities.
       (c) Survey and Comparative Assessment.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary, in consultation with 
     relevant State motor carrier safety personnel, shall conduct 
     a survey of each State--
       (A) to evaluate the capability of the State to provide 
     adequate parking and rest facilities for commercial motor 
     vehicles engaged in interstate transportation;
       (B) to assess the volume of commercial motor vehicle 
     traffic in the State; and
       (C) to develop a system of metrics to measure the adequacy 
     of commercial motor vehicle parking facilities in the State.
       (2) Results.--The results of the survey under paragraph (1) 
     shall be made available to the public on the website of the 
     Department of Transportation.
       (3) Periodic updates.--The Secretary shall periodically 
     update the survey under this subsection.
       (d) Electric Vehicle and Natural Gas Vehicle 
     Infrastructure.--
       (1) In general.--Except as provided in paragraph (2), a 
     State may establish electric vehicle charging stations or 
     natural gas vehicle refueling stations for the use of 
     battery-powered or natural gas-fueled trucks or other motor 
     vehicles at any parking facility funded or authorized under 
     this Act or title 23, United States Code.
       (2) Exception.--Electric vehicle battery charging stations 
     or natural gas vehicle refueling stations may not be 
     established or supported under paragraph (1) if commercial 
     establishments serving motor vehicle users are prohibited by 
     section 111 of title 23, United States Code.
       (3) Funds.--Charging or refueling stations described in 
     paragraph (1) shall be eligible for the same funds as are 
     available for the parking facilities in which the stations 
     are located.
       (e) Treatment of Projects.--Notwithstanding any other 
     provision of law, projects funded through the authority 
     provided under this section shall be treated as projects on a 
     Federal-aid highway under chapter 1 of title 23, United 
     States Code.

     SEC. 1402. OPEN CONTAINER REQUIREMENTS.

       Section 154(c) of title 23, United States Code, is 
     amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) Fiscal year 2012 and thereafter.--
       ``(A) Reservation of funds.--On October 1, 2011, and each 
     October 1 thereafter, if a State has not enacted or is not 
     enforcing an open container law described in subsection (b), 
     the Secretary shall reserve an amount equal to 2.5 percent of 
     the funds to be apportioned to the State on that date under 
     each of paragraphs (1) and (2) of section 104(b) until the 
     State certifies to the Secretary the means by which the State 
     will use those reserved funds in accordance with 
     subparagraphs (A) and (B) of paragraph (1) and paragraph (3).

[[Page 10568]]

       ``(B) Transfer of funds.--As soon as practicable after the 
     date of receipt of a certification from a State under 
     subparagraph (A), the Secretary shall--
       ``(i) transfer the reserved funds identified by the State 
     for use as described in subparagraphs (A) and (B) of 
     paragraph (1) to the apportionment of the State under section 
     402; and
       ``(ii) release the reserved funds identified by the State 
     as described in paragraph (3).'';
       (2) by striking paragraph (3) and inserting the following:
       ``(3) Use for highway safety improvement program.--
       ``(A) In general.--A State may elect to use all or a 
     portion of the funds transferred under paragraph (2) for 
     activities eligible under section 148.
       ``(B) State departments of transportation.--If the State 
     makes an election under subparagraph (A), the funds shall be 
     transferred to the department of transportation of the State, 
     which shall be responsible for the administration of the 
     funds.''; and
       (3) by striking paragraph (5) and inserting the following:
       ``(5) Derivation of amount to be transferred.--The amount 
     to be transferred under paragraph (2) may be derived from the 
     following:
       ``(A) The apportionment of the State under section 
     104(b)(l).
       ``(B) The apportionment of the State under section 
     104(b)(2).''.

     SEC. 1403. MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING 
                   WHILE INTOXICATED OR DRIVING UNDER THE 
                   INFLUENCE.

       (a) Definitions.--Section 164(a) of title 23, United States 
     Code, is amended--
       (1) by striking paragraph (3);
       (2) by redesignating paragraphs (4) and (5) as paragraphs 
     (3) and (4), respectively; and
       (3) in paragraph (4) (as so redesignated) by striking 
     subparagraph (A) and inserting the following:
       ``(A) receive--
       ``(i) a suspension of all driving privileges for not less 
     than 1 year; or
       ``(ii) a suspension of unlimited driving privileges for 1 
     year, allowing for the reinstatement of limited driving 
     privileges subject to restrictions and limited exemptions as 
     established by State law, if an ignition interlock device is 
     installed for not less than 1 year on each of the motor 
     vehicles owned or operated, or both, by the individual;''.
       (b) Transfer of Funds.--Section 164(b) of title 23, United 
     States Code, is amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) Fiscal year 2012 and thereafter.--
       ``(A) Reservation of funds.--On October 1, 2011, and each 
     October 1 thereafter, if a State has not enacted or is not 
     enforcing a repeat intoxicated driver law, the Secretary 
     shall reserve an amount equal to 2.5 percent of the funds to 
     be apportioned to the State on that date under each of 
     paragraphs (1) and (2) of section 104(b) until the State 
     certifies to the Secretary the means by which the States will 
     use those reserved funds among the uses authorized under 
     subparagraphs (A) and (B) of paragraph (1), and paragraph 
     (3).
       ``(B) Transfer of funds.--As soon as practicable after the 
     date of receipt of a certification from a State under 
     subparagraph (A), the Secretary shall--
       ``(i) transfer the reserved funds identified by the State 
     for use as described in subparagraphs (A) and (B) of 
     paragraph (1) to the apportionment of the State under section 
     402; and
       ``(ii) release the reserved funds identified by the State 
     as described in paragraph (3).'';
       (2) by striking paragraph (3) and inserting the following:
       ``(3) Use for highway safety improvement program.--
       ``(A) In general.--A State may elect to use all or a 
     portion of the funds transferred under paragraph (2) for 
     activities eligible under section 148.
       ``(B) State departments of transportation.--If the State 
     makes an election under subparagraph (A), the funds shall be 
     transferred to the department of transportation of the State, 
     which shall be responsible for the administration of the 
     funds.''; and
       (3) by striking paragraph (5) and inserting the following:
       ``(5) Derivation of amount to be transferred.--The amount 
     to be transferred under paragraph (2) may be derived from the 
     following:
       ``(A) The apportionment of the State under section 
     104(b)(1).
       ``(B) The apportionment of the State under section 
     104(b)(2).''.

     SEC. 1404. ADJUSTMENTS TO PENALTY PROVISIONS.

       (a) Vehicle Weight Limitations.--Section 127(a)(1) of title 
     23, United States Code, is amended by striking ``No funds 
     shall be apportioned in any fiscal year under section 
     104(b)(1) of this title to any State which'' and inserting 
     ``The Secretary shall withhold 50 percent of the 
     apportionment of a State under section 104(b)(1) in any 
     fiscal year in which the State''.
       (b) Control of Junkyards.--Section 136 of title 23, United 
     States Code, is amended--
       (1) in subsection (b), in the first sentence--
       (A) by striking ``10 per centum'' and inserting ``7 
     percent''; and
       (B) by striking ``section 104 of this title'' and inserting 
     ``paragraphs (1) through (5) of section 104(b)''; and
       (2) by adding at the end the following:
       ``(n) Definitions.--For purposes of this section, the terms 
     `primary system' and `Federal-aid primary system' mean any 
     highway that is on the National Highway System, which 
     includes the Interstate Highway System.''.
       (c) Enforcement of Vehicle Size and Weight Laws.--Section 
     141(b)(2) of title 23, United States Code, is amended--
       (1) by striking ``10 per centum'' and inserting ``7 
     percent''; and
       (2) by striking ``section 104 of this title'' and inserting 
     ``paragraphs (1) through (5) of section 104(b)''.
       (d) Proof of Payment of the Heavy Vehicle Use Tax.--Section 
     141(c) of title 23, United States Code, is amended--
       (1) by striking ``section 104(b)(4)'' each place it appears 
     and inserting ``section 104(b)(1)''; and
       (2) in the first sentence by striking ``25 per centum'' and 
     inserting ``8 percent''.
       (e) Use of Safety Belts.--Section 153(h) of title 23, 
     United States Code, is amended--
       (1) by striking paragraph (1);
       (2) by redesignating paragraph (2) as paragraph (1);
       (3) in paragraph (1) (as so redesignated)--
       (A) by striking the paragraph heading and inserting ``Prior 
     to fiscal year 2012''; and
       (B) by inserting ``and before October 1, 2011,'' after 
     ``September 30, 1994,''; and
       (4) by inserting after paragraph (1) (as so redesignated) 
     the following:
       ``(2) Fiscal year 2012 and thereafter.--If, at any time in 
     a fiscal year beginning after September 30, 2011, a State 
     does not have in effect a law described in subsection (a)(2), 
     the Secretary shall transfer an amount equal to 2 percent of 
     the funds apportioned to the State for the succeeding fiscal 
     year under each of paragraphs (1) through (3) of section 
     104(b) to the apportionment of the State under section 
     402.''.
       (f) National Minimum Drinking Age.--Section 158(a)(1) of 
     title 23, United States Code, is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(A) Fiscal years before 2012.--The Secretary''; and
       (2) by adding at the end the following:
       ``(B) Fiscal year 2012 and thereafter.--For fiscal year 
     2012 and each fiscal year thereafter, the amount to be 
     withheld under this section shall be an amount equal to 8 
     percent of the amount apportioned to the noncompliant State, 
     as described in subparagraph (A), under paragraphs (1) and 
     (2) of section 104(b).''.
       (g) Drug Offenders.--Section 159 of title 23, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) by striking paragraph (1);
       (B) by redesignating paragraph (2) as paragraph (1);
       (C) in paragraph (1) (as so redesignated) by striking 
     ``(including any amounts withheld under paragraph (1))''; and
       (D) by inserting after paragraph (1) (as so redesignated) 
     the following:
       ``(2) Fiscal year 2012 and thereafter.--The Secretary shall 
     withhold an amount equal to 8 percent of the amount required 
     to be apportioned to any State under each of paragraphs (1) 
     and (2) of section 104(b) on the first day of each fiscal 
     year beginning after September 30, 2011, if the State fails 
     to meet the requirements of paragraph (3) on the first day of 
     the fiscal year.''; and
       (2) by striking subsection (b) and inserting the following:
       ``(b) Effect of Noncompliance.--No funds withheld under 
     this section from apportionments to any State shall be 
     available for apportionment to that State.''.
       (h) Zero Tolerance Blood Alcohol Concentration for 
     Minors.--Section 161(a) of title 23, United States Code, is 
     amended--
       (1) by striking paragraph (1);
       (2) by redesignating paragraph (2) as paragraph (1);
       (3) in paragraph (1) (as so redesignated)--
       (A) by striking the paragraph heading and inserting ``Prior 
     to fiscal year 2012''; and
       (B) by inserting ``through fiscal year 2011'' after ``each 
     fiscal year thereafter''; and
       (4) by inserting after paragraph (1) (as so redesignated) 
     the following:
       ``(2) Fiscal year 2012 and thereafter.--The Secretary shall 
     withhold an amount equal to 8 percent of the amount required 
     to be apportioned to any State under each of paragraphs (1) 
     and (2) of section 104(b) on October 1, 2011, and on October 
     1 of each fiscal year thereafter, if the State does not meet 
     the requirement of paragraph (3) on that date.''.
       (i) Operation of Motor Vehicles by Intoxicated Persons.--
     Section 163(e) of title 23, United States Code, is amended by 
     striking paragraphs (1) and (2) and inserting the following:
       ``(1) Fiscal years 2007 through 2011.--On October 1, 2006, 
     and October 1 of each fiscal year thereafter through fiscal 
     year 2011, if a State has not enacted or is not enforcing a 
     law described in subsection (a), the Secretary shall withhold 
     an amount equal to 8 percent of the amounts to be apportioned 
     to the State on that date under each of paragraphs (1), (3), 
     and (4) of section 104(b).
       ``(2) Fiscal year 2012 and thereafter.--On October 1, 2011, 
     and October 1 of each fiscal year thereafter, if a State has 
     not enacted or is not enforcing a law described in subsection 
     (a), the Secretary shall withhold an amount equal to 6 
     percent of the amounts to be apportioned to the State on that 
     date under each of paragraphs (1) and (2) of section 
     104(b).''.
       (j) Commercial Driver's License.--Section 31314 of title 
     49, United States Code, is amended--

[[Page 10569]]

       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following:
       ``(c) Penalties Imposed in Fiscal Year 2012 and 
     Thereafter.--Effective beginning on October 1, 2011--
       ``(1) the penalty for the first instance of noncompliance 
     by a State under this section shall be not more than an 
     amount equal to 4 percent of funds required to be apportioned 
     to the noncompliant State under paragraphs (1) and (2) of 
     section 104(b) of title 23; and
       ``(2) the penalty for subsequent instances of noncompliance 
     shall be not more than an amount equal to 8 percent of funds 
     required to be apportioned to the noncompliant State under 
     paragraphs (1) and (2) of section 104(b) of title 23.''.

     SEC. 1405. HIGHWAY WORKER SAFETY.

       Not later than 60 days after the date of enactment of this 
     Act, the Secretary shall modify section 630.1108(a) of title 
     23, Code of Federal Regulations (as in effect on the date of 
     enactment of this Act), to ensure that--
       (1) at a minimum, positive protective measures are used to 
     separate workers on highway construction projects from 
     motorized traffic in all work zones conducted under traffic 
     in areas that offer workers no means of escape (such as 
     tunnels and bridges), unless an engineering study determines 
     otherwise;
       (2) temporary longitudinal traffic barriers are used to 
     protect workers on highway construction projects in long-
     duration stationary work zones when the project design speed 
     is anticipated to be high and the nature of the work requires 
     workers to be within 1 lane-width from the edge of a live 
     travel lane, unless--
       (A) an analysis by the project sponsor determines 
     otherwise; or
       (B) the project is outside of an urbanized area and the 
     annual average daily traffic load of the applicable road is 
     less than 100 vehicles per hour; and
       (3) when positive protective devices are necessary for 
     highway construction projects, those devices are paid for on 
     a unit-pay basis, unless doing so would create a conflict 
     with innovative contracting approaches, such as design-build 
     or some performance-based contracts under which the 
     contractor is paid to assume a certain risk allocation and 
     payment is generally made on a lump-sum basis.
                       Subtitle E--Miscellaneous

     SEC. 1501. REAL-TIME RIDESHARING.

       Paragraph (3) of section 101(a) of title 23, United States 
     Code (as redesignated by section 1103(a)(2)), is amended by 
     striking ``and designating existing facilities for use for 
     preferential parking for carpools'' and inserting 
     ``designating existing facilities for use for preferential 
     parking for carpools, and real-time ridesharing projects, 
     such as projects where drivers, using an electronic transfer 
     of funds, recover costs directly associated with the trip 
     provided through the use of location technology to quantify 
     those direct costs, subject to the condition that the cost 
     recovered does not exceed the cost of the trip provided''.

     SEC. 1502. PROGRAM EFFICIENCIES.

       The first sentence of section 102(b) of title 23, United 
     States Code, is amended by striking ``made available for such 
     engineering'' and inserting ``reimbursed for the preliminary 
     engineering''.

     SEC. 1503. PROJECT APPROVAL AND OVERSIGHT.

       (a) In General.--Section 106 of title 23, United States 
     Code, is amended--
       (1) in subsection (a)(2) by inserting ``recipient'' before 
     ``formalizing'';
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) in the heading, by striking ``Non-interstate'';
       (ii) by striking ``but not on the Interstate System''; and 
     inserting ``, including projects on the Interstate System''; 
     and
       (iii) by striking ``of projects'' and all that follows 
     through the period at the end and inserting ``with respect to 
     the projects unless the Secretary determines that the 
     assumption is not appropriate.''; and
       (B) by striking paragraph (4) and inserting the following:
       ``(4) Limitation on interstate projects.--
       ``(A) In general.--The Secretary shall not assign any 
     responsibilities to a State for projects the Secretary 
     determines to be in a high risk category, as defined under 
     subparagraph (B).
       ``(B) High risk categories.--The Secretary may define the 
     high risk categories under this subparagraph on a national 
     basis, a State-by-State basis, or a national and State-by-
     State basis, as determined to be appropriate by the 
     Secretary.'';
       (3) in subsection (e)--
       (A) in paragraph (1)(A)--
       (i) in the matter preceding clause (i)--

       (I) by striking ``concept'' and inserting ``planning''; and
       (II) by striking ``multidisciplined'' and inserting 
     ``multidisciplinary''; and

       (ii) by striking clause (i) and inserting the following:
       ``(i) providing the needed functions safely, reliably, and 
     at the lowest overall lifecycle cost;'';
       (B) in paragraph (2)--
       (i) in the matter preceding subparagraph (A) by striking 
     ``or other cost-reduction analysis'';
       (ii) in subparagraph (A)--

       (I) by striking ``Federal-aid system'' and inserting 
     ``National Highway System receiving Federal assistance''; and
       (II) by striking ``$25,000,000'' and inserting 
     ``$50,000,000''; and

       (iii) in subparagraph (B)--

       (I) by inserting ``on the National Highway System receiving 
     Federal assistance'' after ``a bridge project''; and
       (II) by striking ``$20,000,000'' and inserting 
     ``$40,000,000''; and

       (C) by striking paragraph (4) and inserting the following:
       ``(4) Requirements.--
       ``(A) Value engineering program.--The State shall develop 
     and carry out a value engineering program that--
       ``(i) establishes and documents value engineering program 
     policies and procedures;
       ``(ii) ensures that the required value engineering analysis 
     is conducted before completing the final design of a project;
       ``(iii) ensures that the value engineering analysis that is 
     conducted, and the recommendations developed and implemented 
     for each project, are documented in a final value engineering 
     report; and
       ``(iv) monitors, evaluates, and annually submits to the 
     Secretary a report that describes the results of the value 
     analyses that are conducted and the recommendations 
     implemented for each of the projects described in paragraph 
     (2) that are completed in the State.
       ``(B) Bridge projects.--The value engineering analysis for 
     a bridge project under paragraph (2) shall--
       ``(i) include bridge superstructure and substructure 
     requirements based on construction material; and
       ``(ii) be evaluated by the State--

       ``(I) on engineering and economic bases, taking into 
     consideration acceptable designs for bridges; and
       ``(II) using an analysis of lifecycle costs and duration of 
     project construction.

       ``(5) Design-build projects.--A requirement to provide a 
     value engineering analysis under this subsection shall not 
     apply to a project delivered using the design-build method of 
     construction.'';
       (4) in subsection (h)--
       (A) in paragraph (1)(B) by inserting ``, including a 
     phasing plan when applicable'' after ``financial plan''; and
       (B) by striking paragraph (3) and inserting the following:
       ``(3) Financial plan.--A financial plan--
       ``(A) shall be based on detailed estimates of the cost to 
     complete the project;
       ``(B) shall 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;
       ``(C) may include a phasing plan that identifies fundable 
     incremental improvements or phases that will address the 
     purpose and the need of the project in the short term in the 
     event there are insufficient financial resources to complete 
     the entire project. If a phasing plan is adopted for a 
     project pursuant to this section, the project shall be deemed 
     to satisfy the fiscal constraint requirements in the 
     statewide and metropolitan planning requirements in sections 
     134 and 135; and
       ``(D) shall assess the appropriateness of a public-private 
     partnership to deliver the project.''; and
       (5) by adding at the end the following:
       ``(j) Use of Advanced Modeling Technologies.--
       ``(1) Definition of advanced modeling technology.--In this 
     subsection, the term `advanced modeling technology' means an 
     available or developing technology, including 3-dimensional 
     digital modeling, that can--
       ``(A) accelerate and improve the environmental review 
     process;
       ``(B) increase effective public participation;
       ``(C) enhance the detail and accuracy of project designs;
       ``(D) increase safety;
       ``(E) accelerate construction, and reduce construction 
     costs; or
       ``(F) otherwise expedite project delivery with respect to 
     transportation projects that receive Federal funding.
       ``(2) Program.--With respect to transportation projects 
     that receive Federal funding, the Secretary shall encourage 
     the use of advanced modeling technologies during 
     environmental, planning, financial management, design, 
     simulation, and construction processes of the projects.
       ``(3) Activities.--In carrying out paragraph (2), the 
     Secretary shall--
       ``(A) compile information relating to advanced modeling 
     technologies, including industry best practices with respect 
     to the use of the technologies;
       ``(B) disseminate to States information relating to 
     advanced modeling technologies, including industry best 
     practices with respect to the use of the technologies; and
       ``(C) promote the use of advanced modeling technologies.
       ``(4) Comprehensive plan.--The Secretary shall develop and 
     publish on the public website of the Department of 
     Transportation a detailed and comprehensive plan for the 
     implementation of paragraph (2).''.
       (b) Review of Oversight Program.--
       (1) In general.--The Secretary shall review the oversight 
     program established under section 106(g) of title 23, United 
     States Code, to determine the efficacy of the program in 
     monitoring the effective and efficient use of funds 
     authorized to carry out title 23, United States Code.
       (2) Minimum requirements for review.--At a minimum, the 
     review under paragraph (1) shall assess the capability of the 
     program to--

[[Page 10570]]

       (A) identify projects funded under title 23, United States 
     Code, for which there are cost or schedule overruns; and
       (B) evaluate the extent of such overruns.
       (3) Report to congress.--Not later than 2 years after the 
     date of enactment of this Act, the Secretary shall transmit 
     to the Committee on Transportation and Infrastructure of the 
     House of Representatives and the Committee on Environment and 
     Public Works of the Senate a report on the results of the 
     review conducted under paragraph (1), which shall include 
     recommendations for legislative changes to improve the 
     oversight program established under section 106(g) of title 
     23, United States Code.
       (c) Transparency and Accountability.--
       (1) Data collection.--The Secretary shall compile and make 
     available on the public website of the Department of 
     Transportation the annual expenditure data for funds made 
     available under title 23 and chapter 53 of title 49, United 
     States Code.
       (2) Requirements.--In carrying out paragraph (1), the 
     Secretary shall ensure that the data made available on the 
     public website of the Department of Transportation--
       (A) is organized by project and State;
       (B) to the maximum extent practicable, is updated regularly 
     to reflect the current status of obligations, expenditures, 
     and Federal-aid projects; and
       (C) can be searched and downloaded by users of the website.
       (3) Report to congress.--The Secretary shall annually 
     submit to the Committee on Transportation and Infrastructure 
     of the House of Representatives and the Committee on 
     Environment and Public Works and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate a report containing 
     a summary of the data described in paragraph (1) for the 1-
     year period ending on the date on which the report is 
     submitted.

     SEC. 1504. STANDARDS.

       Section 109 of title 23, United States Code, is amended by 
     adding at the end the following:
       ``(r) Pavement Markings.--The Secretary shall not approve 
     any pavement markings project that includes the use of glass 
     beads containing more than 200 parts per million of arsenic 
     or lead, as determined in accordance with Environmental 
     Protection Agency testing methods 3052, 6010B, or 6010C.''.

     SEC. 1505. JUSTIFICATION REPORTS FOR ACCESS POINTS ON THE 
                   INTERSTATE SYSTEM.

       Section 111 of title 23, United States Code, is amended by 
     adding at the end the following:
       ``(e) Justification Reports.--If the Secretary requests or 
     requires a justification report for a project that would add 
     a point of access to, or exit from, the Interstate System, 
     the Secretary may permit a State transportation department to 
     approve the report.''.

     SEC. 1506. CONSTRUCTION.

       Section 114(b) of title 23, United States Code, is 
     amended--
       (1) in subsection (b)--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) Limitation on convict labor.--Convict labor shall not 
     be used in construction of Federal-aid highways or portions 
     of Federal-aid highways unless the labor is performed by 
     convicts who are on parole, supervised release, or 
     probation.''; and
       (B) in paragraph (3) by inserting ``in existence during 
     that period'' after ``located on a Federal-aid system''; and
       (2) by adding at the end the following:
       ``(d) Veterans Employment.---
       ``(1) In general.--Subject to paragraph (2), a recipient of 
     Federal financial assistance under this chapter shall, to the 
     extent practicable, encourage contractors working on a 
     highway project funded using the assistance to make a best 
     faith effort in the hiring or referral of laborers on any 
     project for the construction of a highway to veterans (as 
     defined in section 2108 of title 5) who have the requisite 
     skills and abilities to perform the construction work 
     required under the contract.
       ``(2) Administration.--This subsection shall not--
       ``(A) apply to projects subject to section 140(d); or
       ``(B) be administered or enforced in any manner that would 
     require an employer to give a preference to any veteran over 
     any equally qualified applicant who is a member of any racial 
     or ethnic minority, a female, or any equally qualified former 
     employee.''.

     SEC. 1507. MAINTENANCE.

       Section 116 of title 23, United States Code, is amended--
       (1) by redesignating subsections (a) through (d) as 
     subsections (b) through (e), respectively;
       (2) by inserting before subsection (b) (as so redesignated) 
     the following:
       ``(a) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Preventive maintenance.--The term `preventive 
     maintenance' includes pavement preservation programs and 
     activities.
       ``(2) Pavement preservation programs and activities.--The 
     term `pavement preservation programs and activities' means 
     programs and activities employing a network level, long-term 
     strategy that enhances pavement performance by using an 
     integrated, cost-effective set of practices that extend 
     pavement life, improve safety, and meet road user 
     expectations.'';
       (3) in subsection (b) (as so redesignated)--
       (A) in the first sentence, by inserting ``or other direct 
     recipient'' before ``to maintain''; and
       (B) by striking the second sentence;
       (4) by striking subsection (c) (as so redesignated) and 
     inserting the following:
       ``(c) Agreement.--In any State in which the State 
     transportation department or other direct recipient is 
     without legal authority to maintain a project described in 
     subsection (b), the transportation department or direct 
     recipient shall enter into a formal agreement with the 
     appropriate officials of the county or municipality in which 
     the project is located to provide for the maintenance of the 
     project.''; and
       (5) in the first sentence of subsection (d) (as so 
     redesignated) by inserting ``or other direct recipient'' 
     after ``State transportation department''.

     SEC. 1508. FEDERAL SHARE PAYABLE.

       Section 120 of title 23, United States Code, is amended--
       (1) in the first sentence of subsection (c)(1)--
       (A) by inserting ``maintaining minimum levels of 
     retroreflectivity of highway signs or pavement markings,'' 
     after ``traffic control signalization,'';
       (B) by inserting ``shoulder and centerline rumble strips 
     and stripes,'' after ``pavement marking,''; and
       (C) by striking ``Federal-aid systems'' and inserting 
     ``Federal-aid programs'';
       (2) by striking subsection (e) and inserting the following:
       ``(e) Emergency Relief.--The Federal share payable for any 
     repair or reconstruction provided for by funds made available 
     under section 125 for any project on a Federal-aid highway, 
     including the Interstate System, shall not exceed the Federal 
     share payable on a project on the system as provided in 
     subsections (a) and (b), except that--
       ``(1) the Federal share payable for eligible emergency 
     repairs to minimize damage, protect facilities, or restore 
     essential traffic accomplished within 180 days after the 
     actual occurrence of the natural disaster or catastrophic 
     failure may amount to 100 percent of the cost of the repairs;
       ``(2) the Federal share payable for any repair or 
     reconstruction of Federal land transportation facilities, 
     Federal land access transportation facilities, and tribal 
     transportation facilities may amount to 100 percent of the 
     cost of the repair or reconstruction;
       ``(3) the Secretary shall extend the time period in 
     paragraph (1) taking into consideration any delay in the 
     ability of the State to access damaged facilities to evaluate 
     damage and the cost of repair; and
       ``(4) the Federal share payable for eligible permanent 
     repairs to restore damaged facilities to predisaster 
     condition may amount to 90 percent of the cost of the repairs 
     if the eligible expenses incurred by the State due to natural 
     disasters or catastrophic failures in a Federal fiscal year 
     exceeds the annual apportionment of the State under section 
     104 for the fiscal year in which the disasters or failures 
     occurred.'';
       (3) by striking subsection (g) and redesignating 
     subsections (h) through (l) as subsections (g) through (k), 
     respectively;
       (4) in subsection (i)(1)(A) (as redesignated by paragraph 
     (3)) by striking ``and the Appalachian development highway 
     system program under section 14501 of title 40''; and
       (5) by striking subsections (j) and (k) (as redesignated by 
     paragraph (3)) and inserting the following:
       ``(j) Use of Federal Agency Funds.--Notwithstanding any 
     other provision of law, any Federal funds other than those 
     made available under this title and title 49 may be used to 
     pay the non-Federal share of the cost of any transportation 
     project that is within, adjacent to, or provides access to 
     Federal land, the Federal share of which is funded under this 
     title or chapter 53 of title 49.
       ``(k) Use of Federal Land and Tribal Transportation 
     Funds.--Notwithstanding any other provision of law, the funds 
     authorized to be appropriated to carry out the tribal 
     transportation program under section 202 and the Federal 
     lands transportation program under section 203 may be used to 
     pay the non-Federal share of the cost of any project that is 
     funded under this title or chapter 53 of title 49 and that 
     provides access to or within Federal or tribal land.''.

     SEC. 1509. TRANSFERABILITY OF FEDERAL-AID HIGHWAY FUNDS.

       (a) In General.--Section 126 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 126. Transferability of Federal-aid highway funds

       ``(a) In General.--Notwithstanding any other provision of 
     law, subject to subsection (b), a State may transfer from an 
     apportionment under section 104(b) not to exceed 50 percent 
     of the amount apportioned for the fiscal year to any other 
     apportionment of the State under that section.
       ``(b) Application to Certain Set-asides.--
       ``(1) In general.--Funds that are subject to sections 
     104(d) and 133(d) shall not be transferred under this 
     section.
       ``(2) Funds transferred by states.--Funds transferred by a 
     State under this section of the funding reserved for the 
     State under section 213 for a fiscal year may only come from 
     the portion of those funds that are available for obligation 
     in any area of the State under section 213(c)(1)(B).''.
       (b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 126 and inserting the following:

``126. Transferability of Federal-aid highway funds.''.

[[Page 10571]]



     SEC. 1510. IDLE REDUCTION TECHNOLOGY.

       Section 127(a)(12) of title 23, United States Code, is 
     amended--
       (1) in subparagraph (B), by striking ``400'' and inserting 
     ``550''; and
       (2) in subparagraph (C)(ii), by striking ``400-pound'' and 
     inserting ``550-pound''.

     SEC. 1511. SPECIAL PERMITS DURING PERIODS OF NATIONAL 
                   EMERGENCY.

       Section 127 of title 23, United States Code, is amended by 
     inserting at the end the following:
       ``(i) Special Permits During Periods of National 
     Emergency.--
       ``(1) In general.--Notwithstanding any other provision of 
     this section, a State may issue special permits during an 
     emergency to overweight vehicles and loads that can easily be 
     dismantled or divided if--
       ``(A) the President has declared the emergency to be a 
     major disaster under the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5121 et seq.);
       ``(B) the permits are issued in accordance with State law; 
     and
       ``(C) the permits are issued exclusively to vehicles and 
     loads that are delivering relief supplies.
       ``(2) Expiration.--A permit issued under paragraph (1) 
     shall expire not later than 120 days after the date of the 
     declaration of emergency under subparagraph (A) of that 
     paragraph.''.

     SEC. 1512. TOLLING.

       (a) Amendment to Tolling Provision.--Section 129(a) of 
     title 23, United States Code, is amended to read as follows:
       ``(a) Basic Program.--
       ``(1) Authorization for federal participation.--Subject to 
     the provisions of this section, Federal participation shall 
     be permitted on the same basis and in the same manner as 
     construction of toll-free highways is permitted under this 
     chapter in the--
       ``(A) initial construction of a toll highway, bridge, or 
     tunnel or approach to the highway, bridge, or tunnel;
       ``(B) initial construction of 1 or more lanes or other 
     improvements that increase capacity of a highway, bridge, or 
     tunnel (other than a highway on the Interstate System) and 
     conversion of that highway, bridge, or tunnel to a tolled 
     facility, if the number of toll-free lanes, excluding 
     auxiliary lanes, after the construction is not less than the 
     number of toll-free lanes, excluding auxiliary lanes, before 
     the construction;
       ``(C) initial construction of 1 or more lanes or other 
     improvements that increase the capacity of a highway, bridge, 
     or tunnel on the Interstate System and conversion of that 
     highway, bridge, or tunnel to a tolled facility, if the 
     number of toll-free non-HOV lanes, excluding auxiliary lanes, 
     after such construction is not less than the number of toll-
     free non-HOV lanes, excluding auxiliary lanes, before such 
     construction;
       ``(D) reconstruction, resurfacing, restoration, 
     rehabilitation, or replacement of a toll highway, bridge, or 
     tunnel or approach to the highway, bridge, or tunnel;
       ``(E) reconstruction or replacement of a toll-free bridge 
     or tunnel and conversion of the bridge or tunnel to a toll 
     facility;
       ``(F) reconstruction of a toll-free Federal-aid highway 
     (other than a highway on the Interstate System) and 
     conversion of the highway to a toll facility;
       ``(G) reconstruction, restoration, or rehabilitation of a 
     highway on the Interstate System if the number of toll-free 
     non-HOV lanes, excluding auxiliary lanes, after 
     reconstruction, restoration, or rehabilitation is not less 
     than the number of toll-free non-HOV lanes, excluding 
     auxiliary lanes, before reconstruction, restoration, or 
     rehabilitation;
       ``(H) conversion of a high occupancy vehicle lane on a 
     highway, bridge, or tunnel to a toll facility; and
       ``(I) preliminary studies to determine the feasibility of a 
     toll facility for which Federal participation is authorized 
     under this paragraph.
       ``(2) Ownership.--Each highway, bridge, tunnel, or approach 
     to the highway, bridge, or tunnel constructed under this 
     subsection shall--
       ``(A) be publicly owned; or
       ``(B) be privately owned if the public authority with 
     jurisdiction over the highway, bridge, tunnel, or approach 
     has entered into a contract with 1 or more private persons to 
     design, finance, construct, and operate the facility and the 
     public authority will be responsible for complying with all 
     applicable requirements of this title with respect to the 
     facility.
       ``(3) Limitations on use of revenues.--
       ``(A) In general.--A public authority with jurisdiction 
     over a toll facility shall use all toll revenues received 
     from operation of the toll facility only for--
       ``(i) debt service with respect to the projects on or for 
     which the tolls are authorized, including funding of 
     reasonable reserves and debt service on refinancing;
       ``(ii) a reasonable return on investment of any private 
     person financing the project, as determined by the State or 
     interstate compact of States concerned;
       ``(iii) any costs necessary for the improvement and proper 
     operation and maintenance of the toll facility, including 
     reconstruction, resurfacing, restoration, and rehabilitation;
       ``(iv) if the toll facility is subject to a public-private 
     partnership agreement, payments that the party holding the 
     right to toll revenues owes to the other party under the 
     public-private partnership agreement; and
       ``(v) if the public authority certifies annually that the 
     tolled facility is being adequately maintained, any other 
     purpose for which Federal funds may be obligated by a State 
     under this title.
       ``(B) Annual audit.--
       ``(i) In general.--A public authority with jurisdiction 
     over a toll facility shall conduct or have an independent 
     auditor conduct an annual audit of toll facility records to 
     verify adequate maintenance and compliance with subparagraph 
     (A), and report the results of the audits to the Secretary.
       ``(ii) Records.--On reasonable notice, the public authority 
     shall make all records of the public authority pertaining to 
     the toll facility available for audit by the Secretary.
       ``(C) Noncompliance.--If the Secretary concludes that a 
     public authority has not complied with the limitations on the 
     use of revenues described in subparagraph (A), the Secretary 
     may require the public authority to discontinue collecting 
     tolls until an agreement with the Secretary is reached to 
     achieve compliance with the limitation on the use of revenues 
     described in subparagraph (A).
       ``(4) Limitations on conversion of high occupancy vehicle 
     facilities on interstate system.--
       ``(A) In general.--A public authority with jurisdiction 
     over a high occupancy vehicle facility on the Interstate 
     System may undertake reconstruction, restoration, or 
     rehabilitation under paragraph (1)(G) on the facility, and 
     may levy tolls on vehicles, excluding high occupancy 
     vehicles, using the reconstructed, restored, or rehabilitated 
     facility, if the public authority--
       ``(i) in the case of a high occupancy vehicle facility that 
     affects a metropolitan area, submits to the Secretary a 
     written assurance that the metropolitan planning organization 
     designated under section 5203 of title 49 for the area has 
     been consulted concerning the placement and amount of tolls 
     on the converted facility;
       ``(ii) develops, manages, and maintains a system that will 
     automatically collect the toll; and
       ``(iii) establishes policies and procedures--

       ``(I) to manage the demand to use the facility by varying 
     the toll amount that is charged; and
       ``(II) to enforce sanctions for violations of use of the 
     facility.

       ``(B) Exemption from tolls.--In levying tolls on a facility 
     under subparagraph (A), a public authority may designate 
     classes of vehicles that are exempt from the tolls or charge 
     different toll rates for different classes of vehicles.
       ``(5) Special rule for funding.--
       ``(A) In general.--In the case of a toll facility under the 
     jurisdiction of a public authority of a State (other than the 
     State transportation department), on request of the State 
     transportation department and subject to such terms and 
     conditions as the department and public authority may agree, 
     the Secretary, working through the State department of 
     transportation, shall reimburse the public authority for the 
     Federal share of the costs of construction of the project 
     carried out on the toll facility under this subsection in the 
     same manner and to the same extent as the department would be 
     reimbursed if the project was being carried out by the 
     department.
       ``(B) Source.--The reimbursement of funds under this 
     paragraph shall be from sums apportioned to the State under 
     this chapter and available for obligations on projects on the 
     Federal-aid system in the State on which the project is being 
     carried out.
       ``(6) Limitation on federal share.--The Federal share 
     payable for a project described in paragraph (1) shall be a 
     percentage determined by the State, but not to exceed 80 
     percent.
       ``(7) Modifications.--If a public authority (including a 
     State transportation department) with jurisdiction over a 
     toll facility subject to an agreement under this section or 
     section 119(e), as in effect on the day before the effective 
     date of title I of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (105 Stat. 1915), requests 
     modification of the agreement, the Secretary shall modify the 
     agreement to allow the continuation of tolls in accordance 
     with paragraph (3) without repayment of Federal funds.
       ``(8) Loans.--
       ``(A) In general.--
       ``(i) Loans.--Using amounts made available under this 
     title, a State may loan to a public or private entity 
     constructing or proposing to construct under this section a 
     toll facility or non-toll facility with a dedicated revenue 
     source an amount equal to all or part of the Federal share of 
     the cost of the project if the project has a revenue source 
     specifically dedicated to the project.
       ``(ii) Dedicated revenue sources.--Dedicated revenue 
     sources for non-toll facilities include excise taxes, sales 
     taxes, motor vehicle use fees, tax on real property, tax 
     increment financing, and such other dedicated revenue sources 
     as the Secretary determines appropriate.
       ``(B) Compliance with federal laws.--As a condition of 
     receiving a loan under this paragraph, the public or private 
     entity that receives the loan shall ensure that the project 
     will be carried out in accordance with this title and any 
     other applicable Federal law, including any applicable 
     provision of a Federal environmental law.
       ``(C) Subordination of debt.--The amount of any loan 
     received for a project under this paragraph may be 
     subordinated to any other debt financing for the project.
       ``(D) Obligation of funds loaned.--Funds loaned under this 
     paragraph may only be obligated for projects under this 
     paragraph.
       ``(E) Repayment.--The repayment of a loan made under this 
     paragraph shall commence not later than 5 years after date on 
     which the facility that is the subject of the loan is open to 
     traffic.
       ``(F) Term of loan.--The term of a loan made under this 
     paragraph shall not exceed 30

[[Page 10572]]

     years from the date on which the loan funds are obligated.
       ``(G) Interest.--A loan made under this paragraph shall 
     bear interest at or below market interest rates, as 
     determined by the State, to make the project that is the 
     subject of the loan feasible.
       ``(H) Reuse of funds.--Amounts repaid to a State from a 
     loan made under this paragraph may be obligated--
       ``(i) for any purpose for which the loan funds were 
     available under this title; and
       ``(ii) for the purchase of insurance or for use as a 
     capital reserve for other forms of credit enhancement for 
     project debt in order to improve credit market access or to 
     lower interest rates for projects eligible for assistance 
     under this title.
       ``(I) Guidelines.--The Secretary shall establish procedures 
     and guidelines for making loans under this paragraph.
       ``(9) State law permitting tolling.--If a State does not 
     have a highway, bridge, or tunnel toll facility as of the 
     date of enactment of the MAP-21, before commencing any 
     activity authorized under this section, the State shall have 
     in effect a law that permits tolling on a highway, bridge, or 
     tunnel.
       ``(10) Definitions.--In this subsection, the following 
     definitions apply:
       ``(A) High occupancy vehicle; hov.--The term `high 
     occupancy vehicle' or `HOV' means a vehicle with not fewer 
     than 2 occupants.
       ``(B) Initial construction.--
       ``(i) In general.--The term `initial construction' means 
     the construction of a highway, bridge, tunnel, or other 
     facility at any time before it is open to traffic.
       ``(ii) Exclusions.--The term `initial construction' does 
     not include any improvement to a highway, bridge, tunnel, or 
     other facility after it is open to traffic.
       ``(C) Public authority.--The term `public authority' means 
     a State, interstate compact of States, or public entity 
     designated by a State.
       ``(D) Toll facility.--The term `toll facility' means a toll 
     highway, bridge, or tunnel or approach to the highway, 
     bridge, or tunnel constructed under this subsection.''.
       (b) Electronic Toll Collection Interoperability 
     Requirements.--Not later than 4 years after the date of 
     enactment of this Act, all toll facilities on the Federal-aid 
     highways shall implement technologies or business practices 
     that provide for the interoperability of electronic toll 
     collection programs.

     SEC. 1513. MISCELLANEOUS PARKING AMENDMENTS.

       (a) Fringe and Corridor Parking Facilities.--Section 137 of 
     title 23, United States Code, is amended--
       (1) in subsection (f)(1)--
       (A) by striking ``104(b)(4)'' and inserting ``104(b)(1)''; 
     and
       (B) by inserting ``including the addition of electric 
     vehicle charging stations or natural gas vehicle refueling 
     stations,'' after ``new facilities,''; and
       (2) by adding at the end the following:
       ``(g) Funding.--The addition of electric vehicle charging 
     stations or natural gas vehicle refueling stations to new or 
     previously funded parking facilities shall be eligible for 
     funding under this section.''.
       (b) Public Transportation.--Section 142(a)(1) of title 23, 
     United States Code, is amended by inserting ``, which may 
     include electric vehicle charging stations or natural gas 
     vehicle refueling stations,'' after ``parking facilities''.
       (c) Forest Development Roads and Trails.--Section 205(d) of 
     title 23, United States Code, is amended by inserting ``, 
     which may include electric vehicle charging stations or 
     natural gas vehicle refueling stations,'' after ``parking 
     areas''.

     SEC. 1514. HOV FACILITIES.

       Section 166 of title 23, United States Code, is amended--
       (1) in subsection (b)(5)--
       (A) in subparagraph (A) by striking ``2009'' and inserting 
     ``2017'';
       (B) in subparagraph (B) by striking ``2009'' and inserting 
     ``2017''; and
       (C) in subparagraph (C)--
       (i) by striking ``subparagraph (B)'' and inserting ``this 
     paragraph''; and
       (ii) by inserting ``or equal to'' after ``less than'';
       (2) in subsection (c) by striking paragraph (3) and 
     inserting the following:
       ``(3) Toll revenue.--Toll revenue collected under this 
     section is subject to the requirements of section 
     129(a)(3).''; and
       (3) in subsection (d)(1)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``in a fiscal year shall certify'' and 
     inserting ``shall submit to the Secretary a report 
     demonstrating that the facility is not already degraded, and 
     that the presence of the vehicles will not cause the facility 
     to become degraded, and certify''; and
       (ii) by striking ``in the fiscal year'';
       (B) in subparagraph (A) by inserting ``and submitting to 
     the Secretary annual reports of those impacts'' after 
     ``adjacent highways'';
       (C) in subparagraph (C) by striking ``if the presence of 
     the vehicles has degraded the operation of the facility'' and 
     inserting ``whenever the operation of the facility is 
     degraded''; and
       (D) by adding at the end the following:
       ``(D) Maintenance of operating performance.--Not later than 
     180 days after the date on which a facility is degraded 
     pursuant to the standard specified in paragraph (2), the 
     State agency with jurisdiction over the facility shall bring 
     the facility into compliance with the minimum average 
     operating speed performance standard through changes to 
     operation of the facility, including--
       ``(i) increasing the occupancy requirement for HOV lanes;
       ``(ii) varying the toll charged to vehicles allowed under 
     subsection (b) to reduce demand;
       ``(iii) discontinuing allowing non-HOV vehicles to use HOV 
     lanes under subsection (b); or
       ``(iv) increasing the available capacity of the HOV 
     facility.
       ``(E) Compliance.--If the State fails to bring a facility 
     into compliance under subparagraph (D), the Secretary shall 
     subject the State to appropriate program sanctions under 
     section 1.36 of title 23, Code of Federal Regulations (or 
     successor regulations), until the performance is no longer 
     degraded.''.

     SEC. 1515. FUNDING FLEXIBILITY FOR TRANSPORTATION 
                   EMERGENCIES.

       (a) In General.--Chapter 1 of title 23, United States Code 
     (as amended by section 1311(a)), is amended by adding at the 
     end the following:

     ``Sec. 170. Funding flexibility for transportation 
       emergencies

       ``(a) In General.--Notwithstanding any other provision of 
     law, a State may use up to 100 percent of any covered funds 
     of the State to repair or replace a transportation facility 
     that has suffered serious damage as a result of a natural 
     disaster or catastrophic failure from an external cause.
       ``(b) Declaration of Emergency.--Funds may be used under 
     this section only for a disaster or emergency declared by the 
     President pursuant to the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5121 et seq.).
       ``(c) Repayment.--Funds used under subsection (a) shall be 
     repaid to the program from which the funds were taken in the 
     event that such repairs or replacement are subsequently 
     covered by a supplemental appropriation of funds.
       ``(d) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Covered funds.--The term `covered funds' means any 
     amounts apportioned to a State under section 104(b), other 
     than amounts suballocated to metropolitan areas and other 
     areas of the State under section 133(d), but including any 
     such amounts required to be set aside for a purpose other 
     than the repair or replacement of a transportation facility 
     under this section.
       ``(2) Transportation facility.--The term `transportation 
     facility' means any facility eligible for assistance under 
     section 125.''.
       (b) Technical and Conforming Amendment.--The analysis for 
     chapter 1 of title 23, United States Code (as amended by 
     section 1311(b)), is amended by adding at the end the 
     following:

``170. Funding flexibility for transportation emergencies.''.

     SEC. 1516. DEFENSE ACCESS ROAD PROGRAM ENHANCEMENTS TO 
                   ADDRESS TRANSPORTATION INFRASTRUCTURE IN THE 
                   VICINITY OF MILITARY INSTALLATIONS.

       The second sentence of section 210(a)(2) of title 23, 
     United States Code, is amended by inserting ``, in 
     consultation with the Secretary of Transportation,'' before 
     ``shall determine''.

     SEC. 1517. MAPPING.

       (a) In General.--Section 306 of title 23, United States 
     Code, is amended--
       (1) in subsection (a) by striking ``may'' and inserting 
     ``shall'';
       (2) in subsection (b) in the second sentence by striking 
     ``State and'' and inserting ``State government and''; and
       (3) by adding at the end the following:
       ``(c) Implementation.--The Secretary shall develop a 
     process for the oversight and monitoring, on an annual basis, 
     of the compliance of each State with the guidance issued 
     under subsection (b).''.
       (b) Survey.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall conduct a survey 
     of all States to determine what percentage of projects 
     carried out under title 23, United States Code, in each State 
     utilize private sector sources for surveying and mapping 
     services.

     SEC. 1518. BUY AMERICA PROVISIONS.

       Section 313 of title 23, United States Code, is amended by 
     adding at the end the following:
       ``(g) Application to Highway Programs.--The requirements 
     under this section shall apply to all contracts eligible for 
     assistance under this chapter for a project carried out 
     within the scope of the applicable finding, determination, or 
     decision under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.), regardless of the funding source of 
     such contracts, if at least 1 contract for the project is 
     funded with amounts made available to carry out this 
     title.''.

     SEC. 1519. CONSOLIDATION OF PROGRAMS; REPEAL OF OBSOLETE 
                   PROVISIONS.

       (a) Consolidation of Programs.--From administrative funds 
     made available under section 104(a) of title 23, United 
     States Code, not less than $3,000,000 for each of fiscal 
     years 2013 and 2014 shall be made available--
       (1) to carry out safety-related activities, including--
       (A) to carry out the operation lifesaver program--
       (i) to provide public information and education programs to 
     help prevent and reduce motor vehicle accidents, injuries, 
     and fatalities; and
       (ii) to improve driver performance at railway-highway 
     crossings; and

[[Page 10573]]

       (B) to provide work zone safety grants in accordance with 
     subsections (a) and (b) of section 1409 of the SAFETEA-LU (23 
     U.S.C. 401 note; 119 Stat. 1232); and
       (2) to operate authorized safety-related clearinghouses, 
     including--
       (A) the national work zone safety information clearinghouse 
     authorized by section 358(b)(2) of the National Highway 
     System Designation Act of 1995 (23 U.S.C. 401 note; 109 Stat. 
     625); and
       (B) a public road safety clearinghouse in accordance with 
     section 1411(a) of the SAFETEA-LU (23 U.S.C. 402 note; 119 
     Stat. 1234).
       (b) Repeals.--
       (1) Title 23.--
       (A) In general.--Sections 105, 110, 117, 124, 151, 155, 
     157, 160, 212, 216, 303, and 309 of title 23, United States 
     Code, are repealed.
       (B) Set asides.--Section 118 of title 23, United States 
     Code, is amended--
       (i) by striking subsection (c); and
       (ii) by redesignating subsections (d) and (e) as 
     subsections (c) and (d), respectively.
       (2) SAFETEA-LU.--Sections 1302, 1305, 1306, 1803, 1804, 
     1907, and 1958 of SAFETEA-LU (Public Law 109-59) are 
     repealed.
       (3) Additional.--Section 1132 of the Energy Independence 
     and Security Act of 2007 (Public Law 110-140; 121 Stat. 1763) 
     is repealed.
       (c) Conforming Amendments.--
       (1) Title analysis.--
       (A) Chapter 1.--The analysis for chapter 1 of title 23, 
     United States Code, is amended by striking the items relating 
     to sections 105, 110, 117, 124, 151, 155, 157, and 160.
       (B) Chapter 2.--The analysis for chapter 2 of title 23, 
     United States Code, is amended by striking the items relating 
     to sections 212 and 216.
       (C) Chapter 3.--The analysis for chapter 3 of title 23, 
     United States Code, is amended by striking the items relating 
     to sections 303 and 309.
       (2) Table of contents.--The table of contents contained in 
     section 1(b) of SAFETEA-LU (Public Law 109-59; 119 Stat. 
     1144) is amended by striking the items relating to sections 
     1302, 1305, 1306, 1803, 1804, 1907, and 1958.
       (3) Section 104.--Section 104(e) of title 23, United States 
     Code, is amended by striking ``, 105,''.
       (4) Section 109.--Section 109(q) of title 23, United States 
     Code, is amended by striking ``in accordance with section 303 
     or''.
       (5) Section 118.--Section 118(b) of title 23, United States 
     Code, is amended--
       (A) by striking paragraph (1) and all that follows through 
     the heading of paragraph (2); and
       (B) by striking ``(other than for Interstate 
     construction)''.
       (6) Section 130.--Section 130 of title 23, United States 
     Code, is amended--
       (A) in subsection (e) by striking ``section 104(b)(5)'' and 
     inserting ``section 104(b)(3)'';
       (B) in subsection (f)(1) by inserting ``as in effect on the 
     day before the date of enactment of the MAP-21'' after 
     ``section 104(b)(3)(A)''; and
       (C) in subsection (l) by striking paragraphs (3) and (4).
       (7) Section 131.--Section 131(m) of title 23, United States 
     Code, is amended by striking ``Subject to approval by the 
     Secretary in accordance with the program of projects approval 
     process of section 105, a State'' and inserting ``A State''.
       (8) Section 133.--Paragraph (13) of section 133(b) of title 
     23, United States Code (as amended by section 1108(a)(3)), is 
     amended by striking ``under section 303.''
       (9) Section 142.--Section 142 of title 23, United States 
     Code, is amended--
       (A) in subsection (a)--
       (i) in paragraph (1)--

       (I) by striking ``motor vehicles (other than rail)'' and 
     inserting ``buses'';
       (II) by striking ``(hereafter in this section referred to 
     as `buses')'';
       (III) by striking ``Federal-aid systems'' and inserting 
     ``Federal-aid highways''; and
       (IV) by striking ``Federal-aid system'' and inserting 
     ``Federal-aid highway''; and

       (ii) in paragraph (2)--

       (I) by striking ``as a project on the the surface 
     transportation program for''; and
       (II) by striking ``section 104(b)(3)'' and inserting 
     ``section 104(b)(2)'';

       (B) in subsection (b) by striking ``104(b)(4)'' and 
     inserting ``104(b)(1)'';
       (C) in subsection (c)--
       (i) by striking ``system'' in each place it appears and 
     inserting ``highway''; and
       (ii) by striking ``highway facilities'' and inserting 
     ``highways eligible under the program that is the source of 
     the funds'';
       (D) in subsection (e)(2) by striking ``Notwithstanding 
     section 209(f)(1) of the Highway Revenue Act of 1956, the 
     Highway Trust Fund shall be available for making expenditures 
     to meet obligations resulting from projects authorized by 
     subsection (a)(2) of this section and such projects'' and 
     inserting ``Projects authorized by subsection (a)(2)''; and
       (E) in subsection (f) by striking ``exits'' and inserting 
     ``exists''.
       (10) Section 145.--Section 145(b) of title 23, United 
     States Code, is amended by striking ``section 117 of this 
     title,''.
       (11) Section 218.--Section 218 of title 23, United States 
     Code, is amended--
       (A) in subsection (a)--
       (i) by striking the first two sentences;
       (ii) in the third sentence--

       (I) by striking ``, in addition to such funds,''; and
       (II) by striking ``such highway or'';

       (iii) by striking the fourth sentence and fifth sentences;
       (B) by striking subsection (b); and
       (C) by redesignating subsection (c) as subsection (b).
       (12) Section 610.--Section 610(d)(1)(B) of title 23, United 
     States Code, is amended by striking ``under section 105''.

     SEC. 1520. DENALI COMMISSION.

       The Denali Commission Act of 1998 (42 U.S.C. 3121 note) is 
     amended--
       (1) in section 305, by striking subsection (c) and 
     inserting the following:
       ``(c) Gifts.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Commission, on behalf of the United States, may accept use, 
     and dispose of gifts or donations of services, property, or 
     money for purposes of carrying out this Act.
       ``(2) Conditional.--With respect to conditional gifts--
       ``(A)(i) the Commission, on behalf of the United States, 
     may accept conditional gifts for purposes of carrying out 
     this Act, if approved by the Federal Cochairperson; and
       ``(ii) the principal of and income from any such 
     conditional gift shall be held, invested, reinvested, and 
     used in accordance with the condition applicable to the gift; 
     but
       ``(B) no gift shall be accepted that is conditioned on any 
     expenditure not to be funded from the gift or from the income 
     generated by the gift unless the expenditure has been 
     approved by Act of Congress.''; and
       (2) by adding at the end the following:

     ``SEC. 311. TRANSFER OF FUNDS FROM OTHER FEDERAL AGENCIES.

       ``(a) In General.--Subject to subsection (c), for purposes 
     of this Act, the Commission may accept transfers of funds 
     from other Federal agencies.
       ``(b) Transfers.--Any Federal agency authorized to carry 
     out an activity that is within the authority of the 
     Commission may transfer to the Commission any appropriated 
     funds for the activity.
       ``(c) Treatment.--Any funds transferred to the Commission 
     under this subsection--
       ``(1) shall remain available until expended; and
       ``(2) may, to the extent necessary to carry out this Act, 
     be transferred to, and merged with, the amounts made 
     available by appropriations Acts for the Commission by the 
     Federal Cochairperson.''.

     SEC. 1521. UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY 
                   ACQUISITION POLICIES ACT OF 1970 AMENDMENTS.

       (a) Moving and Related Expenses.--Section 202 of the 
     Uniform Relocation Assistance and Real Property Acquisition 
     Policies Act of 1970 (42 U.S.C. 4622) is amended--
       (1) in subsection (a)(4) by striking ``$10,000'' and 
     inserting ``$25,000, as adjusted by regulation, in accordance 
     with section 213(d)''; and
       (2) in the second sentence of subsection (c) by striking 
     ``$20,000'' and inserting ``$40,000, as adjusted by 
     regulation, in accordance with section 213(d)''.
       (b) Replacement Housing for Homeowners.--The first sentence 
     of section 203(a)(1) of the Uniform Relocation Assistance and 
     Real Property Acquisition Policies Act of 1970 (42 U.S.C. 
     4623(a)(1)) is amended--
       (1) by striking ``$22,500'' and inserting ``$31,000, as 
     adjusted by regulation, in accordance with 213(d),''; and
       (2) by striking ``one hundred and eighty days prior to'' 
     and inserting ``90 days before''.
       (c) Replacement Housing for Tenants and Certain Others.--
     Section 204 of the Uniform Relocation Assistance and Real 
     Property Acquisition Policies Act of 1970 (42 U.S.C. 4624) is 
     amended--
       (1) in the second sentence of subsection (a) by striking 
     ``$5,250'' and inserting ``$7,200, as adjusted by regulation, 
     in accordance with section 213(d)''; and
       (2) in the second sentence of subsection (b) by striking 
     ``, except'' and all that follows through the end of the 
     subsection and inserting a period.
       (d) Duties of Lead Agency.--Section 213 of the Uniform 
     Relocation Assistance and Real Property Acquisition Policies 
     Act of 1970 (42 U.S.C. 4633) is amended--
       (1) in subsection (b)--
       (A) in paragraph (2) by striking ``and'' at the end;
       (B) in paragraph (3) by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(4) that each Federal agency that has programs or 
     projects requiring the acquisition of real property or 
     causing a displacement from real property subject to the 
     provisions of this Act shall provide to the lead agency an 
     annual summary report the describes the activities conducted 
     by the Federal agency.''; and
       (2) by adding at the end the following:
       ``(d) Adjustment of Payments.--The head of the lead agency 
     may adjust, by regulation, the amounts of relocation payments 
     provided under sections 202(a)(4), 202(c), 203(a), and 204(a) 
     if the head of the lead agency determines that cost of 
     living, inflation, or other factors indicate that the 
     payments should be adjusted to meet the policy objectives of 
     this Act.''.
       (e) Agency Coordination.--Title II of the Uniform 
     Relocation Assistance and Real Property Acquisition Policies 
     Act of 1970 is amended by inserting after section 213 (42 
     U.S.C. 4633) the following:

     ``SEC. 214. AGENCY COORDINATION.

       ``(a) Agency Capacity.--Each Federal agency responsible for 
     funding or carrying out relocation and acquisition activities 
     shall have adequately trained personnel and such other 
     resources as are necessary to manage and oversee the 
     relocation and acquisition program of the Federal agency in 
     accordance with this Act.

[[Page 10574]]

       ``(b) Interagency Agreements.--Not later than 1 year after 
     the date of enactment of this section, each Federal agency 
     responsible for funding relocation and acquisition activities 
     (other than the agency serving as the lead agency) shall 
     enter into a memorandum of understanding with the lead agency 
     that--
       ``(1) provides for periodic training of the personnel of 
     the Federal agency, which in the case of a Federal agency 
     that provides Federal financial assistance, may include 
     personnel of any displacing agency that receives Federal 
     financial assistance;
       ``(2) addresses ways in which the lead agency may provide 
     assistance and coordination to the Federal agency relating to 
     compliance with the Act on a program or project basis; and
       ``(3) addresses the funding of the training, assistance, 
     and coordination activities provided by the lead agency, in 
     accordance with subsection (c).
       ``(c) Interagency Payments.--
       ``(1) In general.--For the fiscal year that begins 1 year 
     after the date of enactment of this section, and each fiscal 
     year thereafter, each Federal agency responsible for funding 
     relocation and acquisition activities (other than the agency 
     serving as the lead agency) shall transfer to the lead agency 
     for the fiscal year, such funds as are necessary, but not 
     less than $35,000, to support the training, assistance, and 
     coordination activities of the lead agency described in 
     subsection (b).
       ``(2) Included costs.--The cost to a Federal agency of 
     providing the funds described in paragraph (1) shall be 
     included as part of the cost of 1 or more programs or 
     projects undertaken by the Federal agency or with Federal 
     financial assistance that result in the displacement of 
     persons or the acquisition of real property.''.
       (f) Cooperation With Federal Agencies.--Section 308 of 
     title 23, United States Code, is amended by striking 
     subsection (a) and inserting the following:
       ``(a) Authorized Activities.--
       ``(1) In general.--The Secretary may perform, by contract 
     or otherwise, authorized engineering or other services in 
     connection with the survey, construction, maintenance, or 
     improvement of highways for other Federal agencies, 
     cooperating foreign countries, and State cooperating 
     agencies.
       ``(2) Inclusions.--Services authorized under paragraph (1) 
     may include activities authorized under section 214 of the 
     Uniform Relocation Assistance and Real Property Acquisition 
     Policies Act of 1970.
       ``(3) Reimbursement.--Reimbursement for services carried 
     out under this subsection (including depreciation on 
     engineering and road-building equipment) shall be credited to 
     the applicable appropriation.''.
       (g) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall take effect on the date 
     of enactment of this Act.
       (2) Exception.--The amendments made by subsections (a) 
     through (c) shall take effect 2 years after the date of 
     enactment of this Act.

     SEC. 1522. EXTENSION OF PUBLIC TRANSIT VEHICLE EXEMPTION FROM 
                   AXLE WEIGHT RESTRICTIONS.

       Section 1023(h) of the Intermodal Surface Transportation 
     Efficiency Act of 1991 (23 U.S.C. 127 note; Public Law 102-
     240) is amended--
       (1) in the heading of paragraph (1) by striking ``temporary 
     exemption'' and inserting ``exemption'';
       (2) in paragraph (1)--
       (A) in the matter preceding subparagraph (A) by striking 
     ``, for the period beginning on October 6, 1992, and ending 
     on October 1, 2009,'';
       (B) in subparagraph (A) by striking ``or'' at the end;
       (C) in subparagraph (B) by striking the period at the end 
     and inserting ``; or''; and
       (D) by adding at the end the following:
       ``(C) any motor home (as defined in section 571.3 of title 
     49, Code of Federal Regulations (or successor 
     regulation)).''; and
       (3) in paragraph (2)(A) by striking ``For the period 
     beginning on the date of enactment of this subparagraph and 
     ending on September 30, 2009, a'' and inserting ``A''.

     SEC. 1523. USE OF DEBRIS FROM DEMOLISHED BRIDGES AND 
                   OVERPASSES.

       Section 1805(a) of the SAFETEA-LU (23 U.S.C. 144 note; 119 
     Stat. 1459) is amended by striking ``highway bridge 
     replacement and rehabilitation program under section 144'' 
     and inserting ``national highway performance program under 
     section 119''.

     SEC. 1524. USE OF YOUTH SERVICE AND CONSERVATION CORPS.

       (a) In General.--The Secretary shall encourage the States 
     and regional transportation planning agencies to enter into 
     contracts and cooperative agreements with qualified youth 
     service or conservation corps, as defined in sections 
     122(a)(2) of Public Law 101-610 (42 U.S.C. 12572(a)(2)) and 
     106(c)(3) of Public Law 103-82 (42 U.S.C. 12656(c)(3)) to 
     perform appropriate projects eligible under sections 162, 
     206, 213, and 217 of title 23, United States Code, and under 
     section 1404 of the SAFETEA-LU (119 Stat. 1228).
       (b) Requirements.--Under any contract or cooperative 
     agreement entered into with a qualified youth service or 
     conservation corps under this section, the Secretary shall--
       (1) set the amount of a living allowance or rate of pay for 
     each participant in such corps at--
       (A) such amount or rate as required under State law in a 
     State with such requirements; or
       (B) for corps in States not described in subparagraph (A), 
     at such amount or rate as determined by the Secretary, not to 
     exceed the maximum living allowance authorized by section 140 
     of Public Law 101-610 (42 U.S.C. 12594); and
       (2) not subject such corps to the requirements of section 
     112 of title 23, United States Code.

     SEC. 1525. STATE AUTONOMY FOR CULVERT PIPE SELECTION.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary shall modify section 635.411 of title 23, 
     Code of Federal Regulations (as in effect on the date of 
     enactment of this Act), to ensure that States shall have the 
     autonomy to determine culvert and storm sewer material types 
     to be included in the construction of a project on a Federal-
     aid highway.

     SEC. 1526. EVACUATION ROUTES.

       Each State shall give adequate consideration to the needs 
     of evacuation routes in the State, including such routes 
     serving or adjacent to facilities operated by the Armed 
     Forces, when allocating funds apportioned to the State under 
     title 23, United States Code, for the construction of 
     Federal-aid highways.

     SEC. 1527. CONSOLIDATION OF GRANTS.

       (a) Definitions.--In this section, the term ``recipient'' 
     means--
       (1) a State, local, or tribal government, including--
       (A) a territory of the United States;
       (B) a transit agency;
       (C) a port authority;
       (D) a metropolitan planning organization; or
       (E) any other political subdivision of a State or local 
     government;
       (2) a multistate or multijurisdictional group, if each 
     member of the group is an entity described in paragraph (1); 
     and
       (3) a public-private partnership, if both parties are 
     engaged in building the project.
       (b) Consolidation.--
       (1) In general.--A recipient that receives multiple grant 
     awards from the Department to support 1 multimodal project 
     may request that the Secretary designate 1 modal 
     administration in the Department to be the lead administering 
     authority for the overall project.
       (2) New starts.--Any project that includes funds awarded 
     under section 5309 of title 49, United States Code, shall be 
     exempt from consolidation under this section unless the grant 
     recipient requests the Federal Transit Administration to be 
     the lead administering authority.
       (3) Review.--
       (A) In general.--Not later than 30 days after the date on 
     which a request under paragraph (1) is made, the Secretary 
     shall review the request and approve or deny the designation 
     of a single modal administration as the lead administering 
     authority and point of contact for the Department.
       (B) Notification.--
       (i) In general.--The Secretary shall notify the requestor 
     of the decision of the Secretary under subparagraph (A) in 
     such form and at such time as the Secretary and the requestor 
     agree.
       (ii) Denial.--If a request is denied, the Secretary shall 
     provide the requestor with a detailed explanation of the 
     reasoning of the Secretary with the notification under clause 
     (i).
       (c) Duties.--
       (1) In general.--A modal administration designated as a 
     lead administering authority under this section shall--
       (A) be responsible for leading and coordinating the 
     integrated project management team, which shall consist of 
     all of the other modal administrations in the Department 
     relating to the multimodal project; and
       (B) to the extent feasible during the first 30 days of 
     carrying out the multimodal project, identify overlapping or 
     duplicative regulatory requirements that exist for the 
     project and propose a single, streamlined approach to meeting 
     all of the applicable regulatory requirements through the 
     activities described in subsection (d).
       (2) Administration.--
       (A) In general.--The Secretary shall transfer all amounts 
     that have been awarded for the multimodal project to the 
     modal administration designated as the lead administering 
     authority.
       (B) Option.--
       (i) In general.--Participation under this section shall be 
     optional for recipients, and no recipient shall be required 
     to participate.
       (ii) Secretarial duties.--The Secretary is not required to 
     identify every recipient that may be eligible to participate 
     under this section.
       (d) Cooperation.--
       (1) In general.--The Secretary and modal administrations 
     with relevant jurisdiction over a multimodal project should 
     cooperate on project review and delivery activities at the 
     earliest practicable time.
       (2) Purposes.--The purposes of the cooperation under 
     paragraph (1) are--
       (A) to avoid delays and duplication of effort later in the 
     process;
       (B) to prevent potential conflicts; and
       (C) to ensure that planning and project development 
     decisions are made in a streamlined manner and consistent 
     with applicable law.
       (e) Applicability.--Nothing in this section shall--
       (1) supersede, amend, or modify the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.) or any other 
     Federal environmental law; or
       (2) affect the responsibility of any Federal officer to 
     comply with or enforce any law described in paragraph (1).

     SEC. 1528. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM.

       (a) Sense of the Senate.--It is the Sense of the Senate 
     that the timely completion of the Appalachian development 
     highway system is a transportation priority in the national 
     interest.

[[Page 10575]]

       (b) Modified Federal Share for Projects on ADHS.--For 
     fiscal years 2012 through 2021, the Federal share payable for 
     the cost of constructing highways and access roads on the 
     Appalachian development highway system under section 14501 of 
     title 40, United States Code, with funds made available to a 
     State for fiscal year 2012 or a previous fiscal year for the 
     Appalachian development highway system program, or with funds 
     made available for fiscal year 2012 or a previous fiscal year 
     for a specific project, route, or corridor on that system, 
     shall be 100 percent.
       (c) Federal Share for Other Funds Used on ADHS.--For fiscal 
     years 2012 through 2021, the Federal share payable for the 
     cost of constructing highways and access roads on the 
     Appalachian development highway system under section 14501 of 
     title 40, United States Code, with Federal funds apportioned 
     to a State for a program other than the Appalachian 
     development highway system program shall be 100 percent.
       (d) Completion Plan.--
       (1) In general.--Subject to paragraph (2), not later than 1 
     year after the date of enactment of the MAP-21, each State 
     represented on the Appalachian Regional Commission shall 
     establish a plan for the completion of the designated 
     corridors of the Appalachian development highway system 
     within the State, including annual performance targets, with 
     a target completion date.
       (2) Significant uncompleted miles.--If the percentage of 
     remaining Appalachian development highway system needs for a 
     State, according to the latest cost to complete estimate for 
     the Appalachian development highway system, is greater than 
     15 percent of the total cost to complete estimate for the 
     entire Appalachian development highway system, the State 
     shall not establish a plan under paragraph (1) that would 
     result in a reduction of obligated funds for the Appalachian 
     development highway system within the State for any 
     subsequent fiscal year.

     SEC. 1529. ENGINEERING JUDGMENT.

       Not later than 90 days after the date of enactment of this 
     Act, the Secretary shall issue guidance to State 
     transportation departments clarifying that the standards, 
     guidance, and options for design and application of traffic 
     control devices provided in the Manual on Uniform Traffic 
     Control Devices should not be considered a substitute for 
     engineering judgment.

     SEC. 1530. TRANSPORTATION TRAINING AND EMPLOYMENT PROGRAMS.

       To encourage the development of careers in the 
     transportation field, the Secretary of Education and the 
     Secretary of Labor are encouraged to use funds for training 
     and employment education programs--
       (1) to develop programs for transportation-related careers 
     and trades; and
       (2) to work with the Secretary to carry out programs 
     developed under paragraph (1).

     SEC. 1531. NOTICE OF CERTAIN GRANT AWARDS.

       (a) Definition of Covered Grant Award.--In this section, 
     the term ``covered grant award'' means a grant award--
       (1) made--
       (A) by the Department; and
       (B) with funds made available under this Act; and
       (2) in an amount equal to or greater than $500,000.
       (b) Notice.--Except to the extent otherwise expressly 
     provided in another provision of law, at least 3 business 
     days before a covered grant award is announced, the Secretary 
     shall provide to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Environment and Public Works of the Senate 
     written notice of the covered grant award.

     SEC. 1532. BUDGET JUSTIFICATION.

       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 budget justification for each agency of 
     the Department concurrently with the annual budget submission 
     of the President to Congress under section 1105(a) of title 
     31, United States Code.

     SEC. 1533. PROHIBITION ON USE OF FUNDS FOR AUTOMATED TRAFFIC 
                   ENFORCEMENT.

       (a) Definition of Automated Traffic Enforcement System.--In 
     this section, the term ``automated traffic enforcement 
     system'' means any camera that captures an image of a vehicle 
     for the purposes of traffic law enforcement.
       (b) Use of Funds.--Except as provided in subsection (c), 
     for fiscal years 2013 and 2014, funds apportioned to a State 
     under section 104(b)(3) of title 23, United States Code, may 
     not be used for any program to purchase, operate, or maintain 
     an automated traffic enforcement system.
       (c) Exception.--Subsection (b) shall not apply to automated 
     traffic enforcement systems used to improve safety in school 
     zones.

     SEC. 1534. PUBLIC-PRIVATE PARTNERSHIPS.

       (a) Best Practices.--The Secretary shall compile, and make 
     available to the public on the website of the Department, 
     best practices on how States, public transportation agencies, 
     and other public officials can work with the private sector 
     in the development, financing, construction, and operation of 
     transportation facilities.
       (b) Contents.--The best practices compiled under subsection 
     (a) shall include polices and techniques to ensure that the 
     interests of the traveling public and State and local 
     governments are protected in any agreement entered into with 
     the private sector for the development, financing, 
     construction, and operation of transportation facilities.
       (c) Technical Assistance.--The Secretary, on request, may 
     provide technical assistance to States, public transportation 
     agencies, and other public officials regarding proposed 
     public-private partnership agreements for the development, 
     financing, construction, and operation of transportation 
     facilities, including assistance in analyzing whether the use 
     of a public-private partnership agreement would provide value 
     compared with traditional public delivery methods.
       (d) Standard Transaction Contracts.--
       (1) Development.--Not later than 18 months after the date 
     of enactment of this Act, the Secretary shall develop 
     standard public-private partnership transaction model 
     contracts for the most popular types of public-private 
     partnerships for the development, financing, construction, 
     and operation of transportation facilities.
       (2) Use.--The Secretary shall encourage States, public 
     transportation agencies, and other public officials to use 
     the model contracts as a base template when developing their 
     own public-private partnership agreements for the 
     development, financing, construction, and operation of 
     transportation facilities.

     SEC. 1535. REPORT ON HIGHWAY TRUST FUND EXPENDITURES.

       (a) Initial Report.--Not later than 150 days after the date 
     of enactment of this Act, the Comptroller General of the 
     United States shall submit to Congress a report describing 
     the activities funded from the Highway Trust Fund during each 
     of fiscal years 2009 through 2011, including for purposes 
     other than construction and maintenance of highways and 
     bridges.
       (b) Updates.--Not later than 5 years after the date on 
     which the report is submitted under subsection (a) and every 
     5 years thereafter, the Comptroller General of the United 
     States shall submit to Congress a report that updates the 
     information provided in the report under that subsection for 
     the applicable 5-year period.
       (c) Inclusions.--A report submitted under subsection (a) or 
     (b) shall include information similar to the information 
     included in the report of the Government Accountability 
     Office numbered ``GAO-09-729R'' and entitled ``Highway Trust 
     Fund Expenditures on Purposes Other Than Construction and 
     Maintenance of Highways and Bridges During Fiscal Years 2004-
     2008''.

     SEC. 1536. SENSE OF CONGRESS ON HARBOR MAINTENANCE.

       (a) Findings.--Congress finds that--
       (1) there are 926 coastal, Great Lakes, and inland harbors 
     maintained by the Corps of Engineers;
       (2) according to the Bureau of Transportation Statistics--
       (A) in 2009, the ports and waterways of the United States 
     handled more than 2,200,000,000 short tons of imports, 
     exports, and domestic shipments; and
       (B) in 2010, United States ports were responsible for more 
     than $1,400,000,000,000 in waterborne imports and exports;
       (3) according to the Congressional Research Service, full 
     channel dimensions are, on average, available approximately 
     \1/3\ of the time at the 59 harbors of the United States with 
     the highest use rates;
       (4) in 1986, Congress created the Harbor Maintenance Trust 
     Fund to provide funds for the operation and maintenance of 
     the navigation channels of the United States;
       (5) in fiscal year 2012, the Harbor Maintenance Trust Fund 
     is expected to grow from $6,280,000,000 to $7,011,000,000, an 
     increase of approximately 13 percent;
       (6) despite growth of the Harbor Maintenance Trust Fund, 
     expenditures from the Harbor Maintenance Trust Fund have not 
     been sufficiently spent; and
       (7) inadequate investment in dredging needs is restricting 
     access to the ports of the United States for domestic 
     shipping, imports, and exports and therefore threatening the 
     economic competitiveness of the United States.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the Administration should request full use of the 
     Harbor Maintenance Trust Fund for operating and maintaining 
     the navigation channels of the United States;
       (2) the amounts in the Harbor Maintenance Trust Fund should 
     be fully expended to operate and maintain the navigation 
     channels of the United States; and
       (3) Congress should ensure that other programs, projects, 
     and activities of the Civil Works Program of the Corps of 
     Engineers, especially those programs, projects, and 
     activities relating to inland navigation and flood control, 
     are not adversely impacted.

     SEC. 1537. ESTIMATE OF HARBOR MAINTENANCE NEEDS.

       For fiscal year 2014 and each fiscal year thereafter, the 
     President's budget request submitted pursuant to section 1105 
     of title 31, United States Code, shall include--
       (1) an estimate of the nationwide average availability, 
     expressed as a percentage, of the authorized depth and 
     authorized width of all navigation channels authorized to be 
     maintained using appropriations from the Harbor Maintenance 
     Trust Fund that would result from harbor maintenance 
     activities to be funded by the budget request; and
       (2) an estimate of the average annual amount of 
     appropriations from the Harbor Maintenance Trust Fund that 
     would be required to increase that average availability to 95 
     percent over a 3-year period.

     SEC. 1538. ASIAN CARP.

       (a) Definitions.--In this section:

[[Page 10576]]

       (1) Hydrological separation.--The term ``hydrological 
     separation'' means a physical separation on the Chicago Area 
     Waterway System that--
       (A) would disconnect the Mississippi River watershed from 
     the Lake Michigan watershed; and
       (B) shall be designed to be adequate in scope to prevent 
     the transfer of all aquatic species between each of those 
     bodies of water.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Army, acting through the Chief of Engineers.
       (b) Expedited Study and Report.--
       (1) In general.--The Secretary shall--
       (A) expedite completion of the report for the study 
     authorized by section 3061(d) of the Water Resources 
     Development Act of 2007 (Public Law 110-114; 121 Stat. 1121); 
     and
       (B) if the Secretary determines a project is justified in 
     the completed report, proceed directly to project 
     preconstruction engineering and design.
       (2) Focus.--In expediting the completion of the study and 
     report under paragraph (1), the Secretary shall focus on--
       (A) the prevention of the spread of aquatic nuisance 
     species between the Great Lakes and Mississippi River Basins, 
     such as through the permanent hydrological separation of the 
     Great Lakes and Mississippi River Basins; and
       (B) the watersheds of the following rivers and tributaries 
     associated with the Chicago Area Waterway System:
       (i) The Illinois River, at and in the vicinity of Chicago, 
     Illinois.
       (ii) The Chicago River, Calumet River, North Shore Channel, 
     Chicago Sanitary and Ship Canal, and Cal-Sag Channel in the 
     State of Illinois.
       (iii) The Grand Calumet River and Little Calumet River in 
     the States of Illinois and Indiana.
       (3) Efficient use of funds.--The Secretary shall ensure the 
     efficient use of funds to maximize the timely completion of 
     the study and report under paragraph (1).
       (4) Deadline.--The Secretary shall complete the report 
     under paragraph (1) by not later than 18 months after the 
     date of enactment of this Act.
       (5) Interim report.--Not later than 90 days after the date 
     of enactment of this Act, the Secretary shall submit to the 
     Committees on Appropriations of the House of Representatives 
     and Senate, the Committee on Environment and Public Works of 
     the Senate, and the Committee on Transportation and 
     Infrastructure of the House of Representatives a report 
     describing--
       (A) interim milestones that will be met prior to final 
     completion of the study and report under paragraph (1); and
       (B) funding necessary for completion of the study and 
     report under paragraph (1), including funding necessary for 
     completion of each interim milestone identified under 
     subparagraph (A).

     SEC. 1539. REST AREAS.

       (a) Agreements Relating to Use of and Access to Rights-of-
     way--Interstate System.--Section 111 of title 23, United 
     States Code, is amended--
       (1) in subsection (a) in the second sentence by striking 
     the period and inserting ``and will not change the boundary 
     of any right-of-way on the Interstate System to accommodate 
     construction of, or afford access to, an automotive service 
     station or other commercial establishment.'';
       (2) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and
       (3) by inserting after subsection (a) the following:
       ``(b) Rest Areas.--
       ``(1) In general.--Notwithstanding subsection (a), the 
     Secretary shall permit a State to acquire, construct, 
     operate, and maintain a rest area along a highway on the 
     Interstate System in such State.
       ``(2) Limited activities.--The Secretary shall permit 
     limited commercial activities within a rest area under 
     paragraph (1), if the activities are available only to 
     customers using the rest area and are limited to--
       ``(A) commercial advertising and media displays if such 
     advertising and displays are--
       ``(i) exhibited solely within any facility constructed in 
     the rest area; and
       ``(ii) not legible from the main traveled way;
       ``(B) items designed to promote tourism in the State, 
     limited to books, DVDs, and other media;
       ``(C) tickets for events or attractions in the State of a 
     historical or tourism-related nature;
       ``(D) travel-related information, including maps, travel 
     booklets, and hotel coupon booklets; and
       ``(E) lottery machines, provided that the priority afforded 
     to blind vendors under subsection (c) applies to this 
     subparagraph.
       ``(3) Private operators.--A State may permit a private 
     party to operate such commercial activities.
       ``(4) Limitation on use of revenues.--A State shall use any 
     revenues received from the commercial activities in a rest 
     area under this section to cover the costs of acquiring, 
     constructing, operating, and maintaining rest areas in the 
     State.''.
       (b) Control of Outdoor Advertising.--Section 131(i) of 
     title 23, United States Code, is amended by adding at the end 
     the following:

     ``A State may permit the installation of signs that 
     acknowledge the sponsorship of rest areas within such rest 
     areas or along the main traveled way of the system, provided 
     that such signs shall not affect the safe and efficient 
     utilization of the Interstate System and the primary system. 
     The Secretary shall establish criteria for the installation 
     of such signs on the main traveled way, including criteria 
     pertaining to the placement of rest area sponsorship 
     acknowledgment signs in relation to the placement of advance 
     guide signs for rest areas.''.
                   Subtitle F--Gulf Coast Restoration

     SEC. 1601. SHORT TITLE.

       This subtitle may be cited as the ``Resources and 
     Ecosystems Sustainability, Tourist Opportunities, and Revived 
     Economies of the Gulf Coast States Act of 2012''.

     SEC. 1602. GULF COAST RESTORATION TRUST FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a trust fund to be known as the ``Gulf 
     Coast Restoration Trust Fund'' (referred to in this section 
     as the ``Trust Fund''), consisting of such amounts as are 
     deposited in the Trust Fund under this Act or any other 
     provision of law.
       (b) Transfers.--The Secretary of the Treasury shall deposit 
     in the Trust Fund an amount equal to 80 percent of all 
     administrative and civil penalties paid by responsible 
     parties after the date of enactment of this Act in connection 
     with the explosion on, and sinking of, the mobile offshore 
     drilling unit Deepwater Horizon pursuant to a court order, 
     negotiated settlement, or other instrument in accordance with 
     section 311 of the Federal Water Pollution Control Act (33 
     U.S.C. 1321).
       (c) Expenditures.--Amounts in the Trust Fund, including 
     interest earned on advances to the Trust Fund and proceeds 
     from investment under subsection (d), shall--
       (1) be available for expenditure, without further 
     appropriation, solely for the purpose and eligible activities 
     of this subtitle and the amendments made by this subtitle; 
     and
       (2) remain available until expended, without fiscal year 
     limitation.
       (d) Investment.--Amounts in the Trust Fund shall be 
     invested in accordance with section 9702 of title 31, United 
     States Code, and any interest on, and proceeds from, any such 
     investment shall be available for expenditure in accordance 
     with this subtitle and the amendments made by this subtitle.
       (e) Administration.--Not later than 180 days after the date 
     of enactment of this Act, after providing notice and an 
     opportunity for public comment, the Secretary of the 
     Treasury, in consultation with the Secretary of the Interior 
     and the Secretary of Commerce, shall establish such 
     procedures as the Secretary determines to be necessary to 
     deposit amounts in, and expend amounts from, the Trust Fund 
     pursuant to this subtitle, including--
       (1) procedures to assess whether the programs and 
     activities carried out under this subtitle and the amendments 
     made by this subtitle achieve compliance with applicable 
     requirements, including procedures by which the Secretary of 
     the Treasury may determine whether an expenditure by a Gulf 
     Coast State or coastal political subdivision (as those terms 
     are defined in section 311 of the Federal Water Pollution 
     Control Act (33 U.S.C. 1321)) pursuant to such a program or 
     activity achieves compliance;
       (2) auditing requirements to ensure that amounts in the 
     Trust Fund are expended as intended; and
       (3) procedures for identification and allocation of funds 
     available to the Secretary under other provisions of law that 
     may be necessary to pay the administrative expenses directly 
     attributable to the management of the Trust Fund.
       (f) Sunset.--The authority for the Trust Fund shall 
     terminate on the date all funds in the Trust Fund have been 
     expended.

     SEC. 1603. GULF COAST NATURAL RESOURCES RESTORATION AND 
                   ECONOMIC RECOVERY.

       Section 311 of the Federal Water Pollution Control Act (33 
     U.S.C. 1321) is amended--
       (1) in subsection (a)--
       (A) in paragraph (25)(B), by striking ``and'' at the end;
       (B) in paragraph (26)(D), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(27) the term `best available science' means science 
     that--
       ``(A) maximizes the quality, objectivity, and integrity of 
     information, including statistical information;
       ``(B) uses peer-reviewed and publicly available data; and
       ``(C) clearly documents and communicates risks and 
     uncertainties in the scientific basis for such projects;
       ``(28) the term `Chairperson' means the Chairperson of the 
     Council;
       ``(29) the term `coastal political subdivision' means any 
     local political jurisdiction that is immediately below the 
     State level of government, including a county, parish, or 
     borough, with a coastline that is contiguous with any portion 
     of the United States Gulf of Mexico;
       ``(30) the term `Comprehensive Plan' means the 
     comprehensive plan developed by the Council pursuant to 
     subsection (t);
       ``(31) the term `Council' means the Gulf Coast Ecosystem 
     Restoration Council established pursuant to subsection (t);
       ``(32) the term `Deepwater Horizon oil spill' means the 
     blowout and explosion of the mobile offshore drilling unit 
     Deepwater Horizon that occurred on April 20, 2010, and 
     resulting hydrocarbon releases into the environment;
       ``(33) the term `Gulf Coast region' means--
       ``(A) in the Gulf Coast States, the coastal zones (as that 
     term is defined in section 304 of the Coastal Zone Management 
     Act of 1972 (16 U.S.C. 1453)), except that, in this section, 
     the

[[Page 10577]]

     term `coastal zones' includes land within the coastal zones 
     that is held in trust by, or the use of which is by law 
     subject solely to the discretion of, the Federal Government 
     or officers or agents of the Federal Government)) that border 
     the Gulf of Mexico;
       ``(B) any adjacent land, water, and watersheds, that are 
     within 25 miles of the coastal zones described in 
     subparagraph (A) of the Gulf Coast States; and
       ``(C) all Federal waters in the Gulf of Mexico;
       ``(34) the term `Gulf Coast State' means any of the States 
     of Alabama, Florida, Louisiana, Mississippi, and Texas; and
       ``(35) the term `Trust Fund' means the Gulf Coast 
     Restoration Trust Fund established pursuant to section 1602 
     of the Resources and Ecosystems Sustainability, Tourist 
     Opportunities, and Revived Economies of the Gulf Coast States 
     Act of 2012.'';
       (2) in subsection (s), by inserting ``except as provided in 
     subsection (t)'' before the period at the end; and
       (3) by adding at the end the following:
       ``(t) Gulf Coast Restoration and Recovery.--
       ``(1) State allocation and expenditures.--
       ``(A) In general.--Of the total amounts made available in 
     any fiscal year from the Trust Fund, 35 percent shall be 
     available, in accordance with the requirements of this 
     section, to the Gulf Coast States in equal shares for 
     expenditure for ecological and economic restoration of the 
     Gulf Coast region in accordance with this subsection.
       ``(B) Use of funds.--
       ``(i) Eligible activities in the gulf coast region.--
     Subject to clause (iii), amounts provided to the Gulf Coast 
     States under this subsection may only be used to carry out 1 
     or more of the following activities in the Gulf Coast region:

       ``(I) Restoration and protection of the natural resources, 
     ecosystems, fisheries, marine and wildlife habitats, beaches, 
     and coastal wetlands of the Gulf Coast region.
       ``(II) Mitigation of damage to fish, wildlife, and natural 
     resources.
       ``(III) Implementation of a federally approved marine, 
     coastal, or comprehensive conservation management plan, 
     including fisheries monitoring.
       ``(IV) Workforce development and job creation.
       ``(V) Improvements to or on State parks located in coastal 
     areas affected by the Deepwater Horizon oil spill.
       ``(VI) Infrastructure projects benefitting the economy or 
     ecological resources, including port infrastructure.
       ``(VII) Coastal flood protection and related 
     infrastructure.
       ``(VIII) Planning assistance.
       ``(IX) Administrative costs of complying with this 
     subsection.

       ``(ii) Activities to promote tourism and seafood in the 
     gulf coast region.--Amounts provided to the Gulf Coast States 
     under this subsection may be used to carry out 1 or more of 
     the following activities:

       ``(I) Promotion of tourism in the Gulf Coast Region, 
     including recreational fishing.
       ``(II) Promotion of the consumption of seafood harvested 
     from the Gulf Coast Region.

       ``(iii) Limitation.--

       ``(I) In general.--Of the amounts received by a Gulf Coast 
     State under this subsection, not more than 3 percent may be 
     used for administrative costs eligible under clause (i)(IX).
       ``(II) Claims for compensation.--Activities funded under 
     this subsection may not be included in any claim for 
     compensation paid out by the Oil Spill Liability Trust Fund 
     after the date of enactment of this subsection.

       ``(C) Coastal political subdivisions.--
       ``(i) Distribution.--In the case of a State where the 
     coastal zone includes the entire State--

       ``(I) 75 percent of funding shall be provided directly to 
     the 8 disproportionately affected counties impacted by the 
     Deepwater Horizon oil spill; and
       ``(II) 25 percent shall be provided directly to 
     nondisproportionately impacted counties within the State.

       ``(ii) Nondisproportionately impacted counties.--The total 
     amounts made available to coastal political subdivisions in 
     the State of Florida under clause (i)(II) shall be 
     distributed according to the following weighted formula:

       ``(I) 34 percent based on the weighted average of the 
     population of the county.
       ``(II) 33 percent based on the weighted average of the 
     county per capita sales tax collections estimated for fiscal 
     year 2012.
       ``(III) 33 percent based on the inverse proportion of the 
     weighted average distance from the Deepwater Horizon oil rig 
     to each of the nearest and farthest points of the shoreline.

       ``(D) Louisiana.--
       ``(i) In general.--Of the total amounts made available to 
     the State of Louisiana under this paragraph:

       ``(I) 70 percent shall be provided directly to the State in 
     accordance with this subsection.
       ``(II) 30 percent shall be provided directly to parishes in 
     the coastal zone (as defined in section 304 of the Coastal 
     Zone Management Act of 1972 (16 U.S.C. 1453)) of the State of 
     Louisiana according to the following weighted formula:

       ``(aa) 40 percent based on the weighted average of miles of 
     the parish shoreline oiled.
       ``(bb) 40 percent based on the weighted average of the 
     population of the parish.
       ``(cc) 20 percent based on the weighted average of the land 
     mass of the parish.
       ``(ii) Conditions.--

       ``(I) Land use plan.--As a condition of receiving amounts 
     allocated under this paragraph, the chief executive of the 
     eligible parish shall certify to the Governor of the State 
     that the parish has completed a comprehensive land use plan.
       ``(II) Other conditions.--A coastal political subdivision 
     receiving funding under this paragraph shall meet all of the 
     conditions in subparagraph (E).

       ``(E) Conditions.--As a condition of receiving amounts from 
     the Trust Fund, a Gulf Coast State, including the entities 
     described in subparagraph (F), or a coastal political 
     subdivision shall--
       ``(i) agree to meet such conditions, including audit 
     requirements, as the Secretary of the Treasury determines 
     necessary to ensure that amounts disbursed from the Trust 
     Fund will be used in accordance with this subsection;
       ``(ii) certify in such form and in such manner as the 
     Secretary of the Treasury determines necessary that the 
     project or program for which the Gulf Coast State or coastal 
     political subdivision is requesting amounts--

       ``(I) is designed to restore and protect the natural 
     resources, ecosystems, fisheries, marine and wildlife 
     habitats, beaches, coastal wetlands, or economy of the Gulf 
     Coast;
       ``(II) carries out 1 or more of the activities described in 
     clauses (i) and (ii) of subparagraph (B);
       ``(III) was selected based on meaningful input from the 
     public, including broad-based participation from individuals, 
     businesses, and nonprofit organizations; and
       ``(IV) in the case of a natural resource protection or 
     restoration project, is based on the best available science;

       ``(iii) certify that the project or program and the 
     awarding of a contract for the expenditure of amounts 
     received under this paragraph are consistent with the 
     standard procurement rules and regulations governing a 
     comparable project or program in that State, including all 
     applicable competitive bidding and audit requirements; and
       ``(iv) develop and submit a multiyear implementation plan 
     for the use of such amounts, which may include milestones, 
     projected completion of each activity, and a mechanism to 
     evaluate the success of each activity in helping to restore 
     and protect the Gulf Coast region impacted by the Deepwater 
     Horizon oil spill.
       ``(F) Approval by state entity, task force, or agency.--The 
     following Gulf Coast State entities, task forces, or agencies 
     shall carry out the duties of a Gulf Coast State pursuant to 
     this paragraph:
       ``(i) Alabama.--

       ``(I) In general.--In the State of Alabama, the Alabama 
     Gulf Coast Recovery Council, which shall be comprised of only 
     the following:

       ``(aa) The Governor of Alabama, who shall also serve as 
     Chairperson and preside over the meetings of the Alabama Gulf 
     Coast Recovery Council.
       ``(bb) The Director of the Alabama State Port Authority, 
     who shall also serve as Vice Chairperson and preside over the 
     meetings of the Alabama Gulf Coast Recovery Council in the 
     absence of the Chairperson.
       ``(cc) The Chairman of the Baldwin County Commission.
       ``(dd) The President of the Mobile County Commission.
       ``(ee) The Mayor of the city of Bayou La Batre.
       ``(ff) The Mayor of the town of Dauphin Island.
       ``(gg) The Mayor of the city of Fairhope.
       ``(hh) The Mayor of the city of Gulf Shores.
       ``(ii) The Mayor of the city of Mobile.
       ``(jj) The Mayor of the city of Orange Beach.

       ``(II) Vote.--Each member of the Alabama Gulf Coast 
     Recovery Council shall be entitled to 1 vote.
       ``(III) Majority vote.--All decisions of the Alabama Gulf 
     Coast Recovery Council shall be made by majority vote.
       ``(IV) Limitation on administrative expenses.--
     Administrative duties for the Alabama Gulf Coast Recovery 
     Council may only be performed by public officials and 
     employees that are subject to the ethics laws of the State of 
     Alabama.

       ``(ii) Louisiana.--In the State of Louisiana, the Coastal 
     Protection and Restoration Authority of Louisiana.
       ``(iii) Mississippi.--In the State of Mississippi, the 
     Mississippi Department of Environmental Quality.
       ``(iv) Texas.--In the State of Texas, the Office of the 
     Governor or an appointee of the Office of the Governor.
       ``(G) Compliance with eligible activities.--If the 
     Secretary of the Treasury determines that an expenditure by a 
     Gulf Coast State or coastal political subdivision of amounts 
     made available under this subsection does not meet one of the 
     activities described in clauses (i) and (ii) of subparagraph 
     (B), the Secretary shall make no additional amounts from the 
     Trust Fund available to that Gulf Coast State or coastal 
     political subdivision until such time as an amount equal to 
     the amount expended for the unauthorized use--
       ``(i) has been deposited by the Gulf Coast State or coastal 
     political subdivision in the Trust Fund; or
       ``(ii) has been authorized by the Secretary of the Treasury 
     for expenditure by the Gulf Coast State or coastal political 
     subdivision for a project or program that meets the 
     requirements of this subsection.

[[Page 10578]]

       ``(H) Compliance with conditions.--If the Secretary of the 
     Treasury determines that a Gulf Coast State or coastal 
     political subdivision does not meet the requirements of this 
     paragraph, including the conditions of subparagraph (E), 
     where applicable, the Secretary of the Treasury shall make no 
     amounts from the Trust Fund available to that Gulf Coast 
     State or coastal political subdivision until all conditions 
     of this paragraph are met.
       ``(I) Public input.--In meeting any condition of this 
     paragraph, a Gulf Coast State may use an appropriate 
     procedure for public consultation in that Gulf Coast State, 
     including consulting with one or more established task forces 
     or other entities, to develop recommendations for proposed 
     projects and programs that would restore and protect the 
     natural resources, ecosystems, fisheries, marine and wildlife 
     habitats, beaches, coastal wetlands, and economy of the Gulf 
     Coast.
       ``(J) Previously approved projects and programs.--A Gulf 
     Coast State or coastal political subdivision shall be 
     considered to have met the conditions of subparagraph (E) for 
     a specific project or program if, before the date of 
     enactment of the Resources and Ecosystems Sustainability, 
     Tourist Opportunities, and Revived Economies of the Gulf 
     Coast States Act of 2012--
       ``(i) the Gulf Coast State or coastal political subdivision 
     has established conditions for carrying out projects and 
     programs that are substantively the same as the conditions 
     described in subparagraph (E); and
       ``(ii) the applicable project or program carries out 1 or 
     more of the activities described in clauses (i) and (ii) of 
     subparagraph (B).
       ``(K) Local preference.--In awarding contracts to carry out 
     a project or program under this paragraph, a Gulf Coast State 
     or coastal political subdivision may give a preference to 
     individuals and companies that reside in, are headquartered 
     in, or are principally engaged in business in the State of 
     project execution.
       ``(L) Unused funds.--Funds allocated to a State or coastal 
     political subdivision under this paragraph shall remain in 
     the Trust Fund until such time as the State or coastal 
     political subdivision develops and submits a plan identifying 
     uses for those funds in accordance with subparagraph (E)(iv).
       ``(M) Judicial review.--If the Secretary of the Treasury 
     determines that a Gulf Coast State or coastal political 
     subdivision does not meet the requirements of this paragraph, 
     including the conditions of subparagraph (E), the Gulf Coast 
     State or coastal political subdivision may obtain expedited 
     judicial review within 90 days after that decision in a 
     district court of the United States, of appropriate 
     jurisdiction and venue, that is located within the State 
     seeking the review.
       ``(N) Cost-sharing.--
       ``(i) In general.--A Gulf Coast State or coastal political 
     subdivision may use, in whole or in part, amounts made 
     available under this paragraph to that Gulf Coast State or 
     coastal political subdivision to satisfy the non-Federal 
     share of the cost of any project or program authorized by 
     Federal law that is an eligible activity described in clauses 
     (i) and (ii) of subparagraph (B).
       ``(ii) Effect on other funds.--The use of funds made 
     available from the Trust Fund to satisfy the non-Federal 
     share of the cost of a project or program that meets the 
     requirements of clause (i) shall not affect the priority in 
     which other Federal funds are allocated or awarded.
       ``(2) Council establishment and allocation.--
       ``(A) In general.--Of the total amount made available in 
     any fiscal year from the Trust Fund, 30 percent shall be 
     disbursed to the Council to carry out the Comprehensive Plan.
       ``(B) Council expenditures.--
       ``(i) In general.--In accordance with this paragraph, the 
     Council shall expend funds made available from the Trust Fund 
     to undertake projects and programs, using the best available 
     science, that would restore and protect the natural 
     resources, ecosystems, fisheries, marine and wildlife 
     habitats, beaches, coastal wetlands, and economy of the Gulf 
     Coast.
       ``(ii) Allocation and expenditure procedures.--The 
     Secretary of the Treasury shall develop such conditions, 
     including audit requirements, as the Secretary of the 
     Treasury determines necessary to ensure that amounts 
     disbursed from the Trust Fund to the Council to implement the 
     Comprehensive Plan will be used in accordance with this 
     paragraph.
       ``(iii) Administrative expenses.--Of the amounts received 
     by the Council under this paragraph, not more than 3 percent 
     may be used for administrative expenses, including staff.
       ``(C) Gulf coast ecosystem restoration council.--
       ``(i) Establishment.--There is established as an 
     independent entity in the Federal Government a council to be 
     known as the `Gulf Coast Ecosystem Restoration Council'.
       ``(ii) Membership.--The Council shall consist of the 
     following members, or in the case of a Federal agency, a 
     designee at the level of the Assistant Secretary or the 
     equivalent:

       ``(I) The Secretary of the Interior.
       ``(II) The Secretary of the Army.
       ``(III) The Secretary of Commerce.
       ``(IV) The Administrator of the Environmental Protection 
     Agency.
       ``(V) The Secretary of Agriculture.
       ``(VI) The head of the department in which the Coast Guard 
     is operating.
       ``(VII) The Governor of the State of Alabama.
       ``(VIII) The Governor of the State of Florida.
       ``(IX) The Governor of the State of Louisiana.
       ``(X) The Governor of the State of Mississippi.
       ``(XI) The Governor of the State of Texas.

       ``(iii) Alternate.--A Governor appointed to the Council by 
     the President may designate an alternate to represent the 
     Governor on the Council and vote on behalf of the Governor.
       ``(iv) Chairperson.--From among the Federal agency members 
     of the Council, the representatives of States on the Council 
     shall select, and the President shall appoint, 1 Federal 
     member to serve as Chairperson of the Council.
       ``(v) Presidential appointment.--All Council members shall 
     be appointed by the President.
       ``(vi) Council actions.--

       ``(I) In general.--The following actions by the Council 
     shall require the affirmative vote of the Chairperson and a 
     majority of the State members to be effective:

       ``(aa) Approval of a Comprehensive Plan and future 
     revisions to a Comprehensive Plan.
       ``(bb) Approval of State plans pursuant to paragraph 
     (3)(B)(iv).
       ``(cc) Approval of reports to Congress pursuant to clause 
     (vii)(VII).
       ``(dd) Approval of transfers pursuant to subparagraph 
     (E)(ii)(I).
       ``(ee) Other significant actions determined by the Council.

       ``(II) Quorum.--A majority of State members shall be 
     required to be present for the Council to take any 
     significant action.
       ``(III) Affirmative vote requirement considered met.--For 
     approval of State plans pursuant to paragraph (3)(B)(iv), the 
     certification by a State member of the Council that the plan 
     satisfies all requirements of clauses (i) and (ii) of 
     paragraph (3)(B), when joined by an affirmative vote of the 
     Federal Chairperson of the Council, shall be considered to 
     satisfy the requirements for affirmative votes under 
     subclause (I).
       ``(IV) Public transparency.--Appropriate actions of the 
     Council, including significant actions and associated 
     deliberations, shall be made available to the public via 
     electronic means prior to any vote.

       ``(vii) Duties of council.--The Council shall--

       ``(I) develop the Comprehensive Plan and future revisions 
     to the Comprehensive Plan;
       ``(II) identify as soon as practicable the projects that--

       ``(aa) have been authorized prior to the date of enactment 
     of this subsection but not yet commenced; and
       ``(bb) if implemented quickly, would restore and protect 
     the natural resources, ecosystems, fisheries, marine and 
     wildlife habitats, beaches, barrier islands, dunes, and 
     coastal wetlands of the Gulf Coast region;

       ``(III) establish such other 1 or more advisory committees 
     as may be necessary to assist the Council, including a 
     scientific advisory committee and a committee to advise the 
     Council on public policy issues;
       ``(IV) collect and consider scientific and other research 
     associated with restoration of the Gulf Coast ecosystem, 
     including research, observation, and monitoring carried out 
     pursuant to sections 1604 and 1605 of the Resources and 
     Ecosystems Sustainability, Tourist Opportunities, and Revived 
     Economies of the Gulf Coast States Act of 2012;
       ``(V) develop standard terms to include in contracts for 
     projects and programs awarded pursuant to the Comprehensive 
     Plan that provide a preference to individuals and companies 
     that reside in, are headquartered in, or are principally 
     engaged in business in a Gulf Coast State;
       ``(VI) prepare an integrated financial plan and 
     recommendations for coordinated budget requests for the 
     amounts proposed to be expended by the Federal agencies 
     represented on the Council for projects and programs in the 
     Gulf Coast States; and
       ``(VII) submit to Congress an annual report that--

       ``(aa) summarizes the policies, strategies, plans, and 
     activities for addressing the restoration and protection of 
     the Gulf Coast region;
       ``(bb) describes the projects and programs being 
     implemented to restore and protect the Gulf Coast region, 
     including--
       ``(AA) a list of each project and program;
       ``(BB) an identification of the funding provided to 
     projects and programs identified in subitem (AA);
       ``(CC) an identification of each recipient for funding 
     identified in subitem (BB); and
       ``(DD) a description of the length of time and funding 
     needed to complete the objectives of each project and program 
     identified in subitem (AA);
       ``(cc) makes such recommendations to Congress for 
     modifications of existing laws as the Council determines 
     necessary to implement the Comprehensive Plan;
       ``(dd) reports on the progress on implementation of each 
     project or program--
       ``(AA) after 3 years of ongoing activity of the project or 
     program, if applicable; and
       ``(BB) on completion of the project or program;
       ``(ee) includes the information required to be submitted 
     under section 1605(c)(4) of the Resources and Ecosystems 
     Sustainability, Tourist Opportunities, and Revived Economies 
     of the Gulf Coast States Act of 2012; and
       ``(ff) submits the reports required under item (dd) to--
       ``(AA) the Committee on Science, Space, and Technology, the 
     Committee on Natural Resources, the Committee on 
     Transportation and Infrastructure, and the Committee on 
     Appropriations of the House of Representatives; and
       ``(BB) the Committee on Environment and Public Works, the 
     Committee on Commerce,

[[Page 10579]]

     Science, and Transportation, the Committee on Energy and 
     Natural Resources, and the Committee on Appropriations of the 
     Senate.
       ``(viii) Application of federal advisory committee act.--
     The Council, or any other advisory committee established 
     under this subparagraph, shall not be considered an advisory 
     committee under the Federal Advisory Committee Act (5 U.S.C. 
     App.).
       ``(ix) Sunset.--The authority for the Council, and any 
     other advisory committee established under this subparagraph, 
     shall terminate on the date all funds in the Trust Fund have 
     been expended.
       ``(D) Comprehensive plan.--
       ``(i) Proposed plan.--

       ``(I) In general.--Not later than 180 days after the date 
     of enactment of the Resources and Ecosystems Sustainability, 
     Tourist Opportunities, and Revived Economies of the Gulf 
     Coast States Act of 2012, the Chairperson, on behalf of the 
     Council and after appropriate public input, review, and 
     comment, shall publish a proposed plan to restore and protect 
     the natural resources, ecosystems, fisheries, marine and 
     wildlife habitats, beaches, and coastal wetlands of the Gulf 
     Coast region.
       ``(II) Inclusions.--The proposed plan described in 
     subclause (I) shall include and incorporate the findings and 
     information prepared by the President's Gulf Coast 
     Restoration Task Force.

       ``(ii) Publication.--

       ``(I) Initial plan.--Not later than 1 year after the date 
     of enactment of the Resources and Ecosystems Sustainability, 
     Tourist Opportunities, and Revived Economies of the Gulf 
     Coast States Act of 2012 and after notice and opportunity for 
     public comment, the Chairperson, on behalf of the Council and 
     after approval by the Council, shall publish in the Federal 
     Register the initial Comprehensive Plan to restore and 
     protect the natural resources, ecosystems, fisheries, marine 
     and wildlife habitats, beaches, and coastal wetlands of the 
     Gulf Coast region.
       ``(II) Cooperation with gulf coast restoration task 
     force.--The Council shall develop the initial Comprehensive 
     Plan in close coordination with the President's Gulf Coast 
     Restoration Task Force.
       ``(III) Considerations.--In developing the initial 
     Comprehensive Plan and subsequent updates, the Council shall 
     consider all relevant findings, reports, or research prepared 
     or funded under section 1604 or 1605 of the Resources and 
     Ecosystems Sustainability, Tourist Opportunities, and Revived 
     Economies of the Gulf Coast States Act of 2012.
       ``(IV) Contents.--The initial Comprehensive Plan shall 
     include--

       ``(aa) such provisions as are necessary to fully 
     incorporate in the Comprehensive Plan the strategy, projects, 
     and programs recommended by the President's Gulf Coast 
     Restoration Task Force;
       ``(bb) a list of any project or program authorized prior to 
     the date of enactment of this subsection but not yet 
     commenced, the completion of which would further the purposes 
     and goals of this subsection and of the Resources and 
     Ecosystems Sustainability, Tourist Opportunities, and Revived 
     Economies of the Gulf Coast States Act of 2012;
       ``(cc) a description of the manner in which amounts from 
     the Trust Fund projected to be made available to the Council 
     for the succeeding 10 years will be allocated; and
       ``(dd) subject to available funding in accordance with 
     clause (iii), a prioritized list of specific projects and 
     programs to be funded and carried out during the 3-year 
     period immediately following the date of publication of the 
     initial Comprehensive Plan, including a table that 
     illustrates the distribution of projects and programs by the 
     Gulf Coast State.

       ``(V) Plan updates.--The Council shall update--

       ``(aa) the Comprehensive Plan every 5 years in a manner 
     comparable to the manner established in this subparagraph for 
     each 5-year period for which amounts are expected to be made 
     available to the Gulf Coast States from the Trust Fund; and
       ``(bb) the 3-year list of projects and programs described 
     in subclause (IV)(dd) annually.
       ``(iii) Restoration priorities.--Except for projects and 
     programs described in clause (ii)(IV)(bb), in selecting 
     projects and programs to include on the 3-year list described 
     in clause (ii)(IV)(dd), based on the best available science, 
     the Council shall give highest priority to projects that 
     address 1 or more of the following criteria:

       ``(I) Projects that are projected to make the greatest 
     contribution to restoring and protecting the natural 
     resources, ecosystems, fisheries, marine and wildlife 
     habitats, beaches, and coastal wetlands of the Gulf Coast 
     region, without regard to geographic location within the Gulf 
     Coast region.
       ``(II) Large-scale projects and programs that are projected 
     to substantially contribute to restoring and protecting the 
     natural resources, ecosystems, fisheries, marine and wildlife 
     habitats, beaches, and coastal wetlands of the Gulf Coast 
     ecosystem.
       ``(III) Projects contained in existing Gulf Coast State 
     comprehensive plans for the restoration and protection of 
     natural resources, ecosystems, fisheries, marine and wildlife 
     habitats, beaches, and coastal wetlands of the Gulf Coast 
     region.
       ``(IV) Projects that restore long-term resiliency of the 
     natural resources, ecosystems, fisheries, marine and wildlife 
     habitats, beaches, and coastal wetlands most impacted by the 
     Deepwater Horizon oil spill.

       ``(E) Implementation.--
       ``(i) In general.--The Council, acting through the Federal 
     agencies represented on the Council and Gulf Coast States, 
     shall expend funds made available from the Trust Fund to 
     carry out projects and programs adopted in the Comprehensive 
     Plan.
       ``(ii) Administrative responsibility.--

       ``(I) In general.--Primary authority and responsibility for 
     each project and program included in the Comprehensive Plan 
     shall be assigned by the Council to a Gulf Coast State 
     represented on the Council or a Federal agency.
       ``(II) Transfer of amounts.--Amounts necessary to carry out 
     each project or program included in the Comprehensive Plan 
     shall be transferred by the Secretary of the Treasury from 
     the Trust Fund to that Federal agency or Gulf Coast State as 
     the project or program is implemented, subject to such 
     conditions as the Secretary of the Treasury, in consultation 
     with the Secretary of the Interior and the Secretary of 
     Commerce, established pursuant to section 1602 of the 
     Resources and Ecosystems Sustainability, Tourist 
     Opportunities, and Revived Economies of the Gulf Coast States 
     Act of 2012.
       ``(III) Limitation on transfers.--

       ``(aa) Grants to nongovernmental entities.--In the case of 
     funds transferred to a Federal or State agency under 
     subclause (II), the agency shall not make 1 or more grants or 
     cooperative agreements to a nongovernmental entity if the 
     total amount provided to the entity would equal or exceed 10 
     percent of the total amount provided to the agency for that 
     particular project or program, unless the 1 or more grants 
     have been reported in accordance with item (bb).
       ``(bb) Reporting of grantees.--At least 30 days prior to 
     making a grant or entering into a cooperative agreement 
     described in item (aa), the name of each grantee, including 
     the amount and purpose of each grant or cooperative 
     agreement, shall be published in the Federal Register and 
     delivered to the congressional committees listed in 
     subparagraph (C)(vii)(VII)(ff).
       ``(cc) Annual reporting of grantees.--Annually, the name of 
     each grantee, including the amount and purposes of each grant 
     or cooperative agreement, shall be published in the Federal 
     Register and delivered to Congress as part of the report 
     submitted pursuant to subparagraph (C)(vii)(VII).

       ``(IV) Project and program limitation.--The Council, a 
     Federal agency, or a State may not carry out a project or 
     program funded under this paragraph outside of the Gulf Coast 
     region.

       ``(F) Coordination.--The Council and the Federal members of 
     the Council may develop memoranda of understanding 
     establishing integrated funding and implementation plans 
     among the member agencies and authorities.
       ``(3) Oil spill restoration impact allocation.--
       ``(A) In general.--
       ``(i) Disbursement.--Of the total amount made available 
     from the Trust Fund, 30 percent shall be disbursed pursuant 
     to the formula in clause (ii) to the Gulf Coast States on the 
     approval of the plan described in subparagraph (B)(i).
       ``(ii) Formula.--Subject to subparagraph (B), for each Gulf 
     Coast State, the amount disbursed under this paragraph shall 
     be based on a formula established by the Council by 
     regulation that is based on a weighted average of the 
     following criteria:

       ``(I) 40 percent based on the proportionate number of miles 
     of shoreline in each Gulf Coast State that experienced oiling 
     on or before April 10, 2011, compared to the total number of 
     miles of shoreline that experienced oiling as a result of the 
     Deepwater Horizon oil spill.
       ``(II) 40 percent based on the inverse proportion of the 
     average distance from the mobile offshore drilling unit 
     Deepwater Horizon at the time of the explosion to the nearest 
     and farthest point of the shoreline that experienced oiling 
     of each Gulf Coast State.
       ``(III) 20 percent based on the average population in the 
     2010 decennial census of coastal counties bordering the Gulf 
     of Mexico within each Gulf Coast State.

       ``(iii) Minimum allocation.--The amount disbursed to a Gulf 
     Coast State for each fiscal year under clause (ii) shall be 
     at least 5 percent of the total amounts made available under 
     this paragraph.
       ``(B) Disbursement of funds.--
       ``(i) In general.--The Council shall disburse amounts to 
     the respective Gulf Coast States in accordance with the 
     formula developed under subparagraph (A) for projects, 
     programs, and activities that will improve the ecosystems or 
     economy of the Gulf Coast region, subject to the condition 
     that each Gulf Coast State submits a plan for the expenditure 
     of amounts disbursed under this paragraph that meets the 
     following criteria:

       ``(I) All projects, programs, and activities included in 
     the plan are eligible activities pursuant to clauses (i) and 
     (ii) of paragraph (1)(B).
       ``(II) The projects, programs, and activities included in 
     the plan contribute to the overall economic and ecological 
     recovery of the Gulf Coast.
       ``(III) The plan takes into consideration the Comprehensive 
     Plan and is consistent with the goals and objectives of the 
     Plan, as described in paragraph (2)(B)(i).

       ``(ii) Funding.--

       ``(I) In general.--Except as provided in subclause (II), 
     the plan described in clause (i) may use not more than 25 
     percent of the funding made available for infrastructure 
     projects eligible under subclauses (VI) and (VII) of 
     paragraph (1)(B)(i).

[[Page 10580]]

       ``(II) Exception.--The plan described in clause (i) may 
     propose to use more than 25 percent of the funding made 
     available for infrastructure projects eligible under 
     subclauses (VI) and (VII) of paragraph (1)(B)(i) if the plan 
     certifies that--

       ``(aa) ecosystem restoration needs in the State will be 
     addressed by the projects in the proposed plan; and
       ``(bb) additional investment in infrastructure is required 
     to mitigate the impacts of the Deepwater Horizon Oil Spill to 
     the ecosystem or economy.
       ``(iii) Development.--The plan described in clause (i) 
     shall be developed by--

       ``(I) in the State of Alabama, the Alabama Gulf Coast 
     Recovery Council established under paragraph (1)(F)(i);
       ``(II) in the State of Florida, a consortia of local 
     political subdivisions that includes at a minimum 1 
     representative of each affected county;
       ``(III) in the State of Louisiana, the Coastal Protection 
     and Restoration Authority of Louisiana;
       ``(IV) in the State of Mississippi, the Office of the 
     Governor or an appointee of the Office of the Governor; and
       ``(V) in the State of Texas, the Office of the Governor or 
     an appointee of the Office of the Governor.

       ``(iv) Approval.--Not later than 60 days after the date on 
     which a plan is submitted under clause (i), the Council shall 
     approve or disapprove the plan based on the conditions of 
     clause (i).
       ``(C) Disapproval.--If the Council disapproves a plan 
     pursuant to subparagraph (B)(iv), the Council shall--
       ``(i) provide the reasons for disapproval in writing; and
       ``(ii) consult with the State to address any identified 
     deficiencies with the State plan.
       ``(D) Failure to submit adequate plan.--If a State fails to 
     submit an adequate plan under this paragraph, any funds made 
     available under this paragraph shall remain in the Trust Fund 
     until such date as a plan is submitted and approved pursuant 
     to this paragraph.
       ``(E) Judicial review.--If the Council fails to approve or 
     take action within 60 days on a plan, as described in 
     subparagraph (B)(iv), the State may obtain expedited judicial 
     review within 90 days of that decision in a district court of 
     the United States, of appropriate jurisdiction and venue, 
     that is located within the State seeking the review.
       ``(F) Cost-sharing.--
       ``(i) In general.--A Gulf Coast State or coastal political 
     subdivision may use, in whole or in part, amounts made 
     available to that Gulf Coast State or coastal political 
     subdivision under this paragraph to satisfy the non-Federal 
     share of any project or program that--

       ``(I) is authorized by other Federal law; and
       ``(II) is an eligible activity described in clause (i) or 
     (ii) of paragraph (1)(B).

       ``(ii) Effect on other funds.--The use of funds made 
     available from the Trust Fund under this paragraph to satisfy 
     the non-Federal share of the cost of a project or program 
     described in clause (i) shall not affect the priority in 
     which other Federal funds are allocated or awarded.
       ``(4) Authorization of interest transfers.--Of the total 
     amount made available for any fiscal year from the Trust Fund 
     that is equal to the interest earned by the Trust Fund and 
     proceeds from investments made by the Trust Fund in the 
     preceding fiscal year--
       ``(A) 50 percent shall be divided equally between--
       ``(i) the Gulf Coast Ecosystem Restoration Science, 
     Observation, Monitoring, and Technology program authorized in 
     section 1604 of the Resources and Ecosystems Sustainability, 
     Tourist Opportunities, and Revived Economies of the Gulf 
     Coast States Act of 2012; and
       ``(ii) the centers of excellence research grants authorized 
     in section 1605 of that Act; and
       ``(B) 50 percent shall be made available to the Gulf Coast 
     Ecosystem Restoration Council to carry out the Comprehensive 
     Plan pursuant to paragraph (2).''.

     SEC. 1604. GULF COAST ECOSYSTEM RESTORATION SCIENCE, 
                   OBSERVATION, MONITORING, AND TECHNOLOGY 
                   PROGRAM.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the National Oceanic and Atmospheric 
     Administration.
       (2) Commission.--The term ``Commission'' means the Gulf 
     States Marine Fisheries Commission.
       (3) Director.--The term ``Director'' means the Director of 
     the United States Fish and Wildlife Service.
       (4) Program.--The term ``program'' means the Gulf Coast 
     Ecosystem Restoration Science, Observation, Monitoring, and 
     Technology program established under this section.
       (b) Establishment of Program.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Administrator, in consultation 
     with the Director, shall establish the Gulf Coast Ecosystem 
     Restoration Science, Observation, Monitoring, and Technology 
     program to carry out research, observation, and monitoring to 
     support, to the maximum extent practicable, the long-term 
     sustainability of the ecosystem, fish stocks, fish habitat, 
     and the recreational, commercial, and charter fishing 
     industry in the Gulf of Mexico.
       (2) Expenditure of funds.--For each fiscal year, amounts 
     made available to carry out this subsection may be expended 
     for, with respect to the Gulf of Mexico--
       (A) marine and estuarine research;
       (B) marine and estuarine ecosystem monitoring and ocean 
     observation;
       (C) data collection and stock assessments;
       (D) pilot programs for--
       (i) fishery independent data; and
       (ii) reduction of exploitation of spawning aggregations; 
     and
       (E) cooperative research.
       (3) Cooperation with the commission.--For each fiscal year, 
     amounts made available to carry out this subsection may be 
     transferred to the Commission to establish a fisheries 
     monitoring and research program, with respect to the Gulf of 
     Mexico.
       (4) Consultation.--The Administrator and the Director shall 
     consult with the Regional Gulf of Mexico Fishery Management 
     Council and the Commission in carrying out the program.
       (c) Species Included.--The research, monitoring, 
     assessment, and programs eligible for amounts made available 
     under the program shall include all marine, estuarine, 
     aquaculture, and fish species in State and Federal waters of 
     the Gulf of Mexico.
       (d) Research Priorities.--In distributing funding under 
     this subsection, priority shall be given to integrated, long-
     term projects that--
       (1) build on, or are coordinated with, related research 
     activities; and
       (2) address current or anticipated marine ecosystem, 
     fishery, or wildlife management information needs.
       (e) Duplication.--In carrying out this section, the 
     Administrator, in consultation with the Director, shall seek 
     to avoid duplication of other research and monitoring 
     activities.
       (f) Coordination With Other Programs.--The Administrator, 
     in consultation with the Director, shall develop a plan for 
     the coordination of projects and activities between the 
     program and other existing Federal and State science and 
     technology programs in the States of Alabama, Florida, 
     Louisiana, Mississippi, and Texas, as well as between the 
     centers of excellence.
       (g) Limitation on Expenditures.--
       (1) In general.--Not more than 3 percent of funds provided 
     in subsection (h) shall be used for administrative expenses.
       (2) NOAA.--The funds provided in subsection (h) may not be 
     used--
       (A) for any existing or planned research led by the 
     National Oceanic and Atmospheric Administration, unless 
     agreed to in writing by the grant recipient;
       (B) to implement existing regulations or initiate new 
     regulations promulgated or proposed by the National Oceanic 
     and Atmospheric Administration; or
       (C) to develop or approve a new limited access privilege 
     program (as that term is used in section 303A of the 
     Magnuson-Stevens Fishery Conservation and Management Act (16 
     U.S.C. 1853a)) for any fishery under the jurisdiction of the 
     South Atlantic, Mid-Atlantic, New England, or Gulf of Mexico 
     Fishery Management Councils.
       (h) Funding.--Of the total amount made available for each 
     fiscal year for the Gulf Coast Restoration Trust Fund 
     established under section 1602, 2.5 percent shall be 
     available to carry out the program.
       (i) Sunset.--The program shall cease operations when all 
     funds in the Gulf Coast Restoration Trust Fund established 
     under section 1602 have been expended.

     SEC. 1605. CENTERS OF EXCELLENCE RESEARCH GRANTS.

       (a) In General.--Of the total amount made available for 
     each fiscal year from the Gulf Coast Restoration Trust Fund 
     established under section 1602, 2.5 percent shall be made 
     available to the Gulf Coast States (as defined in section 
     311(a) of the Federal Water Pollution Control Act (as added 
     by section 1603 of the Resources and Ecosystems 
     Sustainability, Tourist Opportunities, and Revived Economies 
     of the Gulf Coast States Act of 2012)), in equal shares, 
     exclusively for grants in accordance with subsection (c) to 
     establish centers of excellence to conduct research only on 
     the Gulf Coast Region (as defined in section 311 of the 
     Federal Water Pollution Control Act (33. U.S.C. 1321)).
       (b) Approval by State Entity, Task Force, or Agency.--The 
     duties of a Gulf Coast State under this section shall be 
     carried out by the applicable Gulf Coast State entities, task 
     forces, or agencies listed in section 311(t)(1)(F) of the 
     Federal Water Pollution Control Act (as added by section 1603 
     of the Resources and Ecosystems Sustainability, Tourist 
     Opportunities, and Revived Economies of the Gulf Coast States 
     Act of 2012), and for the State of Florida, a consortium of 
     public and private research institutions within the State, 
     which shall include the Florida Department of Environmental 
     Protection and the Florida Fish and Wildlife Conservation 
     Commission, for that Gulf Coast State.
       (c) Grants.--
       (1) In general.--A Gulf Coast State shall use the amounts 
     made available to carry out this section to award competitive 
     grants to nongovernmental entities and consortia in the Gulf 
     Coast region (including public and private institutions of 
     higher education) for the establishment of centers of 
     excellence as described in subsection (d).
       (2) Application.--To be eligible to receive a grant under 
     this subsection, an entity or consortium described in 
     paragraph (1) shall submit to a Gulf Coast State an 
     application at such time, in such manner, and containing such 
     information as the Gulf Coast State determines to be 
     appropriate.

[[Page 10581]]

       (3) Priority.--In awarding grants under this subsection, a 
     Gulf Coast State shall give priority to entities and 
     consortia that demonstrate the ability to establish the 
     broadest cross-section of participants with interest and 
     expertise in any discipline described in subsection (d) on 
     which the proposal of the center of excellence will be 
     focused.
       (4) Reporting.--
       (A) In general.--Each Gulf Coast State shall provide 
     annually to the Gulf Coast Ecosystem Restoration Council 
     established under section 311(t)(2)(C) of the Federal Water 
     Pollution Control Act (as added by section 1603 of the 
     Resources and Ecosystems Sustainability, Tourist 
     Opportunities, and Revived Economies of the Gulf Coast States 
     Act of 2012) information regarding all grants, including the 
     amount, discipline or disciplines, and recipients of the 
     grants, and in the case of any grant awarded to a consortium, 
     the membership of the consortium.
       (B) Inclusion.--The Gulf Coast Ecosystem Restoration 
     Council shall include the information received under 
     subparagraph (A) in the annual report to Congress of the 
     Council required under section 311(t)(2)(C)(vii)(VII) of the 
     Federal Water Pollution Control Act (as added by section 1603 
     of the Resources and Ecosystems Sustainability, Tourist 
     Opportunities, and Revived Economies of the Gulf Coast States 
     Act of 2012).
       (d) Disciplines.--Each center of excellence shall focus on 
     science, technology, and monitoring in at least 1 of the 
     following disciplines:
       (1) Coastal and deltaic sustainability, restoration and 
     protection, including solutions and technology that allow 
     citizens to live in a safe and sustainable manner in a 
     coastal delta in the Gulf Coast Region.
       (2) Coastal fisheries and wildlife ecosystem research and 
     monitoring in the Gulf Coast Region.
       (3) Offshore energy development, including research and 
     technology to improve the sustainable and safe development of 
     energy resources in the Gulf of Mexico.
       (4) Sustainable and resilient growth, economic and 
     commercial development in the Gulf Coast Region.
       (5) Comprehensive observation, monitoring, and mapping of 
     the Gulf of Mexico.

     SEC. 1606. EFFECT.

       (a) Definition of Deepwater Horizon Oil Spill.--In this 
     section, the term ``Deepwater Horizon oil spill'' has the 
     meaning given the term in section 311(a) of the Federal Water 
     Pollution Control Act (33 U.S.C. 1321(a)).
       (b) Effect and Application.--Nothing in this subtitle or 
     any amendment made by this subtitle--
       (1) supersedes or otherwise affects any other provision of 
     Federal law, including, in particular, laws providing 
     recovery for injury to natural resources under the Oil 
     Pollution Act of 1990 (33 U.S.C. 2701 et seq.) and laws for 
     the protection of public health and the environment; or
       (2) applies to any fine collected under section 311 of the 
     Federal Water Pollution Control Act (33 U.S.C. 1321) for any 
     incident other than the Deepwater Horizon oil spill.
       (c) Use of Funds.--Funds made available under this subtitle 
     may be used only for eligible activities specifically 
     authorized by this subtitle and the amendments made by this 
     subtitle.

     SEC. 1607. RESTORATION AND PROTECTION ACTIVITY LIMITATIONS.

       (a) Willing Seller.--Funds made available under this 
     subtitle may only be used to acquire land or interests in 
     land by purchase, exchange, or donation from a willing 
     seller.
       (b) Acquisition of Federal Land.--None of the funds made 
     available under this subtitle may be used to acquire land in 
     fee title by the Federal Government unless--
       (1) the land is acquired by exchange or donation; or
       (2) the acquisition is necessary for the restoration and 
     protection of the natural resources, ecosystems, fisheries, 
     marine and wildlife habitats, beaches, and coastal wetlands 
     of the Gulf Coast region and has the concurrence of the 
     Governor of the State in which the acquisition will take 
     place.

     SEC. 1608. INSPECTOR GENERAL.

       The Office of the Inspector General of the Department of 
     the Treasury shall have authority to conduct, supervise, and 
     coordinate audits and investigations of projects, programs, 
     and activities funded under this subtitle and the amendments 
     made by this subtitle.
          TITLE II--AMERICA FAST FORWARD FINANCING INNOVATION

     SEC. 2001. SHORT TITLE.

       This title may be cited as the ``America Fast Forward 
     Financing Innovation Act of 2012''.

     SEC. 2002. TRANSPORTATION INFRASTRUCTURE FINANCE AND 
                   INNOVATION ACT OF 1998 AMENDMENTS.

       Sections 601 through 609 of title 23, United States Code, 
     are amended to read as follows:

     ``Sec. 601. Generally applicable provisions

       ``(a) Definitions.--In this chapter, the following 
     definitions apply:
       ``(1) Contingent commitment.--The term `contingent 
     commitment' means a commitment to obligate an amount from 
     future available budget authority that is--
       ``(A) contingent on those funds being made available in law 
     at a future date; and
       ``(B) not an obligation of the Federal Government.
       ``(2) Eligible project costs.--The term `eligible project 
     costs' means amounts substantially all of which are paid by, 
     or for the account of, an obligor in connection with a 
     project, including the cost of--
       ``(A) development phase activities, including planning, 
     feasibility analysis, revenue forecasting, environmental 
     review, permitting, preliminary engineering and design work, 
     and other preconstruction activities;
       ``(B) construction, reconstruction, rehabilitation, 
     replacement, and acquisition of real property (including land 
     relating to the project and improvements to land), 
     environmental mitigation, construction contingencies, and 
     acquisition of equipment; and
       ``(C) capitalized interest necessary to meet market 
     requirements, reasonably required reserve funds, capital 
     issuance expenses, and other carrying costs during 
     construction.
       ``(3) Federal credit instrument.--The term `Federal credit 
     instrument' means a secured loan, loan guarantee, or line of 
     credit authorized to be made available under this chapter 
     with respect to a project.
       ``(4) Investment-grade rating.--The term `investment-grade 
     rating' means a rating of BBB minus, Baa3, bbb minus, BBB 
     (low), or higher assigned by a rating agency to project 
     obligations.
       ``(5) Lender.--The term `lender' means any non-Federal 
     qualified institutional buyer (as defined in section 
     230.144A(a) of title 17, Code of Federal Regulations (or any 
     successor regulation), known as Rule 144A(a) of the 
     Securities and Exchange Commission and issued under the 
     Securities Act of 1933 (15 U.S.C. 77a et seq.)), including--
       ``(A) a qualified retirement plan (as defined in section 
     4974(c) of the Internal Revenue Code of 1986) that is a 
     qualified institutional buyer; and
       ``(B) a governmental plan (as defined in section 414(d) of 
     the Internal Revenue Code of 1986) that is a qualified 
     institutional buyer.
       ``(6) Letter of interest.--The term `letter of interest' 
     means a letter submitted by a potential applicant prior to an 
     application for credit assistance in a format prescribed by 
     the Secretary on the website of the TIFIA program that--
       ``(A) describes the project and the location, purpose, and 
     cost of the project;
       ``(B) outlines the proposed financial plan, including the 
     requested credit assistance and the proposed obligor;
       ``(C) provides a status of environmental review; and
       ``(D) provides information regarding satisfaction of other 
     eligibility requirements of the TIFIA program.
       ``(7) Line of credit.--The term `line of credit' means an 
     agreement entered into by the Secretary with an obligor under 
     section 604 to provide a direct loan at a future date upon 
     the occurrence of certain events.
       ``(8) Limited buydown.--The term `limited buydown' means, 
     subject to the conditions described in section 603(b)(4)(C), 
     a buydown of the interest rate by the obligor if the interest 
     rate has increased between--
       ``(A)(i) the date on which a project application acceptable 
     to the Secretary is submitted; or
       ``(ii) the date on which the Secretary entered into a 
     master credit agreement; and
       ``(B) the date on which the Secretary executes the Federal 
     credit instrument.
       ``(9) Loan guarantee.--The term `loan guarantee' means any 
     guarantee or other pledge by the Secretary to pay all or part 
     of the principal of and interest on a loan or other debt 
     obligation issued by an obligor and funded by a lender.
       ``(10) Master credit agreement.--The term `master credit 
     agreement' means an agreement to extend credit assistance for 
     a program of projects secured by a common security pledge 
     (which shall receive an investment grade rating from a rating 
     agency), or for a single project covered under section 
     602(b)(2) that would--
       ``(A) make contingent commitments of 1 or more secured 
     loans or other Federal credit instruments at future dates, 
     subject to the availability of future funds being made 
     available to carry out this chapter;
       ``(B) establish the maximum amounts and general terms and 
     conditions of the secured loans or other Federal credit 
     instruments;
       ``(C) identify the 1 or more dedicated non-Federal revenue 
     sources that will secure the repayment of the secured loans 
     or secured Federal credit instruments;
       ``(D) provide for the obligation of funds for the secured 
     loans or secured Federal credit instruments after all 
     requirements have been met for the projects subject to the 
     master credit agreement, including--
       ``(i) completion of an environmental impact statement or 
     similar analysis required under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.);
       ``(ii) compliance with such other requirements as are 
     specified in section 602(c); and
       ``(iii) the availability of funds to carry out this 
     chapter; and
       ``(E) require that contingent commitments result in a 
     financial close and obligation of credit assistance not later 
     than 3 years after the date of entry into the master credit 
     agreement, or release of the commitment, unless otherwise 
     extended by the Secretary.
       ``(11) Obligor.--The term `obligor' means a party that--
       ``(A) is primarily liable for payment of the principal of 
     or interest on a Federal credit instrument; and
       ``(B) may be a corporation, partnership, joint venture, 
     trust, or governmental entity, agency, or instrumentality.
       ``(12) Project.--The term `project' means--
       ``(A) any surface transportation project eligible for 
     Federal assistance under this title or chapter 53 of title 
     49;

[[Page 10582]]

       ``(B) a project for an international bridge or tunnel for 
     which an international entity authorized under Federal or 
     State law is responsible;
       ``(C) a project for intercity passenger bus or rail 
     facilities and vehicles, including facilities and vehicles 
     owned by the National Railroad Passenger Corporation and 
     components of magnetic levitation transportation systems; and
       ``(D) a project that--
       ``(i) is a project--

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

       ``(ii) may involve the combining of private and public 
     sector funds, including investment of public funds in private 
     sector facility improvements;
       ``(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
       ``(iv) is composed of related highway, surface 
     transportation, transit, rail, or intermodal capital 
     improvement projects eligible for assistance under this 
     section in order to meet the eligible project cost threshold 
     under section 602, by grouping related projects together for 
     that purpose, subject to the condition that the credit 
     assistance for the projects is secured by a common pledge.
       ``(13) Project obligation.--The term `project obligation' 
     means any note, bond, debenture, or other debt obligation 
     issued by an obligor in connection with the financing of a 
     project, other than a Federal credit instrument.
       ``(14) Rating agency.--The term `rating agency' means a 
     credit rating agency registered with the Securities and 
     Exchange Commission as a nationally recognized statistical 
     rating organization (as that term is defined in section 3(a) 
     of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))).
       ``(15) Rural infrastructure project.--The term `rural 
     infrastructure project' means a surface transportation 
     infrastructure project located in any area other than a city 
     with a population of more than 250,000 inhabitants within the 
     city limits.
       ``(16) Secured loan.--The term `secured loan' means a 
     direct loan or other debt obligation issued by an obligor and 
     funded by the Secretary in connection with the financing of a 
     project under section 603.
       ``(17) State.--The term `State' has the meaning given the 
     term in section 101.
       ``(18) Subsidy amount.--The term `subsidy amount' means the 
     amount of budget authority sufficient to cover the estimated 
     long-term cost to the Federal Government of a Federal credit 
     instrument--
       ``(A) calculated on a net present value basis; and
       ``(B) excluding administrative costs and any incidental 
     effects on governmental receipts or outlays in accordance 
     with the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et 
     seq.).
       ``(19) Substantial completion.--The term `substantial 
     completion' means--
       ``(A) the opening of a project to vehicular or passenger 
     traffic; or
       ``(B) a comparable event, as determined by the Secretary 
     and specified in the credit agreement.
       ``(20) TIFIA program.--The term `TIFIA program' means the 
     transportation infrastructure finance and innovation program 
     of the Department.
       ``(b) Treatment of Chapter.--For purposes of this title, 
     this chapter shall be treated as being part of chapter 1.

     ``Sec. 602. Determination of eligibility and project 
       selection

       ``(a) Eligibility.--
       ``(1) In general.--A project shall be eligible to receive 
     credit assistance under this chapter if--
       ``(A) the entity proposing to carry out the project submits 
     a letter of interest prior to submission of a formal 
     application for the project; and
       ``(B) the project meets the criteria described in this 
     subsection.
       ``(2) Creditworthiness.--
       ``(A) In general.--To be eligible for assistance under this 
     chapter, a project shall satisfy applicable creditworthiness 
     standards, which, at a minimum, shall include--
       ``(i) a rate covenant, if applicable;
       ``(ii) adequate coverage requirements to ensure repayment;
       ``(iii) an investment grade rating from at least 2 rating 
     agencies on debt senior to the Federal credit instrument; and
       ``(iv) a rating from at least 2 rating agencies on the 
     Federal credit instrument, subject to the condition that, 
     with respect to clause (iii), if the total amount of the 
     senior debt and the Federal credit instrument is less than 
     $75,000,000, 1 rating agency opinion for each of the senior 
     debt and Federal credit instrument shall be sufficient.
       ``(B) Senior debt.--Notwithstanding subparagraph (A), in a 
     case in which the Federal credit instrument is the senior 
     debt, the Federal credit instrument shall be required to 
     receive an investment grade rating from at least 2 rating 
     agencies, unless the credit instrument is for an amount less 
     than $75,000,000, in which case 1 rating agency opinion shall 
     be sufficient.
       ``(3) Inclusion in transportation plans and programs.--A 
     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 chapter.
       ``(4) 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 that is 
     acceptable to the Secretary.
       ``(5) Eligible project costs.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     to be eligible for assistance under this chapter, a project 
     shall have eligible project costs that are reasonably 
     anticipated to equal or exceed the lesser of--
       ``(i)(I) $50,000,000; or
       ``(II) in the case of a rural infrastructure project, 
     $25,000,000; and
       ``(ii) 33\1/3\ percent of the amount of Federal highway 
     assistance funds apportioned for the most recently completed 
     fiscal year to the State in which the project is located.
       ``(B) Intelligent transportation system projects.--In the 
     case of a project principally involving the installation of 
     an intelligent transportation system, eligible project costs 
     shall be reasonably anticipated to equal or exceed 
     $15,000,000.
       ``(6) Dedicated revenue sources.--The applicable Federal 
     credit instrument shall be repayable, in whole or in part, 
     from--
       ``(A) tolls;
       ``(B) user fees;
       ``(C) payments owing to the obligor under a public-private 
     partnership; or
       ``(D) other dedicated revenue sources that also secure or 
     fund the project obligations.
       ``(7) Public sponsorship of private entities.--In the case 
     of a project that is undertaken by an entity that is not a 
     State or local government or an agency or instrumentality of 
     a State or local government, the project that the entity is 
     undertaking shall be publicly sponsored as provided in 
     paragraph (3).
       ``(8) Applications where obligor will be identified 
     later.--A State, local government, agency or instrumentality 
     of a State or local government, or public authority may 
     submit to the Secretary an application under paragraph (4), 
     under which a private party to a public-private partnership 
     will be--
       ``(A) the obligor; and
       ``(B) identified later through completion of a procurement 
     and selection of the private party.
       ``(9) Beneficial effects.--The Secretary shall determine 
     that financial assistance for the project under this chapter 
     will--
       ``(A) foster, if appropriate, partnerships that attract 
     public and private investment for the project;
       ``(B) enable the project to proceed at an earlier date than 
     the project would otherwise be able to proceed or reduce the 
     lifecycle costs (including debt service costs) of the 
     project; and
       ``(C) reduce the contribution of Federal grant assistance 
     for the project.
       ``(10) Project readiness.--To be eligible for assistance 
     under this chapter, the applicant shall demonstrate a 
     reasonable expectation that the contracting process for 
     construction of the project can commence by not later than 90 
     days after the date on which a Federal credit instrument is 
     obligated for the project under this chapter.
       ``(b) Selection Among Eligible Projects.--
       ``(1) Establishment.--The Secretary shall establish a 
     rolling application process under which projects that are 
     eligible to receive credit assistance under subsection (a) 
     shall receive credit assistance on terms acceptable to the 
     Secretary, if adequate funds are available to cover the 
     subsidy costs associated with the Federal credit instrument.
       ``(2) Adequate funding not available.--If the Secretary 
     fully obligates funding to eligible projects in a fiscal 
     year, and adequate funding is not available to fund a credit 
     instrument, a project sponsor of an eligible project may 
     elect to enter into a master credit agreement and wait until 
     the earlier of--
       ``(A) the following fiscal year; and
       ``(B) the fiscal year during which additional funds are 
     available to receive credit assistance.
       ``(3) Preliminary rating opinion letter.--The Secretary 
     shall require each project applicant to provide a preliminary 
     rating opinion letter from at least 1 rating agency--
       ``(A) indicating that the senior obligations of the 
     project, which may be the Federal credit instrument, have the 
     potential to achieve an investment-grade rating; and
       ``(B) including a preliminary rating opinion on the Federal 
     credit instrument.
       ``(c) Federal Requirements.--
       ``(1) In general.--In addition to the requirements of this 
     title for highway projects, the requirements of chapter 53 of 
     title 49 for transit projects, and the requirements of 
     section 5333(a) of title 49 for rail projects, the following 
     provisions of law shall apply to funds made available under 
     this chapter and projects assisted with those funds:
       ``(A) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 
     2000d et seq.).
       ``(B) The National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.).

[[Page 10583]]

       ``(C) The Uniform Relocation Assistance and Real Property 
     Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.).
       ``(2) NEPA.--No funding shall be obligated for a project 
     that has not received an environmental categorical exclusion, 
     a finding of no significant impact, or a record of decision 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.).
       ``(d) Application Processing Procedures.--
       ``(1) Notice of complete application.--Not later than 30 
     days after the date of receipt of an application under this 
     section, the Secretary shall provide to the applicant a 
     written notice to inform the applicant whether--
       ``(A) the application is complete; or
       ``(B) additional information or materials are needed to 
     complete the application.
       ``(2) Approval or denial of application.--Not later than 60 
     days after the date of issuance of the written notice under 
     paragraph (1), the Secretary shall provide to the applicant a 
     written notice informing the applicant whether the Secretary 
     has approved or disapproved the application.
       ``(e) Development Phase Activities.--Any credit instrument 
     secured under this chapter may be used to finance up to 100 
     percent of the cost of development phase activities as 
     described in section 601(a)(1)(A).

     ``Sec. 603. Secured loans

       ``(a) In General.--
       ``(1) Agreements.--Subject to paragraphs (2) and (3), the 
     Secretary may enter into agreements with 1 or more obligors 
     to make secured loans, the proceeds of which shall be used--
       ``(A) to finance eligible project costs of any project 
     selected under section 602;
       ``(B) to refinance interim construction financing of 
     eligible project costs of any project selected under section 
     602;
       ``(C) to refinance existing Federal credit instruments for 
     rural infrastructure projects; or
       ``(D) to refinance long-term project obligations or Federal 
     credit instruments, if the refinancing provides additional 
     funding capacity for the completion, enhancement, or 
     expansion of any project that--
       ``(i) is selected under section 602; or
       ``(ii) otherwise meets the requirements of section 602.
       ``(2) Limitation on refinancing of interim construction 
     financing.--A loan under paragraph (1) shall not refinance 
     interim construction financing under paragraph (1)(B) later 
     than 1 year after the date of substantial completion of the 
     project.
       ``(3) Risk assessment.--Before entering into an agreement 
     under this subsection, the Secretary, in consultation with 
     the Director of the Office of Management and Budget, shall 
     determine an appropriate capital reserve subsidy amount for 
     each secured loan, taking into account each rating letter 
     provided by an agency under section 602(b)(3)(B).
       ``(b) Terms and Limitations.--
       ``(1) In general.--A secured loan under this section with 
     respect to a project shall be on such terms and conditions 
     and contain such covenants, representations, warranties, and 
     requirements (including requirements for audits) as the 
     Secretary determines to be appropriate.
       ``(2) Maximum amount.--The amount of a secured loan under 
     this section shall not exceed the lesser of 49 percent of the 
     reasonably anticipated eligible project costs or if the 
     secured loan does not receive an investment grade rating, the 
     amount of the senior project obligations.
       ``(3) Payment.--A secured loan under this section--
       ``(A) shall--
       ``(i) be payable, in whole or in part, from--

       ``(I) tolls;
       ``(II) user fees;
       ``(III) payments owing to the obligor under a public-
     private partnership; or
       ``(IV) other dedicated revenue sources that also secure the 
     senior project obligations; and

       ``(ii) include a rate covenant, coverage requirement, or 
     similar security feature supporting the project obligations; 
     and
       ``(B) may have a lien on revenues described in subparagraph 
     (A), subject to any lien securing project obligations.
       ``(4) Interest rate.--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     and (C), the interest rate on a secured loan under this 
     section shall be not less than the yield on United States 
     Treasury securities of a similar maturity to the maturity of 
     the secured loan on the date of execution of the loan 
     agreement.
       ``(B) Rural infrastructure projects.--
       ``(i) In general.--The interest rate of a loan offered to a 
     rural infrastructure project under this chapter shall be at 
     \1/2\ of the Treasury Rate in effect on the date of execution 
     of the loan agreement.
       ``(ii) Application.--The rate described in clause (i) shall 
     only apply to any portion of a loan the subsidy cost of which 
     is funded by amounts set aside for rural infrastructure 
     projects under section 608(a)(3)(A).
       ``(C) Limited buydowns.--The interest rate of a secured 
     loan under this section may not be lowered by more than the 
     lower of--
       ``(i) 1\1/2\ percentage points (150 basis points); or
       ``(ii) the amount of the increase in the interest rate.
       ``(5) Maturity date.--The final maturity date of the 
     secured loan shall be the lesser of--
       ``(A) 35 years after the date of substantial completion of 
     the project; and
       ``(B) if the useful life of the capital asset being 
     financed is of a lesser period, the useful life of the asset.
       ``(6) Nonsubordination.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the secured loan shall not be subordinated to the claims of 
     any holder of project obligations in the event of bankruptcy, 
     insolvency, or liquidation of the obligor.
       ``(B) Preexisting indenture.--
       ``(i) In general.--The Secretary shall waive the 
     requirement under subparagraph (A) for a public agency 
     borrower that is financing ongoing capital programs and has 
     outstanding senior bonds under a preexisting indenture, if--

       ``(I) the secured loan is rated in the A category or 
     higher;
       ``(II) the secured loan is secured and payable from pledged 
     revenues not affected by project performance, such as a tax-
     backed revenue pledge or a system-backed pledge of project 
     revenues; and
       ``(III) the TIFIA program share of eligible project costs 
     is 33 percent or less.

       ``(ii) Limitation.--If the Secretary waives the 
     nonsubordination requirement under this subparagraph--

       ``(I) the maximum credit subsidy to be paid by the Federal 
     Government shall be not more than 10 percent of the principal 
     amount of the secured loan; and
       ``(II) the obligor shall be responsible for paying the 
     remainder of the subsidy cost, if any.

       ``(7) Fees.--The Secretary may establish fees at a level 
     sufficient to cover all or a portion of the costs to the 
     Federal Government of making a secured loan under this 
     section.
       ``(8) Non-federal share.--The proceeds of a secured loan 
     under this chapter may be used for any non-Federal share of 
     project costs required under this title or chapter 53 of 
     title 49, if the loan is repayable from non-Federal funds.
       ``(9) Maximum federal involvement.--The total Federal 
     assistance provided on a project receiving a loan under this 
     chapter shall not exceed 80 percent of the total project 
     cost.
       ``(c) Repayment.--
       ``(1) Schedule.--The Secretary shall establish a repayment 
     schedule for each secured loan under this section based on--
       ``(A) the projected cash flow from project revenues and 
     other repayment sources; and
       ``(B) the useful life of the project.
       ``(2) Commencement.--Scheduled loan repayments of principal 
     or interest on a secured loan under this section shall 
     commence not later than 5 years after the date of substantial 
     completion of the project.
       ``(3) Deferred payments.--
       ``(A) In general.--If, at any time after the date of 
     substantial completion of the project, the project is unable 
     to generate sufficient revenues to pay the scheduled loan 
     repayments of principal and interest on the secured loan, the 
     Secretary may, subject to subparagraph (C), allow the obligor 
     to add unpaid principal and interest to the outstanding 
     balance of the secured loan.
       ``(B) Interest.--Any payment deferred under subparagraph 
     (A) shall--
       ``(i) continue to accrue interest in accordance with 
     subsection (b)(4) until fully repaid; and
       ``(ii) be scheduled to be amortized over the remaining term 
     of the loan.
       ``(C) Criteria.--
       ``(i) In general.--Any payment deferral under subparagraph 
     (A) shall be contingent on the project meeting criteria 
     established by the Secretary.
       ``(ii) Repayment standards.--The criteria established 
     pursuant to clause (i) shall include standards for reasonable 
     assurance of repayment.
       ``(4) Prepayment.--
       ``(A) Use of excess revenues.--Any excess revenues that 
     remain after satisfying scheduled debt service requirements 
     on the project obligations and secured loan and all deposit 
     requirements under the terms of any trust agreement, bond 
     resolution, or similar agreement securing project obligations 
     may be applied annually to prepay the secured loan without 
     penalty.
       ``(B) Use of proceeds of refinancing.--The secured loan may 
     be prepaid at any time without penalty from the proceeds of 
     refinancing from non-Federal funding sources.
       ``(d) Sale of Secured Loans.--
       ``(1) In general.--Subject to paragraph (2), as soon as 
     practicable after substantial completion of a project and 
     after notifying the obligor, the Secretary may sell to 
     another entity or reoffer into the capital markets a secured 
     loan for the project if the Secretary determines that the 
     sale or reoffering can be made on favorable terms.
       ``(2) Consent of obligor.--In making a sale or reoffering 
     under paragraph (1), the Secretary may not change the 
     original terms and conditions of the secured loan without the 
     written consent of the obligor.
       ``(e) Loan Guarantees.--
       ``(1) In general.--The Secretary may provide a loan 
     guarantee to a lender in lieu of making a secured loan under 
     this section if the Secretary determines that the budgetary 
     cost of the loan guarantee is substantially the same as that 
     of a secured loan.
       ``(2) Terms.--The terms of a loan guarantee under paragraph 
     (1) shall be consistent with the terms required under this 
     section for a secured loan, except that the rate on the 
     guaranteed loan and any prepayment features shall be 
     negotiated between the obligor and the lender, with the 
     consent of the Secretary.

     ``Sec. 604. Lines of credit

       ``(a) In General.--
       ``(1) Agreements.--Subject to paragraphs (2) through (4), 
     the Secretary may enter into agreements to make available to 
     1 or more obligors lines of credit in the form of direct 
     loans to be made by the Secretary at future dates on the 
     occurrence of certain events for any project selected under 
     section 602.

[[Page 10584]]

       ``(2) Use of proceeds.--The proceeds of a line of credit 
     made available under this section shall be available to pay 
     debt service on project obligations issued to finance 
     eligible project costs, extraordinary repair and replacement 
     costs, operation and maintenance expenses, and costs 
     associated with unexpected Federal or State environmental 
     restrictions.
       ``(3) Risk assessment.--Before entering into an agreement 
     under this subsection, the Secretary, in consultation with 
     the Director of the Office of Management and Budget and each 
     rating agency providing a preliminary rating opinion letter 
     under section 602(b)(3), shall determine an appropriate 
     capital reserve subsidy amount for each line of credit, 
     taking into account the rating opinion letter.
       ``(4) Investment-grade rating requirement.--The funding of 
     a line of credit under this section shall be contingent on 
     the senior obligations of the project receiving an 
     investment-grade rating from 2 rating agencies.
       ``(b) Terms and Limitations.--
       ``(1) In general.--A line of credit under this section with 
     respect to a project shall be on such terms and conditions 
     and contain such covenants, representations, warranties, and 
     requirements (including requirements for audits) as the 
     Secretary determines to be appropriate.
       ``(2) Maximum amounts.--The total amount of a line of 
     credit under this section shall not exceed 33 percent of the 
     reasonably anticipated eligible project costs.
       ``(3) Draws.--Any draw on a line of credit under this 
     section shall--
       ``(A) represent a direct loan; and
       ``(B) be made only if net revenues from the project 
     (including capitalized interest, but not including reasonably 
     required financing reserves) are insufficient to pay the 
     costs specified in subsection (a)(2).
       ``(4) Interest rate.--Except as provided in subparagraphs 
     (B) and (C) of section 603(b)(4), the interest rate on a 
     direct loan resulting from a draw on the line of credit shall 
     be not less than the yield on 30-year United States Treasury 
     securities, as of the date of execution of the line of credit 
     agreement.
       ``(5) Security.--A line of credit issued under this 
     section--
       ``(A) shall--
       ``(i) be payable, in whole or in part, from--

       ``(I) tolls;
       ``(II) user fees;
       ``(III) payments owing to the obligor under a public-
     private partnership; or
       ``(IV) other dedicated revenue sources that also secure the 
     senior project obligations; and

       ``(ii) include a rate covenant, coverage requirement, or 
     similar security feature supporting the project obligations; 
     and
       ``(B) may have a lien on revenues described in subparagraph 
     (A), subject to any lien securing project obligations.
       ``(6) Period of availability.--The full amount of a line of 
     credit under this section, to the extent not drawn upon, 
     shall be available during the 10-year period beginning on the 
     date of substantial completion of the project.
       ``(7) Rights of third-party creditors.--
       ``(A) Against federal government.--A third-party creditor 
     of the obligor shall not have any right against the Federal 
     Government with respect to any draw on a line of credit under 
     this section.
       ``(B) Assignment.--An obligor may assign a line of credit 
     under this section to--
       ``(i) 1 or more lenders; or
       ``(ii) a trustee on the behalf of such a lender.
       ``(8) Nonsubordination.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a direct loan under this section shall not be subordinated to 
     the claims of any holder of project obligations in the event 
     of bankruptcy, insolvency, or liquidation of the obligor.
       ``(B) Pre-existing indenture.--
       ``(i) In general.--The Secretary shall waive the 
     requirement of subparagraph (A) for a public agency borrower 
     that is financing ongoing capital programs and has 
     outstanding senior bonds under a preexisting indenture, if--

       ``(I) the line of credit is rated in the A category or 
     higher;
       ``(II) the TIFIA program loan resulting from a draw on the 
     line of credit is payable from pledged revenues not affected 
     by project performance, such as a tax-backed revenue pledge 
     or a system-backed pledge of project revenues; and
       ``(III) the TIFIA program share of eligible project costs 
     is 33 percent or less.

       ``(ii) Limitation.--If the Secretary waives the 
     nonsubordination requirement under this subparagraph--

       ``(I) the maximum credit subsidy to be paid by the Federal 
     Government shall be not more than 10 percent of the principal 
     amount of the secured loan; and
       ``(II) the obligor shall be responsible for paying the 
     remainder of the subsidy cost.

       ``(9) Fees.--The Secretary may establish fees at a level 
     sufficient to cover all or a portion of the costs to the 
     Federal Government of providing a line of credit under this 
     section.
       ``(10) Relationship to other credit instruments.--A project 
     that receives a line of credit under this section also shall 
     not receive a secured loan or loan guarantee under section 
     603 in an amount that, combined with the amount of the line 
     of credit, exceeds 49 percent of eligible project costs.
       ``(c) Repayment.--
       ``(1) Terms and conditions.--The Secretary shall establish 
     repayment terms and conditions for each direct loan under 
     this section based on--
       ``(A) the projected cash flow from project revenues and 
     other repayment sources; and
       ``(B) the useful life of the asset being financed.
       ``(2) Timing.--All repayments of principal or interest on a 
     direct loan under this section shall be scheduled--
       ``(A) to commence not later than 5 years after the end of 
     the period of availability specified in subsection (b)(6); 
     and
       ``(B) to conclude, with full repayment of principal and 
     interest, by the date that is 25 years after the end of the 
     period of availability specified in subsection (b)(6).

     ``Sec. 605. Program administration

       ``(a) Requirement.--The Secretary shall establish a uniform 
     system to service the Federal credit instruments made 
     available under this chapter.
       ``(b) Fees.--The Secretary may collect and spend fees, 
     contingent on authority being provided in appropriations 
     Acts, at a level that is sufficient to cover--
       ``(1) the costs of services of expert firms retained 
     pursuant to subsection (d); and
       ``(2) 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.--A servicer appointed under paragraph (1) 
     shall act as the agent for the Secretary.
       ``(3) Fee.--A servicer appointed under paragraph (1) 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.
       ``(e) Expedited Processing.--The Secretary shall implement 
     procedures and measures to economize the time and cost 
     involved in obtaining approval and the issuance of credit 
     assistance under this chapter.

     ``Sec. 606. State and local permits

       ``The provision of credit assistance under this chapter 
     with respect to a project shall not--
       ``(1) relieve any recipient of the assistance of any 
     obligation to obtain any required State or local permit or 
     approval with respect to the project;
       ``(2) limit the right of any unit of State or local 
     government to approve or regulate any rate of return on 
     private equity invested in the project; or
       ``(3) otherwise supersede any State or local law (including 
     any regulation) applicable to the construction or operation 
     of the project.

     ``Sec. 607. Regulations

       ``The Secretary may promulgate such regulations as the 
     Secretary determines to be appropriate to carry out this 
     chapter.

     ``Sec. 608. Funding

       ``(a) Funding.--
       ``(1) Spending and borrowing authority.--Spending and 
     borrowing authority for a fiscal year to enter into Federal 
     credit instruments shall be promptly apportioned to the 
     Secretary on a fiscal-year basis.
       ``(2) Reestimates.--If the subsidy cost of a Federal credit 
     instrument is reestimated, the cost increase or decrease of 
     the reestimate shall be borne by, or benefit, the general 
     fund of the Treasury, consistent with section 504(f) the 
     Congressional Budget Act of 1974 (2 U.S.C. 661c(f)).
       ``(3) Rural set-aside.--
       ``(A) In general.--Of the total amount of funds made 
     available to carry out this chapter for each fiscal year, not 
     more than 10 percent shall be set aside for rural 
     infrastructure projects.
       ``(B) Reobligation.--Any amounts set aside under 
     subparagraph (A) that remain unobligated by June 1 of the 
     fiscal year for which the amounts were set aside shall be 
     available for obligation by the Secretary on projects other 
     than rural infrastructure projects.
       ``(4) Redistribution of authorized funding.--
       ``(A) In general.--Beginning in fiscal year 2014, on April 
     1 of each fiscal year, if the cumulative unobligated and 
     uncommitted balance of funding available exceeds 75 percent 
     of the amount made available to carry out this chapter for 
     that fiscal year, the Secretary shall distribute to the 
     States the amount of funds and associated obligation 
     authority in excess of that amount.
       ``(B) Distribution.--The amounts and obligation authority 
     distributed under this paragraph shall be distributed, in the 
     same manner as obligation authority is distributed to the 
     States for the fiscal year, based on the proportion that--
       ``(i) the relative share of each State of obligation 
     authority for the fiscal year; bears to
       ``(ii) the total amount of obligation authority distributed 
     to all States for the fiscal year.
       ``(C) Purpose.--Funds distributed under subparagraph (B) 
     shall be available for any purpose described in section 
     133(b).
       ``(5) Availability.--Amounts made available to carry out 
     this chapter shall remain available until expended.
       ``(6) Administrative costs.--Of the amounts made available 
     to carry out this chapter, the Secretary may use not more 
     than 0.50 percent for each fiscal year for the administration 
     of this chapter.
       ``(b) Contract Authority.--

[[Page 10585]]

       ``(1) In general.--Notwithstanding any other provision of 
     law, execution of a term sheet by the Secretary of a Federal 
     credit instrument that uses amounts made available under this 
     chapter shall impose on the United States a contractual 
     obligation to fund the Federal credit investment.
       ``(2) Availability.--Amounts made available to carry out 
     this chapter for a fiscal year shall be available for 
     obligation on October 1 of the fiscal year.

     ``Sec. 609. Reports to Congress

       ``(a) In General.--On June 1, 2012, and every 2 years 
     thereafter, the Secretary shall submit to Congress a report 
     summarizing the financial performance of the projects that 
     are receiving, or have received, assistance under this 
     chapter (other than section 610), including a recommendation 
     as to whether the objectives of this chapter (other than 
     section 610) are best served by--
       ``(1) continuing the program under the authority of the 
     Secretary;
       ``(2) establishing a Federal corporation or federally 
     sponsored enterprise to administer the program; or
       ``(3) phasing out the program and relying on the capital 
     markets to fund the types of infrastructure investments 
     assisted by this chapter (other than section 610) without 
     Federal participation.
       ``(b) Application Process Report.--
       ``(1) In general.--Not later than December 1, 2012, and 
     annually thereafter, the Secretary shall submit to the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives and the Committee on Environment and 
     Public Works of the Senate a report that includes a list of 
     all of the letters of interest and applications received from 
     project sponsors for assistance under this chapter (other 
     than section 610) during the preceding fiscal year.
       ``(2) Inclusions.--
       ``(A) In general.--Each report under paragraph (1) shall 
     include, at a minimum, a description of, with respect to each 
     letter of interest and application included in the report--
       ``(i) the date on which the letter of interest or 
     application was received;
       ``(ii) the date on which a notification was provided to the 
     project sponsor regarding whether the application was 
     complete or incomplete;
       ``(iii) the date on which a revised and completed 
     application was submitted (if applicable);
       ``(iv) the date on which a notification was provided to the 
     project sponsor regarding whether the project was approved or 
     disapproved; and
       ``(v) if the project was not approved, the reason for the 
     disapproval.
       ``(B) Correspondence.--Each report under paragraph (1) 
     shall include copies of any correspondence provided to the 
     project sponsor in accordance with section 602(d).''.
                   DIVISION B--PUBLIC TRANSPORTATION

     SEC. 20001. SHORT TITLE.

       This division may be cited as the ``Federal Public 
     Transportation Act of 2012''.

     SEC. 20002. REPEALS.

       (a) Chapter 53.--Chapter 53 of title 49, United States 
     Code, is amended by striking sections 5308, 5316, 5317, 5320, 
     and 5328.
       (b) Transportation Equity Act for the 21st Century.--
     Section 3038 of the Transportation Equity Act for the 21st 
     Century (49 U.S.C. 5310 note) is repealed.
       (c) SAFETEA-LU.--The following provisions are repealed:
       (1) Section 3009(i) of SAFETEA-LU (Public Law 109-59; 119 
     Stat. 1572).
       (2) Section 3011(c) of SAFETEA-LU (49 U.S.C. 5309 note).
       (3) Section 3012(b) of SAFETEA-LU (49 U.S.C. 5310 note).
       (4) Section 3045 of SAFETEA-LU (49 U.S.C. 5308 note).
       (5) Section 3046 of SAFETEA-LU (49 U.S.C. 5338 note).

     SEC. 20003. POLICIES AND PURPOSES.

       Section 5301 of title 49, United States Code, is amended to 
     read as follows:

     ``Sec. 5301. Policies and purposes

       ``(a) Declaration of Policy.--It is in the interest of the 
     United States, including the economic interest of the United 
     States, to foster the development and revitalization of 
     public transportation systems with the cooperation of both 
     public transportation companies and private companies engaged 
     in public transportation.
       ``(b) General Purposes.--The purposes of this chapter are 
     to--
       ``(1) provide funding to support public transportation;
       ``(2) improve the development and delivery of capital 
     projects;
       ``(3) establish standards for the state of good repair of 
     public transportation infrastructure and vehicles;
       ``(4) promote continuing, cooperative, and comprehensive 
     planning that improves the performance of the transportation 
     network;
       ``(5) establish a technical assistance program to assist 
     recipients under this chapter to more effectively and 
     efficiently provide public transportation service;
       ``(6) continue Federal support for public transportation 
     providers to deliver high quality service to all users, 
     including individuals with disabilities, seniors, and 
     individuals who depend on public transportation;
       ``(7) support research, development, demonstration, and 
     deployment projects dedicated to assisting in the delivery of 
     efficient and effective public transportation service; and
       ``(8) promote the development of the public transportation 
     workforce.''.

     SEC. 20004. DEFINITIONS.

       Section 5302 of title 49, United States Code, is amended to 
     read as follows:

     ``Sec. 5302. Definitions

       ``Except as otherwise specifically provided, in this 
     chapter the following definitions apply:
       ``(1) Associated transit improvement.--The term `associated 
     transit improvement' means, with respect to any project or an 
     area to be served by a project, projects that are designed to 
     enhance public transportation service or use and that are 
     physically or functionally related to transit facilities. 
     Eligible projects are--
       ``(A) historic preservation, rehabilitation, and operation 
     of historic public transportation buildings, structures, and 
     facilities (including historic bus and railroad facilities) 
     intended for use in public transportation service;
       ``(B) bus shelters;
       ``(C) landscaping and streetscaping, including benches, 
     trash receptacles, and street lights;
       ``(D) pedestrian access and walkways;
       ``(E) bicycle access, including bicycle storage facilities 
     and installing equipment for transporting bicycles on public 
     transportation vehicles;
       ``(F) signage; or
       ``(G) enhanced access for persons with disabilities to 
     public transportation.
       ``(2) Bus rapid transit system.--The term `bus rapid 
     transit system' means a bus transit system--
       ``(A) in which the majority of each line operates in a 
     separated right-of-way dedicated for public transportation 
     use during peak periods; and
       ``(B) that includes features that emulate the services 
     provided by rail fixed guideway public transportation 
     systems, including--
       ``(i) defined stations;
       ``(ii) traffic signal priority for public transportation 
     vehicles;
       ``(iii) short headway bidirectional services for a 
     substantial part of weekdays and weekend days; and
       ``(iv) any other features the Secretary may determine are 
     necessary to produce high-quality public transportation 
     services that emulate the services provided by rail fixed 
     guideway public transportation systems.
       ``(3) Capital project.--The term `capital project' means a 
     project for--
       ``(A) acquiring, constructing, supervising, or inspecting 
     equipment or a facility for use in public transportation, 
     expenses incidental to the acquisition or construction 
     (including designing, engineering, location surveying, 
     mapping, and acquiring rights-of-way), payments for the 
     capital portions of rail trackage rights agreements, transit-
     related intelligent transportation systems, relocation 
     assistance, acquiring replacement housing sites, and 
     acquiring, constructing, relocating, and rehabilitating 
     replacement housing;
       ``(B) rehabilitating a bus;
       ``(C) remanufacturing a bus;
       ``(D) overhauling rail rolling stock;
       ``(E) preventive maintenance;
       ``(F) leasing equipment or a facility for use in public 
     transportation, subject to regulations that the Secretary 
     prescribes limiting the leasing arrangements to those that 
     are more cost-effective than purchase or construction;
       ``(G) a joint development improvement that--
       ``(i) enhances economic development or incorporates private 
     investment, such as commercial and residential development;
       ``(ii)(I) enhances the effectiveness of public 
     transportation and is related physically or functionally to 
     public transportation; or
       ``(II) establishes new or enhanced coordination between 
     public transportation and other transportation;
       ``(iii) provides a fair share of revenue that will be used 
     for public transportation;
       ``(iv) provides that a person making an agreement to occupy 
     space in a facility constructed under this paragraph shall 
     pay a fair share of the costs of the facility through rental 
     payments and other means;
       ``(v) may include--

       ``(I) property acquisition;
       ``(II) demolition of existing structures;
       ``(III) site preparation;
       ``(IV) utilities;
       ``(V) building foundations;
       ``(VI) walkways;
       ``(VII) pedestrian and bicycle access to a public 
     transportation facility;
       ``(VIII) construction, renovation, and improvement of 
     intercity bus and intercity rail stations and terminals;
       ``(IX) renovation and improvement of historic 
     transportation facilities;
       ``(X) open space;
       ``(XI) safety and security equipment and facilities 
     (including lighting, surveillance, and related intelligent 
     transportation system applications);
       ``(XII) facilities that incorporate community services such 
     as daycare or health care;
       ``(XIII) a capital project for, and improving, equipment or 
     a facility for an intermodal transfer facility or 
     transportation mall; and
       ``(XIV) construction of space for commercial uses; and

       ``(vi) does not include outfitting of commercial space 
     (other than an intercity bus or rail station or terminal) or 
     a part of a public facility not related to public 
     transportation;
       ``(H) the introduction of new technology, through 
     innovative and improved products, into public transportation;
       ``(I) the provision of nonfixed route paratransit 
     transportation services in accordance with section 223 of the 
     Americans with Disabilities Act of 1990 (42 U.S.C. 12143), 
     but only for

[[Page 10586]]

     grant recipients that are in compliance with applicable 
     requirements of that Act, including both fixed route and 
     demand responsive service, and only for amounts not to exceed 
     10 percent of such recipient's annual formula apportionment 
     under sections 5307 and 5311;
       ``(J) 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;
       ``(K) mobility management--
       ``(i) consisting of short-range planning and management 
     activities and projects for improving coordination among 
     public transportation and other transportation service 
     providers carried out by a recipient or subrecipient through 
     an agreement entered into with a person, including a 
     governmental entity, under this chapter (other than section 
     5309); but
       ``(ii) excluding operating public transportation services; 
     or
       ``(L) associated capital maintenance, including--
       ``(i) equipment, tires, tubes, and material, each costing 
     at least .5 percent of the current fair market value of 
     rolling stock comparable to the rolling stock for which the 
     equipment, tires, tubes, and material are to be used; and
       ``(ii) reconstruction of equipment and material, each of 
     which after reconstruction will have a fair market value of 
     at least .5 percent of the current fair market value of 
     rolling stock comparable to the rolling stock for which the 
     equipment and material will be used.
       ``(4) Designated recipient.--The term `designated 
     recipient' means--
       ``(A) an entity designated, in accordance with the planning 
     process under sections 5303 and 5304, by the Governor of a 
     State, responsible local officials, and publicly owned 
     operators of public transportation, to receive and apportion 
     amounts under section 5336 to urbanized areas of 200,000 or 
     more in population; or
       ``(B) a State or regional authority, if the authority is 
     responsible under the laws of a State for a capital project 
     and for financing and directly providing public 
     transportation.
       ``(5) Disability.--The term `disability' has the same 
     meaning as in section 3(1) of the Americans with Disabilities 
     Act of 1990 (42 U.S.C. 12102).
       ``(6) Emergency regulation.--The term `emergency 
     regulation' means a regulation--
       ``(A) that is effective temporarily before the expiration 
     of the otherwise specified periods of time for public notice 
     and comment under section 5334(c); and
       ``(B) prescribed by the Secretary as the result of a 
     finding that a delay in the effective date of the 
     regulation--
       ``(i) would injure seriously an important public interest;
       ``(ii) would frustrate substantially legislative policy and 
     intent; or
       ``(iii) would damage seriously a person or class without 
     serving an important public interest.
       ``(7) Fixed guideway.--The term `fixed guideway' means a 
     public transportation facility--
       ``(A) using and occupying a separate right-of-way for the 
     exclusive use of public transportation;
       ``(B) using rail;
       ``(C) using a fixed catenary system;
       ``(D) for a passenger ferry system; or
       ``(E) for a bus rapid transit system.
       ``(8) Governor.--The term `Governor'--
       ``(A) means the Governor of a State, the mayor of the 
     District of Columbia, and the chief executive officer of a 
     territory of the United States; and
       ``(B) includes the designee of the Governor.
       ``(9) Job access and reverse commute project.--
       ``(A) In general.--The term `job access and reverse commute 
     project' means a transportation project to finance planning, 
     capital, and operating costs that support the development and 
     maintenance of transportation services designed to transport 
     welfare recipients and eligible low-income individuals to and 
     from jobs and activities related to their employment, 
     including transportation projects that facilitate the 
     provision of public transportation services from urbanized 
     areas and rural areas to suburban employment locations.
       ``(B) Definitions.--In this paragraph:
       ``(i) Eligible low-income individual.--The term `eligible 
     low-income individual' means an individual whose family 
     income is at or below 150 percent of the poverty line (as 
     that term is defined in section 673(2) of the Community 
     Service Block Grant Act (42 U.S.C. 9902(2)), including any 
     revision required by that section) for a family of the size 
     involved.
       ``(ii) Welfare recipient.--The term `welfare recipient' 
     means an individual who has received assistance under a State 
     or tribal program funded under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.) at any time 
     during the 3-year period before the date on which the 
     applicant applies for a grant under section 5307 or 5311.
       ``(10) Local governmental authority.--The term `local 
     governmental authority' includes--
       ``(A) a political subdivision of a State;
       ``(B) an authority of at least 1 State or political 
     subdivision of a State;
       ``(C) an Indian tribe; and
       ``(D) a public corporation, board, or commission 
     established under the laws of a State.
       ``(11) Low-income individual.--The term `low-income 
     individual' means an individual whose family income is at or 
     below 150 percent of the poverty line, as that term is 
     defined in section 673(2) of the Community Services Block 
     Grant Act (42 U.S.C. 9902(2)), including any revision 
     required by that section, for a family of the size involved.
       ``(12) Net project cost.--The term `net project cost' means 
     the part of a project that reasonably cannot be financed from 
     revenues.
       ``(13) New bus model.--The term `new bus model' means a bus 
     model (including a model using alternative fuel)--
       ``(A) that has not been used in public transportation in 
     the United States before the date of production of the model; 
     or
       ``(B) used in public transportation in the United States, 
     but being produced with a major change in configuration or 
     components.
       ``(14) Public transportation.--The term `public 
     transportation'--
       ``(A) means regular, continuing shared-ride surface 
     transportation services that are open to the general public 
     or open to a segment of the general public defined by age, 
     disability, or low income; and
       ``(B) does not include--
       ``(i) intercity passenger rail transportation provided by 
     the entity described in chapter 243 (or a successor to such 
     entity);
       ``(ii) intercity bus service;
       ``(iii) charter bus service;
       ``(iv) school bus service;
       ``(v) sightseeing service;
       ``(vi) courtesy shuttle service for patrons of one or more 
     specific establishments; or
       ``(vii) intra-terminal or intra-facility shuttle services.
       ``(15) Regulation.--The term `regulation' means any part of 
     a statement of general or particular applicability of the 
     Secretary designed to carry out, interpret, or prescribe law 
     or policy in carrying out this chapter.
       ``(16) Rural area.--The term `rural area' means an area 
     encompassing a population of less than 50,000 people that has 
     not been designated in the most recent decennial census as an 
     `urbanized area' by the Secretary of Commerce.
       ``(17) Secretary.--The term `Secretary' means the Secretary 
     of Transportation.
       ``(18) Senior.--The term `senior' means an individual who 
     is 65 years of age or older.
       ``(19) State.--The term `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.
       ``(20) State of good repair.--The term `state of good 
     repair' has the meaning given that term by the Secretary, by 
     rule, under section 5326(b).
       ``(21) Transit.--The term `transit' means public 
     transportation.
       ``(22) Urban area.--The term `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.
       ``(23) 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. 20005. METROPOLITAN TRANSPORTATION PLANNING.

       (a) Amendment.--Section 5303 of title 49, United States 
     Code, is amended to read as follows:

     ``Sec. 5303. Metropolitan transportation planning

       ``(a) Policy.--It is in the national interest--
       ``(1) to encourage and promote the safe and efficient 
     management, operation, and development of surface 
     transportation systems that will serve the mobility needs of 
     people and freight and foster economic growth and development 
     within and between States and urbanized areas, while 
     minimizing transportation-related fuel consumption and air 
     pollution through metropolitan and statewide transportation 
     planning processes identified in this chapter; and
       ``(2) to encourage the continued improvement and evolution 
     of the metropolitan and statewide transportation planning 
     processes by metropolitan planning organizations, State 
     departments of transportation, and public transit operators 
     as guided by the planning factors identified in subsection 
     (h) and section 5304(d).
       ``(b) Definitions.--In this section and section 5304, the 
     following definitions apply:
       ``(1) Metropolitan planning area.--The term `metropolitan 
     planning area' means the geographic area determined by 
     agreement between the metropolitan planning organization for 
     the area and the Governor under subsection (e).
       ``(2) Metropolitan planning organization.--The term 
     `metropolitan planning organization' means the policy board 
     of an organization established as a result of the designation 
     process under subsection (d).
       ``(3) Nonmetropolitan area.--The term `nonmetropolitan 
     area' means a geographic area outside designated metropolitan 
     planning areas.
       ``(4) Nonmetropolitan local official.--The term 
     `nonmetropolitan local official' means elected and appointed 
     officials of general purpose local government in a 
     nonmetropolitan area with responsibility for transportation.
       ``(5) Regional transportation planning organization.--The 
     term `regional transportation planning organization' means a 
     policy board of an organization established as the result of 
     a designation under section 5304(l).
       ``(6) TIP.--The term `TIP' means a transportation 
     improvement program developed by a metropolitan planning 
     organization under subsection (j).
       ``(7) Urbanized area.--The term `urbanized area' means a 
     geographic area with a population of 50,000 or more, as 
     determined by the Bureau of the Census.

[[Page 10587]]

       ``(c) General Requirements.--
       ``(1) Development of long-range plans and tips.--To 
     accomplish the objectives in subsection (a), metropolitan 
     planning organizations designated under subsection (d), in 
     cooperation with the State and public transportation 
     operators, shall develop long-range transportation plans and 
     transportation improvement programs through a performance-
     driven, outcome-based approach to planning for metropolitan 
     areas of the State.
       ``(2) Contents.--The plans and TIPs for each metropolitan 
     area shall provide for the development and integrated 
     management and operation of transportation systems and 
     facilities (including accessible pedestrian walkways and 
     bicycle transportation facilities) that will function as an 
     intermodal transportation system for the metropolitan 
     planning area and as an integral part of an intermodal 
     transportation system for the State and the United States.
       ``(3) Process of development.--The process for developing 
     the plans and TIPs shall provide for consideration of all 
     modes of transportation and shall be continuing, cooperative, 
     and comprehensive to the degree appropriate, based on the 
     complexity of the transportation problems to be addressed.
       ``(d) Designation of Metropolitan Planning Organizations.--
       ``(1) In general.--To carry out the transportation planning 
     process required by this section, a metropolitan planning 
     organization shall be designated for each urbanized area with 
     a population of more than 50,000 individuals--
       ``(A) by agreement between the Governor and units of 
     general purpose local government that together represent at 
     least 75 percent of the affected population (including the 
     largest incorporated city (based on population) as determined 
     by the Bureau of the Census); or
       ``(B) in accordance with procedures established by 
     applicable State or local law.
       ``(2) Structure.--Not later than 2 years after the date of 
     enactment of the Federal Public Transportation Act of 2012, 
     each metropolitan planning organization that serves an area 
     designated 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, including representation by providers of public 
     transportation; 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 the plans and TIPs 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.--A designation of a 
     metropolitan planning organization under this subsection or 
     any other provision of law shall remain in effect until the 
     metropolitan planning organization is redesignated under 
     paragraph (5).
       ``(5) Redesignation procedures.--
       ``(A) In general.--A metropolitan planning organization may 
     be redesignated by agreement between the Governor and units 
     of general purpose local government that together represent 
     at least 75 percent of the existing planning area population 
     (including the largest incorporated city (based on 
     population) as determined by the Bureau of the Census) as 
     appropriate to carry out this section.
       ``(B) Restructuring.--A metropolitan planning organization 
     may be restructured to meet the requirements of paragraph (2) 
     without undertaking a redesignation.
       ``(6) Designation of more than 1 metropolitan planning 
     organization.--More than 1 metropolitan planning organization 
     may be designated within an existing metropolitan planning 
     area only if the Governor and the existing metropolitan 
     planning organization determine that the size and complexity 
     of the existing metropolitan planning area make designation 
     of more than 1 metropolitan planning organization for the 
     area appropriate.
       ``(e) Metropolitan Planning Area Boundaries.--
       ``(1) In general.--For the purposes of this section, the 
     boundaries of a metropolitan planning area shall be 
     determined by agreement between the metropolitan planning 
     organization and the Governor.
       ``(2) Included area.--Each metropolitan planning area--
       ``(A) shall encompass at least the existing urbanized area 
     and the contiguous area expected to become urbanized within a 
     20-year forecast period for the transportation plan; and
       ``(B) may encompass the entire metropolitan statistical 
     area or consolidated metropolitan statistical area, as 
     defined by the Bureau of the Census.
       ``(3) Identification of new urbanized areas within existing 
     planning area boundaries.--The designation by the Bureau of 
     the Census of new urbanized areas within an existing 
     metropolitan planning area shall not require the 
     redesignation of the existing metropolitan planning 
     organization.
       ``(4) Existing metropolitan planning areas in 
     nonattainment.--
       ``(A) In general.--Notwithstanding paragraph (2), except as 
     provided in subparagraph (B), in the case of an urbanized 
     area designated as a nonattainment area for ozone or carbon 
     monoxide under the Clean Air Act (42 U.S.C. 7401 et seq.) as 
     of the date of enactment of the SAFETEA-LU, the boundaries of 
     the metropolitan planning area in existence as of such date 
     of enactment shall be retained.
       ``(B) Exception.--The boundaries described in subparagraph 
     (A) may be adjusted by agreement of the Governor and affected 
     metropolitan planning organizations in the manner described 
     in subsection (d)(5).
       ``(5) New metropolitan planning areas in nonattainment.--In 
     the case of an urbanized area designated after the date of 
     enactment of the SAFETEA-LU, as a nonattainment area for 
     ozone or carbon monoxide, the boundaries of the metropolitan 
     planning area--
       ``(A) shall be established in the manner described in 
     subsection (d)(1);
       ``(B) shall encompass the areas described in paragraph 
     (2)(A);
       ``(C) may encompass the areas described in paragraph 
     (2)(B); and
       ``(D) may address any nonattainment area identified under 
     the Clean Air Act (42 U.S.C. 7401 et seq.) for ozone or 
     carbon monoxide.
       ``(f) Coordination in Multistate Areas.--
       ``(1) In general.--The Secretary shall encourage each 
     Governor with responsibility for a portion of a multistate 
     metropolitan area and the appropriate metropolitan planning 
     organizations to provide coordinated transportation planning 
     for the entire metropolitan area.
       ``(2) Interstate compacts.--The consent of Congress is 
     granted to any 2 or more States--
       ``(A) to enter into agreements or compacts, not in conflict 
     with any law of the United States, for cooperative efforts 
     and mutual assistance in support of activities authorized 
     under this section as the activities pertain to interstate 
     areas and localities within the States; and
       ``(B) to establish such agencies, joint or otherwise, as 
     the States may determine desirable for making the agreements 
     and compacts effective.
       ``(3) Reservation of rights.--The right to alter, amend, or 
     repeal interstate compacts entered into under this subsection 
     is expressly reserved.
       ``(g) MPO Consultation in Plan and TIP Coordination.--
       ``(1) Nonattainment areas.--If more than 1 metropolitan 
     planning organization has authority within a metropolitan 
     area or an area which is designated as a nonattainment area 
     for ozone or carbon monoxide under the Clean Air Act (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 and TIPs required by this section.
       ``(2) Transportation improvements located in multiple 
     mpos.--If a transportation improvement, funded under this 
     chapter or title 23, is located within the boundaries of more 
     than 1 metropolitan planning area, the metropolitan planning 
     organizations shall coordinate plans and TIPs regarding the 
     transportation improvement.
       ``(3) Relationship with other planning officials.--
       ``(A) In general.--The Secretary shall encourage each 
     metropolitan planning organization to consult with officials 
     responsible for other types of planning activities that are 
     affected by transportation in the area (including State and 
     local planned growth, economic development, environmental 
     protection, airport operations, and freight movements) or to 
     coordinate its planning process, to the maximum extent 
     practicable, with such planning activities.
       ``(B) Requirements.--Under the metropolitan planning 
     process, transportation plans and TIPs shall be developed 
     with due consideration of other related planning activities 
     within the metropolitan area, and the process shall provide 
     for the design and delivery of transportation services within 
     the metropolitan area that are provided by--
       ``(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.
       ``(h) Scope of Planning Process.--
       ``(1) In general.--The metropolitan planning process for a 
     metropolitan planning area under this section shall provide 
     for consideration of projects and strategies that will--
       ``(A) support the economic vitality of the metropolitan 
     area, especially by enabling global competitiveness, 
     productivity, and efficiency;
       ``(B) increase the safety of the transportation system for 
     motorized and nonmotorized users;
       ``(C) increase the security of the transportation system 
     for motorized and nonmotorized users;
       ``(D) increase the accessibility and mobility of people and 
     for freight;
       ``(E) protect and enhance the environment, promote energy 
     conservation, improve the quality of life, and promote 
     consistency between transportation improvements and State and 
     local planned growth and economic development patterns;
       ``(F) enhance the integration and connectivity of the 
     transportation system, across and between modes, for people 
     and freight;
       ``(G) promote efficient system management and operation; 
     and
       ``(H) emphasize the preservation of the existing 
     transportation system.
       ``(2) Performance-based approach.--

[[Page 10588]]

       ``(A) In general.--The metropolitan transportation planning 
     process shall provide for the establishment and use of a 
     performance-based approach to transportation decisionmaking 
     to support the national goals described in section 150(b) of 
     title 23 and the general purposes described in section 5301.
       ``(B) Performance targets.--
       ``(i) Surface transportation performance targets.--

       ``(I) In general.--Each metropolitan planning organization 
     shall establish performance targets that address the 
     performance measures described in section 150(c) of title 23, 
     where applicable, to use in tracking progress towards 
     attainment of critical outcomes for the region of the 
     metropolitan planning organization.
       ``(II) Coordination.--Selection of performance targets by a 
     metropolitan planning organization shall be coordinated with 
     the relevant State to ensure consistency, to the maximum 
     extent practicable.

       ``(ii) Public transportation performance targets.--
     Selection of performance targets by a metropolitan planning 
     organization shall be coordinated, to the maximum extent 
     practicable, with providers of public transportation to 
     ensure consistency with sections 5326(c) and 5329(d).
       ``(C) Timing.--Each metropolitan planning organization 
     shall establish the performance targets under subparagraph 
     (B) not later than 180 days after the date on which the 
     relevant State or provider of public transportation 
     establishes the performance targets.
       ``(D) Integration of other performance-based plans.--A 
     metropolitan planning organization shall integrate in the 
     metropolitan transportation planning process, directly or by 
     reference, the goals, objectives, performance measures, and 
     targets described in other State transportation plans and 
     transportation processes, as well as any plans developed by 
     recipients of assistance under this chapter, required as part 
     of a performance-based program.
       ``(3) Failure to consider factors.--The failure to consider 
     any factor specified in paragraphs (1) and (2) shall not be 
     reviewable by any court under this chapter, title 23, 
     subchapter II of chapter 5 of title 5, or chapter 7 of title 
     5 in any matter affecting a transportation plan, a TIP, a 
     project or strategy, or the certification of a planning 
     process.
       ``(i) Development of Transportation Plan.--
       ``(1) Requirements.--
       ``(A) In general.--Each metropolitan planning organization 
     shall prepare and update a transportation plan for its 
     metropolitan planning area in accordance with the 
     requirements of this subsection.
       ``(B) Frequency.--
       ``(i) In general.--The metropolitan planning organization 
     shall prepare and update such plan every 4 years (or more 
     frequently, if the metropolitan planning organization elects 
     to update more frequently) in the case of each of the 
     following:

       ``(I) Any area designated as nonattainment, as defined in 
     section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)).
       ``(II) Any area that was nonattainment and subsequently 
     designated to attainment in accordance with section 107(d)(3) 
     of that Act (42 U.S.C. 7407(d)(3)) and that is subject to a 
     maintenance plan under section 175A of that Act (42 U.S.C. 
     7505a).

       ``(ii) Other areas.--In the case of any other area required 
     to have a transportation plan in accordance with the 
     requirements of this subsection, the metropolitan planning 
     organization shall prepare and update such plan every 5 years 
     unless the metropolitan planning organization elects to 
     update more frequently.
       ``(2) Transportation plan.--A transportation plan under 
     this section shall be in a form that the Secretary determines 
     to be appropriate and shall contain, at a minimum, the 
     following:
       ``(A) Identification of transportation facilities.--
       ``(i) In general.--An identification of transportation 
     facilities (including major roadways, transit, multimodal and 
     intermodal facilities, nonmotorized transportation 
     facilities, and intermodal connectors) that should function 
     as an integrated metropolitan transportation system, giving 
     emphasis to those facilities that serve important national 
     and regional transportation functions.
       ``(ii) Factors.--In formulating the transportation plan, 
     the metropolitan planning organization shall consider factors 
     described in subsection (h) as the factors relate to a 20-
     year forecast period.
       ``(B) Performance measures and targets.--A description of 
     the performance measures and performance targets used in 
     assessing the performance of the transportation system in 
     accordance with subsection (h)(2).
       ``(C) System performance report.--A system performance 
     report and subsequent updates evaluating the condition and 
     performance of the transportation system with respect to the 
     performance targets described in subsection (h)(2), 
     including--
       ``(i) progress achieved by the metropolitan planning 
     organization in meeting the performance targets in comparison 
     with system performance recorded in previous reports; and
       ``(ii) for metropolitan planning organizations that 
     voluntarily elect to develop multiple scenarios, an analysis 
     of how the preferred scenario has improved the conditions and 
     performance of the transportation system and how changes in 
     local policies and investments have impacted the costs 
     necessary to achieve the identified performance targets.
       ``(D) Mitigation activities.--
       ``(i) In general.--A long-range transportation plan shall 
     include a discussion of types of potential environmental 
     mitigation activities and potential areas to carry out these 
     activities, including activities that may have the greatest 
     potential to restore and maintain the environmental functions 
     affected by the plan.
       ``(ii) Consultation.--The discussion shall be developed in 
     consultation with Federal, State, and tribal wildlife, land 
     management, and regulatory agencies.
       ``(E) Financial plan.--
       ``(i) In general.--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; and
       ``(III) recommends any additional financing strategies for 
     needed projects and programs.

       ``(ii) Inclusions.--The financial plan may include, for 
     illustrative purposes, additional projects that would be 
     included in the adopted transportation plan if reasonable 
     additional resources beyond those identified in the financial 
     plan were available.
       ``(iii) Cooperative development.--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.
       ``(F) Operational and management strategies.--Operational 
     and management strategies to improve the performance of 
     existing transportation facilities to relieve vehicular 
     congestion and maximize the safety and mobility of people and 
     goods.
       ``(G) Capital investment and other strategies.--Capital 
     investment and other strategies to preserve the existing and 
     projected future metropolitan transportation infrastructure 
     and provide for multimodal capacity increases based on 
     regional priorities and needs.
       ``(H) Transportation and transit enhancement activities.--
     Proposed transportation and transit enhancement activities.
       ``(3) Coordination with clean air act agencies.--In 
     metropolitan areas that are 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 that 
     Act.
       ``(4) Optional scenario development.--
       ``(A) In general.--A metropolitan planning organization 
     may, while fitting the needs and complexity of its community, 
     voluntarily elect to develop multiple scenarios for 
     consideration as part of the development of the metropolitan 
     transportation plan, in accordance with subparagraph (B).
       ``(B) Recommended components.--A metropolitan planning 
     organization that chooses to develop multiple scenarios under 
     subparagraph (A) shall be encouraged to consider--
       ``(i) potential regional investment strategies for the 
     planning horizon;
       ``(ii) assumed distribution of population and employment;
       ``(iii) a scenario that, to the maximum extent practicable, 
     maintains baseline conditions for the performance measures 
     identified in subsection (h)(2);
       ``(iv) a scenario that improves the baseline conditions for 
     as many of the performance measures identified in subsection 
     (h)(2) as possible;
       ``(v) revenue constrained scenarios based on the total 
     revenues expected to be available over the forecast period of 
     the plan; and
       ``(vi) estimated costs and potential revenues available to 
     support each scenario.
       ``(C) Metrics.--In addition to the performance measures 
     identified in section 150(c) of title 23, metropolitan 
     planning organizations may evaluate scenarios developed under 
     this paragraph using locally-developed measures.
       ``(5) Consultation.--
       ``(A) In general.--In each metropolitan area, the 
     metropolitan planning organization shall consult, as 
     appropriate, with State and local agencies responsible for 
     land use management, natural resources, environmental 
     protection, conservation, and historic preservation 
     concerning the development of a long-range transportation 
     plan.
       ``(B) Issues.--The consultation shall involve, as 
     appropriate--
       ``(i) comparison of transportation plans with State 
     conservation plans or maps, if available; or
       ``(ii) comparison of transportation plans to inventories of 
     natural or historic resources, if available.
       ``(6) Participation by interested parties.--
       ``(A) In general.--Each metropolitan planning organization 
     shall provide citizens, affected public agencies, 
     representatives of public transportation employees, freight 
     shippers, providers of freight transportation services, 
     private providers of transportation, representatives of users 
     of public transportation, representatives of users of 
     pedestrian walkways and bicycle transportation facilities, 
     representatives of the disabled, and other interested parties 
     with a reasonable opportunity to comment on the 
     transportation plan.
       ``(B) Contents of participation plan.--A participation 
     plan--
       ``(i) shall be developed in consultation with all 
     interested parties; and
       ``(ii) shall provide that all interested parties have 
     reasonable opportunities to comment on the contents of the 
     transportation plan.

[[Page 10589]]

       ``(C) Methods.--In carrying out subparagraph (A), the 
     metropolitan planning organization shall, to the maximum 
     extent practicable--
       ``(i) hold any public meetings at convenient and accessible 
     locations and times;
       ``(ii) employ visualization techniques to describe plans; 
     and
       ``(iii) make public information available in electronically 
     accessible format and means, such as the World Wide Web, as 
     appropriate to afford reasonable opportunity for 
     consideration of public information under subparagraph (A).
       ``(7) Publication.--A transportation plan involving Federal 
     participation shall be published or otherwise made readily 
     available by the metropolitan planning organization for 
     public review, including (to the maximum extent practicable) 
     in electronically accessible formats and means, such as the 
     World Wide Web, approved by the metropolitan planning 
     organization and submitted for information purposes to the 
     Governor at such times and in such manner as the Secretary 
     shall establish.
       ``(8) Selection of projects from illustrative list.--
     Notwithstanding paragraph (2)(C), a State or metropolitan 
     planning organization shall not be required to select any 
     project from the illustrative list of additional projects 
     included in the financial plan under paragraph (2)(C).
       ``(j) Metropolitan TIP.--
       ``(1) Development.--
       ``(A) In general.--In cooperation with the State and any 
     affected public transportation operator, the metropolitan 
     planning organization designated for a metropolitan area 
     shall develop a TIP for the metropolitan planning area that--
       ``(i) contains projects consistent with the current 
     metropolitan transportation plan;
       ``(ii) reflects the investment priorities established in 
     the current metropolitan transportation plan; and
       ``(iii) once implemented, is designed to make progress 
     toward achieving the performance targets established under 
     subsection (h)(2).
       ``(B) Opportunity for comment.--In developing the TIP, the 
     metropolitan planning organization, in cooperation with the 
     State and any affected public transportation operator, shall 
     provide an opportunity for participation by interested 
     parties in the development of the program, in accordance with 
     subsection (i)(5).
       ``(C) Funding estimates.--For the purpose of developing the 
     TIP, the metropolitan planning organization, public 
     transportation agency, and State shall cooperatively develop 
     estimates of funds that are reasonably expected to be 
     available to support program implementation.
       ``(D) Updating and approval.--The TIP shall be--
       ``(i) updated at least once every 4 years; and
       ``(ii) approved by the metropolitan planning organization 
     and the Governor.
       ``(2) Contents.--
       ``(A) Priority list.--The TIP shall include a priority list 
     of proposed Federally supported projects and strategies to be 
     carried out within each 4-year period after the initial 
     adoption of the TIP.
       ``(B) Financial plan.--The TIP shall include a financial 
     plan that--
       ``(i) demonstrates how the TIP can be implemented;
       ``(ii) indicates resources from public and private sources 
     that are reasonably expected to be available to carry out the 
     program;
       ``(iii) identifies innovative financing techniques to 
     finance projects, programs, and strategies; and
       ``(iv) may include, for illustrative purposes, additional 
     projects that would be included in the approved TIP if 
     reasonable additional resources beyond those identified in 
     the financial plan were available.
       ``(C) Descriptions.--Each project in the TIP shall include 
     sufficient descriptive material (such as type of work, 
     termini, length, and other similar factors) to identify the 
     project or phase of the project.
       ``(D) Performance target achievement.--The transportation 
     improvement program shall include, to the maximum extent 
     practicable, a description of the anticipated effect of the 
     transportation improvement program toward achieving the 
     performance targets established in the metropolitan 
     transportation plan, linking investment priorities to those 
     performance targets.
       ``(3) Included projects.--
       ``(A) Projects under this chapter and title 23.--A TIP 
     developed under this subsection for a metropolitan area shall 
     include the projects within the area that are proposed for 
     funding under this chapter and chapter 1 of title 23.
       ``(B) Projects under chapter 2 of title 23.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 of 
     title 23 shall be identified individually in the 
     transportation improvement program.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 of title 23 that are not determined to be 
     regionally significant shall be grouped in 1 line item or 
     identified individually in the transportation improvement 
     program.
       ``(C) Consistency with long-range transportation plan.--
     Each project shall be consistent with the long-range 
     transportation plan developed under subsection (i) for the 
     area.
       ``(D) Requirement of anticipated full funding.--The program 
     shall include a project, or an identified phase of a project, 
     only if full funding can reasonably be anticipated to be 
     available for the project or the identified phase within the 
     time period contemplated for completion of the project or the 
     identified phase.
       ``(4) Notice and comment.--Before approving a TIP, a 
     metropolitan planning organization, in cooperation with the 
     State and any affected public transportation operator, shall 
     provide an opportunity for participation by interested 
     parties in the development of the program, in accordance with 
     subsection (i)(5).
       ``(5) Selection of projects.--
       ``(A) In general.--Except as otherwise provided in 
     subsection (k)(4) and in addition to the TIP development 
     required under paragraph (1), the selection of Federally 
     funded projects in metropolitan areas shall be carried out, 
     from the approved TIP--
       ``(i) by--

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

       ``(ii) in cooperation with the metropolitan planning 
     organization.
       ``(B) Modifications to project priority.--Notwithstanding 
     any other provision of law, action by the Secretary shall not 
     be required to advance a project included in the approved TIP 
     in place of another project in the program.
       ``(6) Selection of projects from illustrative list.--
       ``(A) No required selection.--Notwithstanding paragraph 
     (2)(B)(iv), a State or metropolitan planning organization 
     shall not be required to select any project from the 
     illustrative list of additional projects included in the 
     financial plan under paragraph (2)(B)(iv).
       ``(B) Required action by the secretary.--Action by the 
     Secretary shall be required for a State or metropolitan 
     planning organization to select any project from the 
     illustrative list of additional projects included in the 
     financial plan under paragraph (2)(B)(iv) for inclusion in an 
     approved TIP.
       ``(7) Publication.--
       ``(A) Publication of tips.--A TIP involving Federal 
     participation shall be published or otherwise made readily 
     available by the metropolitan planning organization for 
     public review.
       ``(B) Publication of annual listings of projects.--
       ``(i) In general.--An annual listing of projects, including 
     investments in pedestrian walkways and bicycle transportation 
     facilities, for which Federal funds have been obligated in 
     the preceding year shall be published or otherwise made 
     available by the cooperative effort of the State, transit 
     operator, and metropolitan planning organization for public 
     review.
       ``(ii) Requirement.--The listing shall be consistent with 
     the categories identified in the TIP.
       ``(k) Transportation Management Areas.--
       ``(1) Identification and designation.--
       ``(A) Required identification.--The Secretary shall 
     identify as a transportation management area each urbanized 
     area (as defined by the Bureau of the Census) with a 
     population of over 200,000 individuals.
       ``(B) Designations on request.--The Secretary shall 
     designate any additional area as a transportation management 
     area on the request of the Governor and the metropolitan 
     planning organization designated for the area.
       ``(2) Transportation plans.--In a transportation management 
     area, transportation plans shall be based on a continuing and 
     comprehensive transportation planning process carried out by 
     the metropolitan planning organization in cooperation with 
     the State and public transportation operators.
       ``(3) Congestion management process.--
       ``(A) In general.--Within a metropolitan planning area 
     serving a transportation management area, the transportation 
     planning process under this section shall address congestion 
     management through a process that provides for effective 
     management and operation, based on a cooperatively developed 
     and implemented metropolitan-wide strategy, of new and 
     existing transportation facilities eligible for funding under 
     this chapter and title 23 through the use of travel demand 
     reduction and operational management strategies.
       ``(B) Schedule.--The Secretary shall establish an 
     appropriate phase-in schedule for compliance with the 
     requirements of this section but no sooner than 1 year after 
     the identification of a transportation management area.
       ``(4) Selection of projects.--
       ``(A) In general.--All Federally funded projects carried 
     out within the boundaries of a metropolitan planning area 
     serving a transportation management area under title 23 
     (excluding projects carried out on the National Highway 
     System) or under this chapter shall be selected for 
     implementation from the approved TIP by the metropolitan 
     planning organization designated for the area in consultation 
     with the State and any affected public transportation 
     operator.
       ``(B) National highway system projects.--Projects carried 
     out within the boundaries of a metropolitan planning area 
     serving a transportation management area on the National 
     Highway System shall be selected for implementation from the 
     approved TIP by the State in cooperation with the 
     metropolitan planning organization designated for the area.
       ``(5) Certification.--
       ``(A) In general.--The Secretary shall--
       ``(i) ensure that the metropolitan planning process of a 
     metropolitan planning organization serving a transportation 
     management area is being carried out in accordance with 
     applicable provisions of Federal law; and
       ``(ii) subject to subparagraph (B), certify, not less often 
     than once every 4 years, that the requirements of this 
     paragraph are met with respect to the metropolitan planning 
     process.

[[Page 10590]]

       ``(B) Requirements for certification.--The Secretary may 
     make the certification under subparagraph (A) if--
       ``(i) the transportation planning process complies with the 
     requirements of this section and other applicable 
     requirements of Federal law; and
       ``(ii) there is a TIP for the metropolitan planning area 
     that has been approved by the metropolitan planning 
     organization and the Governor.
       ``(C) Effect of failure to certify.--
       ``(i) Withholding of project funds.--If a metropolitan 
     planning process of a metropolitan planning organization 
     serving a transportation management area is not certified, 
     the Secretary may withhold up to 20 percent of the funds 
     attributable to the metropolitan planning area of the 
     metropolitan planning organization for projects funded under 
     this chapter and title 23.
       ``(ii) Restoration of withheld funds.--The withheld funds 
     shall be restored to the metropolitan planning area at such 
     time as the metropolitan planning process is certified by the 
     Secretary.
       ``(D) Review of certification.--In making certification 
     determinations under this paragraph, the Secretary shall 
     provide for public involvement appropriate to the 
     metropolitan area under review.
       ``(l) Report on Performance-based Planning Processes.--
       ``(1) In general.--The Secretary shall submit to Congress a 
     report on the effectiveness of the performance-based planning 
     processes of metropolitan planning organizations under this 
     section, taking into consideration the requirements of this 
     subsection
       ``(2) Report.--Not later than 5 years after the date of 
     enactment of the Federal Public Transportation Act of 2012, 
     the Secretary shall submit to Congress a report evaluating--
       ``(A) the overall effectiveness of performance-based 
     planning as a tool for guiding transportation investments;
       ``(B) the effectiveness of the performance-based planning 
     process of each metropolitan planning organization under this 
     section;
       ``(C) the extent to which metropolitan planning 
     organizations have achieved, or are currently making 
     substantial progress toward achieving, the performance 
     targets specified under this section and whether metropolitan 
     planning organizations are developing meaningful performance 
     targets; and
       ``(D) the technical capacity of metropolitan planning 
     organizations that operate within a metropolitan planning 
     area of less than 200,000 and their ability to carry out the 
     requirements of this section.
       ``(3) Publication.--The report under paragraph (2) shall be 
     published or otherwise made available in electronically 
     accessible formats and means, including on the Internet.
       ``(m) Abbreviated Plans for Certain Areas.--
       ``(1) In general.--Subject to paragraph (2), in the case of 
     a metropolitan area not designated as a transportation 
     management area under this section, the Secretary may provide 
     for the development of an abbreviated transportation plan and 
     TIP for the metropolitan planning area that the Secretary 
     determines is appropriate to achieve the purposes of this 
     section, taking into account the complexity of transportation 
     problems in the area.
       ``(2) Nonattainment areas.--The Secretary may not permit 
     abbreviated plans or TIPs for a metropolitan area that is in 
     nonattainment for ozone or carbon monoxide under the Clean 
     Air Act (42 U.S.C. 7401 et seq.).
       ``(n) Additional Requirements for Certain Nonattainment 
     Areas.--
       ``(1) In general.--Notwithstanding any other provisions of 
     this chapter or title 23, for transportation management areas 
     classified as nonattainment for ozone or carbon monoxide 
     pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.), 
     Federal funds may not be advanced in such area for any 
     highway project that will result in a significant increase in 
     the carrying capacity for single-occupant vehicles unless the 
     project is addressed through a congestion management process.
       ``(2) Applicability.--This subsection applies to a 
     nonattainment area within the metropolitan planning area 
     boundaries determined under subsection (e).
       ``(o) Limitation on Statutory Construction.--Nothing in 
     this section shall be construed to confer on a metropolitan 
     planning organization the authority to impose legal 
     requirements on any transportation facility, provider, or 
     project not eligible under this chapter or title 23.
       ``(p) Funding.--Funds set aside under section 104(f) of 
     title 23 or section 5305(g) shall be available to carry out 
     this section.
       ``(q) Continuation of Current Review Practice.--Since plans 
     and TIPs described in this section are subject to a 
     reasonable opportunity for public comment, since individual 
     projects included in plans and TIPs are subject to review 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), and since decisions by the Secretary 
     concerning plans and TIPs described in this section have not 
     been reviewed under that Act as of January 1, 1997, any 
     decision by the Secretary concerning a plan or TIP described 
     in this section shall not be considered to be a Federal 
     action subject to review under that Act.''.
       (b) Pilot Program for Transit-oriented Development 
     Planning.--
       (1) Definitions.--In this subsection the following 
     definitions shall apply:
       (A) Eligible project.--The term ``eligible project'' means 
     a new fixed guideway capital project or a core capacity 
     improvement project, as those terms are defined in section 
     5309 of title 49, United States Code, as amended by this 
     division.
       (B) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.
       (2) General authority.--The Secretary may make grants under 
     this subsection to a State or local governmental authority to 
     assist in financing comprehensive planning associated with an 
     eligible project that seeks to--
       (A) enhance economic development, ridership, and other 
     goals established during the project development and 
     engineering processes;
       (B) facilitate multimodal connectivity and accessibility;
       (C) increase access to transit hubs for pedestrian and 
     bicycle traffic;
       (D) enable mixed-use development;
       (E) identify infrastructure needs associated with the 
     eligible project; and
       (F) include private sector participation.
       (3) Eligibility.--A State or local governmental authority 
     that desires to participate in the program under this 
     subsection shall submit to the Secretary an application that 
     contains, at a minimum--
       (A) identification of an eligible project;
       (B) a schedule and process for the development of a 
     comprehensive plan;
       (C) a description of how the eligible project and the 
     proposed comprehensive plan advance the metropolitan 
     transportation plan of the metropolitan planning 
     organization;
       (D) proposed performance criteria for the development and 
     implementation of the comprehensive plan; and
       (E) identification of--
       (i) partners;
       (ii) availability of and authority for funding; and
       (iii) potential State, local or other impediments to the 
     implementation of the comprehensive plan.

     SEC. 20006. STATEWIDE AND NONMETROPOLITAN TRANSPORTATION 
                   PLANNING.

       Section 5304 of title 49, United States Code, is amended to 
     read as follows:

     ``Sec. 5304. Statewide and nonmetropolitan transportation 
       planning

       ``(a) General Requirements.--
       ``(1) Development of plans and programs.--Subject to 
     section 5303, to accomplish the objectives stated in section 
     5303(a), each State shall develop a statewide transportation 
     plan and a statewide transportation improvement program for 
     all areas of the State.
       ``(2) Contents.--The statewide transportation plan and the 
     transportation improvement program developed for each State 
     shall provide for the development and integrated management 
     and operation of transportation systems and facilities 
     (including accessible pedestrian walkways and bicycle 
     transportation facilities) that will function as an 
     intermodal transportation system for the State and an 
     integral part of an intermodal transportation system for the 
     United States.
       ``(3) Process of development.--The process for developing 
     the statewide plan and the transportation improvement program 
     shall provide for consideration of all modes of 
     transportation and the policies stated in section 5303(a) and 
     shall be continuing, cooperative, and comprehensive to the 
     degree appropriate, based on the complexity of the 
     transportation problems to be addressed.
       ``(b) Coordination With Metropolitan Planning; State 
     Implementation Plan.--A State shall--
       ``(1) coordinate planning carried out under this section 
     with the transportation planning activities carried out under 
     section 5303 for metropolitan areas of the State and with 
     statewide trade and economic development planning activities 
     and related multistate planning efforts; and
       ``(2) develop the transportation portion of the State 
     implementation plan as required by the Clean Air Act (42 
     U.S.C. 7401 et seq.).
       ``(c) Interstate Agreements.--
       ``(1) In general.--Two or more States may enter into 
     agreements or compacts, not in conflict with any law of the 
     United States, for cooperative efforts and mutual assistance 
     in support of activities authorized under this section 
     related to interstate areas and localities in the States and 
     establishing authorities the States consider desirable for 
     making the agreements and compacts effective.
       ``(2) Reservation of rights.--The right to alter, amend, or 
     repeal interstate compacts entered into under this subsection 
     is expressly reserved.
       ``(d) Scope of Planning Process.--
       ``(1) In general.--Each State shall carry out a statewide 
     transportation planning process that provides for 
     consideration and implementation of projects, strategies, and 
     services that will--
       ``(A) support the economic vitality of the United States, 
     the States, nonmetropolitan areas, and metropolitan areas, 
     especially by enabling global competitiveness, productivity, 
     and efficiency;
       ``(B) increase the safety of the transportation system for 
     motorized and nonmotorized users;
       ``(C) increase the security of the transportation system 
     for motorized and nonmotorized users;
       ``(D) increase the accessibility and mobility of people and 
     freight;
       ``(E) protect and enhance the environment, promote energy 
     conservation, improve the quality of life, and promote 
     consistency between

[[Page 10591]]

     transportation improvements and State and local planned 
     growth and economic development patterns;
       ``(F) enhance the integration and connectivity of the 
     transportation system, across and between modes throughout 
     the State, for people and freight;
       ``(G) promote efficient system management and operation; 
     and
       ``(H) emphasize the preservation of the existing 
     transportation system.
       ``(2) Performance-based approach.--
       ``(A) In general.--The statewide transportation planning 
     process shall provide for the establishment and use of a 
     performance-based approach to transportation decisionmaking 
     to support the national goals described in section 150(b) of 
     title 23 and the general purposes described in section 5301.
       ``(B) Performance targets.--
       ``(i) Surface transportation performance targets.--

       ``(I) In general.--Each State shall establish performance 
     targets that address the performance measures described in 
     section 150(c) of title 23, where applicable, to use in 
     tracking progress towards attainment of critical outcomes for 
     the State.
       ``(II) Coordination.--Selection of performance targets by a 
     State shall be coordinated with the relevant metropolitan 
     planning organizations to ensure consistency, to the maximum 
     extent practicable.

       ``(ii) Public transportation performance targets.--In 
     urbanized areas with a population of fewer than 200,000 
     individuals, as calculated according to the most recent 
     decennial census, and not represented by a metropolitan 
     planning organization, selection of performance targets by a 
     State shall be coordinated, to the maximum extent 
     practicable, with providers of public transportation to 
     ensure consistency with sections 5326(c) and 5329(d).
       ``(C) Integration of other performance-based plans.--A 
     State shall integrate into the statewide transportation 
     planning process, directly or by reference, the goals, 
     objectives, performance measures, and targets described in 
     this paragraph, in other State transportation plans and 
     transportation processes, as well as any plans developed 
     pursuant to title 23 by providers of public transportation in 
     urbanized areas with a population of fewer than 200,000 
     individuals, as calculated according to the most recent 
     decennial census, and not represented by a metropolitan 
     planning organization, required as part of a performance-
     based program.
       ``(D) Use of performance measures and targets.--The 
     performance measures and targets established under this 
     paragraph shall be considered by a State when developing 
     policies, programs, and investment priorities reflected in 
     the statewide transportation plan and statewide 
     transportation improvement program.
       ``(3) Failure to consider factors.--The failure to take 
     into consideration the factors specified in paragraphs (1) 
     and (2) shall not be subject to review by any court under 
     this chapter, title 23, subchapter II of chapter 5 of title 
     5, or chapter 7 of title 5 in any matter affecting a 
     statewide transportation plan, a statewide transportation 
     improvement program, a project or strategy, or the 
     certification of a planning process.
       ``(e) Additional Requirements.--``In carrying out planning 
     under this section, each State shall, at a minimum--
       ``(1) with respect to nonmetropolitan areas, cooperate with 
     affected local officials with responsibility for 
     transportation or, if applicable, through regional 
     transportation planning organizations described in subsection 
     (l);
       ``(2) consider the concerns of Indian tribal governments 
     and Federal land management agencies that have jurisdiction 
     over land within the boundaries of the State; and
       ``(3) consider coordination of transportation plans, the 
     transportation improvement program, and planning activities 
     with related planning activities being carried out outside of 
     metropolitan planning areas and between States.
       ``(f) Long-range Statewide Transportation Plan.--
       ``(1) Development.--Each State shall develop a long-range 
     statewide transportation plan, with a minimum 20-year 
     forecast period for all areas of the State, that provides for 
     the development and implementation of the intermodal 
     transportation system of the State.
       ``(2) Consultation with governments.--
       ``(A) Metropolitan areas.--The statewide transportation 
     plan shall be developed for each metropolitan area in the 
     State in cooperation with the metropolitan planning 
     organization designated for the metropolitan area under 
     section 5303.
       ``(B) Nonmetropolitan areas.--
       ``(i) In general.--With respect to nonmetropolitan areas, 
     the statewide transportation plan shall be developed in 
     cooperation with affected nonmetropolitan officials with 
     responsibility for transportation or, if applicable, through 
     regional transportation planning organizations described in 
     subsection (l).
       ``(ii) Role of secretary.--The Secretary shall not review 
     or approve the consultation process in each State.
       ``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the statewide transportation plan shall be 
     developed in consultation with the tribal government and the 
     Secretary of the Interior.
       ``(D) Consultation, comparison, and consideration.--
       ``(i) In general.--The long-range transportation plan shall 
     be developed, as appropriate, in consultation with State, 
     tribal, and local agencies responsible for land use 
     management, natural resources, environmental protection, 
     conservation, and historic preservation.
       ``(ii) Comparison and consideration.--Consultation under 
     clause (i) shall involve comparison of transportation plans 
     to State and tribal conservation plans or maps, if available, 
     and comparison of transportation plans to inventories of 
     natural or historic resources, if available.
       ``(3) Participation by interested parties.--
       ``(A) In general.--In developing the statewide 
     transportation plan, the State shall provide to--
       ``(i) nonmetropolitan local elected officials, or, if 
     applicable, through regional transportation planning 
     organizations described in subsection (l), an opportunity to 
     participate in accordance with subparagraph (B)(i); and
       ``(ii) citizens, affected public agencies, representatives 
     of public transportation employees, freight shippers, private 
     providers of transportation, representatives of users of 
     public transportation, representatives of users of pedestrian 
     walkways and bicycle transportation facilities, 
     representatives of the disabled, providers of freight 
     transportation services, and other interested parties a 
     reasonable opportunity to comment on the proposed plan.
       ``(B) Methods.--In carrying out subparagraph (A), the State 
     shall, to the maximum extent practicable--
       ``(i) develop and document a consultative process to carry 
     out subparagraph (A)(i) that is separate and discrete from 
     the public involvement process developed under clause (ii);
       ``(ii) hold any public meetings at convenient and 
     accessible locations and times;
       ``(iii) employ visualization techniques to describe plans; 
     and
       ``(iv) make public information available in electronically 
     accessible format and means, such as the World Wide Web, as 
     appropriate to afford reasonable opportunity for 
     consideration of public information under subparagraph (A).
       ``(4) Mitigation activities.--
       ``(A) In general.--A long-range transportation plan shall 
     include a discussion of potential environmental mitigation 
     activities and potential areas to carry out these activities, 
     including activities that may have the greatest potential to 
     restore and maintain the environmental functions affected by 
     the plan.
       ``(B) Consultation.--The discussion shall be developed in 
     consultation with Federal, State, and tribal wildlife, land 
     management, and regulatory agencies.
       ``(5) Financial plan.--The statewide transportation plan 
     may include--
       ``(A) a financial plan that--
       ``(i) demonstrates how the adopted statewide 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; and
       ``(iii) recommends any additional financing strategies for 
     needed projects and programs; and
       ``(B) for illustrative purposes, additional projects that 
     would be included in the adopted statewide transportation 
     plan if reasonable additional resources beyond those 
     identified in the financial plan were available.
       ``(6) Selection of projects from illustrative list.--A 
     State shall not be required to select any project from the 
     illustrative list of additional projects included in the 
     financial plan described in paragraph (5).
       ``(7) Performance-based approach.--The statewide 
     transportation plan should include--
       ``(A) a description of the performance measures and 
     performance targets used in assessing the performance of the 
     transportation system in accordance with subsection (d)(2); 
     and
       ``(B) a system performance report and subsequent updates 
     evaluating the condition and performance of the 
     transportation system with respect to the performance targets 
     described in subsection (d)(2), including progress achieved 
     by the metropolitan planning organization in meeting the 
     performance targets in comparison with system performance 
     recorded in previous reports;
       ``(8) Existing system.--The statewide transportation plan 
     should include capital, operations and management strategies, 
     investments, procedures, and other measures to ensure the 
     preservation and most efficient use of the existing 
     transportation system.
       ``(9) Publication of long-range transportation plans.--Each 
     long-range transportation plan prepared by a State shall be 
     published or otherwise made available, including (to the 
     maximum extent practicable) in electronically accessible 
     formats and means, such as the World Wide Web.
       ``(g) Statewide Transportation Improvement Program.--
       ``(1) Development.--
       ``(A) In general.--Each State shall develop a statewide 
     transportation improvement program for all areas of the 
     State.
       ``(B) Duration and updating of program.--Each program 
     developed under subparagraph (A) shall cover a period of 4 
     years and shall be updated every 4 years or more frequently 
     if the Governor of the State elects to update more 
     frequently.
       ``(2) Consultation with governments.--
       ``(A) Metropolitan areas.--With respect to each 
     metropolitan area in the State, the program shall be 
     developed in cooperation with the metropolitan planning 
     organization designated for the metropolitan area under 
     section 5303.
       ``(B) Nonmetropolitan areas.--

[[Page 10592]]

       ``(i) In general.--With respect to each nonmetropolitan 
     area in the State, the program shall be developed in 
     cooperation with affected nonmetropolitan local officials 
     with responsibility for transportation or, if applicable, 
     through regional transportation planning organizations 
     described in subsection (l).
       ``(ii) Role of secretary.--The Secretary shall not review 
     or approve the specific consultation process in the State.
       ``(C) Indian tribal areas.--With respect to each area of 
     the State under the jurisdiction of an Indian tribal 
     government, the program shall be developed in consultation 
     with the tribal government and the Secretary of the Interior.
       ``(3) Participation by interested parties.--In developing 
     the program, the State shall provide citizens, affected 
     public agencies, representatives of public transportation 
     employees, freight shippers, private providers of 
     transportation, providers of freight transportation services, 
     representatives of users of public transportation, 
     representatives of users of pedestrian walkways and bicycle 
     transportation facilities, representatives of the disabled, 
     and other interested parties with a reasonable opportunity to 
     comment on the proposed program.
       ``(4) Performance target achievement.--A statewide 
     transportation improvement program shall include, to the 
     maximum extent practicable, a discussion of the anticipated 
     effect of the statewide transportation improvement program 
     toward achieving the performance targets established in the 
     statewide transportation plan, linking investment priorities 
     to those performance targets.
       ``(5) Included projects.--
       ``(A) In general.--A transportation improvement program 
     developed under this subsection for a State shall include 
     Federally supported surface transportation expenditures 
     within the boundaries of the State.
       ``(B) Listing of projects.--
       ``(i) In general.--An annual listing of projects for which 
     funds have been obligated for the preceding year in each 
     metropolitan planning area shall be published or otherwise 
     made available by the cooperative effort of the State, 
     transit operator, and the metropolitan planning organization 
     for public review.
       ``(ii) Funding categories.--The listing described in clause 
     (i) shall be consistent with the funding categories 
     identified in each metropolitan transportation improvement 
     program.
       ``(C) Projects under chapter 2.--
       ``(i) Regionally significant projects.--Regionally 
     significant projects proposed for funding under chapter 2 of 
     title 23 shall be identified individually in the 
     transportation improvement program.
       ``(ii) Other projects.--Projects proposed for funding under 
     chapter 2 of title 23 that are not determined to be 
     regionally significant shall be grouped in 1 line item or 
     identified individually in the transportation improvement 
     program.
       ``(D) Consistency with statewide transportation plan.--Each 
     project shall be--
       ``(i) consistent with the statewide transportation plan 
     developed under this section for the State;
       ``(ii) identical to the project or phase of the project as 
     described in an approved metropolitan transportation plan; 
     and
       ``(iii) in conformance with the applicable State air 
     quality implementation plan developed under the Clean Air Act 
     (42 U.S.C. 7401 et seq.), if the project is carried out in an 
     area designated as a nonattainment area for ozone, 
     particulate matter, or carbon monoxide under part D of title 
     I of that Act (42 U.S.C. 7501 et seq.).
       ``(E) Requirement of anticipated full funding.--The 
     transportation improvement program shall include a project, 
     or an identified phase of a project, only if full funding can 
     reasonably be anticipated to be available for the project 
     within the time period contemplated for completion of the 
     project.
       ``(F) Financial plan.--
       ``(i) In general.--The transportation improvement program 
     may include a financial plan that demonstrates how the 
     approved transportation improvement program can be 
     implemented, indicates resources from public and private 
     sources that are reasonably expected to be made available to 
     carry out the transportation improvement program, and 
     recommends any additional financing strategies for needed 
     projects and programs.
       ``(ii) Additional projects.--The financial plan may 
     include, for illustrative purposes, additional projects that 
     would be included in the adopted transportation plan if 
     reasonable additional resources beyond those identified in 
     the financial plan were available.
       ``(G) Selection of projects from illustrative list.--
       ``(i) No required selection.--Notwithstanding subparagraph 
     (F), a State shall not be required to select any project from 
     the illustrative list of additional projects included in the 
     financial plan under subparagraph (F).
       ``(ii) Required action by the secretary.--Action by the 
     Secretary shall be required for a State to select any project 
     from the illustrative list of additional projects included in 
     the financial plan under subparagraph (F) for inclusion in an 
     approved transportation improvement program.
       ``(H) Priorities.--The transportation improvement program 
     shall reflect the priorities for programming and expenditures 
     of funds, including transportation enhancement activities, 
     required by this chapter and title 23.
       ``(6) Project selection for areas of less than 50,000 
     population.--
       ``(A) In general.--Projects carried out in areas with 
     populations of less than 50,000 individuals shall be 
     selected, from the approved transportation improvement 
     program (excluding projects carried out on the National 
     Highway System and projects carried out under the bridge 
     program or the Interstate maintenance program under title 23 
     or under sections 5310 and 5311 of this chapter), by the 
     State in cooperation with the affected nonmetropolitan local 
     officials with responsibility for transportation or, if 
     applicable, through regional transportation planning 
     organizations described in subsection (l).
       ``(B) Other projects.--Projects carried out in areas with 
     populations of less than 50,000 individuals on the National 
     Highway System or under the bridge program or the Interstate 
     maintenance program under title 23 or under sections 5310 and 
     5311 of this chapter shall be selected, from the approved 
     statewide transportation improvement program, by the State in 
     consultation with the affected nonmetropolitan local 
     officials with responsibility for transportation.
       ``(7) Transportation improvement program approval.--Every 4 
     years, a transportation improvement program developed under 
     this subsection shall be reviewed and approved by the 
     Secretary if based on a current planning finding.
       ``(8) Planning finding.--A finding shall be made by the 
     Secretary at least every 4 years that the transportation 
     planning process through which statewide transportation plans 
     and programs are developed is consistent with this section 
     and section 5303.
       ``(9) Modifications to project priority.--Notwithstanding 
     any other provision of law, action by the Secretary shall not 
     be required to advance a project included in the approved 
     transportation improvement program in place of another 
     project in the program.
       ``(h) Performance-based Planning Processes Evaluation.--
       ``(1) In general.--The Secretary shall establish criteria 
     to evaluate the effectiveness of the performance-based 
     planning processes of States, taking into consideration the 
     following:
       ``(A) The extent to which the State is making progress 
     toward achieving, the performance targets described in 
     subsection (d)(2), taking into account whether the State 
     developed appropriate performance targets.
       ``(B) The extent to which the State has made transportation 
     investments that are efficient and cost-effective.
       ``(C) The extent to which the State--
       ``(i) has developed an investment process that relies on 
     public input and awareness to ensure that investments are 
     transparent and accountable; and
       ``(ii) provides reports allowing the public to access the 
     information being collected in a format that allows the 
     public to meaningfully assess the performance of the State.
       ``(2) Report.--
       ``(A) In general.--Not later than 5 years after the date of 
     enactment of the Federal Public Transportation Act of 2012, 
     the Secretary shall submit to Congress a report evaluating--
       ``(i) the overall effectiveness of performance-based 
     planning as a tool for guiding transportation investments; 
     and
       ``(ii) the effectiveness of the performance-based planning 
     process of each State.
       ``(B) Publication.--The report under subparagraph (A) shall 
     be published or otherwise made available in electronically 
     accessible formats and means, including on the Internet.
       ``(i) Treatment of Certain State Laws as Congestion 
     Management Processes.--For purposes of this section and 
     section 5303, and sections 134 and 135 of title 23, State 
     laws, rules, or regulations pertaining to congestion 
     management systems or programs may constitute the congestion 
     management process under this this section and section 5303, 
     and sections 134 and 135 of title 23, if the Secretary finds 
     that the State laws, rules, or regulations are consistent 
     with, and fulfill the intent of, the purposes of this section 
     and section 5303, and sections 134 and 135 of title 23, as 
     appropriate.
       ``(j) Continuation of Current Review Practice.--Since the 
     statewide transportation plan and the transportation 
     improvement program described in this section are subject to 
     a reasonable opportunity for public comment, since individual 
     projects included in the statewide transportation plans and 
     the transportation improvement program are subject to review 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), and since decisions by the Secretary 
     concerning statewide transportation plans or the 
     transportation improvement program described in this section 
     have not been reviewed under that Act as of January 1, 1997, 
     any decision by the Secretary concerning a metropolitan or 
     statewide transportation plan or the transportation 
     improvement program described in this section shall not be 
     considered to be a Federal action subject to review under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.).
       ``(k) Schedule for Implementation.--The Secretary shall 
     issue guidance on a schedule for implementation of the 
     changes made by this section, taking into consideration the 
     established planning update cycle for States. The Secretary 
     shall not require a State to deviate from its established 
     planning update cycle to implement changes made by this 
     section. States shall reflect changes made to their 
     transportation plan or transportation improvement program 
     updates not later than 2 years after the date of issuance of 
     guidance by the Secretary under this subsection.
       ``(l) Designation of Regional Transportation Planning 
     Organizations.--

[[Page 10593]]

       ``(1) In general.--To carry out the transportation planning 
     process required by this section, a State may establish and 
     designate regional transportation planning organizations to 
     enhance the planning, coordination, and implementation of 
     statewide strategic long-range transportation plans and 
     transportation improvement programs, with an emphasis on 
     addressing the needs of nonmetropolitan areas of the State.
       ``(2) Structure.--A regional transportation planning 
     organization shall be established as a multijurisdictional 
     organization of nonmetropolitan local officials or their 
     designees who volunteer for such organization and 
     representatives of local transportation systems who volunteer 
     for such organization.
       ``(3) Requirements.--A regional transportation planning 
     organization shall establish, at a minimum--
       ``(A) a policy committee, the majority of which shall 
     consist of nonmetropolitan local officials, or their 
     designees, and, as appropriate, additional representatives 
     from the State, private business, transportation service 
     providers, economic development practitioners, and the public 
     in the region; and
       ``(B) a fiscal and administrative agent, such as an 
     existing regional planning and development organization, to 
     provide professional planning, management, and administrative 
     support.
       ``(4) Duties.--The duties of a regional transportation 
     planning organization shall include--
       ``(A) developing and maintaining, in cooperation with the 
     State, regional long-range multimodal transportation plans;
       ``(B) developing a regional transportation improvement 
     program for consideration by the State;
       ``(C) fostering the coordination of local planning, land 
     use, and economic development plans with State, regional, and 
     local transportation plans and programs;
       ``(D) providing technical assistance to local officials;
       ``(E) participating in national, multistate, and State 
     policy and planning development processes to ensure the 
     regional and local input of nonmetropolitan areas;
       ``(F) providing a forum for public participation in the 
     statewide and regional transportation planning processes;
       ``(G) considering and sharing plans and programs with 
     neighboring regional transportation planning organizations, 
     metropolitan planning organizations, and, where appropriate, 
     tribal organizations; and
       ``(H) conducting other duties, as necessary, to support and 
     enhance the statewide planning process under subsection (d).
       ``(5) States without regional transportation planning 
     organizations.--If a State chooses not to establish or 
     designate a regional transportation planning organization, 
     the State shall consult with affected nonmetropolitan local 
     officials to determine projects that may be of regional 
     significance.''.

     SEC. 20007. URBANIZED AREA FORMULA GRANTS.

       Section 5307 of title 49, United States Code, is amended to 
     read as follows:

     ``Sec. 5307. Urbanized area formula grants

       ``(a) General Authority.--
       ``(1) Grants.--The Secretary may make grants under this 
     section for--
       ``(A) capital projects;
       ``(B) planning;
       ``(C) job access and reverse commute projects; and
       ``(D) operating costs of equipment and facilities for use 
     in public transportation in an urbanized area with a 
     population of fewer than 200,000 individuals, as determined 
     by the Bureau of the Census.
       ``(2) Special rule.--The Secretary may make grants under 
     this section to finance the operating cost of equipment and 
     facilities for use in public transportation, excluding rail 
     fixed guideway, in an urbanized area with a population of not 
     fewer than 200,000 individuals, as determined by the Bureau 
     of the Census--
       ``(A) for public transportation systems that operate 75 or 
     fewer buses in fixed route service during peak service hours, 
     in an amount not to exceed 75 percent of the share of the 
     apportionment which is attributable to such systems within 
     the urbanized area, as measured by vehicle revenue hours; and
       ``(B) for public transportation systems that operate a 
     minimum of 76 buses and a maximum of 100 buses in fixed route 
     service during peak service hours, in an amount not to exceed 
     50 percent of the share of the apportionment which is 
     attributable to such systems within the urbanized area, as 
     measured by vehicle revenue hours.
       ``(b) Program of Projects.--Each recipient of a grant 
     shall--
       ``(1) make available to the public information on amounts 
     available to the recipient under this section;
       ``(2) develop, in consultation with interested parties, 
     including private transportation providers, a proposed 
     program of projects for activities to be financed;
       ``(3) publish a proposed program of projects in a way that 
     affected individuals, private transportation providers, and 
     local elected officials have the opportunity to examine the 
     proposed program and submit comments on the proposed program 
     and the performance of the recipient;
       ``(4) provide an opportunity for a public hearing in which 
     to obtain the views of individuals on the proposed program of 
     projects;
       ``(5) ensure that the proposed program of projects provides 
     for the coordination of public transportation services 
     assisted under section 5336 of this title with transportation 
     services assisted from other United States Government 
     sources;
       ``(6) consider comments and views received, especially 
     those of private transportation providers, in preparing the 
     final program of projects; and
       ``(7) make the final program of projects available to the 
     public.
       ``(c) Grant Recipient Requirements.--A recipient may 
     receive a grant in a fiscal year only if--
       ``(1) the recipient, within the time the Secretary 
     prescribes, submits a final program of projects prepared 
     under subsection (b) of this section and a certification for 
     that fiscal year that the recipient (including a person 
     receiving amounts from a Governor under this section)--
       ``(A) has or will have the legal, financial, and technical 
     capacity to carry out the program, including safety and 
     security aspects of the program;
       ``(B) has or will have satisfactory continuing control over 
     the use of equipment and facilities;
       ``(C) will maintain equipment and facilities;
       ``(D) will ensure that, during non-peak hours for 
     transportation using or involving a facility or equipment of 
     a project financed under this section, a fare that is not 
     more than 50 percent of the peak hour fare will be charged 
     for any--
       ``(i) senior;
       ``(ii) individual who, because of illness, injury, age, 
     congenital malfunction, or other incapacity or temporary or 
     permanent disability (including an individual who is a 
     wheelchair user or has semiambulatory capability), cannot use 
     a public transportation service or a public transportation 
     facility effectively without special facilities, planning, or 
     design; and
       ``(iii) individual presenting a Medicare card issued to 
     that individual under title II or XVIII of the Social 
     Security Act (42 U.S.C. 401 et seq. and 1395 et seq.);
       ``(E) in carrying out a procurement under this section, 
     will comply with sections 5323 and 5325;
       ``(F) has complied with subsection (b) of this section;
       ``(G) has available and will provide the required amounts 
     as provided by subsection (d) of this section;
       ``(H) will comply with sections 5303 and 5304;
       ``(I) has a locally developed process to solicit and 
     consider public comment before raising a fare or carrying out 
     a major reduction of transportation;
       ``(J)(i) will expend for each fiscal year for public 
     transportation security projects, including increased 
     lighting in or adjacent to a public transportation system 
     (including bus stops, subway stations, parking lots, and 
     garages), increased camera surveillance of an area in or 
     adjacent to that system, providing an emergency telephone 
     line to contact law enforcement or security personnel in an 
     area in or adjacent to that system, and any other project 
     intended to increase the security and safety of an existing 
     or planned public transportation system, at least 1 percent 
     of the amount the recipient receives for each fiscal year 
     under section 5336 of this title; or
       ``(ii) has decided that the expenditure for security 
     projects is not necessary;
       ``(K) in the case of a recipient for an urbanized area with 
     a population of not fewer than 200,000 individuals, as 
     determined by the Bureau of the Census--
       ``(i) will expend not less than 1 percent of the amount the 
     recipient receives each fiscal year under this section for 
     associated transit improvements, as defined in section 5302; 
     and
       ``(ii) will submit an annual report listing projects 
     carried out in the preceding fiscal year with those funds; 
     and
       ``(L) will comply with section 5329(d); and
       ``(2) the Secretary accepts the certification.
       ``(d) Government Share of Costs.--
       ``(1) Capital projects.--A grant for a capital project 
     under this section shall be for 80 percent of the net project 
     cost of the project. The recipient may provide additional 
     local matching amounts.
       ``(2) Operating expenses.--A grant for operating expenses 
     under this section may not exceed 50 percent of the net 
     project cost of the project.
       ``(3) Remaining costs.--Subject to paragraph (4), the 
     remainder of the net project costs shall be provided--
       ``(A) in cash from non-Government sources other than 
     revenues from providing public transportation services;
       ``(B) from revenues from the sale of advertising and 
     concessions;
       ``(C) from an undistributed cash surplus, a replacement or 
     depreciation cash fund or reserve, or new capital;
       ``(D) from amounts appropriated or otherwise made available 
     to a department or agency of the Government (other than the 
     Department of Transportation) that are eligible to be 
     expended for transportation; and
       ``(E) from amounts received under a service agreement with 
     a State or local social service agency or private social 
     service organization.
       ``(4) Use of certain funds.--For purposes of subparagraphs 
     (D) and (E) of paragraph (3), 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.
       ``(e) Undertaking Projects in Advance.--
       ``(1) Payment.--The Secretary may pay the Government share 
     of the net project cost to a State or local governmental 
     authority that carries out any part of a project eligible 
     under subparagraph (A) or (B) of subsection (a)(1) without 
     the aid of amounts of the Government and

[[Page 10594]]

     according to all applicable procedures and requirements if--
       ``(A) the recipient applies for the payment;
       ``(B) the Secretary approves the payment; and
       ``(C) before carrying out any part of the project, the 
     Secretary approves the plans and specifications for the part 
     in the same way as for other projects under this section.
       ``(2) Approval of application.--The Secretary may approve 
     an application under paragraph (1) of this subsection only if 
     an authorization for this section is in effect for the fiscal 
     year to which the application applies. The Secretary may not 
     approve an application if the payment will be more than--
       ``(A) the recipient's expected apportionment under section 
     5336 of this title if the total amount authorized to be 
     appropriated for the fiscal year to carry out this section is 
     appropriated; less
       ``(B) the maximum amount of the apportionment that may be 
     made available for projects for operating expenses under this 
     section.
       ``(3) Financing costs.--
       ``(A) In general.--The cost of carrying out part of a 
     project includes the amount of interest earned and payable on 
     bonds issued by the recipient to the extent proceeds of the 
     bonds are expended in carrying out the part.
       ``(B) Limitation on the amount of interest.--The amount of 
     interest allowed under this paragraph may not be more than 
     the most favorable financing terms reasonably available for 
     the project at the time of borrowing.
       ``(C) Certification.--The applicant shall certify, in a 
     manner satisfactory to the Secretary, that the applicant has 
     shown reasonable diligence in seeking the most favorable 
     financing terms.
       ``(f) Reviews, Audits, and Evaluations.--
       ``(1) Annual review.--
       ``(A) In general.--At least annually, the Secretary shall 
     carry out, or require a recipient to have carried out 
     independently, reviews and audits the Secretary considers 
     appropriate to establish whether the recipient has carried 
     out--
       ``(i) the activities proposed under subsection (c) of this 
     section in a timely and effective way and can continue to do 
     so; and
       ``(ii) those activities and its certifications and has used 
     amounts of the Government in the way required by law.
       ``(B) Auditing procedures.--An audit of the use of amounts 
     of the Government shall comply with the auditing procedures 
     of the Comptroller General.
       ``(2) Triennial review.--At least once every 3 years, the 
     Secretary shall review and evaluate completely the 
     performance of a recipient in carrying out the recipient's 
     program, specifically referring to compliance with statutory 
     and administrative requirements and the extent to which 
     actual program activities are consistent with the activities 
     proposed under subsection (c) of this section and the 
     planning process required under sections 5303, 5304, and 5305 
     of this title. To the extent practicable, the Secretary shall 
     coordinate such reviews with any related State or local 
     reviews.
       ``(3) Actions resulting from review, audit, or 
     evaluation.--The Secretary may take appropriate action 
     consistent with a review, audit, and evaluation under this 
     subsection, including making an appropriate adjustment in the 
     amount of a grant or withdrawing the grant.
       ``(g) Treatment.--For purposes of this section, the United 
     States Virgin Islands shall be treated as an urbanized area, 
     as defined in section 5302.
       ``(h) Passenger Ferry Grants.--
       ``(1) In general.--The Secretary may make grants under this 
     subsection to recipients for passenger ferry projects that 
     are eligible for a grant under subsection (a).
       ``(2) Grant requirements.--Except as otherwise provided in 
     this subsection, a grant under this subsection shall be 
     subject to the same terms and conditions as a grant under 
     subsection (a).
       ``(3) Competitive process.--The Secretary shall solicit 
     grant applications and make grants for eligible projects on a 
     competitive basis.''.

     SEC. 20008. FIXED GUIDEWAY CAPITAL INVESTMENT GRANTS.

       (a) In General.--Section 5309 of title 49, United States 
     Code, is amended to read as follows:

     ``Sec. 5309. Fixed guideway capital investment grants

       ``(a) Definitions.--In this section, the following 
     definitions shall apply:
       ``(1) Applicant.--The term `applicant' means a State or 
     local governmental authority that applies for a grant under 
     this section.
       ``(2) Core capacity improvement project.--The term `core 
     capacity improvement project' means a substantial corridor-
     based capital investment in an existing fixed guideway system 
     that increases the capacity of a corridor by not less than 10 
     percent. The term does not include project elements designed 
     to maintain a state of good repair of the existing fixed 
     guideway system.
       ``(3) Corridor-based bus rapid transit project.--The term 
     `corridor-based bus rapid transit project' means a small 
     start project utilizing buses in which the project represents 
     a substantial investment in a defined corridor as 
     demonstrated by features that emulate the services provided 
     by rail fixed guideway public transportation systems, 
     including defined stations; traffic signal priority for 
     public transportation vehicles; short headway bidirectional 
     services for a substantial part of weekdays and weekend days; 
     and any other features the Secretary may determine support a 
     long-term corridor investment, but the majority of which does 
     not operate in a separated right-of-way dedicated for public 
     transportation use during peak periods.
       ``(4) Fixed guideway bus rapid transit project.--The term 
     `fixed guideway bus rapid transit project' means a bus 
     capital project--
       ``(A) in which the majority of the project operates in a 
     separated right-of-way dedicated for public transportation 
     use during peak periods;
       ``(B) that represents a substantial investment in a single 
     route in a defined corridor or subarea; and
       ``(C) that includes features that emulate the services 
     provided by rail fixed guideway public transportation 
     systems, including--
       ``(i) defined stations;
       ``(ii) traffic signal priority for public transportation 
     vehicles;
       ``(iii) short headway bidirectional services for a 
     substantial part of weekdays and weekend days; and
       ``(iv) any other features the Secretary may determine are 
     necessary to produce high-quality public transportation 
     services that emulate the services provided by rail fixed 
     guideway public transportation systems.
       ``(5) New fixed guideway capital project.--The term `new 
     fixed guideway capital project' means--
       ``(A) a new fixed guideway project that is a minimum 
     operable segment or extension to an existing fixed guideway 
     system; or
       ``(B) a fixed guideway bus rapid transit project that is a 
     minimum operable segment or an extension to an existing bus 
     rapid transit system.
       ``(6) Program of interrelated projects.--The term `program 
     of interrelated projects' means the simultaneous development 
     of--
       ``(A) 2 or more new fixed guideway capital projects or core 
     capacity improvement projects; or
       ``(B) 1 or more new fixed guideway capital projects and 1 
     or more core capacity improvement projects.
       ``(7) Small start project.--The term `small start project' 
     means a new fixed guideway capital project or corridor-based 
     bus rapid transit project for which--
       ``(A) the Federal assistance provided or to be provided 
     under this section is less than $75,000,000; and
       ``(B) the total estimated net capital cost is less than 
     $250,000,000.
       ``(b) General Authority.--The Secretary may make grants 
     under this section to State and local governmental 
     authorities to assist in financing--
       ``(1) new fixed guideway capital projects or small start 
     projects, including the acquisition of real property, the 
     initial acquisition of rolling stock for the system, the 
     acquisition of rights-of-way, and relocation, for fixed 
     guideway corridor development for projects in the advanced 
     stages of project development or engineering; and
       ``(2) core capacity improvement projects, including the 
     acquisition of real property, the acquisition of rights-of-
     way, double tracking, signalization improvements, 
     electrification, expanding system platforms, acquisition of 
     rolling stock associated with corridor improvements 
     increasing capacity, construction of infill stations, and 
     such other capacity improvement projects as the Secretary 
     determines are appropriate to increase the capacity of an 
     existing fixed guideway system corridor by at least 10 
     percent. Core capacity improvement projects do not include 
     elements to improve general station facilities or parking, or 
     acquisition of rolling stock alone.
       ``(c) Grant Requirements.--
       ``(1) In general.--The Secretary may make a grant under 
     this section for new fixed guideway capital projects, small 
     start projects, or core capacity improvement projects, if the 
     Secretary determines that--
       ``(A) the project is part of an approved transportation 
     plan required under sections 5303 and 5304; and
       ``(B) the applicant has, or will have--
       ``(i) the legal, financial, and technical capacity to carry 
     out the project, including the safety and security aspects of 
     the project;
       ``(ii) satisfactory continuing control over the use of the 
     equipment or facilities; and
       ``(iii) the technical and financial capacity to maintain 
     new and existing equipment and facilities.
       ``(2) Certification.--An applicant that has submitted the 
     certifications required under subparagraphs (A), (B), (C), 
     and (H) of section 5307(c)(1) shall be deemed to have 
     provided sufficient information upon which the Secretary may 
     make the determinations required under this subsection.
       ``(3) Technical capacity.--The Secretary shall use an 
     expedited technical capacity review process for applicants 
     that have recently and successfully completed at least 1 new 
     fixed guideway capital project, or core capacity improvement 
     project, if--
       ``(A) the applicant achieved budget, cost, and ridership 
     outcomes for the project that are consistent with or better 
     than projections; and
       ``(B) the applicant demonstrates that the applicant 
     continues to have the staff expertise and other resources 
     necessary to implement a new project.
       ``(4) Recipient requirements.--A recipient of a grant 
     awarded under this section shall be subject to all terms, 
     conditions, requirements, and provisions that the Secretary 
     determines to be necessary or appropriate for purposes of 
     this section.
       ``(d) New Fixed Guideway Grants.--
       ``(1) Project development phase.--
       ``(A) Entrance into project development phase.--A new fixed 
     guideway capital project

[[Page 10595]]

     shall enter into the project development phase when--
       ``(i) the applicant--

       ``(I) submits a letter to the Secretary describing the 
     project and requesting entry into the project development 
     phase; and
       ``(II) initiates activities required to be carried out 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) with respect to the project; and

       ``(ii) the Secretary--

       ``(I) responds in writing to the applicant within 45 days 
     whether the information provided is sufficient to enter into 
     the project development phase, including, when necessary, a 
     detailed description of any information deemed insufficient; 
     and
       ``(II) provides concurrent notice to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives of whether the new fixed guideway capital 
     project is entering the project development phase.

       ``(B) Activities during project development phase.--
     Concurrent with the analysis required to be made under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.), each applicant shall develop sufficient information to 
     enable the Secretary to make findings of project 
     justification, policies and land use patterns that promote 
     public transportation, and local financial commitment under 
     this subsection.
       ``(C) Completion of project development activities 
     required.--
       ``(i) In general.--Not later than 2 years after the date on 
     which a project enters into the project development phase, 
     the applicant shall complete the activities required to 
     obtain a project rating under subsection (g)(2) and submit 
     completed documentation to the Secretary.
       ``(ii) Extension of time.--Upon the request of an 
     applicant, the Secretary may extend the time period under 
     clause (i), if the applicant submits to the Secretary--

       ``(I) a reasonable plan for completing the activities 
     required under this paragraph; and
       ``(II) an estimated time period within which the applicant 
     will complete such activities.

       ``(2) Engineering phase.--
       ``(A) In general.--A new fixed guideway capital project may 
     advance to the engineering phase upon completion of 
     activities required under the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.), as demonstrated by a 
     record of decision with respect to the project, a finding 
     that the project has no significant impact, or a 
     determination that the project is categorically excluded, 
     only if the Secretary determines that the project--
       ``(i) is selected as the locally preferred alternative at 
     the completion of the process required under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);
       ``(ii) is adopted into the metropolitan transportation plan 
     required under section 5303;
       ``(iii) is justified based on a comprehensive review of the 
     project's mobility improvements, the project's environmental 
     benefits, congestion relief associated with the project, 
     economic development effects associated with the project, 
     policies and land use patterns of the project that support 
     public transportation, and the project's cost-effectiveness 
     as measured by cost per rider;
       ``(iv) is supported by policies and land use patterns that 
     promote public transportation, including plans for future 
     land use and rezoning, and economic development around public 
     transportation stations; and
       ``(v) is supported by an acceptable degree of local 
     financial commitment (including evidence of stable and 
     dependable financing sources), as required under subsection 
     (f).
       ``(B) Determination that project is justified.--In making a 
     determination under subparagraph (A)(iii), the Secretary 
     shall evaluate, analyze, and consider--
       ``(i) the reliability of the forecasting methods used to 
     estimate costs and utilization made by the recipient and the 
     contractors to the recipient; and
       ``(ii) population density and current public transportation 
     ridership in the transportation corridor.
       ``(e) Core Capacity Improvement Projects.--
       ``(1) Project development phase.--
       ``(A) Entrance into project development phase.--A core 
     capacity improvement project shall be deemed to have entered 
     into the project development phase if--
       ``(i) the applicant--

       ``(I) submits a letter to the Secretary describing the 
     project and requesting entry into the project development 
     phase; and
       ``(II) initiates activities required to be carried out 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) with respect to the project; and

       ``(ii) the Secretary--

       ``(I) responds in writing to the applicant within 45 days 
     whether the information provided is sufficient to enter into 
     the project development phase, including when necessary a 
     detailed description of any information deemed insufficient; 
     and
       ``(II) provides concurrent notice to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives of whether the core capacity improvement 
     project is entering the project development phase.

       ``(B) Activities during project development phase.--
     Concurrent with the analysis required to be made under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.), each applicant shall develop sufficient information to 
     enable the Secretary to make findings of project 
     justification and local financial commitment under this 
     subsection.
       ``(C) Completion of project development activities 
     required.--
       ``(i) In general.--Not later than 2 years after the date on 
     which a project enters into the project development phase, 
     the applicant shall complete the activities required to 
     obtain a project rating under subsection (g)(2) and submit 
     completed documentation to the Secretary.
       ``(ii) Extension of time.--Upon the request of an 
     applicant, the Secretary may extend the time period under 
     clause (i), if the applicant submits to the Secretary--

       ``(I) a reasonable plan for completing the activities 
     required under this paragraph; and
       ``(II) an estimated time period within which the applicant 
     will complete such activities.

       ``(2) Engineering phase.--
       ``(A) In general.--A core capacity improvement project may 
     advance into the engineering phase upon completion of 
     activities required under the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.), as demonstrated by a 
     record of decision with respect to the project, a finding 
     that the project has no significant impact, or a 
     determination that the project is categorically excluded, 
     only if the Secretary determines that the project--
       ``(i) is selected as the locally preferred alternative at 
     the completion of the process required under the National 
     Environmental Policy Act of 1969;
       ``(ii) is adopted into the metropolitan transportation plan 
     required under section 5303;
       ``(iii) is in a corridor that is--

       ``(I) at or over capacity; or
       ``(II) projected to be at or over capacity within the next 
     5 years;

       ``(iv) is justified based on a comprehensive review of the 
     project's mobility improvements, the project's environmental 
     benefits, congestion relief associated with the project, 
     economic development effects associated with the project, the 
     capacity needs of the corridor, and the project's cost-
     effectiveness as measured by cost per rider; and
       ``(v) is supported by an acceptable degree of local 
     financial commitment (including evidence of stable and 
     dependable financing sources), as required under subsection 
     (f).
       ``(B) Determination that project is justified.--In making a 
     determination under subparagraph (A)(iv), the Secretary shall 
     evaluate, analyze, and consider--
       ``(i) the reliability of the forecasting methods used to 
     estimate costs and utilization made by the recipient and the 
     contractors to the recipient;
       ``(ii) whether the project will increase capacity at least 
     10 percent in a corridor;
       ``(iii) whether the project will improve interconnectivity 
     among existing systems; and
       ``(iv) whether the project will improve environmental 
     outcomes.
       ``(f) Financing Sources.--
       ``(1) Requirements.--In determining whether a project is 
     supported by an acceptable degree of local financial 
     commitment and shows evidence of stable and dependable 
     financing sources for purposes of subsection (d)(2)(A)(v) or 
     (e)(2)(A)(v), the Secretary shall require that--
       ``(A) the proposed project plan provides for the 
     availability of contingency amounts that the Secretary 
     determines to be reasonable to cover unanticipated cost 
     increases or funding shortfalls;
       ``(B) each proposed local source of capital and operating 
     financing is stable, reliable, and available within the 
     proposed project timetable; and
       ``(C) local resources are available to recapitalize, 
     maintain, and operate the overall existing and proposed 
     public transportation system, including essential feeder bus 
     and other services necessary to achieve the projected 
     ridership levels without requiring a reduction in existing 
     public transportation services or level of service to operate 
     the project.
       ``(2) Considerations.--In assessing the stability, 
     reliability, and availability of proposed sources of local 
     financing for purposes of subsection (d)(2)(A)(v) or 
     (e)(2)(A)(v), the Secretary shall consider--
       ``(A) the reliability of the forecasting methods used to 
     estimate costs and revenues made by the recipient and the 
     contractors to the recipient;
       ``(B) existing grant commitments;
       ``(C) the degree to which financing sources are dedicated 
     to the proposed purposes;
       ``(D) any debt obligation that exists, or is proposed by 
     the recipient, for the proposed project or other public 
     transportation purpose;
       ``(E) the extent to which the project has a local financial 
     commitment that exceeds the required non-Government share of 
     the cost of the project; and
       ``(F) private contributions to the project, including cost-
     effective project delivery, management or transfer of project 
     risks, expedited project schedule, financial partnering, and 
     other public-private partnership strategies.
       ``(g) Project Advancement and Ratings.--
       ``(1) Project advancement.--A new fixed guideway capital 
     project or core capacity improvement project proposed to be 
     carried out using a grant under this section may not advance 
     from the project development phase to the engineering phase, 
     or from the engineering phase to the construction phase, 
     unless the Secretary determines that--
       ``(A) the project meets the applicable requirements under 
     this section; and

[[Page 10596]]

       ``(B) there is a reasonable likelihood that the project 
     will continue to meet the requirements under this section.
       ``(2) Ratings.--
       ``(A) Overall rating.--In making a determination under 
     paragraph (1), the Secretary shall evaluate and rate a 
     project as a whole on a 5-point scale (high, medium-high, 
     medium, medium-low, or low) based on--
       ``(i) in the case of a new fixed guideway capital project, 
     the project justification criteria under subsection 
     (d)(2)(A)(iii), the policies and land use patterns that 
     support public transportation, and the degree of local 
     financial commitment; and
       ``(ii) in the case of a core capacity improvement project, 
     the capacity needs of the corridor, the project justification 
     criteria under subsection (e)(2)(A)(iv), and the degree of 
     local financial commitment.
       ``(B) Individual ratings for each criterion.--In rating a 
     project under this paragraph, the Secretary shall--
       ``(i) provide, in addition to the overall project rating 
     under subparagraph (A), individual ratings for each of the 
     criteria established under subsection (d)(2)(A)(iii) or 
     (e)(2)(A)(iv), as applicable; and
       ``(ii) give comparable, but not necessarily equal, 
     numerical weight to each of the criteria established under 
     subsections (d)(2)(A)(iii) or (e)(2)(A)(iv), as applicable, 
     in calculating the overall project rating under clause (i).
       ``(C) Medium rating not required.--The Secretary shall not 
     require that any single project justification criterion meet 
     or exceed a `medium' rating in order to advance the project 
     from one phase to another.
       ``(3) Warrants.--The Secretary shall, to the maximum extent 
     practicable, develop and use special warrants for making a 
     project justification determination under subsection (d)(2) 
     or (e)(2), as applicable, for a project proposed to be funded 
     using a grant under this section, if--
       ``(A) the share of the cost of the project to be provided 
     under this section does not exceed--
       ``(i) $100,000,000; or
       ``(ii) 50 percent of the total cost of the project;
       ``(B) the applicant requests the use of the warrants;
       ``(C) the applicant certifies that its existing public 
     transportation system is in a state of good repair; and
       ``(D) the applicant meets any other requirements that the 
     Secretary considers appropriate to carry out this subsection.
       ``(4) Letters of intent and early systems work 
     agreements.--In order to expedite a project under this 
     subsection, the Secretary shall, to the maximum extent 
     practicable, issue letters of intent and enter into early 
     systems work agreements upon issuance of a record of decision 
     for projects that receive an overall project rating of medium 
     or better.
       ``(5) Policy guidance.--The Secretary shall issue policy 
     guidance regarding the review and evaluation process and 
     criteria--
       ``(A) not later than 180 days after the date of enactment 
     of the Federal Public Transportation Act of 2012; and
       ``(B) each time the Secretary makes significant changes to 
     the process and criteria, but not less frequently than once 
     every 2 years.
       ``(6) Rules.--Not later than 1 year after the date of 
     enactment of the Federal Public Transportation Act of 2012, 
     the Secretary shall issue rules establishing an evaluation 
     and rating process for--
       ``(A) new fixed guideway capital projects that is based on 
     the results of project justification, policies and land use 
     patterns that promote public transportation, and local 
     financial commitment, as required under this subsection; and
       ``(B) core capacity improvement projects that is based on 
     the results of the capacity needs of the corridor, project 
     justification, and local financial commitment.
       ``(7) Applicability.--This subsection shall not apply to a 
     project for which the Secretary issued a letter of intent, 
     entered into a full funding grant agreement, or entered into 
     a project construction agreement before the date of enactment 
     of the Federal Public Transportation Act of 2012.
       ``(h) Small Start Projects.--
       ``(1) In general.--A small start project shall be subject 
     to the requirements of this subsection.
       ``(2) Project development phase.--
       ``(A) Entrance into project development phase.--A new small 
     starts project shall enter into the project development phase 
     when--
       ``(i) the applicant--

       ``(I) submits a letter to the Secretary describing the 
     project and requesting entry into the project development 
     phase; and
       ``(II) initiates activities required to be carried out 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) with respect to the project; and

       ``(ii) the Secretary--

       ``(I) responds in writing to the applicant within 45 days 
     whether the information provided is sufficient to enter into 
     the project development phase, including, when necessary, a 
     detailed description of any information deemed insufficient; 
     and
       ``(II) provides concurrent notice to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives of whether the small starts project is 
     entering the project development phase.

       ``(B) Activities during project development phase.--
     Concurrent with the analysis required to be made under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.), each applicant shall develop sufficient information to 
     enable the Secretary to make findings of project 
     justification, policies and land use patterns that promote 
     public transportation, and local financial commitment under 
     this subsection.
       ``(3) Selection criteria.--The Secretary may provide 
     Federal assistance for a small start project under this 
     subsection only if the Secretary determines that the 
     project--
       ``(A) has been adopted as the locally preferred alternative 
     as part of the metropolitan transportation plan required 
     under section 5303;
       ``(B) is based on the results of an analysis of the 
     benefits of the project as set forth in paragraph (4); and
       ``(C) is supported by an acceptable degree of local 
     financial commitment.
       ``(4) Evaluation of benefits and federal investment.--In 
     making a determination for a small start project under 
     paragraph (3)(B), the Secretary shall analyze, evaluate, and 
     consider the following evaluation criteria for the project 
     (as compared to a no-action alternative): mobility 
     improvements, environmental benefits, congestion relief, 
     economic development effects associated with the project, 
     policies and land use patterns that support public 
     transportation and cost-effectiveness as measured by cost per 
     rider.
       ``(5) Evaluation of local financial commitment.--For 
     purposes of paragraph (3)(C), the Secretary shall require 
     that each proposed local source of capital and operating 
     financing is stable, reliable, and available within the 
     proposed project timetable.
       ``(6) Ratings.--In carrying out paragraphs (4) and (5) for 
     a small start project, the Secretary shall evaluate and rate 
     the project on a 5-point scale (high, medium-high, medium, 
     medium-low, or low) based on an evaluation of the benefits of 
     the project as compared to the Federal assistance to be 
     provided 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 this subsection and shall give comparable, but 
     not necessarily equal, numerical weight to the benefits that 
     the project will bring to the community in calculating the 
     overall project rating.
       ``(7) Grants and expedited grant agreements.--
       ``(A) In general.--The Secretary, to the maximum extent 
     practicable, shall provide Federal assistance under this 
     subsection in a single grant. If the Secretary cannot provide 
     such a single grant, the Secretary may execute an expedited 
     grant agreement in order to include a commitment on the part 
     of the Secretary to provide funding for the project in future 
     fiscal years.
       ``(B) Terms of expedited grant agreements.--In executing an 
     expedited grant agreement under this subsection, the 
     Secretary may include in the agreement terms similar to those 
     established under subsection (k)(2).
       ``(C) Notice of proposed grants and expedited grant 
     agreements.--At least 10 days before making a grant award or 
     entering into a grant agreement for a project under this 
     subsection, the Secretary shall notify, in writing, the 
     Committee on Transportation and Infrastructure and the 
     Committee on Appropriations of the House of Representatives 
     and the Committee on Banking, Housing, and Urban Affairs and 
     the Committee on Appropriations of the Senate of the proposed 
     grant or expedited grant agreement, as well as the 
     evaluations and ratings for the project.
       ``(i) Programs of Interrelated Projects.--
       ``(1) Project development phase.--A federally funded 
     project in a program of interrelated projects shall advance 
     through project development as provided in subsection (d) or 
     (e), as applicable.
       ``(2) Engineering phase.--A federally funded project in a 
     program of interrelated projects may advance into the 
     engineering phase upon completion of activities required 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), as demonstrated by a record of decision 
     with respect to the project, a finding that the project has 
     no significant impact, or a determination that the project is 
     categorically excluded, only if the Secretary determines 
     that--
       ``(A) the project is selected as the locally preferred 
     alternative at the completion of the process required under 
     the National Environmental Policy Act of 1969;
       ``(B) the project is adopted into the metropolitan 
     transportation plan required under section 5303;
       ``(C) the program of interrelated projects involves 
     projects that have a logical connectivity to one another;
       ``(D) the program of interrelated projects, when evaluated 
     as a whole, meets the requirements of subsection (d)(2) or 
     (e)(2), as applicable;
       ``(E) the program of interrelated projects is supported by 
     a program implementation plan demonstrating that construction 
     will begin on each of the projects in the program of 
     interrelated projects within a reasonable time frame; and
       ``(F) the program of interrelated projects is supported by 
     an acceptable degree of local financial commitment, as 
     described in subsection (f).
       ``(3) Project advancement and ratings.--
       ``(A) Project advancement.--A project receiving a grant 
     under this section that is part of a program of interrelated 
     projects may not advance from the project development phase 
     to the engineering phase, or from the engineering phase to 
     the construction phase, unless the Secretary determines that 
     the program of interrelated projects meets the applicable 
     requirements of this section and there is a reasonable

[[Page 10597]]

     likelihood that the program will continue to meet such 
     requirements.
       ``(B) Ratings.--
       ``(i) Overall rating.--In making a determination under 
     subparagraph (A), the Secretary shall evaluate and rate a 
     program of interrelated projects on a 5-point scale (high, 
     medium-high, medium, medium-low, or low) based on the 
     criteria described in paragraph (2).
       ``(ii) Individual rating for each criterion.--In rating a 
     program of interrelated projects, the Secretary shall 
     provide, in addition to the overall program rating, 
     individual ratings for each of the criteria described in 
     paragraph (2) and shall give comparable, but not necessarily 
     equal, numerical weight to each such criterion in calculating 
     the overall program rating.
       ``(iii) Medium rating not required.--The Secretary shall 
     not require that any single criterion described in paragraph 
     (2) meet or exceed a `medium' rating in order to advance the 
     program of interrelated projects from one phase to another.
       ``(4) Annual review.--
       ``(A) Review required.--The Secretary shall annually review 
     the program implementation plan required under paragraph 
     (2)(E) to determine whether the program of interrelated 
     projects is adhering to its schedule.
       ``(B) Extension of time.--If a program of interrelated 
     projects is not adhering to its schedule, the Secretary may, 
     upon the request of the applicant, grant an extension of time 
     if the applicant submits a reasonable plan that includes--
       ``(i) evidence of continued adequate funding; and
       ``(ii) an estimated time frame for completing the program 
     of interrelated projects.
       ``(C) Satisfactory progress required.--If the Secretary 
     determines that a program of interrelated projects is not 
     making satisfactory progress, no Federal funds shall be 
     provided for a project within the program of interrelated 
     projects.
       ``(5) Failure to carry out program of interrelated 
     projects.--
       ``(A) Repayment required.--If an applicant does not carry 
     out the program of interrelated projects within a reasonable 
     time, for reasons within the control of the applicant, the 
     applicant shall repay all Federal funds provided for the 
     program, and any reasonable interest and penalty charges that 
     the Secretary may establish.
       ``(B) Crediting of funds received.--Any funds received by 
     the Government under this paragraph, other than interest and 
     penalty charges, shall be credited to the appropriation 
     account from which the funds were originally derived.
       ``(6) Non-federal funds.--Any non-Federal funds committed 
     to a project in a program of interrelated projects may be 
     used to meet a non-Government share requirement for any other 
     project in the program of interrelated projects, if the 
     Government share of the cost of each project within the 
     program of interrelated projects does not exceed 80 percent.
       ``(7) Priority.--In making grants under this section, the 
     Secretary may give priority to programs of interrelated 
     projects for which the non-Government share of the cost of 
     the projects included in the programs of interrelated 
     projects exceeds the non-Government share required under 
     subsection (l).
       ``(8) Non-government projects.--Including a project not 
     financed by the Government in a program of interrelated 
     projects does not impose Government requirements that would 
     not otherwise apply to the project.
       ``(j) Previously Issued Letter of Intent or Full Funding 
     Grant Agreement.--Subsections (d) and (e) shall not apply to 
     projects for which the Secretary has issued a letter of 
     intent, approved entry into final design, entered into a full 
     funding grant agreement, or entered into a project 
     construction grant agreement before the date of enactment of 
     the Federal Public Transportation Act of 2012.
       ``(k) Letters of Intent, Full Funding Grant Agreements, and 
     Early Systems Work Agreements.--
       ``(1) Letters of intent.--
       ``(A) Amounts intended to be obligated.--The Secretary may 
     issue a letter of intent to an applicant announcing an 
     intention to obligate, for a new fixed guideway capital 
     project or core capacity improvement project, an amount from 
     future available budget authority specified in law that is 
     not more than the amount stipulated as the financial 
     participation of the Secretary in the project. When a letter 
     is issued for a capital project under this section, the 
     amount shall be sufficient to complete at least an operable 
     segment.
       ``(B) Treatment.--The issuance of a letter under 
     subparagraph (A) is deemed not to be an obligation under 
     sections 1108(c), 1501, and 1502(a) of title 31 or an 
     administrative commitment.
       ``(2) Full funding grant agreements.--
       ``(A) In general.--A new fixed guideway capital project or 
     core capacity improvement project shall be carried out 
     through a full funding grant agreement.
       ``(B) Criteria.--The Secretary shall enter into a full 
     funding grant agreement, based on the evaluations and ratings 
     required under subsection (d), (e), or (i), as applicable, 
     with each grantee receiving assistance for a new fixed 
     guideway capital project or core capacity improvement project 
     that has been rated as high, medium-high, or medium, in 
     accordance with subsection (g)(2)(A) or (i)(3)(B), as 
     applicable.
       ``(C) Terms.--A full funding grant agreement shall--
       ``(i) establish the terms of participation by the 
     Government in a new fixed guideway capital project or core 
     capacity improvement project;
       ``(ii) establish the maximum amount of Federal financial 
     assistance for the project;
       ``(iii) include the period of time for completing the 
     project, even if that period extends beyond the period of an 
     authorization; and
       ``(iv) make timely and efficient management of the project 
     easier according to the law of the United States.
       ``(D) Special financial rules.--
       ``(i) In general.--A full funding grant agreement under 
     this paragraph obligates an amount of available budget 
     authority specified in law and may include a commitment, 
     contingent on amounts to be specified in law in advance for 
     commitments under this paragraph, to obligate an additional 
     amount from future available budget authority specified in 
     law.
       ``(ii) Statement of contingent commitment.--The agreement 
     shall state that the contingent commitment is not an 
     obligation of the Government.
       ``(iii) Interest and other financing costs.--Interest and 
     other financing costs of efficiently carrying out a part of 
     the project within a reasonable time are a cost of carrying 
     out the project under a full funding grant agreement, except 
     that eligible costs may not be more than the cost of the most 
     favorable financing terms reasonably available for the 
     project at the time of borrowing. The applicant shall 
     certify, in a way satisfactory to the Secretary, that the 
     applicant has shown reasonable diligence in seeking the most 
     favorable financing terms.
       ``(iv) Completion of operable segment.--The amount 
     stipulated in an agreement under this paragraph for a new 
     fixed guideway capital project shall be sufficient to 
     complete at least an operable segment.
       ``(E) Before and after study.--
       ``(i) In general.--A full funding grant agreement under 
     this paragraph shall require the applicant to conduct a study 
     that--

       ``(I) describes and analyzes the impacts of the new fixed 
     guideway capital project or core capacity improvement project 
     on public transportation services and public transportation 
     ridership;
       ``(II) evaluates the consistency of predicted and actual 
     project characteristics and performance; and
       ``(III) identifies reasons for differences between 
     predicted and actual outcomes.

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

       ``(I) Submission of plan.--Applicants seeking a full 
     funding grant agreement under this paragraph shall submit a 
     complete plan for the collection and analysis of information 
     to identify the impacts of the new fixed guideway capital 
     project or core capacity improvement 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) collection of data on the current public 
     transportation system regarding public transportation 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 public transportation 
     system 2 years after the opening of a new fixed guideway 
     capital project or core capacity improvement project, 
     including analogous information on public transportation 
     service levels and ridership patterns and information on the 
     as-built scope, capital, and financing costs of the project; 
     and
       ``(dd) analysis of the consistency of predicted project 
     characteristics with actual outcomes.
       ``(F) Collection of data on current system.--To be eligible 
     for a full funding grant agreement under this paragraph, 
     recipients shall have collected data on the current system, 
     according to the plan required under subparagraph (E)(ii), 
     before the beginning of construction of the proposed new 
     fixed guideway capital project or core capacity improvement 
     project. Collection of this data shall be included in the 
     full funding grant agreement as an eligible activity.
       ``(3) Early systems work agreements.--
       ``(A) Conditions.--The Secretary may enter into an early 
     systems work agreement with an applicant if a record of 
     decision under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.) has been issued on the project and 
     the Secretary finds there is reason to believe--
       ``(i) a full funding grant agreement for the project will 
     be made; and
       ``(ii) the terms of the work agreement will promote 
     ultimate completion of the project more rapidly and at less 
     cost.
       ``(B) Contents.--
       ``(i) In general.--An early systems work agreement under 
     this paragraph obligates budget authority available under 
     this chapter and title 23 and shall provide for reimbursement 
     of preliminary costs of carrying out the project, including 
     land acquisition, timely procurement of system elements for 
     which specifications are decided, and other activities the 
     Secretary decides are appropriate to make efficient, long-
     term project management easier.
       ``(ii) Contingent commitment.--An early systems work 
     agreement may include a commitment, contingent on amounts to 
     be specified in

[[Page 10598]]

     law in advance for commitments under this paragraph, to 
     obligate an additional amount from future available budget 
     authority specified in law.
       ``(iii) Period covered.--An early systems work agreement 
     under this paragraph shall cover the period of time the 
     Secretary considers appropriate. The period may extend beyond 
     the period of current authorization.
       ``(iv) Interest and other financing costs.--Interest and 
     other financing costs of efficiently carrying out the early 
     systems work agreement within a reasonable time are a cost of 
     carrying out the agreement, except that eligible costs may 
     not be more than the cost of the most favorable financing 
     terms reasonably available for the project at the time of 
     borrowing. The applicant shall certify, in a way satisfactory 
     to the Secretary, that the applicant has shown reasonable 
     diligence in seeking the most favorable financing terms.
       ``(v) Failure to carry out project.--If an applicant does 
     not carry out the project for reasons within the control of 
     the applicant, the applicant shall repay all Federal grant 
     funds awarded for the project from all Federal funding 
     sources, for all project activities, facilities, and 
     equipment, plus reasonable interest and penalty charges 
     allowable by law or established by the Secretary in the early 
     systems work agreement.
       ``(vi) Crediting of funds received.--Any funds received by 
     the Government under this paragraph, other than interest and 
     penalty charges, shall be credited to the appropriation 
     account from which the funds were originally derived.
       ``(4) Limitation on amounts.--
       ``(A) In general.--The Secretary may enter into full 
     funding grant agreements under this subsection for new fixed 
     guideway capital projects and core capacity improvement 
     projects that contain contingent commitments to incur 
     obligations in such amounts as the Secretary determines are 
     appropriate.
       ``(B) Appropriation required.--An obligation may be made 
     under this subsection only when amounts are appropriated for 
     the obligation.
       ``(5) Notification to congress.--At least 30 days before 
     issuing a letter of intent, entering into a full funding 
     grant agreement, or entering into an early systems work 
     agreement under this section, the Secretary shall notify, in 
     writing, the Committee on Banking, Housing, and Urban Affairs 
     and the Committee on Appropriations of the Senate and the 
     Committee on Transportation and Infrastructure and the 
     Committee on Appropriations of the House of Representatives 
     of the proposed letter or agreement. The Secretary shall 
     include with the notification a copy of the proposed letter 
     or agreement as well as the evaluations and ratings for the 
     project.
       ``(l) Government Share of Net Capital Project Cost.--
       ``(1) In general.--Based on engineering studies, studies of 
     economic feasibility, and information on the expected use of 
     equipment or facilities, the Secretary shall estimate the net 
     capital project cost. A grant for a fixed guideway project or 
     small start project shall not exceed 80 percent of the net 
     capital project cost. A grant for a core capacity project 
     shall not exceed 80 percent of the net capital project cost 
     of the incremental cost of increasing the capacity in the 
     corridor.
       ``(2) Adjustment for completion under budget.--The 
     Secretary may adjust the final net capital project cost of a 
     new fixed guideway capital project or core capacity 
     improvement project evaluated under subsection (d), (e), or 
     (i) to include the cost of eligible activities not included 
     in the originally defined project if the Secretary determines 
     that the originally defined project has been completed at a 
     cost that is significantly below the original estimate.
       ``(3) Maximum government share.--The Secretary may provide 
     a higher grant percentage than requested by the grant 
     recipient if--
       ``(A) the Secretary determines that the net capital project 
     cost of the project is not more than 10 percent higher than 
     the net capital project cost estimated at the time the 
     project was approved for advancement into the engineering 
     phase; and
       ``(B) the ridership estimated for the project is not less 
     than 90 percent of the ridership estimated for the project at 
     the time the project was approved for advancement into the 
     engineering phase.
       ``(4) Remainder of net capital project cost.--The remainder 
     of the net capital project cost shall be provided from an 
     undistributed cash surplus, a replacement or depreciation 
     cash fund or reserve, or new capital.
       ``(5) Limitation on statutory construction.--Nothing in 
     this section shall be construed as authorizing the Secretary 
     to require a non-Federal financial commitment for a project 
     that is more than 20 percent of the net capital project cost.
       ``(6) Special rule for rolling stock costs.--In addition to 
     amounts allowed pursuant to paragraph (1), a planned 
     extension to a fixed guideway system may include the cost of 
     rolling stock previously purchased if the applicant satisfies 
     the Secretary that only amounts other than amounts provided 
     by the Government were used and that the purchase was made 
     for use on the extension. A refund or reduction of the 
     remainder may be made only if a refund of a proportional 
     amount of the grant of the Government is made at the same 
     time.
       ``(7) Limitation on applicability.--This subsection shall 
     not apply to projects for which the Secretary entered into a 
     full funding grant agreement before the date of enactment of 
     the Federal Public Transportation Act of 2012.
       ``(8) Special rule for fixed guideway bus rapid transit 
     projects.--For up to three fixed-guideway bus rapid transit 
     projects each fiscal year the Secretary shall--
       ``(A) establish a Government share of at least 80 percent; 
     and
       ``(B) not lower the project's rating for degree of local 
     financial commitment for purposes of subsections (d)(2)(A)(v) 
     or (h)(3)(C) as a result of the Government share specified in 
     this paragraph.
       ``(m) Undertaking Projects in Advance.--
       ``(1) In general.--The Secretary may pay the Government 
     share of the net capital project cost to a State or local 
     governmental authority that carries out any part of a project 
     described in this section without the aid of amounts of the 
     Government and according to all applicable procedures and 
     requirements if--
       ``(A) the State or local governmental authority applies for 
     the payment;
       ``(B) the Secretary approves the payment; and
       ``(C) before the State or local governmental authority 
     carries out the part of the project, the Secretary approves 
     the plans and specifications for the part in the same way as 
     other projects under this section.
       ``(2) Financing costs.--
       ``(A) In general.--The cost of carrying out part of a 
     project includes the amount of interest earned and payable on 
     bonds issued by the State or local governmental authority to 
     the extent proceeds of the bonds are expended in carrying out 
     the part.
       ``(B) Limitation on amount of interest.--The amount of 
     interest under this paragraph may not be more than the most 
     favorable interest terms reasonably available for the project 
     at the time of borrowing.
       ``(C) Certification.--The applicant shall certify, in a 
     manner satisfactory to the Secretary, that the applicant has 
     shown reasonable diligence in seeking the most favorable 
     financing terms.
       ``(n) Availability of Amounts.--
       ``(1) In general.--An amount made available or appropriated 
     for a new fixed guideway capital project or core capacity 
     improvement project shall remain available to that project 
     for 5 fiscal years, including the fiscal year in which the 
     amount is made available or appropriated. Any amounts that 
     are unobligated to the project at the end of the 5-fiscal-
     year period may be used by the Secretary for any purpose 
     under this section.
       ``(2) Use of deobligated amounts.--An amount available 
     under this section that is deobligated may be used for any 
     purpose under this section.
       ``(o) Reports on New Fixed Guideway and Core Capacity 
     Improvement Projects.--
       ``(1) Annual report on funding recommendations.--Not later 
     than the first Monday in February of each year, the Secretary 
     shall submit to the Committee on Banking, Housing, and Urban 
     Affairs and the Committee on Appropriations of the Senate and 
     the Committee on Transportation and Infrastructure and the 
     Committee on Appropriations of the House of Representatives a 
     report that includes--
       ``(A) a proposal of allocations of amounts to be available 
     to finance grants for projects under this section among 
     applicants for these amounts;
       ``(B) evaluations and ratings, as required under 
     subsections (d), (e), and (i), for each such project that is 
     in project development, engineering, or has received a full 
     funding grant agreement; and
       ``(C) recommendations of such projects for funding based on 
     the evaluations and ratings and on existing commitments and 
     anticipated funding levels for the next 3 fiscal years based 
     on information currently available to the Secretary.
       ``(2) Reports on before and after studies.--Not later than 
     the first Monday in August of each year, the Secretary shall 
     submit to the committees described in paragraph (1) a report 
     containing a summary of the results of any studies conducted 
     under subsection (k)(2)(E).
       ``(3) Biennial gao review.--The Comptroller General of the 
     United States shall--
       ``(A) conduct a biennial review of--
       ``(i) the processes and procedures for evaluating, rating, 
     and recommending new fixed guideway capital projects and core 
     capacity improvement projects; and
       ``(ii) the Secretary's implementation of such processes and 
     procedures; and
       ``(B) report to Congress on the results of such review by 
     May 31 of each year.''.
       (b) Pilot Program for Expedited Project Delivery.--
       (1) Definitions.--In this subsection the following 
     definitions shall apply:
       (A) Eligible project.--The term ``eligible project'' means 
     a new fixed guideway capital project or a core capacity 
     improvement project, as those terms are defined in section 
     5309 of title 49, United States Code, as amended by this 
     section, that has not entered into a full funding grant 
     agreement with the Federal Transit Administration before the 
     date of enactment of the Federal Public Transportation Act of 
     2012.
       (B) Program.--The term ``program'' means the pilot program 
     for expedited project delivery established under this 
     subsection.
       (C) Recipient.--The term ``recipient'' means a recipient of 
     funding under chapter 53 of title 49, United States Code.
       (D) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.
       (2) Establishment.--The Secretary shall establish and 
     implement a pilot program to demonstrate whether innovative 
     project development

[[Page 10599]]

     and delivery methods or innovative financing arrangements can 
     expedite project delivery for certain meritorious new fixed 
     guideway capital projects and core capacity improvement 
     projects.
       (3) Limitation on number of projects.--The Secretary shall 
     select 3 eligible projects to participate in the program, of 
     which--
       (A) at least 1 shall be an eligible project requesting more 
     than $100,000,000 in Federal financial assistance under 
     section 5309 of title 49, United States Code; and
       (B) at least 1 shall be an eligible project requesting less 
     than $100,000,000 in Federal financial assistance under 
     section 5309 of title 49, United States Code.
       (4) Government share.--The Government share of the total 
     cost of an eligible project that participates in the program 
     may not exceed 50 percent.
       (5) Eligibility.--A recipient that desires to participate 
     in the program shall submit to the Secretary an application 
     that contains, at a minimum--
       (A) identification of an eligible project;
       (B) a schedule and finance plan for the construction and 
     operation of the eligible project;
       (C) an analysis of the efficiencies of the proposed project 
     development and delivery methods or innovative financing 
     arrangement for the eligible project; and
       (D) a certification that the recipient's existing public 
     transportation system is in a state of good repair.
       (6) Selection criteria.--The Secretary may award a full 
     funding grant agreement under this subsection if the 
     Secretary determines that--
       (A) the recipient has completed planning and the activities 
     required under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.); and
       (B) the recipient has the necessary legal, financial, and 
     technical capacity to carry out the eligible project.
       (7) Before and after study and report.--
       (A) Study required.--A full funding grant agreement under 
     this paragraph shall require a recipient to conduct a study 
     that--
       (i) describes and analyzes the impacts of the eligible 
     project on public transportation services and public 
     transportation ridership;
       (ii) describes and analyzes the consistency of predicted 
     and actual benefits and costs of the innovative project 
     development and delivery methods or innovative financing for 
     the eligible project; and
       (iii) identifies reasons for any differences between 
     predicted and actual outcomes for the eligible project.
       (B) Submission of report.--Not later than 9 months after an 
     eligible project selected to participate in the program 
     begins revenue operations, the recipient shall submit to the 
     Secretary a report on the results of the study under 
     subparagraph (A).

     SEC. 20009. MOBILITY OF SENIORS AND INDIVIDUALS WITH 
                   DISABILITIES.

       Section 5310 of title 49, United States Code, is amended to 
     read as follows:

     ``Sec. 5310. Formula grants for the enhanced mobility of 
       seniors and individuals with disabilities

       ``(a) Definitions.--In this section, the following 
     definitions shall apply:
       ``(1) Recipient.--The term `recipient' means a designated 
     recipient or a State that receives a grant under this section 
     directly.
       ``(2) Subrecipient.--The term `subrecipient' means a State 
     or local governmental authority, a private nonprofit 
     organization, or an operator of public transportation that 
     receives a grant under this section indirectly through a 
     recipient.
       ``(b) General Authority.--
       ``(1) Grants.--The Secretary may make grants under this 
     section to recipients for--
       ``(A) public transportation projects planned, designed, and 
     carried out to meet the special needs of seniors and 
     individuals with disabilities when public transportation is 
     insufficient, inappropriate, or unavailable;
       ``(B) public transportation projects that exceed the 
     requirements of the Americans with Disabilities Act of 1990 
     (42 U.S.C. 12101 et seq.);
       ``(C) public transportation projects that improve access to 
     fixed route service and decrease reliance by individuals with 
     disabilities on complementary paratransit; and
       ``(D) alternatives to public transportation that assist 
     seniors and individuals with disabilities with 
     transportation.
       ``(2) Limitations for capital projects.--
       ``(A) Amount available.--The amount available for capital 
     projects under paragraph (1)(A) shall be not less than 55 
     percent of the funds apportioned to the recipient under this 
     section.
       ``(B) Allocation to subrecipients.--A recipient of a grant 
     under paragraph (1)(A) may allocate the amounts provided 
     under the grant to--
       ``(i) a private nonprofit organization; or
       ``(ii) a State or local governmental authority that--

       ``(I) is approved by a State to coordinate services for 
     seniors and individuals with disabilities; or
       ``(II) certifies that there are no private nonprofit 
     organizations readily available in the area to provide the 
     services described in paragraph (1)(A).

       ``(3) Administrative expenses.--A recipient may use not 
     more than 10 percent of the amounts apportioned to the 
     recipient under this section to administer, plan, and provide 
     technical assistance for a project funded under this section.
       ``(4) Eligible capital expenses.--The acquisition of public 
     transportation services is an eligible capital expense under 
     this section.
       ``(5) Coordination.--
       ``(A) Department of transportation.--To the maximum extent 
     feasible, the Secretary shall coordinate activities under 
     this section with related activities under other Federal 
     departments and agencies.
       ``(B) Other federal agencies and nonprofit organizations.--
     A State or local governmental authority or nonprofit 
     organization that receives assistance from Government sources 
     (other than the Department of Transportation) for 
     nonemergency transportation services shall--
       ``(i) participate and coordinate with recipients of 
     assistance under this chapter in the design and delivery of 
     transportation services; and
       ``(ii) participate in the planning for the transportation 
     services described in clause (i).
       ``(6) Program of projects.--
       ``(A) In general.--Amounts made available to carry out this 
     section may be used for transportation projects to assist in 
     providing transportation services for seniors and individuals 
     with disabilities, if such transportation projects are 
     included in a program of projects.
       ``(B) Submission.--A recipient shall annually submit a 
     program of projects to the Secretary.
       ``(C) Assurance.--The program of projects submitted under 
     subparagraph (B) shall contain an assurance that the program 
     provides for the maximum feasible coordination of 
     transportation services assisted under this section with 
     transportation services assisted by other Government sources.
       ``(7) Meal delivery for homebound individuals.--A public 
     transportation service provider that receives 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.
       ``(c) Apportionment and Transfers.--
       ``(1) Formula.--The Secretary shall apportion amounts made 
     available to carry out this section as follows:
       ``(A) Large urbanized areas.--Sixty percent of the funds 
     shall be apportioned among designated recipients for 
     urbanized areas with a population of 200,000 or more 
     individuals, as determined by the Bureau of the Census, in 
     the ratio that--
       ``(i) the number of seniors and individuals with 
     disabilities in each such urbanized area; bears to
       ``(ii) the number of seniors and individuals with 
     disabilities in all such urbanized areas.
       ``(B) Small urbanized areas.--Twenty percent of the funds 
     shall be apportioned among the States in the ratio that--
       ``(i) the number of seniors and individuals with 
     disabilities in urbanized areas with a population of fewer 
     than 200,000 individuals, as determined by the Bureau of the 
     Census, in each State; bears to
       ``(ii) the number of seniors and individuals with 
     disabilities in urbanized areas with a population of fewer 
     than 200,000 individuals, as determined by the Bureau of the 
     Census, in all States.
       ``(C) Rural areas.--Twenty percent of the funds shall be 
     apportioned among the States in the ratio that--
       ``(i) the number of seniors and individuals with 
     disabilities in rural areas in each State; bears to
       ``(ii) the number of seniors and individuals with 
     disabilities in rural areas in all States.
       ``(2) Areas served by projects.--
       ``(A) In general.--Except as provided in subparagraph (B)--
       ``(i) funds apportioned under paragraph (1)(A) shall be 
     used for projects serving urbanized areas with a population 
     of 200,000 or more individuals, as determined by the Bureau 
     of the Census;
       ``(ii) funds apportioned under paragraph (1)(B) shall be 
     used for projects serving urbanized areas with a population 
     of fewer than 200,000 individuals, as determined by the 
     Bureau of the Census; and
       ``(iii) funds apportioned under paragraph (1)(C) shall be 
     used for projects serving rural areas.
       ``(B) Exceptions.--A State may use funds apportioned to the 
     State under subparagraph (B) or (C) of paragraph (1)--
       ``(i) for a project serving an area other than an area 
     specified in subparagraph (A)(ii) or (A)(iii), as the case 
     may be, if the Governor of the State certifies that all of 
     the objectives of this section are being met in the area 
     specified in subparagraph (A)(ii) or (A)(iii); or
       ``(ii) for a project anywhere in the State, if the State 
     has established a statewide program for meeting the 
     objectives of this section.
       ``(C) Limited to eligible projects.--Any funds transferred 
     pursuant to subparagraph (B) shall be made available only for 
     eligible projects selected under this section.
       ``(D) Consultation.--A recipient may transfer an amount 
     under subparagraph (B) only after consulting with responsible 
     local officials, publicly owned operators of public 
     transportation, and nonprofit providers in the area for which 
     the amount was originally apportioned.
       ``(d) Government Share of Costs.--
       ``(1) Capital projects.--A grant for a capital project 
     under this section shall be in an amount equal to 80 percent 
     of the net capital costs of the project, as determined by the 
     Secretary.
       ``(2) Operating assistance.--A grant made under this 
     section for operating assistance may

[[Page 10600]]

     not exceed an amount equal to 50 percent of the net operating 
     costs of the project, as determined by the Secretary.
       ``(3) Remainder of net costs.--The remainder of the net 
     costs of a project carried out under this section--
       ``(A) may be provided from an undistributed cash surplus, a 
     replacement or depreciation cash fund or reserve, a service 
     agreement with a State or local social service agency or a 
     private social service organization, or new capital; and
       ``(B) may be derived from amounts appropriated or otherwise 
     made available--
       ``(i) to a department or agency of the Government (other 
     than the Department of Transportation) that are eligible to 
     be expended for transportation; or
       ``(ii) to carry out the Federal lands highways program 
     under section 204 of title 23.
       ``(4) Use of certain funds.--For purposes of paragraph 
     (3)(B)(i), the prohibition under section 403(a)(5)(C)(vii) of 
     the Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) on the 
     use of grant funds for matching requirements shall not apply 
     to Federal or State funds to be used for transportation 
     purposes.
       ``(e) Grant Requirements.--
       ``(1) In general.--A grant under this section shall be 
     subject to the same requirements as a grant under section 
     5307, to the extent the Secretary determines appropriate.
       ``(2) Certification requirements.--
       ``(A) Project selection and plan development.--Before 
     receiving a grant under this section, each recipient shall 
     certify that--
       ``(i) the projects selected by the recipient are included 
     in a locally developed, coordinated public transit-human 
     services transportation plan;
       ``(ii) the plan described in clause (i) was developed and 
     approved through a process that included participation by 
     seniors, individuals with disabilities, representatives of 
     public, private, and nonprofit transportation and human 
     services providers, and other members of the public; and
       ``(iii) to the maximum extent feasible, the services funded 
     under this section will be coordinated with transportation 
     services assisted by other Federal departments and agencies, 
     including any transportation activities carried out by a 
     recipient of a grant from the Department of Health and Human 
     Services.
       ``(B) Allocations to subrecipients.--If a recipient 
     allocates funds received under this section to subrecipients, 
     the recipient shall certify that the funds are allocated on a 
     fair and equitable basis.
       ``(f) Competitive Process for Grants to Subrecipients.--
       ``(1) Areawide solicitations.--A recipient of funds 
     apportioned under subsection (c)(1)(A) may conduct, in 
     cooperation with the appropriate metropolitan planning 
     organization, an areawide solicitation for applications for 
     grants under this section.
       ``(2) Statewide solicitations.--A recipient of funds 
     apportioned under subparagraph (B) or (C) of subsection 
     (c)(1) may conduct a statewide solicitation for applications 
     for grants under this section.
       ``(3) Application.--If the recipient elects to engage in a 
     competitive process, a recipient or subrecipient seeking to 
     receive a grant from funds apportioned under subsection (c) 
     shall submit to the recipient making the election an 
     application in such form and in accordance with such 
     requirements as the recipient making the election shall 
     establish.
       ``(g) Transfers of Facilities and Equipment.--A recipient 
     may transfer a facility or equipment acquired using a grant 
     under this section to any other recipient eligible to receive 
     assistance under this chapter, if--
       ``(1) the recipient in possession of the facility or 
     equipment consents to the transfer; and
       ``(2) the facility or equipment will continue to be used as 
     required under this section.
       ``(h) Performance Measures.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of the Federal Public Transportation Act of 2012, 
     the Secretary shall submit a report to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives making recommendations on the 
     establishment of performance measures for grants under this 
     section. Such report shall be developed in consultation with 
     national nonprofit organizations that provide technical 
     assistance and advocacy on issues related to transportation 
     services for seniors and individuals with disabilities.
       ``(2) Measures.--The performance measures to be considered 
     in the report under paragraph (1) shall require the 
     collection of quantitative and qualitative information, as 
     available, concerning--
       ``(A) modifications to the geographic coverage of 
     transportation service, the quality of transportation 
     service, or service times that increase the availability of 
     transportation services for seniors and individuals with 
     disabilities;
       ``(B) ridership;
       ``(C) accessibility improvements; and
       ``(D) other measures, as the Secretary determines is 
     appropriate.''.

     SEC. 20010. FORMULA GRANTS FOR RURAL AREAS.

       Section 5311 of title 49, United States Code, is amended to 
     read as follows:

     ``Sec. 5311. Formula grants for rural areas

       ``(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 Government.
       ``(2) Subrecipient.--The term `subrecipient' means a State 
     or local governmental authority, a nonprofit organization, or 
     an operator of public transportation or intercity bus service 
     that receives Federal transit program grant funds indirectly 
     through a recipient.
       ``(b) General Authority.--
       ``(1) Grants authorized.--Except as provided by paragraph 
     (2), the Secretary may award grants under this section to 
     recipients located in rural areas for--
       ``(A) planning, provided that a grant under this section 
     for planning activities shall be in addition to funding 
     awarded to a State under section 5305 for planning activities 
     that are directed specifically at the needs of rural areas in 
     the State;
       ``(B) public transportation capital projects;
       ``(C) operating costs of equipment and facilities for use 
     in public transportation;
       ``(D) job access and reverse commute projects; and
       ``(E) the acquisition of public transportation services, 
     including service agreements with private providers of public 
     transportation service.
       ``(2) State program.--
       ``(A) In general.--A project eligible for a grant under 
     this section shall be included in a State program for public 
     transportation service projects, including agreements with 
     private providers of public transportation service.
       ``(B) Submission to secretary.--Each State shall submit to 
     the Secretary annually the program described in subparagraph 
     (A).
       ``(C) Approval.--The Secretary may not approve the program 
     unless the Secretary determines that--
       ``(i) the program provides a fair distribution of amounts 
     in the State, including Indian reservations; and
       ``(ii) the program provides the maximum feasible 
     coordination of public transportation service assisted under 
     this section with transportation service assisted by other 
     Federal sources.
       ``(3) Rural transportation assistance program.--
       ``(A) In general.--The Secretary shall carry out a rural 
     transportation assistance program in rural areas.
       ``(B) Grants and contracts.--In carrying out this 
     paragraph, the Secretary may use not more than 2 percent of 
     the amount made available under section 5338(a)(2)(E) to make 
     grants and contracts for transportation research, technical 
     assistance, training, and related support services in rural 
     areas.
       ``(C) Projects of a national scope.--Not more than 15 
     percent of the amounts available under subparagraph (B) may 
     be used by the Secretary to carry out competitively selected 
     projects of a national scope, with the remaining balance 
     provided to the States.
       ``(4) Data collection.--Each recipient under this section 
     shall submit an annual report to the Secretary containing 
     information on capital investment, operations, and service 
     provided with funds received under this section, including--
       ``(A) total annual revenue;
       ``(B) sources of revenue;
       ``(C) total annual operating costs;
       ``(D) total annual capital costs;
       ``(E) fleet size and type, and related facilities;
       ``(F) vehicle revenue miles; and
       ``(G) ridership.
       ``(c) Apportionments.--
       ``(1) Public transportation on indian reservations.--Of the 
     amounts made available or appropriated for each fiscal year 
     pursuant to section 5338(a)(2)(E) to carry out this 
     paragraph, the following amounts shall be apportioned each 
     fiscal year 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) $5,000,000 shall be distributed on a competitive 
     basis by the Secretary.
       ``(B) $25,000,000 shall be apportioned as formula grants, 
     as provided in subsection (j).
       ``(2) Appalachian development public transportation 
     assistance program.--
       ``(A) Definitions.--In this paragraph--
       ``(i) the term `Appalachian region' has the same meaning as 
     in section 14102 of title 40; and
       ``(ii) the term `eligible recipient' means a State that 
     participates in a program established under subtitle IV of 
     title 40.
       ``(B) In general.--The Secretary shall carry out a public 
     transportation assistance program in the Appalachian region.
       ``(C) Apportionment.--Of amounts made available or 
     appropriated for each fiscal year under section 5338(a)(2)(E) 
     to carry out this paragraph, the Secretary shall apportion 
     funds to eligible recipients for any purpose eligible under 
     this section, based on the guidelines established under 
     section 9.5(b) of the Appalachian Regional Commission Code.
       ``(D) Special rule.--An eligible recipient may use amounts 
     that cannot be used for operating expenses under this 
     paragraph for a highway project if--
       ``(i) that use is approved, in writing, by the eligible 
     recipient after appropriate notice and an opportunity for 
     comment and appeal are provided to affected public 
     transportation providers; and
       ``(ii) the eligible recipient, in approving the use of 
     amounts under this subparagraph, determines that the local 
     transit needs are being addressed.
       ``(3) Remaining amounts.--
       ``(A) In general.--The amounts made available or 
     appropriated for each fiscal year pursuant to section 
     5338(a)(2)(E) that are not apportioned under paragraph (1) or 
     (2) shall be apportioned in accordance with this paragraph.

[[Page 10601]]

       ``(B) Apportionment based on land area and population in 
     nonurbanized areas.--
       ``(i) In general.--83.15 percent of the amount described in 
     subparagraph (A) shall be apportioned to the States in 
     accordance with this subparagraph.
       ``(ii) Land area.--

       ``(I) In general.--Subject to subclause (II), each State 
     shall receive an amount that is equal to 20 percent of the 
     amount apportioned under clause (i), multiplied by the ratio 
     of the land area in rural areas in that State and divided by 
     the land area in all rural areas in the United States, as 
     shown by the most recent decennial census of population.
       ``(II) Maximum apportionment.--No State shall receive more 
     than 5 percent of the amount apportioned under subclause (I).

       ``(iii) Population.--Each State shall receive an amount 
     equal to 80 percent of the amount apportioned under clause 
     (i), multiplied by the ratio of the population of rural areas 
     in that State and divided by the population of all rural 
     areas in the United States, as shown by the most recent 
     decennial census of population.
       ``(C) Apportionment based on land area, vehicle revenue 
     miles, and low-income individuals in nonurbanized areas.--
       ``(i) In general.--16.85 percent of the amount described in 
     subparagraph (A) shall be apportioned to the States in 
     accordance with this subparagraph.
       ``(ii) Land area.--Subject to clause (v), each State shall 
     receive an amount that is equal to 29.68 percent of the 
     amount apportioned under clause (i), multiplied by the ratio 
     of the land area in rural areas in that State and divided by 
     the land area in all rural areas in the United States, as 
     shown by the most recent decennial census of population.
       ``(iii) Vehicle revenue miles.--Subject to clause (v), each 
     State shall receive an amount that is equal to 29.68 percent 
     of the amount apportioned under clause (i), multiplied by the 
     ratio of vehicle revenue miles in rural areas in that State 
     and divided by the vehicle revenue miles in all rural areas 
     in the United States, as determined by national transit 
     database reporting.
       ``(iv) Low-income individuals.--Each State shall receive an 
     amount that is equal to 40.64 percent of the amount 
     apportioned under clause (i), multiplied by the ratio of low-
     income individuals in rural areas in that State and divided 
     by the number of low-income individuals in all rural areas in 
     the United States, as shown by the Bureau of the Census.
       ``(v) Maximum apportionment.--No State shall receive--

       ``(I) more than 5 percent of the amount apportioned under 
     clause (ii); or
       ``(II) more than 5 percent of the amount apportioned under 
     clause (iii).

       ``(d) Use for Local Transportation Service.--A State may 
     use an amount apportioned under this section for a project 
     included in a program under subsection (b) of this section 
     and eligible for assistance under this chapter if the project 
     will provide local transportation service, as defined by the 
     Secretary of Transportation, in a rural area.
       ``(e) Use for Administration, Planning, and Technical 
     Assistance.--The Secretary may allow a State to use not more 
     than 10 percent of the amount apportioned under this section 
     to administer this section and provide technical assistance 
     to a subrecipient, including project planning, program and 
     management development, coordination of public transportation 
     programs, and research the State considers appropriate to 
     promote effective delivery of public transportation to a 
     rural area.
       ``(f) Intercity Bus Transportation.--
       ``(1) In general.--A State shall expend at least 15 percent 
     of the amount made available in each fiscal year to carry out 
     a program to develop and support intercity bus 
     transportation. Eligible activities under the program 
     include--
       ``(A) planning and marketing for intercity bus 
     transportation;
       ``(B) capital grants for intercity bus facilities;
       ``(C) joint-use facilities;
       ``(D) operating grants through purchase-of-service 
     agreements, user-side subsidies, and demonstration projects; 
     and
       ``(E) coordinating rural connections between small public 
     transportation operations and intercity bus carriers.
       ``(2) Certification.--A State does not have to comply with 
     paragraph (1) of this subsection in a fiscal year in which 
     the Governor of the State certifies to the Secretary, after 
     consultation with affected intercity bus service providers, 
     that the intercity bus service needs of the State are being 
     met adequately.
       ``(g) Government Share of Costs.--
       ``(1) Capital projects.--
       ``(A) In general.--Except as provided by subparagraph (B), 
     a grant awarded under this section for a capital project or 
     project administrative expenses shall be for 80 percent of 
     the net costs of the project, as determined by the Secretary.
       ``(B) Exception.--A State described in section 120(b) of 
     title 23 shall receive a Government share of the net costs in 
     accordance with the formula under that section.
       ``(2) Operating assistance.--
       ``(A) In general.--Except as provided by subparagraph (B), 
     a grant made under this section for operating assistance may 
     not exceed 50 percent of the net operating costs of the 
     project, as determined by the Secretary.
       ``(B) Exception.--A State described in section 120(b) of 
     title 23 shall receive a Government share of the net 
     operating costs equal to 62.5 percent of the Government share 
     provided for under paragraph (1)(B).
       ``(3) Remainder.--The remainder of net project costs--
       ``(A) may be provided from an undistributed cash surplus, a 
     replacement or depreciation cash fund or reserve, a service 
     agreement with a State or local social service agency or a 
     private social service organization, or new capital;
       ``(B) may be derived from amounts appropriated or otherwise 
     made available to a department or agency of the Government 
     (other than the Department of Transportation) that are 
     eligible to be expended for transportation;
       ``(C) notwithstanding subparagraph (B), may be derived from 
     amounts made available to carry out the Federal lands highway 
     program established by section 204 of title 23; and
       ``(D) in the case of an intercity bus project that includes 
     both feeder service and an unsubsidized segment of intercity 
     bus service to which the feeder service connects, may be 
     derived from the costs of a private operator for the 
     unsubsidized segment of intercity bus service as an in-kind 
     match for the operating costs of connecting rural intercity 
     bus feeder service funded under subsection (f), if the 
     private operator agrees in writing to the use of the costs of 
     the private operator for the unsubsidized segment of 
     intercity bus service as an in-kind match.
       ``(4) Use of certain funds.--For purposes of paragraph 
     (3)(B), the prohibitions on the use of funds for matching 
     requirements under section 403(a)(5)(C)(vii) of the Social 
     Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to 
     Federal or State funds to be used for transportation 
     purposes.
       ``(5) Limitation on operating assistance.--A State carrying 
     out a program of operating assistance under this section may 
     not limit the level or extent of use of the Government grant 
     for the payment of operating expenses.
       ``(h) Transfer of Facilities and Equipment.--With the 
     consent of the recipient currently having a facility or 
     equipment acquired with assistance under this section, a 
     State may transfer the facility or equipment to any recipient 
     eligible to receive assistance under this chapter if the 
     facility or equipment will continue to be used as required 
     under this section.
       ``(i) Relationship to Other Laws.--
       ``(1) In general.--Section 5333(b) applies to this section 
     if the Secretary of Labor utilizes a special warranty that 
     provides a fair and equitable arrangement to protect the 
     interests of employees.
       ``(2) Rule of construction.--This subsection does not 
     affect or discharge a responsibility of the Secretary of 
     Transportation under a law of the United States.
       ``(j) Formula Grants for Public Transportation on Indian 
     Reservations.--
       ``(1) Apportionment.--
       ``(A) In general.--Of the amounts described in subsection 
     (c)(1)(B)--
       ``(i) 50 percent of the total amount shall be apportioned 
     so that each Indian tribe providing public transportation 
     service shall receive an amount equal to the total amount 
     apportioned under this clause multiplied by the ratio of the 
     number of vehicle revenue miles provided by an Indian tribe 
     divided by the total number of vehicle revenue miles provided 
     by all Indian tribes, as reported to the Secretary;
       ``(ii) 25 percent of the total amount shall be apportioned 
     equally among each Indian tribe providing at least 200,000 
     vehicle revenue miles of public transportation service 
     annually, as reported to the Secretary; and
       ``(iii) 25 percent of the total amount shall be apportioned 
     among each Indian tribe providing public transportation on 
     tribal lands (as defined by the Bureau of the Census) on 
     which more than 1,000 low-income individuals reside (as 
     determined by the Bureau of the Census) so that each Indian 
     tribe shall receive an amount equal to the total amount 
     apportioned under this clause multiplied by the ratio of the 
     number of low-income individuals residing on an Indian 
     tribe's lands divided by the total number of low-income 
     individuals on tribal lands on which more than 1,000 low-
     income individuals reside.
       ``(B) Limitation.--No recipient shall receive more than 
     $300,000 of the amounts apportioned under subparagraph 
     (A)(iii) in a fiscal year.
       ``(C) Remaining amounts.--Of the amounts made available 
     under subparagraph (A)(iii), any amounts not apportioned 
     under that subparagraph shall be allocated among Indian 
     tribes receiving less than $300,000 in a fiscal year 
     according to the formula specified in that clause.
       ``(D) Low-income individuals.--For purposes of subparagraph 
     (A)(iii), the term `low-income individual' means an 
     individual whose family income is at or below 100 percent of 
     the poverty line, as that term is defined in section 673(2) 
     of the Community Services Block Grant Act (42 U.S.C. 
     9902(2)), including any revision required by that section, 
     for a family of the size involved.
       ``(2) Non-tribal service providers.--A recipient that is an 
     Indian tribe may use funds apportioned under this subsection 
     to finance public transportation services provided by a non-
     tribal provider of public transportation that connects 
     residents of tribal lands with surrounding communities, 
     improves access to employment or healthcare, or otherwise 
     addresses the mobility needs of tribal members.''.

     SEC. 20011. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND 
                   DEPLOYMENT PROJECTS.

       Section 5312 of title 49, United States Code, is amended to 
     read as follows:

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

       ``(a) Research, Development, Demonstration, and Deployment 
     Projects.--

[[Page 10602]]

       ``(1) In general.--The Secretary may make grants and enter 
     into contracts, cooperative agreements, and other agreements 
     for research, development, demonstration, and deployment 
     projects, and evaluation of research and technology of 
     national significance to public transportation, that the 
     Secretary determines will improve public transportation.
       ``(2) Agreements.--In order to carry out paragraph (1), the 
     Secretary may make grants to and enter into contracts, 
     cooperative agreements, and other agreements with--
       ``(A) departments, agencies, and instrumentalities of the 
     Government, including Federal laboratories;
       ``(B) State and local governmental entities;
       ``(C) providers of public transportation;
       ``(D) private or non-profit organizations;
       ``(E) institutions of higher education; and
       ``(F) technical and community colleges.
       ``(3) Application.--
       ``(A) In general.--To receive a grant, contract, 
     cooperative agreement, or other agreement under this section, 
     an entity described in paragraph (2) shall submit an 
     application to the Secretary.
       ``(B) Form and contents.--An application under subparagraph 
     (A) shall be in such form and contain such information as the 
     Secretary may require, including--
       ``(i) a statement of purpose detailing the need being 
     addressed;
       ``(ii) the short- and long-term goals of the project, 
     including opportunities for future innovation and 
     development, the potential for deployment, and benefits to 
     riders and public transportation; and
       ``(iii) the short- and long-term funding requirements to 
     complete the project and any future objectives of the 
     project.
       ``(b) Research.--
       ``(1) In general.--The Secretary may make a grant to or 
     enter into a contract, cooperative agreement, or other 
     agreement under this section with an entity described in 
     subsection (a)(2) to carry out a public transportation 
     research project that has as its ultimate goal the 
     development and deployment of new and innovative ideas, 
     practices, and approaches.
       ``(2) Project eligibility.--A public transportation 
     research project that receives assistance under paragraph (1) 
     shall focus on--
       ``(A) providing more effective and efficient public 
     transportation service, including services to--
       ``(i) seniors;
       ``(ii) individuals with disabilities; and
       ``(iii) low-income individuals;
       ``(B) mobility management and improvements and travel 
     management systems;
       ``(C) data and communication system advancements;
       ``(D) system capacity, including--
       ``(i) train control;
       ``(ii) capacity improvements; and
       ``(iii) performance management;
       ``(E) capital and operating efficiencies;
       ``(F) planning and forecasting modeling and simulation;
       ``(G) advanced vehicle design;
       ``(H) advancements in vehicle technology;
       ``(I) asset maintenance and repair systems advancement;
       ``(J) construction and project management;
       ``(K) alternative fuels;
       ``(L) the environment and energy efficiency;
       ``(M) safety improvements; or
       ``(N) any other area that the Secretary determines is 
     important to advance the interests of public transportation.
       ``(c) Innovation and Development.--
       ``(1) In general.--The Secretary may make a grant to or 
     enter into a contract, cooperative agreement, or other 
     agreement under this section with an entity described in 
     subsection (a)(2) to carry out a public transportation 
     innovation and development project that seeks to improve 
     public transportation systems nationwide in order to provide 
     more efficient and effective delivery of public 
     transportation services, including through technology and 
     technological capacity improvements.
       ``(2) Project eligibility.--A public transportation 
     innovation and development project that receives assistance 
     under paragraph (1) shall focus on--
       ``(A) the development of public transportation research 
     projects that received assistance under subsection (b) that 
     the Secretary determines were successful;
       ``(B) planning and forecasting modeling and simulation;
       ``(C) capital and operating efficiencies;
       ``(D) advanced vehicle design;
       ``(E) advancements in vehicle technology;
       ``(F) the environment and energy efficiency;
       ``(G) system capacity, including train control and capacity 
     improvements; or
       ``(H) any other area that the Secretary determines is 
     important to advance the interests of public transportation.
       ``(d) Demonstration, Deployment, and Evaluation.--
       ``(1) In general.--The Secretary may, under terms and 
     conditions that the Secretary prescribes, make a grant to or 
     enter into a contract, cooperative agreement, or other 
     agreement with an entity described in paragraph (2) to 
     promote the early deployment and demonstration of innovation 
     in public transportation that has broad applicability.
       ``(2) Participants.--An entity described in this paragraph 
     is--
       ``(A) an entity described in subsection (a)(2); or
       ``(B) a consortium of entities described in subsection 
     (a)(2), including a provider of public transportation, that 
     will share the costs, risks, and rewards of early deployment 
     and demonstration of innovation.
       ``(3) Project eligibility.--A project that receives 
     assistance under paragraph (1) shall seek to build on 
     successful research, innovation, and development efforts to 
     facilitate--
       ``(A) the deployment of research and technology development 
     resulting from private efforts or Federally funded efforts; 
     and
       ``(B) the implementation of research and technology 
     development to advance the interests of public 
     transportation.
       ``(4) Evaluation.--Not later than 2 years after the date on 
     which a project receives assistance under paragraph (1), the 
     Secretary shall conduct a comprehensive evaluation of the 
     success or failure of the projects funded under this 
     subsection and any plan for broad-based implementation of the 
     innovation promoted by successful projects.
       ``(5) Low or no emission vehicle deployment.--
       ``(A) Definitions.--In this paragraph, the following 
     definitions shall apply:
       ``(i) Eligible area.--The term `eligible area' means an 
     area that is--

       ``(I) designated as a nonattainment area for ozone or 
     carbon monoxide under section 107(d) of the Clean Air Act (42 
     U.S.C. 7407(d)); or
       ``(II) a maintenance area, as defined in section 5303, for 
     ozone or carbon monoxide.

       ``(ii) Eligible project.--The term `eligible project' means 
     a project or program of projects in an eligible area for--

       ``(I) acquiring or leasing low or no emission vehicles;
       ``(II) constructing or leasing facilities and related 
     equipment for low or no emission vehicles;
       ``(III) constructing new public transportation facilities 
     to accommodate low or no emission vehicles; or
       ``(IV) rehabilitating or improving existing public 
     transportation facilities to accommodate low or no emission 
     vehicles.

       ``(iii) Direct carbon emissions.--The term `direct carbon 
     emissions' means the quantity of direct greenhouse gas 
     emissions from a vehicle, as determined by the Administrator 
     of the Environmental Protection Agency.
       ``(iv) Low or no emission bus.--The term `low or no 
     emission bus' means a bus that is a low or no emission 
     vehicle.
       ``(v) Low or no emission vehicle.--The term `low or no 
     emission vehicle' means--

       ``(I) a passenger vehicle used to provide public 
     transportation that the Administrator of the Environmental 
     Protection Agency has certified sufficiently reduces energy 
     consumption or reduces harmful emissions, including direct 
     carbon emissions, when compared to a comparable standard 
     vehicle; or
       ``(II) a zero emission bus used to provide public 
     transportation.

       ``(vi) Recipient.--The term `recipient' means--

       ``(I) for an eligible area that is an urbanized area with a 
     population of fewer than 200,000 individuals, as determined 
     by the Bureau of the Census, the State in which the eligible 
     area is located; and
       ``(II) for an eligible area not described in subparagraph 
     (A), the designated recipient for the eligible area.

       ``(vii) Zero emission bus.--The term `zero emission bus' 
     means a low or no emission bus that produces no carbon or 
     particulate matter.
       ``(B) Authority.--The Secretary may make grants to 
     recipients to finance eligible projects under this paragraph.
       ``(C) Grant requirements.--
       ``(i) In general.--A grant under this paragraph shall be 
     subject to the requirements of section 5307.
       ``(ii) Government share of costs for certain projects.--
     Section 5323(j) applies to projects carried out under this 
     paragraph, unless the grant recipient requests a lower grant 
     percentage.
       ``(iii) Combination of funding sources.--

       ``(I) Combination permitted.--A project carried out under 
     this paragraph may receive funding under section 5307, or any 
     other provision of law.
       ``(II) Government share.--Nothing in this clause may be 
     construed to alter the Government share required under this 
     section, section 5307, or any other provision of law.

       ``(D) Minimum amounts.--Of amounts made available by or 
     appropriated under section 5338(b) in each fiscal year to 
     carry out this paragraph--
       ``(i) not less than 65 percent shall be made available to 
     fund eligible projects relating to low or no emission buses; 
     and
       ``(ii) not less than 10 percent shall be made available for 
     eligible projects relating to facilities and related 
     equipment for low or no emission buses.
       ``(E) Competitive process.--The Secretary shall solicit 
     grant applications and make grants for eligible projects on a 
     competitive basis.
       ``(F) Priority consideration.--In making grants under this 
     paragraph, the Secretary shall give priority to projects 
     relating to low or no emission buses that make greater 
     reductions in energy consumption and harmful emissions, 
     including direct carbon emissions, than comparable standard 
     buses or other low or no emission buses.
       ``(G) Availability of funds.--Any amounts made available or 
     appropriated to carry out this paragraph--
       ``(i) shall remain available to an eligible project for 2 
     years after the fiscal year for which the amount is made 
     available or appropriated; and

[[Page 10603]]

       ``(ii) that remain unobligated at the end of the period 
     described in clause (i) shall be added to the amount made 
     available to an eligible project in the following fiscal 
     year.
       ``(e) Annual Report on Research.--Not later than the first 
     Monday in February of each year, the Secretary shall submit 
     to the Committee on Banking, Housing, and Urban Affairs and 
     the Committee on Appropriations of the Senate and the 
     Committee on Transportation and Infrastructure, the Committee 
     on Science, Space, and Technology, and the Committee on 
     Appropriations of the House of Representatives a report that 
     includes--
       ``(1) a description of each project that received 
     assistance under this section during the preceding fiscal 
     year;
       ``(2) an evaluation of each project described in paragraph 
     (1), including any evaluation conducted under subsection 
     (d)(4) for the preceding fiscal year; and
       ``(3) a proposal for allocations of amounts for assistance 
     under this section for the subsequent fiscal year.
       ``(f) Government Share of Costs.--
       ``(1) In general.--The Government share of the cost of a 
     project carried out under this section shall not exceed 80 
     percent.
       ``(2) Non-government share.--The non-Government share of 
     the cost of a project carried out under this section may be 
     derived from in-kind contributions.
       ``(3) Financial benefit.--If the Secretary determines that 
     there would be a clear and direct financial benefit to an 
     entity under a grant, contract, cooperative agreement, or 
     other agreement under this section, the Secretary shall 
     establish a Government share of the costs of the project to 
     be carried out under the grant, contract, cooperative 
     agreement, or other agreement that is consistent with the 
     benefit.''.

     SEC. 20012. TECHNICAL ASSISTANCE AND STANDARDS DEVELOPMENT.

       Section 5314 of title 49, United States Code, is amended to 
     read as follows:

     ``Sec. 5314. Technical assistance and standards development

       ``(a) Technical Assistance and Standards Development.--
       ``(1) In general.--The Secretary may make grants and enter 
     into contracts, cooperative agreements, and other agreements 
     (including agreements with departments, agencies, and 
     instrumentalities of the Government) to carry out activities 
     that the Secretary determines will assist recipients of 
     assistance under this chapter to--
       ``(A) more effectively and efficiently provide public 
     transportation service;
       ``(B) administer funds received under this chapter in 
     compliance with Federal law; and
       ``(C) improve public transportation.
       ``(2) Eligible activities.--The activities carried out 
     under paragraph (1) may include--
       ``(A) technical assistance; and
       ``(B) the development of voluntary and consensus-based 
     standards and best practices by the public transportation 
     industry, including standards and best practices for safety, 
     fare collection, Intelligent Transportation Systems, 
     accessibility, procurement, security, asset management to 
     maintain a state of good repair, operations, maintenance, 
     vehicle propulsion, communications, and vehicle electronics.
       ``(b) Technical Assistance.--The Secretary, through a 
     competitive bid process, may enter into contracts, 
     cooperative agreements, and other agreements with national 
     nonprofit organizations that have the appropriate 
     demonstrated capacity to provide public transportation-
     related technical assistance under this section. The 
     Secretary may enter into such contracts, cooperative 
     agreements, and other agreements to assist providers of 
     public transportation to--
       ``(1) comply with the Americans with Disabilities Act of 
     1990 (42 U.S.C. 12101 et seq.) through technical assistance, 
     demonstration programs, research, public education, and other 
     activities related to complying with such Act;
       ``(2) comply with human services transportation 
     coordination requirements and to enhance the coordination of 
     Federal resources for human services transportation with 
     those of the Department of Transportation through technical 
     assistance, training, and support services related to 
     complying with such requirements;
       ``(3) meet the transportation needs of elderly individuals;
       ``(4) increase transit ridership in coordination with 
     metropolitan planning organizations and other entities 
     through development around public transportation stations 
     through technical assistance and the development of tools, 
     guidance, and analysis related to market-based development 
     around transit stations;
       ``(5) address transportation equity with regard to the 
     effect that transportation planning, investment and 
     operations have for low-income and minority individuals; and
       ``(6) any other technical assistance activity that the 
     Secretary determines is necessary to advance the interests of 
     public transportation.
       ``(c) Annual Report on Technical Assistance.--Not later 
     than the first Monday in February of each year, the Secretary 
     shall submit to the Committee on Banking, Housing, and Urban 
     Affairs and the Committee on Appropriations of the Senate and 
     the Committee on Transportation and Infrastructure, the 
     Committee on Science, Space, and Technology, and the 
     Committee on Appropriations of the House of Representatives a 
     report that includes--
       ``(1) a description of each project that received 
     assistance under this section during the preceding fiscal 
     year;
       ``(2) an evaluation of the activities carried out by each 
     organization that received assistance under this section 
     during the preceding fiscal year; and
       ``(3) a proposal for allocations of amounts for assistance 
     under this section for the subsequent fiscal year.
       ``(d) Government Share of Costs.--
       ``(1) In general.--The Government share of the cost of an 
     activity carried out using a grant under this section may not 
     exceed 80 percent.
       ``(2) Non-government share.--The non-Government share of 
     the cost of an activity carried out using a grant under this 
     section may be derived from in-kind contributions.''.

     SEC. 20013. PRIVATE SECTOR PARTICIPATION.

       (a) In General.--Section 5315 of title 49, United States 
     Code, is amended to read as follows:

     ``Sec. 5315. Private sector participation

       ``(a) General Purposes.--In the interest of fulfilling the 
     general purposes of this chapter under section 5301(b), the 
     Secretary shall--
       ``(1) better coordinate public and private sector-provided 
     public transportation services;
       ``(2) promote more effective utilization of private sector 
     expertise, financing, and operational capacity to deliver 
     costly and complex new fixed guideway capital projects; and
       ``(3) promote transparency and public understanding of 
     public-private partnerships affecting public transportation.
       ``(b) Actions to Promote Better Coordination Between Public 
     and Private Sector Providers of Public Transportation.--The 
     Secretary shall--
       ``(1) provide technical assistance to recipients of Federal 
     transit grant assistance, at the request of a recipient, on 
     practices and methods to best utilize private providers of 
     public transportation; and
       ``(2) educate recipients of Federal transit grant 
     assistance on laws and regulations under this chapter that 
     impact private providers of public transportation.
       ``(c) Actions to Provide Technical Assistance for 
     Alternative Project Delivery Methods.--Upon request by a 
     sponsor of a new fixed guideway capital project, the 
     Secretary shall--
       ``(1) identify best practices for public-private 
     partnerships models in the United States and in other 
     countries;
       ``(2) develop standard public-private partnership 
     transaction model contracts; and
       ``(3) perform financial assessments that include the 
     calculation of public and private benefits of a proposed 
     public-private partnership transaction.''.
       (b) Public-private Partnership Procedures and Approaches.--
       (1) Identify impediments.--The Secretary shall--
       (A) except as provided in paragraph (6), identify any 
     provisions of chapter 53 of title 49, United States Code, and 
     any regulations or practices thereunder, that impede greater 
     use of public-private partnerships and private investment in 
     public transportation capital projects; and
       (B) develop and implement on a project basis procedures and 
     approaches that--
       (i) address such impediments in a manner similar to the 
     Special Experimental Project Number 15 of the Federal Highway 
     Administration (commonly referred to as ``SEP-15''); and
       (ii) protect the public interest and any public investment 
     in public transportation capital projects that involve 
     public-private partnerships or private investment in public 
     transportation capital projects.
       (2) Transparency.--The Secretary shall develop guidance to 
     promote greater transparency and public access to public-
     private partnership agreements involving recipients of 
     Federal assistance under chapter 53 of title 49, United 
     States Code, including--
       (A) any conflict of interest involving any party involved 
     in the public-private partnership;
       (B) tax and financing aspects related to a public-private 
     partnership agreement;
       (C) changes in the workforce and wages, benefits, or rules 
     as a result of a public-private partnership;
       (D) estimates of the revenue or savings the public-private 
     partnership will produce for the private entity and public 
     entity;
       (E) any impacts on other developments and transportation 
     modes as a result of non-compete clauses contained in public-
     private partnership agreements; and
       (F) any other issues the Secretary believes will increase 
     transparency of public-private partnership agreements and 
     protect the public interest.
       (3) Assessment.--In developing and implementing the 
     guidance under paragraph (2), the Secretary shall encourage 
     project sponsors to conduct assessments to determine whether 
     use of a public-private partnership represents a better 
     public and financial benefit than a similar transaction using 
     public funding or public project delivery.
       (4) Report.--Not later than 4 years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the status of the procedures, approaches, and 
     guidance developed and implemented under paragraphs (1) and 
     (2).
       (5) Rulemaking.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall issue rules to 
     carry out the procedures and approaches developed under 
     paragraph (1).
       (6) Rule of construction.--Nothing in this subsection may 
     be construed to allow the Secretary to waive any requirement 
     under--
       (A) section 5333 of title 49, United States Code;
       (B) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.); or

[[Page 10604]]

       (C) any other provision of Federal law.
       (c) Contracting Out Study.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General of the United 
     States 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 comprehensive report on the effect of contracting 
     out public transportation operations and administrative 
     functions on cost, availability and level of service, 
     efficiency, and quality of service.
       (2) Considerations.--In developing the report, the 
     Comptroller General shall consider--
       (A) the number of grant recipients that have contracted out 
     services and the types of public transportation services that 
     are performed under contract, including paratransit service, 
     fixed route bus service, commuter rail operations, and 
     administrative functions;
       (B) the size of the populations served by such grant 
     recipients;
       (C) the basis for decisions regarding contracting out such 
     services;
       (D) comparative costs of providing service under contract 
     to providing the same service through public transit agency 
     employees, using to the greatest extent possible a standard 
     cost allocation model;
       (E) the extent of unionization among privately contracted 
     employees;
       (F) the impact to wages and benefits of employees when 
     publicly provided public transportation services are 
     contracted out to a private for-profit entity;
       (G) the level of transparency and public access to 
     agreements and contracts related to contracted out public 
     transportation services;
       (H) the extent of Federal law, regulations and guidance 
     prohibiting any conflicts of interest for contractor 
     employees and businesses;
       (I) the extent to which grant recipients evaluate 
     contracted out services before selecting them and the extent 
     to which grant recipients conduct oversight of those 
     services; and
       (J) barriers to contracting out public transportation 
     operations and administrative functions.
       (d) Guidance on Documenting Compliance.--Not later than 1 
     year after the date of enactment of this Act, the Secretary 
     shall publish in the Federal Register policy guidance 
     regarding how to best document compliance by recipients of 
     Federal assistance under chapter 53 of title 49, United 
     States Code, with the requirements regarding private 
     enterprise participation in public transportation planning 
     and transportation improvement programs under sections 
     5303(i)(6), 5306(a), and 5307(c) of such title 49.

     SEC. 20014. BUS TESTING FACILITIES.

       Section 5318 of title 49, United States Code, is amended by 
     striking subsection (e) and inserting the following:
       ``(e) Acquiring New Bus Models.--
       ``(1) In general.--Amounts appropriated or otherwise made 
     available under this chapter may be obligated or expended to 
     acquire a new bus model only if--
       ``(A) a bus of that model has been tested at a facility 
     authorized under subsection (a); and
       ``(B) the bus tested under subparagraph (A) met--
       ``(i) performance standards for maintainability, 
     reliability, performance (including braking performance), 
     structural integrity, fuel economy, emissions, and noise, as 
     established by the Secretary by rule; and
       ``(ii) the minimum safety performance standards established 
     by the Secretary pursuant to section 5329(b).
       ``(2) Bus test `pass/fail' standard.--Not later than 2 
     years after the date of enactment of the Federal Public 
     Transportation Act of 2012, the Secretary shall issue a final 
     rule under subparagraph (B)(i). The final rule issued under 
     paragraph (B)(i) shall include a bus model scoring system 
     that results in a weighted, aggregate score that uses the 
     testing categories under subsection (a) and considers the 
     relative importance of each such testing category. The final 
     rule issued under subparagraph (B)(i) shall establish a 
     `pass/fail' standard that uses the aggregate score described 
     in the preceding sentence. Amounts appropriated or otherwise 
     made available under this chapter may be obligated or 
     expended to acquire a new bus model only if the new bus model 
     has received a passing aggregate test score. The Secretary 
     shall work with the bus testing facility, bus manufacturers, 
     and transit agencies to develop the bus model scoring system 
     under this paragraph. A passing aggregate test score under 
     the rule issued under subparagraph (B)(i) indicates only that 
     amounts appropriated or made available under this chapter may 
     be obligated or expended to acquire a new bus model and shall 
     not be interpreted as a warranty or guarantee that the new 
     bus model will meet a purchaser's specific requirements.''.

     SEC. 20015. HUMAN RESOURCES AND TRAINING.

       Section 5322 of title 49, United States Code, is amended to 
     read as follows:

     ``Sec. 5322. Human resources and training

       ``(a) In General.--The Secretary may undertake, or make 
     grants and contracts for, programs that address human 
     resource needs as they apply to public transportation 
     activities. A program may include--
       ``(1) an employment training program;
       ``(2) an outreach program to increase minority and female 
     employment in public transportation activities;
       ``(3) research on public transportation personnel and 
     training needs; and
       ``(4) training and assistance for minority business 
     opportunities.
       ``(b) Innovative Public Transportation Workforce 
     Development Program.--
       ``(1) Program established.--The Secretary shall establish a 
     competitive grant program to assist the development of 
     innovative activities eligible for assistance under 
     subsection (a).
       ``(2) Selection of recipients.--To the maximum extent 
     feasible, the Secretary shall select recipients that--
       ``(A) are geographically diverse;
       ``(B) address the workforce and human resources needs of 
     large public transportation providers;
       ``(C) address the workforce and human resources needs of 
     small public transportation providers;
       ``(D) address the workforce and human resources needs of 
     urban public transportation providers;
       ``(E) address the workforce and human resources needs of 
     rural public transportation providers;
       ``(F) advance training related to maintenance of 
     alternative energy, energy efficiency, or zero emission 
     vehicles and facilities used in public transportation;
       ``(G) target areas with high rates of unemployment; and
       ``(H) address current or projected workforce shortages in 
     areas that require technical expertise.
       ``(c) Government's Share of Costs.--The Government share of 
     the cost of a project carried out using a grant under 
     subsection (a) or (b) shall be 50 percent.
       ``(d) National Transit Institute.--
       ``(1) Establishment.--The Secretary shall establish a 
     national transit institute and award grants to a public 4-
     year degree-granting institution of higher education, as 
     defined in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001(a)), in order to carry out the duties of the 
     institute.
       ``(2) Duties.--
       ``(A) In general.--In cooperation with the Federal Transit 
     Administration, State transportation departments, public 
     transportation authorities, and national and international 
     entities, the institute established under paragraph (1) shall 
     develop and conduct training and educational programs for 
     Federal, State, and local transportation employees, United 
     States citizens, and foreign nationals engaged or to be 
     engaged in Government-aid public transportation work.
       ``(B) Training and educational programs.--The training and 
     educational programs developed under subparagraph (A) may 
     include courses in recent developments, techniques, and 
     procedures related to--
       ``(i) intermodal and public transportation planning;
       ``(ii) management;
       ``(iii) environmental factors;
       ``(iv) acquisition and joint use rights-of-way;
       ``(v) engineering and architectural design;
       ``(vi) procurement strategies for public transportation 
     systems;
       ``(vii) turnkey approaches to delivering public 
     transportation systems;
       ``(viii) new technologies;
       ``(ix) emission reduction technologies;
       ``(x) ways to make public transportation accessible to 
     individuals with disabilities;
       ``(xi) construction, construction management, insurance, 
     and risk management;
       ``(xii) maintenance;
       ``(xiii) contract administration;
       ``(xiv) inspection;
       ``(xv) innovative finance;
       ``(xvi) workplace safety; and
       ``(xvii) public transportation security.
       ``(3) Providing education and training.--Education and 
     training of Government, State, and local transportation 
     employees under this subsection shall be provided--
       ``(A) by the Secretary at no cost to the States and local 
     governments for subjects that are a Government program 
     responsibility; or
       ``(B) when the education and training are paid under 
     paragraph (4) of this subsection, by the State, with the 
     approval of the Secretary, through grants and contracts with 
     public and private agencies, other institutions, individuals, 
     and the institute.
       ``(4) Availability of amounts.--Not more than .5 percent of 
     the amounts made available for a fiscal year beginning after 
     September 30, 1991, to a State or public transportation 
     authority in the State to carry out sections 5307 and 5309 of 
     this title is available for expenditure by the State and 
     public transportation authorities in the State, with the 
     approval of the Secretary, to pay not more than 80 percent of 
     the cost of tuition and direct educational expenses related 
     to educating and training State and local transportation 
     employees under this subsection.
       ``(e) Report.--Not later than 2 years after the date of 
     enactment of the Federal Public Transportation Act of 2012, 
     the Secretary shall submit to the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives a report concerning the measurable outcomes 
     and impacts of the programs funded under subsections (a) and 
     (b).''.

     SEC. 20016. GENERAL PROVISIONS.

       Section 5323 of title 49, United States Code, is amended to 
     read as follows:

     ``Sec. 5323. General provisions

       ``(a) Interests in Property.--
       ``(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

[[Page 10605]]

     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.
       ``(2) Limitation.--A governmental authority may not use 
     financial assistance of the United States Government to 
     acquire land, equipment, or a facility used in public 
     transportation from another governmental authority in the 
     same geographic area.
       ``(b) Relocation and Real Property Requirements.--The 
     Uniform Relocation Assistance and Real Property Acquisition 
     Policies Act of 1970 (42 U.S.C. 4601 et seq.) shall apply to 
     financial assistance for capital projects under this chapter.
       ``(c) Consideration of Economic, Social, and Environmental 
     Interests.--
       ``(1) Cooperation and consultation.--The Secretary shall 
     cooperate and consult with the Secretary of the Interior and 
     the Administrator of the Environmental Protection Agency on 
     each project that may have a substantial impact on the 
     environment.
       ``(2) Compliance with nepa.--The National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.) shall apply to 
     financial assistance for capital projects under this chapter.
       ``(d) Condition on Charter Bus Transportation Service.--
       ``(1) Agreements.--Financial assistance under this chapter 
     may be used to buy or operate a bus only if the applicant, 
     governmental authority, or publicly owned operator that 
     receives the assistance agrees that, except as provided in 
     the agreement, the governmental authority or an operator of 
     public transportation for the governmental authority will not 
     provide charter bus transportation service outside the urban 
     area in which it provides regularly scheduled public 
     transportation service. An agreement shall provide for a fair 
     arrangement the Secretary of Transportation considers 
     appropriate to ensure that the assistance will not enable a 
     governmental authority or an operator for a governmental 
     authority to foreclose a private operator from providing 
     intercity charter bus service if the private operator can 
     provide the service.
       ``(2) Violations.--
       ``(A) Investigations.--On receiving a complaint about a 
     violation of the agreement required under paragraph (1), the 
     Secretary shall investigate and decide whether a violation 
     has occurred.
       ``(B) Enforcement of agreements.--If the Secretary decides 
     that a violation has occurred, the Secretary shall correct 
     the violation under terms of the agreement.
       ``(C) Additional remedies.--In addition to any remedy 
     specified in the agreement, the Secretary shall bar a 
     recipient or an operator from receiving Federal transit 
     assistance in an amount the Secretary considers appropriate 
     if the Secretary finds a pattern of violations of the 
     agreement.
       ``(e) Bond Proceeds Eligible for Local Share.--
       ``(1) Use as local matching funds.--Notwithstanding any 
     other provision of law, a recipient of assistance under 
     section 5307, 5309, or 5337 may use the proceeds from the 
     issuance of revenue bonds as part of the local matching funds 
     for a capital project.
       ``(2) Maintenance of effort.--The Secretary shall approve 
     of the use of the proceeds from the issuance of revenue bonds 
     for the remainder of the net project cost only if the 
     Secretary finds that the aggregate amount of financial 
     support for public transportation in the urbanized area 
     provided by the State and affected local governmental 
     authorities during the next 3 fiscal years, as programmed in 
     the State transportation improvement program under section 
     5304, is not less than the aggregate amount provided by the 
     State and affected local governmental authorities in the 
     urbanized area during the preceding 3 fiscal years.
       ``(3) Debt service reserve.--The Secretary may reimburse an 
     eligible recipient for deposits of bond proceeds in a debt 
     service reserve that the recipient establishes pursuant to 
     section 5302(3)(J) from amounts made available to the 
     recipient under section 5309.
       ``(f) Schoolbus Transportation.--
       ``(1) Agreements.--Financial assistance under this chapter 
     may be used for a capital project, or to operate public 
     transportation equipment or a public transportation facility, 
     only if the applicant agrees not to provide schoolbus 
     transportation that exclusively transports students and 
     school personnel in competition with a private schoolbus 
     operator. This subsection does not apply--
       ``(A) to an applicant that operates a school system in the 
     area to be served and a separate and exclusive schoolbus 
     program for the school system; and
       ``(B) unless a private schoolbus operator can provide 
     adequate transportation that complies with applicable safety 
     standards at reasonable rates.
       ``(2) Violations.--If the Secretary finds that an 
     applicant, governmental authority, or publicly owned operator 
     has violated the agreement required under paragraph (1), the 
     Secretary shall bar a recipient or an operator from receiving 
     Federal transit assistance in an amount the Secretary 
     considers appropriate.
       ``(g) Buying Buses Under Other Laws.--Subsections (d) and 
     (f) of this section apply to financial assistance to buy a 
     bus under sections 133 and 142 of title 23.
       ``(h) Grant and Loan Prohibitions.--A grant or loan may not 
     be used to--
       ``(1) pay ordinary governmental or nonproject operating 
     expenses; or
       ``(2) support a procurement that uses an exclusionary or 
     discriminatory specification.
       ``(i) Government Share of Costs for Certain Projects.--
       ``(1) Acquiring vehicles and vehicle-related equipment or 
     facilities.--
       ``(A) Vehicles.--A grant for a project to be assisted under 
     this chapter that involves acquiring vehicles for purposes of 
     complying with or maintaining compliance with the Americans 
     with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) or 
     the Clean Air Act is for 85 percent of the net project cost.
       ``(B) Vehicle-related equipment or facilities.--A grant for 
     a project to be assisted under this chapter that involves 
     acquiring vehicle-related equipment or facilities required by 
     the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 
     et seq.) or vehicle-related equipment or facilities 
     (including clean fuel or alternative fuel vehicle-related 
     equipment or facilities) for purposes of complying with or 
     maintaining compliance with the Clean Air Act, is for 90 
     percent of the net project cost of such equipment or 
     facilities attributable to compliance with those Acts. The 
     Secretary shall have discretion to determine, through 
     practicable administrative procedures, the costs of such 
     equipment or facilities attributable to compliance with those 
     Acts.
       ``(2) Costs incurred by providers of public transportation 
     by vanpool.--
       ``(A) Local matching share.--The local matching share 
     provided by a recipient of assistance for a capital project 
     under this chapter may include any amounts expended by a 
     provider of public transportation by vanpool for the 
     acquisition of rolling stock to be used by such provider in 
     the recipient's service area, excluding any amounts the 
     provider may have received in Federal, State, or local 
     government assistance for such acquisition.
       ``(B) Use of revenues.--A private provider of public 
     transportation by vanpool may use revenues it receives in the 
     provision of public transportation service in the service 
     area of a recipient of assistance under this chapter that are 
     in excess of the provider's operating costs for the purpose 
     of acquiring rolling stock, if the private provider enters 
     into a legally binding agreement with the recipient that 
     requires the provider to use the rolling stock in the 
     recipient's service area.
       ``(C) Definitions.--In this paragraph, the following 
     definitions apply:
       ``(i) Private provider of public transportation by 
     vanpool.--The term `private provider of public transportation 
     by vanpool' means a private entity providing vanpool services 
     in the service area of a recipient of assistance under this 
     chapter using a commuter highway vehicle or vanpool vehicle.
       ``(ii) Commuter highway vehicle; vanpool vehicle.--The term 
     `commuter highway vehicle or vanpool vehicle' means any 
     vehicle--

       ``(I) the seating capacity of which is at least 6 adults 
     (not including the driver); and
       ``(II) at least 80 percent of the mileage use of which can 
     be reasonably expected to be for the purposes of transporting 
     commuters in connection with travel between their residences 
     and their place of employment.

       ``(j) Buy America.--
       ``(1) In general.--The Secretary may obligate an amount 
     that may be appropriated to carry out this chapter for a 
     project only if the steel, iron, and manufactured goods used 
     in the project are produced in the United States.
       ``(2) Waiver.--The Secretary may waive paragraph (1) of 
     this subsection if the Secretary finds that--
       ``(A) applying paragraph (1) would be inconsistent with the 
     public interest;
       ``(B) the steel, iron, and goods produced in the United 
     States are not produced in a sufficient and reasonably 
     available amount or are not of a satisfactory quality;
       ``(C) when procuring rolling stock (including train 
     control, communication, and traction power equipment) under 
     this chapter--
       ``(i) the cost of components and subcomponents produced in 
     the United States is more than 60 percent of the cost of all 
     components of the rolling stock; and
       ``(ii) final assembly of the rolling stock has occurred in 
     the United States; or
       ``(D) including domestic material will increase the cost of 
     the overall project by more than 25 percent.
       ``(3) Written waiver determination and annual report.--
       ``(A) Written determination.--Before issuing a waiver under 
     paragraph (2), the Secretary shall--
       ``(i) publish in the Federal Register and make publicly 
     available in an easily identifiable location on the website 
     of the Department of Transportation a detailed written 
     explanation of the waiver determination; and
       ``(ii) provide the public with a reasonable period of time 
     for notice and comment.

[[Page 10606]]

       ``(B) Annual report.--Not later than 1 year after the date 
     of enactment of the Federal Public Transportation Act of 
     2012, and annually thereafter, the Secretary shall submit to 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives a report listing any waiver 
     issued under paragraph (2) during the preceding year.
       ``(4) Labor costs for final assembly.--In this subsection, 
     labor costs involved in final assembly are not included in 
     calculating the cost of components.
       ``(5) Waiver prohibited.--The Secretary may not make a 
     waiver under paragraph (2) of this subsection for goods 
     produced in a foreign country if the Secretary, in 
     consultation with the United States Trade Representative, 
     decides that the government of that foreign country--
       ``(A) has an agreement with the United States Government 
     under which the Secretary has waived the requirement of this 
     subsection; and
       ``(B) has violated the agreement by discriminating against 
     goods to which this subsection applies that are produced in 
     the United States and to which the agreement applies.
       ``(6) Penalty for mislabeling and misrepresentation.--A 
     person is ineligible under subpart 9.4 of the Federal 
     Acquisition Regulation, or any successor thereto, to receive 
     a contract or subcontract made with amounts authorized under 
     the Federal Public Transportation Act of 2012 if a court or 
     department, agency, or instrumentality of the Government 
     decides the person intentionally--
       ``(A) affixed a `Made in America' label, or a label with an 
     inscription having the same meaning, to goods sold in or 
     shipped to the United States that are used in a project to 
     which this subsection applies but not produced in the United 
     States; or
       ``(B) represented that goods described in subparagraph (A) 
     of this paragraph were produced in the United States.
       ``(7) State requirements.--The Secretary may not impose any 
     limitation on assistance provided under this chapter that 
     restricts a State from imposing more stringent requirements 
     than this subsection on the use of articles, materials, and 
     supplies mined, produced, or manufactured in foreign 
     countries in projects carried out with that assistance or 
     restricts a recipient of that assistance from complying with 
     those State-imposed requirements.
       ``(8) Opportunity to correct inadvertent error.--The 
     Secretary may allow a manufacturer or supplier of steel, 
     iron, or manufactured goods to correct after bid opening any 
     certification of noncompliance or failure to properly 
     complete the certification (but not including failure to sign 
     the certification) under this subsection if such manufacturer 
     or supplier attests under penalty of perjury that such 
     manufacturer or supplier submitted an incorrect certification 
     as a result of an inadvertent or clerical error. The burden 
     of establishing inadvertent or clerical error is on the 
     manufacturer or supplier.
       ``(9) Administrative review.--A party adversely affected by 
     an agency action under this subsection shall have the right 
     to seek review under section 702 of title 5.
       ``(k) Participation of Governmental Agencies in Design and 
     Delivery of Transportation Services.--Governmental agencies 
     and nonprofit organizations that receive assistance from 
     Government sources (other than the Department of 
     Transportation) for nonemergency transportation services 
     shall--
       ``(1) participate and coordinate with recipients of 
     assistance under this chapter in the design and delivery of 
     transportation services; and
       ``(2) be included in the planning for those services.
       ``(l) Relationship to Other Laws.--
       ``(1) Fraud and false statements.--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 public 
     transportation program.
       ``(2) Political activities of nonsupervisory employees.--
     The provision of assistance under this chapter shall not be 
     construed to require the application of chapter 15 of title 5 
     to any nonsupervisory employee of a public transportation 
     system (or any other agency or entity performing related 
     functions) to whom such chapter does not otherwise apply.
       ``(m) Preaward and Postdelivery Review of Rolling Stock 
     Purchases.--The Secretary shall prescribe regulations 
     requiring a preaward and postdelivery review of a grant under 
     this chapter to buy rolling stock to ensure compliance with 
     Government motor vehicle safety requirements, subsection (j) 
     of this section, and bid specifications requirements of grant 
     recipients under this chapter. Under this subsection, 
     independent inspections and review are required, and a 
     manufacturer certification is not sufficient. Rolling stock 
     procurements of 20 vehicles or fewer made for the purpose of 
     serving rural areas and urbanized areas with populations of 
     200,000 or fewer shall be subject to the same requirements as 
     established for procurements of 10 or fewer buses under the 
     post-delivery purchaser's requirements certification process 
     under section 663.37(c) of title 49, Code of Federal 
     Regulations.
       ``(n) Submission of Certifications.--A certification 
     required under this chapter and any additional certification 
     or assurance required by law or regulation to be submitted to 
     the Secretary may be consolidated into a single document to 
     be submitted annually as part of a grant application under 
     this chapter. The Secretary shall publish annually a list of 
     all certifications required under this chapter with the 
     publication required under section 5336(d)(2).
       ``(o) Grant Requirements.--The grant requirements under 
     sections 5307, 5309, and 5337 apply to any project under this 
     chapter that receives any assistance or other financing under 
     chapter 6 (other than section 609) of title 23.
       ``(p) Alternative Fueling Facilities.--A recipient of 
     assistance under this chapter may allow the incidental use of 
     federally funded alternative fueling facilities and equipment 
     by nontransit public entities and private entities if--
       ``(1) the incidental use does not interfere with the 
     recipient's public transportation operations;
       ``(2) all costs related to the incidental use are fully 
     recaptured by the recipient from the nontransit public entity 
     or private entity;
       ``(3) the recipient uses revenues received from the 
     incidental use in excess of costs for planning, capital, and 
     operating expenses that are incurred in providing public 
     transportation; and
       ``(4) private entities pay all applicable excise taxes on 
     fuel.
       ``(q) Corridor Preservation.--
       ``(1) In general.--The Secretary may assist a recipient in 
     acquiring 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.--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.
       ``(r) Reasonable Access to Public Transportation 
     Facilities.--A recipient of assistance under this chapter may 
     not deny reasonable access for a private intercity or charter 
     transportation operator to federally funded public 
     transportation facilities, including intermodal facilities, 
     park and ride lots, and bus-only highway lanes. In 
     determining reasonable access, capacity requirements of the 
     recipient of assistance and the extent to which access would 
     be detrimental to existing public transportation services 
     must be considered.''.

     SEC. 20017. PUBLIC TRANSPORTATION EMERGENCY RELIEF PROGRAM.

       (a) In General.--Section 5324 of title 49, United States 
     Code, is amended to read as follows:

     ``Sec. 5324. Public transportation emergency relief program

       ``(a) Definition.--In this section the following 
     definitions shall apply:
       ``(1) Eligible operating costs.--The term `eligible 
     operating costs' means costs relating to--
       ``(A) evacuation services;
       ``(B) rescue operations;
       ``(C) temporary public transportation service; or
       ``(D) reestablishing, expanding, or relocating public 
     transportation route service before, during, or after an 
     emergency.
       ``(2) Emergency.--The term `emergency' means a natural 
     disaster affecting a wide area (such as a flood, hurricane, 
     tidal wave, earthquake, severe storm, or landslide) or a 
     catastrophic failure from any external cause, as a result of 
     which--
       ``(A) the Governor of a State has declared an emergency and 
     the Secretary has concurred; or
       ``(B) the President has declared a major disaster under 
     section 401 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5170).
       ``(b) General Authority.--The Secretary may make grants and 
     enter into contracts and other agreements (including 
     agreements with departments, agencies, and instrumentalities 
     of the Government) for--
       ``(1) capital projects to protect, repair, reconstruct, or 
     replace equipment and facilities of a public transportation 
     system operating in the United States or on an Indian 
     reservation that the Secretary determines is in danger of 
     suffering serious damage, or has suffered serious damage, as 
     a result of an emergency; and
       ``(2) eligible operating costs of public transportation 
     equipment and facilities in an area directly affected by an 
     emergency during--
       ``(A) the 1-year period beginning on the date of a 
     declaration described in subsection (a)(2); or
       ``(B) if the Secretary determines there is a compelling 
     need, the 2-year period beginning on the date of a 
     declaration described in subsection (a)(2).
       ``(c) Coordination of Emergency Funds.--
       ``(1) Use of funds.--Funds appropriated to carry out this 
     section shall be in addition to any other funds available 
     under this chapter.
       ``(2) No effect on other government activity.--The 
     provision of funds under this section shall not affect the 
     ability of any other agency of the Government, including the 
     Federal Emergency Management Agency, or a State agency, a 
     local governmental entity, organization, or person, to 
     provide any other funds otherwise authorized by law.
       ``(3) Notification.--The Secretary shall notify the 
     Secretary of Homeland Security of the purpose and amount of 
     any grant made or contract or other agreement entered into 
     under this section.

[[Page 10607]]

       ``(d) Grant Requirements.--A grant awarded under this 
     section or under section 5307 or 5311 that is made to address 
     an emergency defined under subsection (a)(2) shall be--
       ``(1) subject to the terms and conditions the Secretary 
     determines are necessary; and
       ``(2) made only for expenses that are not reimbursed under 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.).
       ``(e) Government Share of Costs.--
       ``(1) Capital projects and operating assistance.--A grant, 
     contract, or other agreement for a capital project or 
     eligible operating costs under this section shall be, at the 
     option of the recipient, for not more than 80 percent of the 
     net project cost, as determined by the Secretary.
       ``(2) Non-federal share.--The remainder of the net project 
     cost may be provided from an undistributed cash surplus, a 
     replacement or depreciation cash fund or reserve, or new 
     capital.
       ``(3) Waiver.--The Secretary may waive, in whole or part, 
     the non-Federal share required under--
       ``(A) paragraph (2); or
       ``(B) section 5307 or 5311, in the case of a grant made 
     available under section 5307 or 5311, respectively, to 
     address an emergency.''.
       (b) Memorandum of Agreement.--
       (1) Purposes.--The purposes of this subsection are--
       (A) to improve coordination between the Department of 
     Transportation and the Department of Homeland Security; and
       (B) to expedite the provision of Federal assistance for 
     public transportation systems for activities relating to a 
     major disaster or emergency declared by the President under 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.) (referred to in this 
     subsection as a ``major disaster or emergency'').
       (2) Agreement.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Transportation and 
     the Secretary of Homeland Security shall enter into a 
     memorandum of agreement to coordinate the roles and 
     responsibilities of the Department of Transportation and the 
     Department of Homeland Security in providing assistance for 
     public transportation, including the provision of public 
     transportation services and the repair and restoration of 
     public transportation systems in areas for which the 
     President has declared a major disaster or emergency.
       (3) Contents of agreement.--The memorandum of agreement 
     required under paragraph (2) shall--
       (A) provide for improved coordination and expeditious use 
     of public transportation, as appropriate, in response to and 
     recovery from a major disaster or emergency;
       (B) establish procedures to address--
       (i) issues that have contributed to delays in the 
     reimbursement of eligible transportation-related expenses 
     relating to a major disaster or emergency;
       (ii) any challenges identified in the review under 
     paragraph (4); and
       (iii) the coordination of assistance for public 
     transportation provided under the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act and section 5324 of title 
     49, United States Code, as amended by this Act, as 
     appropriate; and
       (C) provide for the development and distribution of clear 
     guidelines for State, local, and tribal governments, 
     including public transportation systems, relating to--
       (i) assistance available for public transportation systems 
     for activities relating to a major disaster or emergency--

       (I) under the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act;
       (II) under section 5324 of title 49, United States Code, as 
     amended by this Act; and
       (III) from other sources, including other Federal agencies; 
     and

       (ii) reimbursement procedures that speed the process of--

       (I) applying for assistance under the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act and section 5324 
     of title 49, United States Code, as amended by this Act; and
       (II) distributing assistance for public transportation 
     systems under the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act and section 5324 of title 49, United 
     States Code, as amended by this Act.

       (4) After action review.--Before entering into a memorandum 
     of agreement under paragraph (2), the Secretary of 
     Transportation and the Secretary of Homeland Security (acting 
     through the Administrator of the Federal Emergency Management 
     Agency), in consultation with State, local, and tribal 
     governments (including public transportation systems) that 
     have experienced a major disaster or emergency, shall review 
     after action reports relating to major disasters, 
     emergencies, and exercises, to identify areas where 
     coordination between the Department of Transportation and the 
     Department of Homeland Security and the provision of public 
     transportation services should be improved.
       (5) Factors for declarations of major disasters and 
     emergencies.--The Administrator of the Federal Emergency 
     Management Agency shall make available to State, local, and 
     tribal governments, including public transportation systems, 
     a description of the factors that the President considers in 
     declaring a major disaster or emergency, including any pre-
     disaster emergency declaration policies.
       (6) Briefings.--
       (A) Initial briefing.--Not later than 180 days after the 
     date of enactment of this Act, the Secretary of 
     Transportation and the Secretary of Homeland Security shall 
     jointly brief the Committee on Banking, Housing, and Urban 
     Affairs and the Committee on Homeland Security and 
     Governmental Affairs of the Senate on the memorandum of 
     agreement required under paragraph (2).
       (B) Quarterly briefings.--Each quarter of the 1-year period 
     beginning on the date on which the Secretary of 
     Transportation and the Secretary of Homeland Security enter 
     into the memorandum of agreement required under paragraph 
     (2), the Secretary of Transportation and the Secretary of 
     Homeland Security shall jointly brief the Committee on 
     Banking, Housing, and Urban Affairs and the Committee on 
     Homeland Security and Governmental Affairs of the Senate on 
     the implementation of the memorandum of agreement.

     SEC. 20018. CONTRACT REQUIREMENTS.

       Section 5325 of title 49, United States Code, is amended--
       (1) in subsection (e), by striking paragraph (1) and 
     inserting the following:
       ``(1) Contracts.--A recipient procuring rolling stock with 
     Government financial assistance under this chapter may make a 
     multiyear contract to buy the rolling stock and replacement 
     parts under which the recipient has an option to buy 
     additional rolling stock or replacement parts for--
       ``(A) not more than 5 years after the date of the original 
     contract for bus procurements; and
       ``(B) not more than 7 years after the date of the original 
     contract for rail procurements, provided that such option 
     does not allow for significant changes or alterations to the 
     rolling stock.''.
       (2) in subsection (h), by striking ``Federal Public 
     Transportation Act of 2005'' and inserting ``Federal Public 
     Transportation Act of 2012'';
       (3) in subsection (j)(2)(C), by striking ``, including the 
     performance reported in the Contractor Performance Assessment 
     Reports required under section 5309(l)(2)''; and
       (4) by adding at the end the following:
       ``(k) Veterans Employment.--Recipients and subrecipients of 
     Federal financial assistance under this chapter shall ensure 
     that contractors working on a capital project funded using 
     such assistance give a hiring preference, to the extent 
     practicable, to veterans (as defined in section 2108 of title 
     5) who have the requisite skills and abilities to perform the 
     construction work required under the contract. This 
     subsection shall not be understood, construed or enforced in 
     any manner that would require an employer to give a 
     preference to any veteran over any equally qualified 
     applicant who is a member of any racial or ethnic minority, 
     female, an individual with a disability, or a former 
     employee.''.

     SEC. 20019. TRANSIT ASSET MANAGEMENT.

       Section 5326 of title 49, United States Code, is amended to 
     read as follows:

     ``Sec. 5326. Transit asset management

       ``(a) Definitions.--In this section the following 
     definitions shall apply:
       ``(1) Capital asset.--The term `capital asset' includes 
     equipment, rolling stock, infrastructure, and facilities for 
     use in public transportation and owned or leased by a 
     recipient or subrecipient of Federal financial assistance 
     under this chapter.
       ``(2) Transit asset management plan.--The term `transit 
     asset management plan' means a plan developed by a recipient 
     of funding under this chapter that--
       ``(A) includes, at a minimum, capital asset inventories and 
     condition assessments, decision support tools, and investment 
     prioritization; and
       ``(B) the recipient certifies complies with the rule issued 
     under this section.
       ``(3) Transit asset management system.--The term `transit 
     asset management system' means a strategic and systematic 
     process of operating, maintaining, and improving public 
     transportation capital assets effectively throughout the life 
     cycle of such assets.
       ``(b) Transit Asset Management System.--The Secretary shall 
     establish and implement a national transit asset management 
     system, which shall include--
       ``(1) a definition of the term `state of good repair' that 
     includes objective standards for measuring the condition of 
     capital assets of recipients, including equipment, rolling 
     stock, infrastructure, and facilities;
       ``(2) a requirement that recipients and subrecipients of 
     Federal financial assistance under this chapter develop a 
     transit asset management plan;
       ``(3) a requirement that each designated recipient of 
     Federal financial assistance under this chapter report on the 
     condition of the system of the recipient and provide a 
     description of any change in condition since the last report;
       ``(4) an analytical process or decision support tool for 
     use by public transportation systems that--
       ``(A) allows for the estimation of capital investment needs 
     of such systems over time; and
       ``(B) assists with asset investment prioritization by such 
     systems; and
       ``(5) technical assistance to recipients of Federal 
     financial assistance under this chapter.
       ``(c) Performance Measures and Targets.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of the Federal Public Transportation Act of 2012, 
     the Secretary shall issue a final rule to establish 
     performance measures based on the state of good repair 
     standards established under subsection (b)(1).
       ``(2) Targets.--Not later than 3 months after the date on 
     which the Secretary issues a final rule under paragraph (1), 
     and each fiscal year

[[Page 10608]]

     thereafter, each recipient of Federal financial assistance 
     under this chapter shall establish performance targets in 
     relation to the performance measures established by the 
     Secretary.
       ``(3) Reports.--Each designated recipient of Federal 
     financial assistance under this chapter shall submit to the 
     Secretary an annual report that describes--
       ``(A) the progress of the recipient during the fiscal year 
     to which the report relates toward meeting the performance 
     targets established under paragraph (2) for that fiscal year; 
     and
       ``(B) the performance targets established by the recipient 
     for the subsequent fiscal year.
       ``(d) Rulemaking.--Not later than 1 year after the date of 
     enactment of the Federal Public Transportation Act of 2012, 
     the Secretary shall issue a final rule to implement the 
     transit asset management system described in subsection 
     (b).''.

     SEC. 20020. PROJECT MANAGEMENT OVERSIGHT.

       Section 5327 of title 49, United States Code, is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``United States'' and all that follows through ``Secretary of 
     Transportation'' and inserting the following: ``Federal 
     financial assistance for a major capital project for public 
     transportation under this chapter or any other provision of 
     Federal law, a recipient must prepare a project management 
     plan approved by the Secretary and carry out the project in 
     accordance with the project management plan''; and
       (B) in paragraph (12), by striking ``each month'' and 
     inserting ``quarterly'';
       (2) by striking subsections (c), (d), and (f);
       (3) by inserting after subsection (b) the following:
       ``(c) Access to Sites and Records.--Each recipient of 
     Federal financial assistance for public transportation under 
     this chapter or any other provision of Federal law shall 
     provide the Secretary and a contractor the Secretary chooses 
     under section 5338(i) with access to the construction sites 
     and records of the recipient when reasonably necessary.'';
       (4) by redesignating subsection (e) as subsection (d); and
       (5) in subsection (d), as so redesignated--
       (A) in paragraph (1), by striking ``subsection (c) of this 
     section'' and inserting ``section 5338(i)''; and
       (B) in paragraph (2)--
       (i) by striking ``preliminary engineering stage'' and 
     inserting ``project development phase''; and
       (ii) by striking ``another stage'' and inserting ``another 
     phase''.

     SEC. 20021. PUBLIC TRANSPORTATION SAFETY.

       (a) Public Transportation Safety Program.--Section 5329 of 
     title 49, United States Code, is amended to read as follows:

     ``Sec. 5329. Public transportation safety program

       ``(a) Definition.--In this section, the term `recipient' 
     means a State or local governmental authority, or any other 
     operator of a public transportation system, that receives 
     financial assistance under this chapter.
       ``(b) National Public Transportation Safety Plan.--
       ``(1) In general.--The Secretary shall create and implement 
     a national public transportation safety plan to improve the 
     safety of all public transportation systems that receive 
     funding under this chapter.
       ``(2) Contents of plan.--The national public transportation 
     safety plan under paragraph (1) shall include--
       ``(A) safety performance criteria for all modes of public 
     transportation;
       ``(B) the definition of the term `state of good repair' 
     established under section 5326(b);
       ``(C) minimum safety performance standards for public 
     transportation vehicles used in revenue operations that--
       ``(i) do not apply to rolling stock otherwise regulated by 
     the Secretary or any other Federal agency; and
       ``(ii) to the extent practicable, take into consideration--

       ``(I) relevant recommendations of the National 
     Transportation Safety Board; and
       ``(II) recommendations of, and best practices standards 
     developed by, the public transportation industry; and

       ``(D) a public transportation safety certification training 
     program, as described in subsection (c).
       ``(c) Public Transportation Safety Certification Training 
     Program.--
       ``(1) In general.--The Secretary shall establish a public 
     transportation safety certification training program for 
     Federal and State employees, or other designated personnel, 
     who conduct safety audits and examinations of public 
     transportation systems and employees of public transportation 
     agencies directly responsible for safety oversight.
       ``(2) Interim provisions.--Not later than 90 days after the 
     date of enactment of the Federal Public Transportation Act of 
     2012, the Secretary shall establish interim provisions for 
     the certification and training of the personnel described in 
     paragraph (1), which shall be in effect until the effective 
     date of the final rule issued by the Secretary to implement 
     this subsection.
       ``(d) Public Transportation Agency Safety Plan.--
       ``(1) In general.--Effective 1 year after the effective 
     date of a final rule issued by the Secretary to carry out 
     this subsection, each recipient or State, as described in 
     paragraph (3), shall certify that the recipient or State has 
     established a comprehensive agency safety plan that includes, 
     at a minimum--
       ``(A) a requirement that the board of directors (or 
     equivalent entity) of the recipient approve the agency safety 
     plan and any updates to the agency safety plan;
       ``(B) methods for identifying and evaluating safety risks 
     throughout all elements of the public transportation system 
     of the recipient;
       ``(C) strategies to minimize the exposure of the public, 
     personnel, and property to hazards and unsafe conditions;
       ``(D) a process and timeline for conducting an annual 
     review and update of the safety plan of the recipient;
       ``(E) performance targets based on the safety performance 
     criteria and state of good repair standards established under 
     subparagraphs (A) and (B), respectively, of subsection 
     (b)(2);
       ``(F) assignment of an adequately trained safety officer 
     who reports directly to the general manager, president, or 
     equivalent officer of the recipient; and
       ``(G) a comprehensive staff training program for the 
     operations personnel and personnel directly responsible for 
     safety of the recipient that includes--
       ``(i) the completion of a safety training program; and
       ``(ii) continuing safety education and training.
       ``(2) Interim agency safety plan.--A system safety plan 
     developed pursuant to part 659 of title 49, Code of Federal 
     Regulations, as in effect on the date of enactment of the 
     Federal Public Transportation Act of 2012, shall remain in 
     effect until such time as this subsection takes effect.
       ``(3) Public transportation agency safety plan drafting and 
     certification.--
       ``(A) Section 5311.--For a recipient receiving assistance 
     under section 5311, a State safety plan may be drafted and 
     certified by the recipient or a State.
       ``(B) Section 5307.--Not later than 120 days after the date 
     of enactment of the Federal Public Transportation Act of 
     2012, the Secretary shall issue a rule designating recipients 
     of assistance under section 5307 that are small public 
     transportation providers or systems that may have their State 
     safety plans drafted or certified by a State.
       ``(e) State Safety Oversight Program.--
       ``(1) Applicability.--This subsection applies only to 
     eligible States.
       ``(2) Definition.--In this subsection, the term `eligible 
     State' means a State that has--
       ``(A) a rail fixed guideway public transportation system 
     within the jurisdiction of the State that is not subject to 
     regulation by the Federal Railroad Administration; or
       ``(B) a rail fixed guideway public transportation system in 
     the engineering or construction phase of development within 
     the jurisdiction of the State that will not be subject to 
     regulation by the Federal Railroad Administration.
       ``(3) In general.--In order to obligate funds apportioned 
     under section 5338 to carry out this chapter, effective 3 
     years after the date on which a final rule under this 
     subsection becomes effective, an eligible State shall have in 
     effect a State safety oversight program approved by the 
     Secretary under which the State--
       ``(A) assumes responsibility for overseeing rail fixed 
     guideway public transportation safety;
       ``(B) adopts and enforces Federal and relevant State laws 
     on rail fixed guideway public transportation safety;
       ``(C) establishes a State safety oversight agency;
       ``(D) determines, in consultation with the Secretary, an 
     appropriate staffing level for the State safety oversight 
     agency that is commensurate with the number, size, and 
     complexity of the rail fixed guideway public transportation 
     systems in the eligible State;
       ``(E) requires that employees and other designated 
     personnel of the eligible State safety oversight agency who 
     are responsible for rail fixed guideway public transportation 
     safety oversight are qualified to perform such functions 
     through appropriate training, including successful completion 
     of the public transportation safety certification training 
     program established under subsection (c); and
       ``(F) prohibits any public transportation agency from 
     providing funds to the State safety oversight agency or an 
     entity designated by the eligible State as the State safety 
     oversight agency under paragraph (4).
       ``(4) State safety oversight agency.--
       ``(A) In general.--Each State safety oversight program 
     shall establish a State safety oversight agency that--
       ``(i) is financially and legally independent from any 
     public transportation entity that the State safety oversight 
     agency oversees;
       ``(ii) does not directly provide public transportation 
     services in an area with a rail fixed guideway public 
     transportation system subject to the requirements of this 
     section;
       ``(iii) does not employ any individual who is also 
     responsible for the administration of rail fixed guideway 
     public transportation programs subject to the requirements of 
     this section;
       ``(iv) has the authority to review, approve, oversee, and 
     enforce the implementation by the rail fixed guideway public 
     transportation agency of the public transportation agency 
     safety plan required under subsection (d);
       ``(v) has investigative and enforcement authority with 
     respect to the safety of rail fixed guideway public 
     transportation systems of the eligible State;
       ``(vi) audits, at least once triennially, the compliance of 
     the rail fixed guideway public transportation systems in the 
     eligible State subject to this subsection with the public 
     transportation agency safety plan required under subsection 
     (d); and

[[Page 10609]]

       ``(vii) provides, at least once annually, a status report 
     on the safety of the rail fixed guideway public 
     transportation systems the State safety oversight agency 
     oversees to--

       ``(I) the Federal Transit Administration;
       ``(II) the Governor of the eligible State; and
       ``(III) the board of directors, or equivalent entity, of 
     any rail fixed guideway public transportation system that the 
     State safety oversight agency oversees.

       ``(B) Waiver.--At the request of an eligible State, the 
     Secretary may waive clauses (i) and (iii) of subparagraph (A) 
     for eligible States with 1 or more rail fixed guideway 
     systems in revenue operations, design, or construction, 
     that--
       ``(i) have fewer than 1,000,000 combined actual and 
     projected rail fixed guideway revenue miles per year; or
       ``(ii) provide fewer than 10,000,000 combined actual and 
     projected unlinked passenger trips per year.
       ``(5) Programs for multi-state rail fixed guideway public 
     transportation systems.--An eligible State that has within 
     the jurisdiction of the eligible State a rail fixed guideway 
     public transportation system that operates in more than 1 
     eligible State shall--
       ``(A) jointly with all other eligible States in which the 
     rail fixed guideway public transportation system operates, 
     ensure uniform safety standards and enforcement procedures 
     that shall be in compliance with this section, and establish 
     and implement a State safety oversight program approved by 
     the Secretary; or
       ``(B) jointly with all other eligible States in which the 
     rail fixed guideway public transportation system operates, 
     designate an entity having characteristics consistent with 
     the characteristics described in paragraph (3) to carry out 
     the State safety oversight program approved by the Secretary.
       ``(6) Grants.--
       ``(A) In general.--The Secretary shall make grants to 
     eligible States to develop or carry out State safety 
     oversight programs under this subsection. Grant funds may be 
     used for program operational and administrative expenses, 
     including employee training activities.
       ``(B) Apportionment.--
       ``(i) Formula.--The amount made available for State safety 
     oversight under section 5336(h) shall be apportioned among 
     eligible States under a formula to be established by the 
     Secretary. Such formula shall take into account fixed 
     guideway vehicle revenue miles, fixed guideway route miles, 
     and fixed guideway vehicle passenger miles attributable to 
     all rail fixed guideway systems not subject to regulation by 
     the Federal Railroad Administration within each eligible 
     State.
       ``(ii) Administrative requirements.--Grant funds 
     apportioned to States under this paragraph shall be subject 
     to uniform administrative requirements for grants and 
     cooperative agreements to State and local governments under 
     part 18 of title 49, Code of Federal Regulations, and shall 
     be subject to the requirements of this chapter as the 
     Secretary determines appropriate.
       ``(C) Government share.--
       ``(i) In general.--The Government share of the reasonable 
     cost of a State safety oversight program developed or carried 
     out using a grant under this paragraph shall be 80 percent.
       ``(ii) In-kind contributions.--Any calculation of the non-
     Government share of a State safety oversight program shall 
     include in-kind contributions by an eligible State.
       ``(iii) Non-government share.--The non-Government share of 
     the cost of a State safety oversight program developed or 
     carried out using a grant under this paragraph may not be met 
     by--

       ``(I) any Federal funds;
       ``(II) any funds received from a public transportation 
     agency; or
       ``(III) any revenues earned by a public transportation 
     agency.

       ``(iv) Safety training program.--Recipients of funds made 
     available to carry out sections 5307 and 5311 may use not 
     more than 0.5 percent of their formula funds to pay not more 
     than 80 percent of the cost of participation in the public 
     transportation safety certification training program 
     established under subsection (c), by an employee of a State 
     safety oversight agency or a recipient who is directly 
     responsible for safety oversight.
       ``(7) Certification process.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of the Federal Public Transportation Act of 2012, 
     the Secretary shall determine whether or not each State 
     safety oversight program meets the requirements of this 
     subsection and the State safety oversight program is adequate 
     to promote the purposes of this section.
       ``(B) Issuance of certifications and denials.--The 
     Secretary shall issue a certification to each eligible State 
     that the Secretary determines under subparagraph (A) 
     adequately meets the requirements of this subsection, and 
     shall issue a denial of certification to each eligible State 
     that the Secretary determines under subparagraph (A) does not 
     adequately meet the requirements of this subsection.
       ``(C) Disapproval.--If the Secretary determines that a 
     State safety oversight program does not meet the requirements 
     of this subsection and denies certification, the Secretary 
     shall transmit to the eligible State a written explanation 
     and allow the eligible State to modify and resubmit the State 
     safety oversight program for approval.
       ``(D) Failure to correct.--If the Secretary determines that 
     a modification by an eligible State of the State safety 
     oversight program is not sufficient to certify the program, 
     the Secretary--
       ``(i) shall notify the Governor of the eligible State of 
     such denial of certification and failure to adequately modify 
     the program, and shall request that the Governor take all 
     possible actions to correct deficiencies in the program to 
     ensure the certification of the program; and
       ``(ii) may--

       ``(I) withhold funds available under paragraph (6) in an 
     amount determined by the Secretary;
       ``(II) withhold not more than 5 percent of the amount 
     required to be appropriated for use in a State or urbanized 
     area in the State under section 5307 of this title, until the 
     State safety oversight program has been certified; or
       ``(III) require fixed guideway public transportation 
     systems under such State safety oversight program to provide 
     up to 100 percent of Federal assistance made available under 
     this chapter only for safety-related improvements on such 
     systems, until the State safety oversight program has been 
     certified.

       ``(8) Evaluation of program and annual report.--The 
     Secretary shall continually evaluate the implementation of a 
     State safety oversight program by a State safety oversight 
     agency, and shall submit on or before July 1 of each year to 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives a report on--
       ``(A) the amount of funds apportioned to each eligible 
     State; and
       ``(B) the certification status of each State safety 
     oversight program, including what steps a State program that 
     has been denied certification must take in order to be 
     certified.
       ``(9) Federal oversight.--The Secretary shall--
       ``(A) oversee the implementation of each State safety 
     oversight program under this subsection;
       ``(B) audit the operations of each State safety oversight 
     agency at least once triennially; and
       ``(C) issue rules to carry out this subsection.
       ``(f) Authority of Secretary.--In carrying out this 
     section, the Secretary may--
       ``(1) conduct inspections, investigations, audits, 
     examinations, and testing of the equipment, facilities, 
     rolling stock, and operations of the public transportation 
     system of a recipient;
       ``(2) make reports and issue directives with respect to the 
     safety of the public transportation system of a recipient;
       ``(3) in conjunction with an accident investigation or an 
     investigation into a pattern or practice of conduct that 
     negatively affects public safety, issue a subpoena to, and 
     take the deposition of, any employee of a recipient or a 
     State safety oversight agency, if--
       ``(A) before the issuance of the subpoena, the Secretary 
     requests a determination by the Attorney General of the 
     United States as to whether the subpoena will interfere with 
     an ongoing criminal investigation; and
       ``(B) the Attorney General--
       ``(i) determines that the subpoena will not interfere with 
     an ongoing criminal investigation; or
       ``(ii) fails to make a determination under clause (i) 
     before the date that is 30 days after the date on which the 
     Secretary makes a request under subparagraph (A);
       ``(4) require the production of documents by, and prescribe 
     recordkeeping and reporting requirements for, a recipient or 
     a State safety oversight agency;
       ``(5) investigate public transportation accidents and 
     incidents and provide guidance to recipients regarding 
     prevention of accidents and incidents;
       ``(6) at reasonable times and in a reasonable manner, enter 
     and inspect equipment, facilities, rolling stock, operations, 
     and relevant records of the public transportation system of a 
     recipient; and
       ``(7) issue rules to carry out this section.
       ``(g) Enforcement Actions.--
       ``(1) Types of enforcement actions.--The Secretary may take 
     enforcement action against an eligible State, as defined in 
     subsection (e), that does not comply with Federal law with 
     respect to the safety of the public transportation system, 
     including--
       ``(A) issuing directives;
       ``(B) requiring more frequent oversight of the recipient by 
     a State safety oversight agency or the Secretary;
       ``(C) imposing more frequent reporting requirements; and
       ``(D) requiring that any Federal financial assistance 
     provided under this chapter be spent on correcting safety 
     deficiencies identified by the Secretary or the State safety 
     oversight agency before such funds are spent on other 
     projects.
       ``(2) Use or withholding of funds.--
       ``(A) In general.--The Secretary may require the use of 
     funds in accordance with paragraph (1)(D) only if the 
     Secretary finds that a recipient is engaged in a pattern or 
     practice of serious safety violations or has otherwise 
     refused to comply with Federal law relating to the safety of 
     the public transportation system.
       ``(B) Notice.--Before withholding funds from a recipient, 
     the Secretary shall provide to the recipient--
       ``(i) written notice of a violation and the amount proposed 
     to be withheld; and
       ``(ii) a reasonable period of time within which the 
     recipient may address the violation or propose and initiate 
     an alternative means of compliance that the Secretary 
     determines is acceptable.
       ``(h) Cost-benefit Analysis.--
       ``(1) Analysis required.--In carrying out this section, the 
     Secretary shall take into consideration the costs and 
     benefits of each action the Secretary proposes to take under 
     this section.

[[Page 10610]]

       ``(2) Waiver.--The Secretary may waive the requirement 
     under this subsection if the Secretary determines that such a 
     waiver is in the public interest.
       ``(i) Consultation by the Secretary of Homeland Security.--
     The Secretary of Homeland Security shall consult with the 
     Secretary of Transportation before the Secretary of Homeland 
     Security issues a rule or order that the Secretary of 
     Transportation determines affects the safety of public 
     transportation design, construction, or operations.
       ``(j) Actions Under State Law.--
       ``(1) Rule of construction.--Nothing in this section shall 
     be construed to preempt an action under State law seeking 
     damages for personal injury, death, or property damage 
     alleging that a party has failed to comply with--
       ``(A) a Federal standard of care established by a 
     regulation or order issued by the Secretary under this 
     section; or
       ``(B) its own program, rule, or standard that it created 
     pursuant to a rule or order issued by the Secretary.
       ``(2) Effective date.--This subsection shall apply to any 
     cause of action under State law arising from an event or 
     activity occurring on or after the date of enactment of the 
     Federal Public Transportation Act of 2012.
       ``(3) Jurisdiction.--Nothing in this section shall be 
     construed to create a cause of action under Federal law on 
     behalf of an injured party or confer Federal question 
     jurisdiction for a State law cause of action.
       ``(k) National Public Transportation Safety Report.--Not 
     later than 3 years after the date of enactment of the Federal 
     Public Transportation Act of 2012, the Secretary shall submit 
     to the Committee on Banking, Housing, and Urban Affairs of 
     the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives a report 
     that--
       ``(1) analyzes public transportation safety trends among 
     the States and documents the most effective safety programs 
     implemented using grants under this section; and
       ``(2) describes the effect on public transportation safety 
     of activities carried out using grants under this section.''.
       (b) Bus Safety Study.--
       (1) Definition.--In this subsection, the term ``highway 
     route'' means a route where 50 percent or more of the route 
     is on roads having a speed limit of more than 45 miles per 
     hour.
       (2) Study.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Transportation shall 
     submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives a report 
     that--
       (A) examines the safety of public transportation buses that 
     travel on highway routes;
       (B) examines laws and regulations that apply to commercial 
     over-the-road buses; and
       (C) makes recommendations as to whether additional safety 
     measures should be required for public transportation buses 
     that travel on highway routes.

     SEC. 20022. ALCOHOL AND CONTROLLED SUBSTANCES TESTING.

       Section 5331 of title 49, United States Code, is amended by 
     striking subsection (g) and inserting the following:
       ``(g) Conditions on Federal Assistance.--
       ``(1) Ineligibility for assistance.--A person that receives 
     funds under this chapter is not eligible for financial 
     assistance under section 5307, 5309, or 5311 of this title if 
     the person is required, under regulations the Secretary 
     prescribes under this section, to establish a program of 
     alcohol and controlled substances testing and does not 
     establish the program in accordance with this section.
       ``(2) Additional remedies.--If the Secretary determines 
     that a person that receives funds under this chapter is not 
     in compliance with regulations prescribed under this section, 
     the Secretary may bar the person from receiving Federal 
     transit assistance in an amount the Secretary considers 
     appropriate.''.

     SEC. 20023. NONDISCRIMINATION.

       (a) Amendments.--Section 5332 of title 49, United States 
     Code, is amended--
       (1) in subsection (b)--
       (A) by striking ``creed'' and inserting ``religion''; and
       (B) by inserting ``disability,'' after ``sex,''; and
       (2) in subsection (d)(3), by striking ``and'' and inserting 
     ``or''.
       (b) Evaluation and Report.--
       (1) Evaluation.--The Comptroller General of the United 
     States shall evaluate the progress and effectiveness of the 
     Federal Transit Administration in assisting recipients of 
     assistance under chapter 53 of title 49, United States Code, 
     to comply with section 5332(b) of title 49, including--
       (A) by reviewing discrimination complaints, reports, and 
     other relevant information collected or prepared by the 
     Federal Transit Administration or recipients of assistance 
     from the Federal Transit Administration pursuant to any 
     applicable civil rights statute, regulation, or other 
     requirement; and
       (B) by reviewing the process that the Federal Transit 
     Administration uses to resolve discrimination complaints 
     filed by members of the public.
       (2) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to the Committee on Banking, Housing, and Urban Affairs of 
     the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives a report 
     concerning the evaluation under paragraph (1) that includes--
       (A) a description of the ability of the Federal Transit 
     Administration to address discrimination and foster equal 
     opportunities in federally funded public transportation 
     projects, programs, and activities;
       (B) recommendations for improvements if the Comptroller 
     General determines that improvements are necessary; and
       (C) information upon which the evaluation under paragraph 
     (1) is based.

     SEC. 20024. ADMINISTRATIVE PROVISIONS.

       Section 5334 of title 49, United States Code, is amended--
       (1) in subsection (a)(1), by striking ``under sections 5307 
     and 5309-5311 of this title'' and inserting ``that receives 
     Federal financial assistance under this chapter'';
       (2) in subsection (b)(1)--
       (A) by inserting after ``emergency,'' the following: ``or 
     for purposes of establishing and enforcing a program to 
     improve the safety of public transportation systems in the 
     United States as described in section 5329,''; and
       (B) by striking ``chapter, nor may the Secretary'' and 
     inserting ``chapter. The Secretary may not'';
       (3) in subsection (c)(4), by striking ``section (except 
     subsection (i)) and sections 5318(e), 5323(a)(2), 5325(a), 
     5325(b), and 5325(f)'' and inserting ``subsection'';
       (4) in subsection (h)(3), by striking ``another'' and 
     inserting ``any other'';
       (5) in subsection (i)(1), by striking ``title 23 shall'' 
     and inserting ``title 23 may'';
       (6) by striking subsection (j); and
       (7) by redesignating subsections (k) and (l) as subsections 
     (j) and (k), respectively.

     SEC. 20025. NATIONAL TRANSIT DATABASE.

       (a) Amendments.--Section 5335 of title 49, United States 
     Code, is amended--
       (1) in subsection (a), by striking ``public transportation 
     financial and operating information'' and inserting ``public 
     transportation financial, operating, and asset condition 
     information''; and
       (2) by adding at the end the following:
       ``(c) Data Required to Be Reported.--The recipient of a 
     grant under this chapter shall report to the Secretary, for 
     inclusion in the National Transit Database, any information 
     relating to a transit asset inventory or condition assessment 
     conducted by the recipient.''.
       (b) Data Accuracy and Reliability.--The Secretary shall--
       (1) develop and implement appropriate internal control 
     activities to ensure that public transportation safety 
     incident data is reported accurately and reliably by public 
     transportation systems and State safety oversight agencies to 
     the State Safety Oversight Rail Accident Database; and
       (2) report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives within 1 year 
     of enactment of the Federal Public Transportation Act of 2012 
     on the steps taken to improve the accuracy and reliability of 
     public transportation safety incident data reported to the 
     State Safety Oversight Rail Accident Database.

     SEC. 20026. APPORTIONMENT OF APPROPRIATIONS FOR FORMULA 
                   GRANTS.

       Section 5336 of title 49, United States Code, is amended to 
     read as follows:

     ``Sec. 5336. Apportionment of appropriations for formula 
       grants

       ``(a) Based on Urbanized Area Population.--Of the amount 
     apportioned under subsection (h)(4) to carry out section 
     5307--
       ``(1) 9.32 percent shall be apportioned each fiscal year 
     only in urbanized areas with a population of less than 
     200,000 so that each of those areas is entitled to receive an 
     amount equal to--
       ``(A) 50 percent of the total amount apportioned multiplied 
     by a ratio equal to the population of the area divided by the 
     total population of all urbanized areas with populations of 
     less than 200,000 as shown in the most recent decennial 
     census; and
       ``(B) 50 percent of the total amount apportioned multiplied 
     by a ratio for the area based on population weighted by a 
     factor, established by the Secretary, of the number of 
     inhabitants in each square mile; and
       ``(2) 90.68 percent shall be apportioned each fiscal year 
     only in urbanized areas with populations of at least 200,000 
     as provided in subsections (b) and (c) of this section.
       ``(b) Based on Fixed Guideway Vehicle Revenue Miles, 
     Directional Route Miles, and Passenger Miles.--(1) In this 
     subsection, `fixed guideway vehicle revenue miles' and `fixed 
     guideway directional route miles' include passenger ferry 
     operations directly or under contract by the designated 
     recipient.
       ``(2) Of the amount apportioned under subsection (a)(2) of 
     this section, 33.29 percent shall be apportioned as follows:
       ``(A) 95.61 percent of the total amount apportioned under 
     this subsection shall be apportioned so that each urbanized 
     area with a population of at least 200,000 is entitled to 
     receive an amount equal to--
       ``(i) 60 percent of the 95.61 percent apportioned under 
     this subparagraph multiplied by a ratio equal to the number 
     of fixed guideway vehicle revenue miles attributable to the 
     area, as established by the Secretary, divided by the total 
     number of all fixed guideway vehicle revenue miles 
     attributable to all areas; and
       ``(ii) 40 percent of the 95.61 percent apportioned under 
     this subparagraph multiplied by a ratio equal to the number 
     of fixed guideway directional route miles attributable to the 
     area, established by the Secretary, divided by the total

[[Page 10611]]

     number of all fixed guideway directional route miles 
     attributable to all areas.
     An urbanized area with a population of at least 750,000 in 
     which commuter rail transportation is provided shall receive 
     at least .75 percent of the total amount apportioned under 
     this subparagraph.
       ``(B) 4.39 percent of the total amount apportioned under 
     this subsection shall be apportioned so that each urbanized 
     area with a population of at least 200,000 is entitled to 
     receive an amount equal to--
       ``(i) the number of fixed guideway vehicle passenger miles 
     traveled multiplied by the number of fixed guideway vehicle 
     passenger miles traveled for each dollar of operating cost in 
     an area; divided by
       ``(ii) the total number of fixed guideway vehicle passenger 
     miles traveled multiplied by the total number of fixed 
     guideway vehicle passenger miles traveled for each dollar of 
     operating cost in all areas.
     An urbanized area with a population of at least 750,000 in 
     which commuter rail transportation is provided shall receive 
     at least .75 percent of the total amount apportioned under 
     this subparagraph.
       ``(C) Under subparagraph (A) of this paragraph, fixed 
     guideway vehicle revenue or directional route miles, and 
     passengers served on those miles, in an urbanized area with a 
     population of less than 200,000, where the miles and 
     passengers served otherwise would be attributable to an 
     urbanized area with a population of at least 1,000,000 in an 
     adjacent State, are attributable to the governmental 
     authority in the State in which the urbanized area with a 
     population of less than 200,000 is located. The authority is 
     deemed an urbanized area with a population of at least 
     200,000 if the authority makes a contract for the service.
       ``(D) A recipient's apportionment under subparagraph (A)(i) 
     of this paragraph may not be reduced if the recipient, after 
     satisfying the Secretary that energy or operating 
     efficiencies would be achieved, reduces vehicle revenue miles 
     but provides the same frequency of revenue service to the 
     same number of riders.
       ``(E) For purposes of subparagraph (A) and section 
     5337(c)(3), the Secretary shall deem to be attributable to an 
     urbanized area not less than 22.27 percent of the fixed 
     guideway vehicle revenue miles or fixed guideway directional 
     route miles in the public transportation system of a 
     recipient that are located outside the urbanized area for 
     which the recipient receives funds, in addition to the fixed 
     guideway vehicle revenue miles or fixed guideway directional 
     route miles of the recipient that are located inside the 
     urbanized area.
       ``(c) Based on Bus Vehicle Revenue Miles and Passenger 
     Miles.--Of the amount apportioned under subsection (a)(2) of 
     this section, 66.71 percent shall be apportioned as follows:
       ``(1) 90.8 percent of the total amount apportioned under 
     this subsection shall be apportioned as follows:
       ``(A) 73.39 percent of the 90.8 percent apportioned under 
     this paragraph shall be apportioned so that each urbanized 
     area with a population of at least 1,000,000 is entitled to 
     receive an amount equal to--
       ``(i) 50 percent of the 73.39 percent apportioned under 
     this subparagraph multiplied by a ratio equal to the total 
     bus vehicle revenue miles operated in or directly serving the 
     urbanized area divided by the total bus vehicle revenue miles 
     attributable to all areas;
       ``(ii) 25 percent of the 73.39 percent apportioned under 
     this subparagraph multiplied by a ratio equal to the 
     population of the area divided by the total population of all 
     areas, as shown in the most recent decennial census; and
       ``(iii) 25 percent of the 73.39 percent apportioned under 
     this subparagraph multiplied by a ratio for the area based on 
     population weighted by a factor, established by the 
     Secretary, of the number of inhabitants in each square mile.
       ``(B) 26.61 percent of the 90.8 percent apportioned under 
     this paragraph shall be apportioned so that each urbanized 
     area with a population of at least 200,000 but not more than 
     999,999 is entitled to receive an amount equal to--
       ``(i) 50 percent of the 26.61 percent apportioned under 
     this subparagraph multiplied by a ratio equal to the total 
     bus vehicle revenue miles operated in or directly serving the 
     urbanized area divided by the total bus vehicle revenue miles 
     attributable to all areas;
       ``(ii) 25 percent of the 26.61 percent apportioned under 
     this subparagraph multiplied by a ratio equal to the 
     population of the area divided by the total population of all 
     areas, as shown by the most recent decennial census; and
       ``(iii) 25 percent of the 26.61 percent apportioned under 
     this subparagraph multiplied by a ratio for the area based on 
     population weighted by a factor, established by the 
     Secretary, of the number of inhabitants in each square mile.
       ``(2) 9.2 percent of the total amount apportioned under 
     this subsection shall be apportioned so that each urbanized 
     area with a population of at least 200,000 is entitled to 
     receive an amount equal to--
       ``(A) the number of bus passenger miles traveled multiplied 
     by the number of bus passenger miles traveled for each dollar 
     of operating cost in an area; divided by
       ``(B) the total number of bus passenger miles traveled 
     multiplied by the total number of bus passenger miles 
     traveled for each dollar of operating cost in all areas.
       ``(d) Date of Apportionment.--The Secretary shall--
       ``(1) apportion amounts appropriated under section 
     5338(a)(2)(C) of this title to carry out section 5307 of this 
     title not later than the 10th day after the date the amounts 
     are appropriated or October 1 of the fiscal year for which 
     the amounts are appropriated, whichever is later; and
       ``(2) publish apportionments of the amounts, including 
     amounts attributable to each urbanized area with a population 
     of more than 50,000 and amounts attributable to each State of 
     a multistate urbanized area, on the apportionment date.
       ``(e) Amounts Not Apportioned to Designated Recipients.--
     The Governor of a State may expend in an urbanized area with 
     a population of less than 200,000 an amount apportioned under 
     this section that is not apportioned to a designated 
     recipient, as defined in section 5302(4).
       ``(f) Transfers of Apportionments.--(1) The Governor of a 
     State may transfer any part of the State's apportionment 
     under subsection (a)(1) of this section to supplement amounts 
     apportioned to the State under section 5311(c)(3). The 
     Governor may make a transfer only after consulting with 
     responsible local officials and publicly owned operators of 
     public transportation in each area for which the amount 
     originally was apportioned under this section.
       ``(2) The Governor of a State may transfer any part of the 
     State's apportionment under section 5311(c)(3) to supplement 
     amounts apportioned to the State under subsection (a)(1) of 
     this section.
       ``(3) The Governor of a State may use throughout the State 
     amounts of a State's apportionment remaining available for 
     obligation at the beginning of the 90-day period before the 
     period of the availability of the amounts expires.
       ``(4) A designated recipient for an urbanized area with a 
     population of at least 200,000 may transfer a part of its 
     apportionment under this section to the Governor of a State. 
     The Governor shall distribute the transferred amounts to 
     urbanized areas under this section.
       ``(5) Capital and operating assistance limitations 
     applicable to the original apportionment apply to amounts 
     transferred under this subsection.
       ``(g) Period of Availability to Recipients.--An amount 
     apportioned under this section may be obligated by the 
     recipient for 5 years after the fiscal year in which the 
     amount is apportioned. Not later than 30 days after the end 
     of the 5-year period, an amount that is not obligated at the 
     end of that period shall be added to the amount that may be 
     apportioned under this section in the next fiscal year.
       ``(h) Apportionments.--Of the amounts made available for 
     each fiscal year under section 5338(a)(2)(C)--
       ``(1) $30,000,000 shall be set aside to carry out section 
     5307(h);
       ``(2) 3.07 percent shall be apportioned to urbanized areas 
     in accordance with subsection (j);
       ``(3) of amounts not apportioned under paragraphs (1) and 
     (2), 1.5 percent shall be apportioned to urbanized areas with 
     populations of less than 200,000 in accordance with 
     subsection (i);
       ``(4) 0.5 percent shall be apportioned to eligible States 
     for State safety oversight program grants in accordance with 
     section 5329(e)(6); and
       ``(5) any amount not apportioned under paragraphs (1), (2), 
     (3), and (4) shall be apportioned to urbanized areas in 
     accordance with subsections (a) through (c).
       ``(i) Small Transit Intensive Cities Formula.--
       ``(1) Definitions.--In this subsection, the following 
     definitions apply:
       ``(A) Eligible area.--The term `eligible area' means an 
     urbanized area with a population of less than 200,000 that 
     meets or exceeds in one or more performance categories the 
     industry average for all urbanized areas with a population of 
     at least 200,000 but not more than 999,999, as determined by 
     the Secretary in accordance with subsection (c)(2).
       ``(B) Performance category.--The term `performance 
     category' means each of the following:
       ``(i) Passenger miles traveled per vehicle revenue mile.
       ``(ii) Passenger miles traveled per vehicle revenue hour.
       ``(iii) Vehicle revenue miles per capita.
       ``(iv) Vehicle revenue hours per capita.
       ``(v) Passenger miles traveled per capita.
       ``(vi) Passengers per capita.
       ``(2) Apportionment.--
       ``(A) Apportionment formula.--The amount to be apportioned 
     under subsection (h)(3) shall be apportioned among eligible 
     areas in the ratio that--
       ``(i) the number of performance categories for which each 
     eligible area meets or exceeds the industry average in 
     urbanized areas with a population of at least 200,000 but not 
     more than 999,999; bears to
       ``(ii) the aggregate number of performance categories for 
     which all eligible areas meet or exceed the industry average 
     in urbanized areas with a population of at least 200,000 but 
     not more than 999,999.
       ``(B) Data used in formula.--The Secretary shall calculate 
     apportionments under this subsection for a fiscal year using 
     data from the national transit database used to calculate 
     apportionments for that fiscal year under this section.
       ``(j) Apportionment Formula.--The amounts apportioned under 
     subsection (h)(2) shall be apportioned among urbanized areas 
     as follows:
       ``(1) 75 percent of the funds shall be apportioned among 
     designated recipients for urbanized areas with a population 
     of 200,000 or more in the ratio that--
       ``(A) the number of eligible low-income individuals in each 
     such urbanized area; bears to

[[Page 10612]]

       ``(B) the number of eligible low-income individuals in all 
     such urbanized areas.
       ``(2) 25 percent of the funds shall be apportioned among 
     designated recipients for urbanized areas with a population 
     of less than 200,000 in the ratio that--
       ``(A) the number of eligible low-income individuals in each 
     such urbanized area; bears to
       ``(B) the number of eligible low-income individuals in all 
     such urbanized areas.''.

     SEC. 20027. STATE OF GOOD REPAIR GRANTS.

       Section 5337 of title 49, United States Code, is amended to 
     read as follows:

     ``Sec. 5337. State of good repair grants

       ``(a) Definitions.--In this section, the following 
     definitions shall apply:
       ``(1) Fixed guideway.--The term `fixed guideway' means a 
     public transportation facility--
       ``(A) using and occupying a separate right-of-way for the 
     exclusive use of public transportation;
       ``(B) using rail;
       ``(C) using a fixed catenary system;
       ``(D) for a passenger ferry system; or
       ``(E) for a bus rapid transit system.
       ``(2) State.--The term `State' means the 50 States, the 
     District of Columbia, and Puerto Rico.
       ``(3) State of good repair.--The term `state of good 
     repair' has the meaning given that term by the Secretary, by 
     rule, under section 5326(b).
       ``(4) Transit asset management plan.--The term `transit 
     asset management plan' means a plan developed by a recipient 
     of funding under this chapter that--
       ``(A) includes, at a minimum, capital asset inventories and 
     condition assessments, decision support tools, and investment 
     prioritization; and
       ``(B) the recipient certifies that the recipient complies 
     with the rule issued under section 5326(d).
       ``(b) General Authority.--
       ``(1) Eligible projects.--The Secretary may make grants 
     under this section to assist State and local governmental 
     authorities in financing capital projects to maintain public 
     transportation systems in a state of good repair, including 
     projects to replace and rehabilitate--
       ``(A) rolling stock;
       ``(B) track;
       ``(C) line equipment and structures;
       ``(D) signals and communications;
       ``(E) power equipment and substations;
       ``(F) passenger stations and terminals;
       ``(G) security equipment and systems;
       ``(H) maintenance facilities and equipment;
       ``(I) operational support equipment, including computer 
     hardware and software;
       ``(J) development and implementation of a transit asset 
     management plan; and
       ``(K) other replacement and rehabilitation projects the 
     Secretary determines appropriate.
       ``(2) Inclusion in plan.--A recipient shall include a 
     project carried out under paragraph (1) in the transit asset 
     management plan of the recipient upon completion of the plan.
       ``(c) High Intensity Fixed Guideway State of Good Repair 
     Formula.--
       ``(1) In general.--Of the amount authorized or made 
     available under section 5338(a)(2)(I), 97.15 percent shall be 
     apportioned to recipients in accordance with this subsection.
       ``(2) Area share.--
       ``(A) In general.--50 percent of the amount described in 
     paragraph (1) shall be apportioned for fixed guideway systems 
     in accordance with this paragraph.
       ``(B) Share.--A recipient shall receive an amount equal to 
     the amount described in subparagraph (A), multiplied by the 
     amount the recipient would have received under this section, 
     as in effect for fiscal year 2011, if the amount had been 
     calculated in accordance with section 5336(b)(1) and using 
     the definition of the term `fixed guideway' under subsection 
     (a) of this section, as such sections are in effect on the 
     day after the date of enactment of the Federal Public 
     Transportation Act of 2012, and divided by the total amount 
     apportioned for all areas under this section for fiscal year 
     2011.
       ``(C) Recipient.--For purposes of this paragraph, the term 
     `recipient' means an entity that received funding under this 
     section, as in effect for fiscal year 2011.
       ``(3) Vehicle revenue miles and directional route miles.--
       ``(A) In general.--50 percent of the amount described in 
     paragraph (1) shall be apportioned to recipients in 
     accordance with this paragraph.
       ``(B) Vehicle revenue miles.--A recipient in an urbanized 
     area shall receive an amount equal to 60 percent of the 
     amount described in subparagraph (A), multiplied by the 
     number of fixed guideway vehicle revenue miles attributable 
     to the urbanized area, as established by the Secretary, 
     divided by the total number of all fixed guideway vehicle 
     revenue miles attributable to all urbanized areas.
       ``(C) Directional route miles.--A recipient in an urbanized 
     area shall receive an amount equal to 40 percent of the 
     amount described in subparagraph (A), multiplied by the 
     number of fixed guideway directional route miles attributable 
     to the urbanized area, as established by the Secretary, 
     divided by the total number of all fixed guideway directional 
     route miles attributable to all urbanized areas.
       ``(4) Limitation.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the share of the total amount apportioned under this 
     subsection that is apportioned to an area under this 
     subsection shall not decrease by more than 0.25 percentage 
     points compared to the share apportioned to the area under 
     this subsection in the previous fiscal year.
       ``(B) Special rule for fiscal year 2013.--In fiscal year 
     2013, the share of the total amount apportioned under this 
     subsection that is apportioned to an area under this 
     subsection shall not decrease by more than 0.25 percentage 
     points compared to the share that would have been apportioned 
     to the area under this section, as in effect for fiscal year 
     2011, if the share had been calculated using the definition 
     of the term `fixed guideway' under subsection (a) of this 
     section, as in effect on the day after the date of enactment 
     of the Federal Public Transportation Act of 2012.
       ``(5) Use of funds.--Amounts made available under this 
     subsection shall be available for the exclusive use of fixed 
     guideway projects.
       ``(6) Receiving apportionment.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     for an area with a fixed guideway system, the amounts 
     provided under this subsection shall be apportioned to the 
     designated recipient for the urbanized area in which the 
     system operates.
       ``(B) Exception.--An area described in the amendment made 
     by section 3028(a) of the Transportation Equity Act for the 
     21st Century (Public Law 105-178; 112 Stat. 366) shall 
     receive an individual apportionment under this subsection.
       ``(7) Apportionment requirements.--For purposes of 
     determining the number of fixed guideway vehicle revenue 
     miles or fixed guideway directional route miles attributable 
     to an urbanized area for a fiscal year under this subsection, 
     only segments of fixed guideway systems placed in revenue 
     service not later than 7 years before the first day of the 
     fiscal year shall be deemed to be attributable to an 
     urbanized area.
       ``(d) High Intensity Motorbus State of Good Repair.--
       ``(1) Definition.--For purposes of this subsection, the 
     term `high intensity motorbus' means public transportation 
     that is provided on a facility with access for other high-
     occupancy vehicles.
       ``(2) Apportionment.--Of the amount authorized or made 
     available under section 5338(a)(2)(I), 2.85 percent shall be 
     apportioned to urbanized areas for high intensity motorbus 
     state of good repair in accordance with this subsection.
       ``(3) Vehicle revenue miles and directional route miles.--
       ``(A) In general.--The amount described in paragraph (2) 
     shall be apportioned to each area in accordance with this 
     paragraph.
       ``(B) Vehicle revenue miles.--Each area shall receive an 
     amount equal to 60 percent of the amount described in 
     subparagraph (A), multiplied by the number of high intensity 
     motorbus vehicle revenue miles attributable to the area, as 
     established by the Secretary, divided by the total number of 
     all high intensity motorbus vehicle revenue miles 
     attributable to all areas.
       ``(C) Directional route miles.--Each area shall receive an 
     amount equal to 40 percent of the amount described in 
     subparagraph (A), multiplied by the number of high intensity 
     motorbus directional route miles attributable to the area, as 
     established by the Secretary, divided by the total number of 
     all high intensity motorbus directional route miles 
     attributable to all areas.
       ``(4) Apportionment requirements.--For purposes of 
     determining the number of high intensity motorbus vehicle 
     revenue miles or high intensity motorbus directional route 
     miles attributable to an urbanized area for a fiscal year 
     under this subsection, only segments of high intensity 
     motorbus systems placed in revenue service not later than 7 
     years before the first day of the fiscal year shall be deemed 
     to be attributable to an urbanized area.''.

     SEC. 20028. AUTHORIZATIONS.

       Section 5338 of title 49, United States Code, is amended to 
     read as follows:

     ``Sec. 5338. Authorizations

       ``(a) Formula Grants.--
       ``(1) In general.--There shall be available from the Mass 
     Transit Account of the Highway Trust Fund to carry out 
     sections 5305, 5307, 5310, 5311, 5318, 5322(d), 5335, 5337, 
     5339, and 5340, and section 20005(b) of the Federal Public 
     Transportation Act of 2012, $8,478,000,000 for fiscal year 
     2013 and $8,595,000,000 for fiscal year 2014.
       ``(2) Allocation of funds.--Of the amounts made available 
     under paragraph (1)--
       ``(A) $126,900,000 for fiscal year 2013 and $128,800,000 
     for fiscal year 2014 shall be available to carry out section 
     5305;
       ``(B) $10,000,000 for each of fiscal years 2013 and 2014 
     shall be available to carry out section 20005(b) of the 
     Federal Public Transportation Act of 2012;
       ``(C) $4,397,950,000 for fiscal year 2013 and 
     $4,458,650,000 for fiscal year 2014 shall be allocated in 
     accordance with section 5336 to provide financial assistance 
     for urbanized areas under section 5307;
       ``(D) $254,800,000 for fiscal year 2013 and $258,300,000 
     for fiscal year 2014 shall be available to provide financial 
     assistance for services for the enhanced mobility of seniors 
     and individuals with disabilities under section 5310;
       ``(E) $599,500,000 for fiscal year 2013 and $607,800,000 
     for fiscal year 2014 shall be available to provide financial 
     assistance for rural areas under section 5311, of which not 
     less than $30,000,000 for fiscal year 2013 and $30,000,000 
     for fiscal year 2014 shall be available to carry out section 
     5311(c)(1) and $20,000,000 for fiscal year 2013 and 
     $20,000,000 for fiscal year 2014 shall be available to carry 
     out section 5311(c)(2);
       ``(F) $3,000,000 for each of fiscal years 2013 and 2014 
     shall be available for bus testing under section 5318;

[[Page 10613]]

       ``(G) $5,000,000 for each of fiscal years 2013 and 2014 
     shall be available for the national transit institute under 
     section 5322(d);
       ``(H) $3,850,000 for each of fiscal years 2013 and 2014 
     shall be available to carry out section 5335;
       ``(I) $2,136,300,000 for fiscal year 2013 and 
     $2,165,900,000 for fiscal year 2014 shall be available to 
     carry out section 5337;
       ``(J) $422,000,000 for fiscal year 2013 and $427,800,000 
     for fiscal year 2014 shall be available for the bus and bus 
     facilities program under section 5339; and
       ``(K) $518,700,000 for fiscal year 2013 and $525,900,000 
     for fiscal year 2014 shall be allocated in accordance with 
     section 5340 to provide financial assistance for urbanized 
     areas under section 5307 and rural areas under section 5311.
       ``(b) Research, Development Demonstration and Deployment 
     Projects.--There are authorized to be appropriated to carry 
     out section 5312, $70,000,000 for fiscal year 2013 and 
     $70,000,000 for fiscal year 2014.
       ``(c) Transit Cooperative Research Program.--There are 
     authorized to be appropriated to carry out section 5313, 
     $7,000,000 for fiscal year 2013 and $7,000,000 for fiscal 
     year 2014.
       ``(d) Technical Assistance and Standards Development.--
     There are authorized to be appropriated to carry out section 
     5314, $7,000,000 for fiscal year 2013 and $7,000,000 for 
     fiscal year 2014.
       ``(e) Human Resources and Training.--There are authorized 
     to be appropriated to carry out subsections (a), (b), (c), 
     and (e) of section 5322, $5,000,000 for fiscal year 2013 and 
     $5,000,000 for fiscal year 2014.
       ``(f) Emergency Relief Program.--There are authorized to be 
     appropriated such sums as are necessary to carry out section 
     5324.
       ``(g) Capital Investment Grants.--There are authorized to 
     be appropriated to carry out section 5309, $1,907,000,000 for 
     fiscal year 2013 and $1,907,000,000 for fiscal year 2014.
       ``(h) Administration.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out section 5334, $104,000,000 for fiscal year 2013 
     and $104,000,000 for fiscal year 2014.
       ``(2) Section 5329.--Of the amounts authorized to be 
     appropriated under paragraph (1), not less than $5,000,000 
     shall be available to carry out section 5329.
       ``(3) Section 5326.--Of the amounts made available under 
     paragraph (2), not less than $1,000,000 shall be available to 
     carry out section 5326.
       ``(i) Oversight.--
       ``(1) In general.--Of the amounts made available to carry 
     out this chapter for a fiscal year, the Secretary may use not 
     more than the following amounts for the activities described 
     in paragraph (2):
       ``(A) 0.5 percent of amounts made available to carry out 
     section 5305.
       ``(B) 0.75 percent of amounts made available to carry out 
     section 5307.
       ``(C) 1 percent of amounts made available to carry out 
     section 5309.
       ``(D) 1 percent of amounts made available to carry out 
     section 601 of the Passenger Rail Investment and Improvement 
     Act of 2008 (Public Law 110-432; 126 Stat. 4968).
       ``(E) 0.5 percent of amounts made available to carry out 
     section 5310.
       ``(F) 0.5 percent of amounts made available to carry out 
     section 5311.
       ``(G) 0.75 percent of amounts made available to carry out 
     section 5337(c).
       ``(2) Activities.--The activities described in this 
     paragraph are as follows:
       ``(A) Activities to oversee the construction of a major 
     capital project.
       ``(B) Activities to review and audit the safety and 
     security, procurement, management, and financial compliance 
     of a recipient or subrecipient of funds under this chapter.
       ``(C) Activities to provide technical assistance generally, 
     and to provide technical assistance to correct deficiencies 
     identified in compliance reviews and audits carried out under 
     this section.
       ``(3) Government share of costs.--The Government shall pay 
     the entire cost of carrying out a contract under this 
     subsection.
       ``(4) Availability of certain funds.--Funds made available 
     under paragraph (1)(C) shall be made available to the 
     Secretary before allocating the funds appropriated to carry 
     out any project under a full funding grant agreement.
       ``(j) Grants as Contractual Obligations.--
       ``(1) Grants financed from highway trust fund.--A grant or 
     contract that is approved by the Secretary and financed with 
     amounts made available from the Mass Transit Account of the 
     Highway Trust Fund pursuant to this section is a contractual 
     obligation of the Government to pay the Government share of 
     the cost of the project.
       ``(2) Grants financed from general fund.--A grant or 
     contract that is approved by the Secretary and financed with 
     amounts appropriated in advance from the General Fund of the 
     Treasury pursuant to this section is a contractual obligation 
     of the Government to pay the Government share of the cost of 
     the project only to the extent that amounts are appropriated 
     for such purpose by an Act of Congress.
       ``(k) Availability of Amounts.--Amounts made available by 
     or appropriated under this section shall remain available 
     until expended.''.

     SEC. 20029. BUS AND BUS FACILITIES FORMULA GRANTS.

       (a) In General.--Section 5339 of title 49, United States 
     Code, is amended to read as follows:

     ``Sec. 5339. Bus and bus facilities formula grants

       ``(a) General Authority.--The Secretary may make grants 
     under this section to assist eligible recipients described in 
     subsection (c)(1) in financing capital projects--
       ``(1) to replace, rehabilitate, and purchase buses and 
     related equipment; and
       ``(2) to construct bus-related facilities.
       ``(b) Grant Requirements.--The requirements of section 5307 
     apply to recipients of grants made under this section.
       ``(c) Eligible Recipients and Subrecipients.--
       ``(1) Recipients.--Eligible recipients under this section 
     are designated recipients that operate fixed route bus 
     service or that allocate funding to fixed route bus 
     operators.
       ``(2) Subrecipients.--A designated recipient that receives 
     a grant under this section may allocate amounts of the grant 
     to subrecipients that are public agencies or private 
     nonprofit organizations engaged in public transportation.
       ``(d) Distribution of Grant Funds.--Funds allocated under 
     section 5338(a)(2)(J) shall be distributed as follows:
       ``(1) National distribution.--$65,500,000 shall be 
     allocated to all States and territories, with each State 
     receiving $1,250,000 and each territory receiving $500,000.
       ``(2) Distribution using population and service factors.--
     The remainder of the funds not otherwise distributed under 
     paragraph (1) shall be allocated pursuant to the formula set 
     forth in section 5336 other than subsection (b).
       ``(e) Transfers of Apportionments.--
       ``(1) Transfer flexibility for national distribution 
     funds.--The Governor of a State may transfer any part of the 
     State's apportionment under subsection (d)(1) to supplement 
     amounts apportioned to the State under section 5311(c) of 
     this title or amounts apportioned to urbanized areas under 
     subsections (a) and (c) of section 5336 of this title.
       ``(2) Transfer flexibility for population and service 
     factors funds.--The Governor of a State may expend in an 
     urbanized area with a population of less than 200,000 any 
     amounts apportioned under subsection (d)(2) that are not 
     allocated to designated recipients in urbanized areas with a 
     population of 200,000 or more.
       ``(f) Government's Share of Costs.--
       ``(1) Capital projects.--A grant for a capital project 
     under this section shall be for 80 percent of the net capital 
     costs of the project. A recipient of a grant under this 
     section may provide additional local matching amounts.
       ``(2) Remaining costs.--The remainder of the net project 
     cost shall be provided--
       ``(A) in cash from non-Government sources other than 
     revenues from providing public transportation services;
       ``(B) from revenues derived from the sale of advertising 
     and concessions;
       ``(C) from an undistributed cash surplus, a replacement or 
     depreciation cash fund or reserve, or new capital; or
       ``(D) from amounts received under a service agreement with 
     a State or local social service agency or private social 
     service organization.
       ``(g) Period of Availability to Recipients.--Amounts made 
     available under this section may be obligated by a recipient 
     for 3 years after the fiscal year in which the amount is 
     apportioned. Not later than 30 days after the end of the 3-
     year period described in the preceding sentence, any amount 
     that is not obligated on the last day of that period shall be 
     added to the amount that may be apportioned under this 
     section in the next fiscal year.
       ``(h) Definitions.--For purposes of this section:
       ``(1) The term `State' means a State of the United States.
       ``(2) The term `territory' means the District of Columbia, 
     Puerto Rico, the Northern Mariana Islands, Guam, American 
     Samoa, and the United States Virgin Islands.''.

     SEC. 20030. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Section 5305.--Section 5305 of title 49, United States 
     Code, is amended--
       (1) in subsection (e)(1)(A), by striking ``sections 5304, 
     5306, 5315, and 5322'' and inserting ``section 5304 and 
     5306'';
       (2) in subsection (f)--
       (A) in the heading, by striking ``Government's'' and 
     inserting ``Government''; and
       (B) by striking ``Government's'' and inserting 
     ``Government''; and
       (3) in subsection (g), by striking ``section 5338(c) for 
     fiscal years 2005 through 2012'' and inserting ``section 
     5338(a)(2)(A) for a fiscal year''.
       (b) Section 5313.--Section 5313(a) of title 49, United 
     States Code, is amended--
       (1) in the first sentence, by striking ``subsections 
     (a)(5)(C)(iii) and (d)(1) of section 5338'' and inserting 
     section ``5338(c)''; and
       (2) in the second sentence, by striking ``of 
     Transportation''.
       (c) Section 5319.--Section 5319 of title 49, United States 
     Code, is amended, in the second sentence--
       (1) by striking ``sections 5307(e), 5309(h), and 5311(g) of 
     this title'' and inserting ``sections 5307(d), 5309(l), and 
     5311(g)''; and
       (2) by striking ``of the United States'' and inserting 
     ``made by the''.
       (d) Section 5325.--Section 5325(b)(2)(A) of title 49, 
     United States Code, is amended by striking ``title 48, Code 
     of Federal Regulations (commonly known as the Federal 
     Acquisition Regulation)'' and inserting ``the Federal 
     Acquisition Regulation, or any successor thereto''.
       (e) Section 5330.--Effective 3 years after the effective 
     date of the final rules issued by the Secretary of 
     Transportation under section 5329(e) of title 49, United 
     States Code, as amended by this division, section 5330 of 
     title 49, United States Code, is repealed.

[[Page 10614]]

       (f) Section 5331.--Section 5331 of title 49, United States 
     Code, is amended by striking ``Secretary of Transportation'' 
     each place that term appears and inserting ``Secretary''.
       (g) Section 5332.--Section 5332(c)(1) of title 49, United 
     States Code, is amended by striking ``of Transportation''.
       (h) Section 5333.--Section 5333(a) of title 49, United 
     States Code, is amended by striking ``sections 3141-3144'' 
     and inserting ``sections 3141 through 3144''.
       (i) Section 5334.--Section 5334 of title 49, United States 
     Code, is amended--
       (1) in subsection (c)--
       (A) by striking ``Secretary of Transportation'' each place 
     that term appears and inserting ``Secretary''; and
       (B) in paragraph (1), by striking ``Committees on 
     Transportation and Infrastructure and Appropriations of the 
     House of Representatives and the Committees on Banking, 
     Housing, and Urban Affairs and Appropriations of the Senate'' 
     and inserting ``Committee on Banking, Housing, and Urban 
     Affairs and the Committee on Appropriations of the Senate and 
     the Committee on Transportation and Infrastructure and the 
     Committee on Appropriations of the House of 
     Representatives'';
       (2) in subsection (d), by striking ``of Transportation'';
       (3) in subsection (e), by striking ``of Transportation'';
       (4) in subsection (f), by striking ``of Transportation'';
       (5) in subsection (g), in the matter preceding paragraph 
     (1)--
       (A) by striking ``of Transportation''; and
       (B) by striking ``subsection (a)(3) or (4) of this 
     section'' and inserting ``paragraph (3) or (4) of subsection 
     (a)'';
       (6) in subsection (h)--
       (A) in paragraph (1), in the matter preceding subparagraph 
     (A), by striking ``of Transportation''; and
       (B) in paragraph (2), by striking ``of this section'';
       (7) in subsection (i)(1), by striking ``of 
     Transportation''; and
       (8) in subsection (j), as so redesignated by section 20025 
     of this division, by striking ``Committees on Banking, 
     Housing, and Urban Affairs and Appropriations of the Senate 
     and Committees on Transportation and Infrastructure and 
     Appropriations of the House of Representatives'' and 
     inserting ``Committee on Banking, Housing, and Urban Affairs 
     and the Committee on Appropriations of the Senate and the 
     Committee on Transportation and Infrastructure and the 
     Committee on Appropriations of the House of 
     Representatives''.
       (j) Section 5335.--Section 5335(a) of title 49, United 
     States Code, is amended by striking ``of Transportation''.
       (k) Analysis.--The analysis for chapter 53 of title 49, 
     United States Code, is amended to read as follows:

``Sec.
``5301. Policies and purposes.
``5302. Definitions.
``5303. Metropolitan transportation planning.
``5304. Statewide and nonmetropolitan transportation planning.
``5305. Planning programs.
``5306. Private enterprise participation in metropolitan planning and 
              transportation improvement programs and relationship to 
              other limitations.
``5307. Urbanized area formula grants.
``[5308. Repealed.]
``5309. Fixed guideway capital investment grants.
``5310. Formula grants for the enhanced mobility of seniors and 
              individuals with disabilities.
``5311. Formula grants for rural areas.
``5312. Research, development, demonstration, and deployment projects.
``5313. Transit cooperative research program.
``5314. Technical assistance and standards development.
``5315. Private sector participation.
``[5316. Repealed.]
``[5317. Repealed.]
``5318. Bus testing facility.
``5319. Bicycle facilities.
``[5320. Repealed.]
``5321. Crime prevention and security.
``5322. Human resources and training.
``5323. General provisions.
``5324. Public transportation emergency relief program.
``5325. Contract requirements.
``5326. Transit asset management.
``5327. Project management oversight.
``[5328. Repealed.]
``5329. Public transportation safety program.
``5330. State safety oversight.
``5331. Alcohol and controlled substances testing.
``5332. Nondiscrimination.
``5333. Labor standards.
``5334. Administrative provisions.
``5335. National transit database.
``5336. Apportionment of appropriations for formula grants.
``5337. State of good repair grants.
``5338. Authorizations.
``5339. Bus and bus facilities formula grants.
``5340. Apportionments based on growing States and high density States 
              formula factors.''.
  DIVISION C--TRANSPORTATION SAFETY AND SURFACE TRANSPORTATION POLICY
   TITLE I--MOTOR VEHICLE AND HIGHWAY SAFETY IMPROVEMENT ACT OF 2012

     SEC. 31001. SHORT TITLE.

       This title may be cited as the ``Motor Vehicle and Highway 
     Safety Improvement Act of 2012'' or ``Mariah's Act''.

     SEC. 31002. DEFINITION.

       In this title, the term ``Secretary'' means the Secretary 
     of Transportation.
                       Subtitle A--Highway Safety

     SEC. 31101. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--The following sums are authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account):
       (1) Highway safety programs.--For carrying out section 402 
     of title 23, United States Code--
       (A) $235,000,000 for fiscal year 2013; and
       (B) $235,000,000 for fiscal year 2014.
       (2) Highway safety research and development.--For carrying 
     out section 403 of title 23, United States Code--
       (A) $110,500,000 for fiscal year 2013; and
       (B) $113,500,000 for fiscal year 2014.
       (3) National priority safety programs.--For carrying out 
     section 405 of title 23, United States Code--
       (A) $265,000,000 for fiscal year 2013; and
       (B) $272,000,000 for fiscal year 2014.
       (4) National driver register.--For the National Highway 
     Traffic Safety Administration to carry out chapter 303 of 
     title 49, United States Code--
       (A) $5,000,000 for fiscal year 2013; and
       (B) $5,000,000 for fiscal year 2014.
       (5) High visibility enforcement program.--For carrying out 
     section 2009 of SAFETEA-LU (23 U.S.C. 402 note)--
       (A) $29,000,000 for fiscal year 2013; and
       (B) $29,000,000 for fiscal year 2014.
       (6) Administrative expenses.--For administrative and 
     related operating expenses of the National Highway Traffic 
     Safety Administration in carrying out chapter 4 of title 23, 
     United States Code, and this subtitle--
       (A) $25,500,000 for fiscal year 2013; and
       (B) $25,500,000 for fiscal year 2014.
       (b) Prohibition on Other Uses.--Except as otherwise 
     provided in chapter 4 of title 23, United States Code, in 
     this subtitle, and in the amendments made by this subtitle, 
     the amounts made available from the Highway Trust Fund (other 
     than the Mass Transit Account) for a program under such 
     chapter--
       (1) shall only be used to carry out such program; and
       (2) may not be used by States or local governments for 
     construction purposes.
       (c) Applicability of Title 23.--Except as otherwise 
     provided in chapter 4 of title 23, United States Code, and in 
     this subtitle, amounts made available under subsection (a) 
     for fiscal years 2013 and 2014 shall be available for 
     obligation in the same manner as if such funds were 
     apportioned under chapter 1 of title 23, United States Code.
       (d) Regulatory Authority.--Grants awarded under this 
     subtitle shall be in accordance with regulations issued by 
     the Secretary.
       (e) State Matching Requirements.--If a grant awarded under 
     this subtitle requires a State to share in the cost, the 
     aggregate of all expenditures for highway safety activities 
     made during any fiscal year by the State and its political 
     subdivisions (exclusive of Federal funds) for carrying out 
     the grant (other than planning and administration) shall be 
     available for the purpose of crediting the State during such 
     fiscal year for the non-Federal share of the cost of any 
     project under this subtitle (other than planning or 
     administration) without regard to whether such expenditures 
     were actually made in connection with such project.
       (f) Grant Application and Deadline.--To receive a grant 
     under this subtitle, a State shall submit an application, and 
     the Secretary shall establish a single deadline for such 
     applications to enable the award of grants early in the next 
     fiscal year.

     SEC. 31102. HIGHWAY SAFETY PROGRAMS.

       (a) Programs Included.--Section 402(a) of title 23, United 
     States Code, is amended to read as follows:
       ``(a) Program Required.--
       ``(1) In general.--Each State shall have a highway safety 
     program, approved by the Secretary, that is designed to 
     reduce traffic accidents and the resulting deaths, injuries, 
     and property damage.
       ``(2) Uniform guidelines.--Programs required under 
     paragraph (1) shall comply with uniform guidelines, 
     promulgated by the Secretary and expressed in terms of 
     performance criteria, that--
       ``(A) include programs--
       ``(i) to reduce injuries and deaths resulting from motor 
     vehicles being driven in excess of posted speed limits;
       ``(ii) to encourage the proper use of occupant protection 
     devices (including the use of safety belts and child 
     restraint systems) by occupants of motor vehicles;
       ``(iii) to reduce injuries and deaths resulting from 
     persons driving motor vehicles while impaired by alcohol or a 
     controlled substance;
       ``(iv) to prevent accidents and reduce injuries and deaths 
     resulting from accidents involving motor vehicles and 
     motorcycles;
       ``(v) to reduce injuries and deaths resulting from 
     accidents involving school buses;
       ``(vi) to reduce accidents resulting from unsafe driving 
     behavior (including aggressive or fatigued driving and 
     distracted driving arising from the use of electronic devices 
     in vehicles); and
       ``(vii) to improve law enforcement services in motor 
     vehicle accident prevention, traffic supervision, and post-
     accident procedures;

[[Page 10615]]

       ``(B) improve driver performance, including--
       ``(i) driver education;
       ``(ii) driver testing to determine proficiency to operate 
     motor vehicles; and
       ``(iii) driver examinations (physical, mental, and driver 
     licensing);
       ``(C) improve pedestrian performance and bicycle safety;
       ``(D) include provisions for--
       ``(i) an effective record system of accidents (including 
     resulting injuries and deaths);
       ``(ii) accident investigations to determine the probable 
     causes of accidents, injuries, and deaths;
       ``(iii) vehicle registration, operation, and inspection; 
     and
       ``(iv) emergency services; and
       ``(E) to the extent determined appropriate by the 
     Secretary, are applicable to federally administered areas 
     where a Federal department or agency controls the highways or 
     supervises traffic operations.''.
       (b) Administration of State Programs.--Section 402(b) of 
     title 23, United States Code, is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (D), by striking ``and'' at the end;
       (B) by redesignating subparagraph (E) as subparagraph (F);
       (C) by inserting after subparagraph (D) the following:
       ``(E) beginning on the first day of the first fiscal year 
     after the date of enactment of the Motor Vehicle and Highway 
     Safety Improvement Act of 2012 in which a State submits its 
     highway safety plan under subsection (f), provide for a data-
     driven traffic safety enforcement program to prevent traffic 
     violations, crashes, and crash fatalities and injuries in 
     areas most at risk for such incidents, to the satisfaction of 
     the Secretary;''; and
       (D) in subparagraph (F), as redesignated--
       (i) in clause (i), by inserting ``and high-visibility law 
     enforcement mobilizations coordinated by the Secretary'' 
     after ``mobilizations'';
       (ii) in clause (iii), by striking ``and'' at the end;
       (iii) in clause (iv), by striking the period at the end and 
     inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(v) ensuring that the State will coordinate its highway 
     safety plan, data collection, and information systems with 
     the State strategic highway safety plan (as defined in 
     section 148(a)).''; and
       (2) by striking paragraph (3).
       (c) Approved Highway Safety Programs.--Section 402(c) of 
     title 23, United States Code, is amended--
       (1) by striking ``(c) Funds authorized'' and inserting the 
     following:
       ``(c) Use of Funds.--
       ``(1) In general.--Funds authorized'';
       (2) by striking ``Such funds'' and inserting the following:
       ``(2) Apportionment.--Except for amounts identified in 
     section 403(f), funds described in paragraph (1)'';
       (3) by striking ``The Secretary shall not'' and all that 
     follows through ``subsection, a highway safety program'' and 
     inserting ``A highway safety program'';
       (4) by inserting ``A State may use the funds apportioned 
     under this section, in cooperation with neighboring States, 
     for highway safety programs or related projects that may 
     confer benefits on such neighboring States.'' after ``in 
     every State.'';
       (5) by striking ``50 per centum'' and inserting ``20 
     percent''; and
       (6) by striking ``The Secretary shall promptly'' and all 
     that follows and inserting the following:
       ``(3) Reapportionment.--The Secretary shall promptly 
     apportion the funds withheld from a State's apportionment to 
     the State if the Secretary approves the State's highway 
     safety program or determines that the State has begun 
     implementing an approved program, as appropriate, not later 
     than July 31st of the fiscal year for which the funds were 
     withheld. If the Secretary determines that the State did not 
     correct its failure within such period, the Secretary shall 
     reapportion the withheld funds to the other States in 
     accordance with the formula specified in paragraph (2) not 
     later than the last day of the fiscal year.
       ``(4) Automated traffic enforcement systems.--
       ``(A) Prohibition.--A State may not expend funds 
     apportioned to that State under this section to carry out a 
     program to purchase, operate, or maintain an automated 
     traffic enforcement system.
       ``(B) Automated traffic enforcement system defined.--In 
     this paragraph, the term `automated traffic enforcement 
     system' means any camera which captures an image of a vehicle 
     for the purposes only of red light and speed enforcement, and 
     does not include hand held radar and other devices operated 
     by law enforcement officers to make an on-the-scene traffic 
     stop, issue a traffic citation, or other enforcement action 
     at the time of the violation.''.
       (d) Use of Highway Safety Program Funds.--Section 402(g) of 
     title 23, United States Code, is amended to read as follows:
       ``(g) Savings Provision.--
       ``(1) In general.--Except as provided under paragraph (2), 
     nothing in this section may be construed to authorize the 
     appropriation or expenditure of funds for--
       ``(A) highway construction, maintenance, or design (other 
     than design of safety features of highways to be incorporated 
     into guidelines); or
       ``(B) any purpose for which funds are authorized under 
     section 403.
       ``(2) Demonstration projects.--A State may use funds made 
     available to carry out this section to assist in 
     demonstration projects carried out by the Secretary under 
     section 403.''.
       (e) In General.--Section 402 of title 23, United States 
     Code, is amended--
       (1) by striking subsections (k) and (m);
       (2) by redesignating subsections (i) and (j) as subsections 
     (h) and (i), respectively; and
       (3) by redesignating subsection (l) as subsection (j).
       (f) Highway Safety Plan and Reporting Requirements.--
     Section 402 of title 23, United States Code, as amended by 
     this section, is further amended by adding at the end the 
     following:
       ``(k) Highway Safety Plan and Reporting Requirements.--
       ``(1) In general.--With respect to fiscal year 2014, and 
     each fiscal year thereafter, the Secretary shall require each 
     State, as a condition of the approval of the State's highway 
     safety program for that fiscal year, to develop and submit to 
     the Secretary for approval a highway safety plan that 
     complies with the requirements under this subsection.
       ``(2) Timing.--Each State shall submit to the Secretary the 
     highway safety plan not later than July 1st of the fiscal 
     year preceding the fiscal year to which the plan applies.
       ``(3) Contents.--State highway safety plans submitted under 
     paragraph (1) shall include--
       ``(A) performance measures required by the Secretary or 
     otherwise necessary to support additional State safety goals, 
     including--
       ``(i) documentation of current safety levels for each 
     performance measure;
       ``(ii) quantifiable annual performance targets for each 
     performance measure; and
       ``(iii) a justification for each performance target, that 
     explains why each target is appropriate and evidence-based;
       ``(B) a strategy for programming funds apportioned to the 
     State under this section on projects and activities that will 
     allow the State to meet the performance targets described in 
     subparagraph (A);
       ``(C) data and data analysis supporting the effectiveness 
     of proposed countermeasures;
       ``(D) a description of any Federal, State, local, or 
     private funds that the State plans to use, in addition to 
     funds apportioned to the State under this section, to carry 
     out the strategy described in subparagraph (B);
       ``(E) for the fiscal year preceding the fiscal year to 
     which the plan applies, a report on the State's success in 
     meeting State safety goals and performance targets set forth 
     in the previous year's highway safety plan; and
       ``(F) an application for any additional grants available to 
     the State under this chapter.
       ``(4) Performance measures.--For the first highway safety 
     plan submitted under this subsection, the performance 
     measures required by the Secretary under paragraph (2)(A) 
     shall be limited to those developed by the National Highway 
     Traffic Safety Administration and the Governor's Highway 
     Safety Association and described in the report, `Traffic 
     Safety Performance Measures for States and Federal Agencies' 
     (DOT HS 811 025). For subsequent highway safety plans, the 
     Secretary shall coordinate with the Governor's Highway Safety 
     Association in making revisions to the set of required 
     performance measures.
       ``(5) Review of highway safety plans.--
       ``(A) In general.--Not later than 60 days after the date on 
     which a State's highway safety plan is received by the 
     Secretary, the Secretary shall review and approve or 
     disapprove the plan.
       ``(B) Approvals and disapprovals.--
       ``(i) Approvals.--The Secretary shall approve a State's 
     highway safety plan if the Secretary determines that--

       ``(I) the plan and the performance targets contained in the 
     plan are evidence-based and supported by data; and
       ``(II) the plan, once implemented, will allow the State to 
     meet the State's performance targets.

       ``(ii) Disapprovals.--The Secretary shall disapprove a 
     State's highway safety plan if the Secretary determines 
     that--

       ``(I) the plan and the performance targets contained in the 
     plan are not evidence-based or supported by data; or
       ``(II) the plan does not provide for programming of funding 
     in a manner sufficient to allow the State to meet the State's 
     performance targets.

       ``(C) Actions upon disapproval.--If the Secretary 
     disapproves a State's highway safety plan, the Secretary 
     shall--
       ``(i) inform the State of the reasons for such disapproval; 
     and
       ``(ii) require the State to resubmit the plan with any 
     modifications that the Secretary determines to be necessary.
       ``(D) Review of resubmitted plans.--If the Secretary 
     requires a State to resubmit a highway safety plan, with 
     modifications, the Secretary shall review and approve or 
     disapprove the modified plan not later than 30 days after the 
     date on which the Secretary receives such plan.
       ``(E) Public notice.--A State shall make the State's 
     highway safety plan, and decisions of the Secretary 
     concerning approval or disapproval of a revised plan, 
     available to the public.''.
       (g) Teen Traffic Safety Program.--Section 402 of title 23, 
     United States Code, as amended by this section, is further 
     amended by adding at the end the following:
       ``(m) Teen Traffic Safety.--

[[Page 10616]]

       ``(1) In general.--Subject to the requirements of a State's 
     highway safety plan, as approved by the Secretary under 
     subsection (k), a State may use a portion of the amounts 
     received under this section to implement statewide efforts to 
     improve traffic safety for teen drivers.
       ``(2) Use of funds.--Statewide efforts under paragraph 
     (1)--
       ``(A) shall include peer-to-peer education and prevention 
     strategies in schools and communities designed to--
       ``(i) increase safety belt use;
       ``(ii) reduce speeding;
       ``(iii) reduce impaired and distracted driving;
       ``(iv) reduce underage drinking; and
       ``(v) reduce other behaviors by teen drivers that lead to 
     injuries and fatalities; and
       ``(B) may include--
       ``(i) working with student-led groups and school advisors 
     to plan and implement teen traffic safety programs;
       ``(ii) providing subgrants to schools throughout the State 
     to support the establishment and expansion of student groups 
     focused on teen traffic safety;
       ``(iii) providing support, training, and technical 
     assistance to establish and expand school and community 
     safety programs for teen drivers;
       ``(iv) creating statewide or regional websites to publicize 
     and circulate information on teen safety programs;
       ``(v) conducting outreach and providing educational 
     resources for parents;
       ``(vi) establishing State or regional advisory councils 
     comprised of teen drivers to provide input and 
     recommendations to the governor and the governor's safety 
     representative on issues related to the safety of teen 
     drivers;
       ``(vii) collaborating with law enforcement; and
       ``(viii) establishing partnerships and promoting 
     coordination among community stakeholders, including public, 
     not-for-profit, and for profit entities.''.
       (h) Biennial Report to Congress.--Section 402 of title 23, 
     United States Code, as amended by this section, is further 
     amended by adding at the end the following:
       ``(n) Biennial Report to Congress.--Not later than October 
     1, 2015, and biennially thereafter, the Secretary shall 
     submit 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 that contains--
       ``(1) an evaluation of each State's performance with 
     respect to the State's highway safety plan under subsection 
     (k) and performance targets set by the States in such plans; 
     and
       ``(2) such recommendations as the Secretary may have for 
     improvements to activities carried out under subsection 
     (k).''.

     SEC. 31103. HIGHWAY SAFETY RESEARCH AND DEVELOPMENT.

       Section 403 of title 23, United States Code, is amended--
       (1) by striking subsections (a) through (f) and inserting 
     the following:
       ``(a) Defined Term.--In this section, the term `Federal 
     laboratory' includes--
       ``(1) a government-owned, government-operated laboratory; 
     and
       ``(2) a government-owned, contractor-operated laboratory.
       ``(b) General Authority.--
       ``(1) Research and development activities.--The Secretary 
     may conduct research and development activities, including 
     demonstration projects and the collection and analysis of 
     highway and motor vehicle safety data and related information 
     needed to carry out this section, with respect to--
       ``(A) all aspects of highway and traffic safety systems and 
     conditions relating to--
       ``(i) vehicle, highway, driver, passenger, motorcyclist, 
     bicyclist, and pedestrian characteristics;
       ``(ii) accident causation and investigations;
       ``(iii) communications; and
       ``(iv) emergency medical services, including the 
     transportation of the injured;
       ``(B) human behavioral factors and their effect on highway 
     and traffic safety, including--
       ``(i) driver education;
       ``(ii) impaired driving; and
       ``(iii) distracted driving;
       ``(C) an evaluation of the effectiveness of countermeasures 
     to increase highway and traffic safety, including occupant 
     protection and alcohol- and drug-impaired driving 
     technologies and initiatives;
       ``(D) the development of technologies to detect drug 
     impaired drivers;
       ``(E) research on, evaluations of, and identification of 
     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; and
       ``(F) the effect of State laws on any aspects, activities, 
     or programs described in subparagraphs (A) through (E).
       ``(2) Cooperation, grants, and contracts.--The Secretary 
     may carry out this section--
       ``(A) independently;
       ``(B) in cooperation with other Federal departments, 
     agencies, and instrumentalities and Federal laboratories;
       ``(C) by entering into contracts, cooperative agreements, 
     and other transactions with the National Academy of Sciences, 
     any Federal laboratory, State or local agency, authority, 
     association, institution, or person (as defined in chapter 1 
     of title 1); or
       ``(D) by making grants to the National Academy of Sciences, 
     any Federal laboratory, State or local agency, authority, 
     association, institution, or person (as defined in chapter 1 
     of title 1).
       ``(c) Collaborative Research and Development.--
       ``(1) In general.--To encourage innovative solutions to 
     highway safety problems, stimulate voluntary improvements in 
     highway safety, and stimulate the marketing of new highway 
     safety related technology by private industry, the Secretary 
     is authorized to carry out, on a cost-shared basis, 
     collaborative research and development with--
       ``(A) non-Federal entities, including State and local 
     governments, colleges, universities, corporations, 
     partnerships, sole proprietorships, organizations, and trade 
     associations that are incorporated or established under the 
     laws of any State or the United States; 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)) in which 
     the Secretary provides not more than 50 percent of the cost 
     of any research or development project under this subsection.
       ``(3) Use of technology.--The research, development, or use 
     of any technology pursuant to an agreement under this 
     subsection, including the terms under which technology may be 
     licensed and the resulting royalties may be distributed, 
     shall be subject to the provisions of the Stevenson-Wydler 
     Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.).
       ``(d) Title to Equipment.--In furtherance of the purposes 
     set forth in section 402, the Secretary may vest title to 
     equipment purchased for demonstration projects with funds 
     authorized under this section to State or local agencies on 
     such terms and conditions as the Secretary determines to be 
     appropriate.
       ``(e) Prohibition on Certain Disclosures.--Any report of 
     the National Highway Traffic Safety Administration, or of any 
     officer, employee, or contractor of the National Highway 
     Traffic Safety Administration, relating to any highway 
     traffic accident or the investigation of such accident 
     conducted pursuant to this chapter or chapter 301 may only be 
     made available to the public in a manner that does not 
     identify individuals.
       ``(f) Cooperative Research and Evaluation.--
       ``(1) Establishment and funding.--Notwithstanding the 
     apportionment formula set forth in section 402(c)(2), 
     $2,500,000 of the total amount available for apportionment to 
     the States for highway safety programs under subsection 
     402(c) in each fiscal year shall be available for expenditure 
     by the Secretary, acting through the Administrator of the 
     National Highway Traffic Safety Administration, for a 
     cooperative research and evaluation program to research and 
     evaluate priority highway safety countermeasures.
       ``(2) Administration.--The program established under 
     paragraph (1)--
       ``(A) shall be administered by the Administrator of the 
     National Highway Traffic Safety Administration; and
       ``(B) shall be jointly managed by the Governors Highway 
     Safety Association and the National Highway Traffic Safety 
     Administration.''; and
       (2) by adding at the end the following:
       ``(h) In-vehicle Alcohol Detection Device Research.--
       ``(1) In general.--The Administrator of the National 
     Highway Traffic Safety Administration may carry out a 
     collaborative research effort under chapter 301 of title 49 
     on in-vehicle technology to prevent alcohol-impaired driving.
       ``(2) Funding.--Funds provided under section 405 may be 
     made to be used by the Secretary to conduct the research 
     described in paragraph (1).
       ``(3) Privacy protection.--If the Administrator utilizes 
     the authority under paragraph (1), the Administrator shall 
     not develop requirements for any device or means of 
     technology to be installed in an automobile intended for 
     retail sale that records a driver's blood alcohol 
     concentration.
       ``(4) Reports.--If the Administrator conducts the research 
     authorized under paragraph (1), the Administrator shall 
     submit an annual report to the Committee on Commerce, 
     Science, and Transportation of the Senate, the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives, and Committee on Science, Space, and 
     Technology of the House of Representatives that--
       ``(A) describes the progress made in carrying out the 
     collaborative research effort; and
       ``(B) includes an accounting for the use of Federal funds 
     obligated or expended in carrying out that effort.
       ``(5) Definitions.--In this subsection:
       ``(A) Alcohol-impaired driving.--The term `alcohol-impaired 
     driving' means the operation of a motor vehicle (as defined 
     in section 30102(a)(6) of title 49) by an individual whose 
     blood alcohol content is at or above the legal limit.
       ``(B) Legal limit.--The term `legal limit' means a blood 
     alcohol concentration of 0.08 percent or greater (as set 
     forth in section 163(a)) or such other percentage limitation 
     as may be established by applicable Federal, State, or local 
     law.''.

     SEC. 31104. NATIONAL DRIVER REGISTER.

       Section 30302(b) of title 49, United States Code, is 
     amended by adding at the end the following: ``The Secretary 
     shall make continual

[[Page 10617]]

     improvements to modernize the Register's data processing 
     system.''.

     SEC. 31105. NATIONAL PRIORITY SAFETY PROGRAMS.

       (a) In General.--Section 405 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 405. National priority safety programs

       ``(a) General Authority.--Subject to the requirements of 
     this section, the Secretary of Transportation shall manage 
     programs to address national priorities for reducing highway 
     deaths and injuries. Funds shall be allocated according to 
     the priorities set forth in paragraphs (1) and (2).
       ``(1) Grants to states.--
       ``(A) Occupant protection.--16 percent of the funds 
     provided under this section in each fiscal year shall be 
     allocated among States that adopt and implement effective 
     occupant protection programs to reduce highway deaths and 
     injuries resulting from individuals riding unrestrained or 
     improperly restrained in motor vehicles (as described in 
     subsection (b)).
       ``(B) State traffic safety information system 
     improvements.--14.5 percent of the funds provided under this 
     section in each fiscal year shall be allocated among States 
     that meet the requirements of the State traffic safety 
     information system improvements (as described in subsection 
     (c)).
       ``(C) Impaired driving countermeasures.--52.5 percent of 
     the funds provided under this section in each fiscal year 
     shall be allocated among States that meet the requirements of 
     the impaired driving countermeasures (as described in 
     subsection (d)).
       ``(D) Distracted driving.--8.5 percent of the funds 
     provided under this section in each fiscal year shall be 
     allocated among States that adopt and implement effective 
     laws to reduce distracted driving (as described in subsection 
     (e)).
       ``(E) Motorcyclist safety.--1.5 percent of the funds 
     provided under this section in each fiscal year shall be 
     allocated among States that implement motorcyclist safety 
     programs (as described in subsection (f)).
       ``(F) State graduated driver licensing laws.--5 percent of 
     the funds provided under this section in each fiscal year 
     shall be allocated among States that adopt and implement 
     graduated driver licensing laws (as described in subsection 
     (g)).
       ``(G) Transfers.--Notwithstanding subparagraphs (A) through 
     (F), the Secretary may reallocate, before the last day of any 
     fiscal year, any amounts remaining available to carry out any 
     of the activities described in subsections (b) through (g) to 
     increase the amount made available to carry out any of the 
     other activities described in such subsections, or the amount 
     made available under section 402, in order to ensure, to the 
     maximum extent possible, that all such amounts are obligated 
     during such fiscal year.
       ``(H) Maintenance of effort.--
       ``(i) Requirements.--No grant may be made to a State in any 
     fiscal year under subsection (b), (c), or (d) 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 State and local sources 
     for programs described in those sections at or above the 
     average level of such expenditures in its 2 fiscal years 
     preceding the date of enactment of the Motor Vehicle and 
     Highway Safety Improvement Act of 2012.
       ``(ii) Waiver.--Upon the request of a State, the Secretary 
     may waive or modify the requirements under clause (i) for not 
     more than 1 fiscal year if the Secretary determines that such 
     a waiver would be equitable due to exceptional or 
     uncontrollable circumstances.
       ``(2) Other priority programs.--Funds provided under this 
     section in each fiscal year may be used for research into 
     technology to prevent alcohol-impaired driving (as described 
     in subsection 403(h)).
       ``(b) Occupant Protection Grants.--
       ``(1) General authority.--Subject to the requirements under 
     this subsection, the Secretary of Transportation shall award 
     grants to States that adopt and implement effective occupant 
     protection programs to reduce highway deaths and injuries 
     resulting from individuals riding unrestrained or improperly 
     restrained in motor vehicles.
       ``(2) Federal share.--The Federal share of the costs of 
     activities funded using amounts from grants awarded under 
     this subsection may not exceed 80 percent for each fiscal 
     year for which a State receives a grant.
       ``(3) Eligibility.--
       ``(A) High seat belt use rate.--A State with an observed 
     seat belt use rate of 90 percent or higher, based on the most 
     recent data from a survey that conforms with national 
     criteria established by the National Highway Traffic Safety 
     Administration, shall be eligible for a grant in a fiscal 
     year if the State--
       ``(i) submits an occupant protection plan during the first 
     fiscal year;
       ``(ii) participates in the Click It or Ticket national 
     mobilization;
       ``(iii) has an active network of child restraint inspection 
     stations; and
       ``(iv) has a plan to recruit, train, and maintain a 
     sufficient number of child passenger safety technicians.
       ``(B) Lower seat belt use rate.--A State with an observed 
     seat belt use rate below 90 percent, based on the most recent 
     data from a survey that conforms with national criteria 
     established by the National Highway Traffic Safety 
     Administration, shall be eligible for a grant in a fiscal 
     year if--
       ``(i) the State meets all of the requirements under clauses 
     (i) through (iv) of subparagraph (A); and
       ``(ii) the Secretary determines that the State meets at 
     least 3 of the following criteria:

       ``(I) The State conducts sustained (on-going and periodic) 
     seat belt enforcement at a defined level of participation 
     during the year.
       ``(II) The State has enacted and enforces a primary 
     enforcement seat belt use law.
       ``(III) The State has implemented countermeasure programs 
     for high-risk populations, such as drivers on rural roadways, 
     unrestrained nighttime drivers, or teenage drivers.
       ``(IV) The State has enacted and enforces occupant 
     protection laws requiring front and rear occupant protection 
     use by all occupants in an age-appropriate restraint.
       ``(V) The State has implemented a comprehensive occupant 
     protection program in which the State has--

       ``(aa) conducted a program assessment;
       ``(bb) developed a statewide strategic plan;
       ``(cc) designated an occupant protection coordinator; and
       ``(dd) established a statewide occupant protection task 
     force.

       ``(VI) The State--

       ``(aa) completed an assessment of its occupant protection 
     program during the 3-year period preceding the grant year; or
       ``(bb) will conduct such an assessment during the first 
     year of the grant.
       ``(4) Use of grant amounts.--
       ``(A) In general.--Grant funds received pursuant to this 
     subsection may be used to--
       ``(i) carry out a program to support high-visibility 
     enforcement mobilizations, including paid media that 
     emphasizes publicity for the program, and law enforcement;
       ``(ii) carry out a program to train occupant protection 
     safety professionals, police officers, fire and emergency 
     medical personnel, educators, and parents concerning all 
     aspects of the use of child restraints and occupant 
     protection;
       ``(iii) carry out a program to educate the public 
     concerning the proper use and installation of child 
     restraints, including related equipment and information 
     systems;
       ``(iv) carry out a program to provide community child 
     passenger safety services, including programs about proper 
     seating positions for children and how to reduce the improper 
     use of child restraints;
       ``(v) purchase and distribute child restraints to low-
     income families, provided that not more than 5 percent of the 
     funds received in a fiscal year are used for such purpose; 
     and
       ``(vi) establish and maintain information systems 
     containing data concerning occupant protection, including the 
     collection and administration of child passenger safety and 
     occupant protection surveys.
       ``(B) High seat belt use rate.--A State that is eligible 
     for funds under paragraph (3)(A) may use up to 75 percent of 
     such funds for any project or activity eligible for funding 
     under section 402.
       ``(5) Grant amount.--The allocation of grant funds to a 
     State under this subsection for a fiscal year shall be in 
     proportion to the State's apportionment under section 402 for 
     fiscal year 2009.
       ``(6) Definitions.--In this subsection:
       ``(A) Child restraint.--The term `child restraint' means 
     any device (including child safety seat, booster seat, 
     harness, and excepting seat belts) that is--
       ``(i) designed for use in a motor vehicle to restrain, 
     seat, or position children who weigh 65 pounds (30 kilograms) 
     or less; and
       ``(ii) certified to the Federal motor vehicle safety 
     standard prescribed by the National Highway Traffic Safety 
     Administration for child restraints.
       ``(B) Seat belt.--The term `seat belt' means--
       ``(i) with respect to open-body motor vehicles, including 
     convertibles, an occupant restraint system consisting of a 
     lap belt or a lap belt and a detachable shoulder belt; and
       ``(ii) with respect to other motor vehicles, an occupant 
     restraint system consisting of integrated lap and shoulder 
     belts.
       ``(c) State Traffic Safety Information System 
     Improvements.--
       ``(1) General authority.--Subject to the requirements under 
     this subsection, the Secretary of Transportation shall award 
     grants to States to support the development and 
     implementation of effective State programs that--
       ``(A) improve the timeliness, accuracy, completeness, 
     uniformity, integration, and accessibility of the State 
     safety data that is needed to identify priorities for 
     Federal, State, and local highway and traffic safety 
     programs;
       ``(B) evaluate the effectiveness of efforts to make such 
     improvements;
       ``(C) 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;
       ``(D) improve the compatibility and interoperability of the 
     data systems of the State with national data systems and data 
     systems of other States; and
       ``(E) enhance the ability of the Secretary to observe and 
     analyze national trends in crash occurrences, rates, 
     outcomes, and circumstances.
       ``(2) Federal share.--The Federal share of the cost of 
     adopting and implementing in a fiscal year a State program 
     described in this subsection may not exceed 80 percent.
       ``(3) Eligibility.--A State is not eligible for a grant 
     under this subsection in a fiscal year unless the State 
     demonstrates, to the satisfaction of the Secretary, that the 
     State--

[[Page 10618]]

       ``(A) has a functioning traffic records coordinating 
     committee (referred to in this paragraph as `TRCC') that 
     meets at least 3 times each year;
       ``(B) has designated a TRCC coordinator;
       ``(C) has established a State traffic record strategic plan 
     that has been approved by the TRCC and describes specific 
     quantifiable and measurable improvements anticipated in the 
     State's core safety databases, including crash, citation or 
     adjudication, driver, emergency medical services or injury 
     surveillance system, roadway, and vehicle databases;
       ``(D) has demonstrated quantitative progress in relation to 
     the significant data program attribute of--
       ``(i) accuracy;
       ``(ii) completeness;
       ``(iii) timeliness;
       ``(iv) uniformity;
       ``(v) accessibility; or
       ``(vi) integration of a core highway safety database; and
       ``(E) has certified to the Secretary that an assessment of 
     the State's highway safety data and traffic records system 
     was conducted or updated during the preceding 5 years.
       ``(4) Use of grant amounts.--Grant funds received by a 
     State under this subsection shall be used for making data 
     program improvements to core highway safety databases related 
     to quantifiable, measurable progress in any of the 6 
     significant data program attributes set forth in paragraph 
     (3)(D).
       ``(5) Grant amount.--The allocation of grant funds to a 
     State under this subsection for a fiscal year shall be in 
     proportion to the State's apportionment under section 402 for 
     fiscal year 2009.
       ``(d) Impaired Driving Countermeasures.--
       ``(1) In general.--Subject to the requirements under this 
     subsection, the Secretary of Transportation shall award 
     grants to States that adopt and implement--
       ``(A) effective programs to reduce driving under the 
     influence of alcohol, drugs, or the combination of alcohol 
     and drugs; or
       ``(B) alcohol-ignition interlock laws.
       ``(2) Federal share.--The Federal share of the costs of 
     activities funded using amounts from grants under this 
     subsection may not exceed 80 percent in any fiscal year in 
     which the State receives a grant.
       ``(3) Eligibility.--
       ``(A) Low-range states.--Low-range States shall be eligible 
     for a grant under this subsection.
       ``(B) Mid-range states.--A mid-range State shall be 
     eligible for a grant under this subsection if--
       ``(i) a statewide impaired driving task force in the State 
     developed a statewide plan during the most recent 3 calendar 
     years to address the problem of impaired driving; or
       ``(ii) the State will convene a statewide impaired driving 
     task force to develop such a plan during the first year of 
     the grant.
       ``(C) High-range states.--A high-range State shall be 
     eligible for a grant under this subsection if the State--
       ``(i)(I) conducted an assessment of the State's impaired 
     driving program during the most recent 3 calendar years; or
       ``(II) will conduct such an assessment during the first 
     year of the grant;
       ``(ii) convenes, during the first year of the grant, a 
     statewide impaired driving task force to develop a statewide 
     plan that--

       ``(I) addresses any recommendations from the assessment 
     conducted under clause (i);
       ``(II) includes a detailed plan for spending any grant 
     funds provided under this subsection; and
       ``(III) describes how such spending supports the statewide 
     program; and

       ``(iii)(I) submits the statewide plan to the National 
     Highway Traffic Safety Administration during the first year 
     of the grant for the agency's review and approval;
       ``(II) annually updates the statewide plan in each 
     subsequent year of the grant; and
       ``(III) submits each updated statewide plan for the 
     agency's review and comment.
       ``(4) Use of grant amounts.--
       ``(A) Required programs.--High-range States shall use grant 
     funds for--
       ``(i) high visibility enforcement efforts; and
       ``(ii) any of the activities described in subparagraph (B) 
     if--

       ``(I) the activity is described in the statewide plan; and
       ``(II) the Secretary approves the use of funding for such 
     activity.

       ``(B) Authorized programs.--Medium-range and low-range 
     States may use grant funds for--
       ``(i) any of the purposes described in subparagraph (A);
       ``(ii) hiring a full-time or part-time impaired driving 
     coordinator of the State's activities to address the 
     enforcement and adjudication of laws regarding driving while 
     impaired by alcohol;
       ``(iii) court support of high visibility enforcement 
     efforts, training and education of criminal justice 
     professionals (including law enforcement, prosecutors, 
     judges, and probation officers) to assist such professionals 
     in handling impaired driving cases, hiring traffic safety 
     resource prosecutors, hiring judicial outreach liaisons, and 
     establishing driving while intoxicated courts;
       ``(iv) alcohol ignition interlock programs;
       ``(v) improving blood-alcohol concentration testing and 
     reporting;
       ``(vi) paid and earned media in support of high visibility 
     enforcement efforts, and conducting standardized field 
     sobriety training, advanced roadside impaired driving 
     evaluation training, and drug recognition expert training for 
     law enforcement, and equipment and related expenditures used 
     in connection with impaired driving enforcement in accordance 
     with criteria established by the National Highway Traffic 
     Safety Administration;
       ``(vii) training on the use of alcohol screening and brief 
     intervention;
       ``(viii) developing impaired driving information systems; 
     and
       ``(ix) costs associated with a 24-7 sobriety program.
       ``(C) Other programs.--Low-range States may use grant funds 
     for any expenditure designed to reduce impaired driving based 
     on problem identification. Medium and high-range States may 
     use funds for such expenditures upon approval by the 
     Secretary.
       ``(5) Grant amount.--Subject to paragraph (6), the 
     allocation of grant funds to a State under this section for a 
     fiscal year shall be in proportion to the State's 
     apportionment under section 402(c) for fiscal year 2009.
       ``(6) Grants to states that adopt and enforce mandatory 
     alcohol-ignition interlock laws.--
       ``(A) In general.--The Secretary shall make a separate 
     grant under this subsection to each State that adopts and is 
     enforcing a mandatory alcohol-ignition interlock law for all 
     individuals convicted of driving under the influence of 
     alcohol or of driving while intoxicated.
       ``(B) Use of funds.--Grants authorized under subparagraph 
     (A) may be used by recipient States for any eligible 
     activities under this subsection or section 402.
       ``(C) Allocation.--Amounts made available under this 
     paragraph shall be allocated among States described in 
     subparagraph (A) on the basis of the apportionment formula 
     set forth in section 402(c).
       ``(D) Funding.--Not more than 15 percent of the amounts 
     made available to carry out this subsection in a fiscal year 
     shall be made available by the Secretary for making grants 
     under this paragraph.
       ``(7) Definitions.--In this subsection:
       ``(A) 24-7 sobriety program.--The term `24-7 sobriety 
     program' means a State law or program that authorizes a State 
     court or a State agency, as a condition of sentence, 
     probation, parole, or work permit, to--
       ``(i) require an individual who plead guilty or was 
     convicted of driving under the influence of alcohol or drugs 
     to totally abstain from alcohol or drugs for a period of 
     time; and
       ``(ii) require the individual to be subject to testing for 
     alcohol or drugs--

       ``(I) at least twice per day;
       ``(II) by continuous transdermal alcohol monitoring via an 
     electronic monitoring device; or
       ``(III) by an alternate method with the concurrence of the 
     Secretary.

       ``(B) Average impaired driving fatality rate.--The term 
     `average impaired driving fatality rate' means the number of 
     fatalities in motor vehicle crashes involving a driver with a 
     blood alcohol concentration of at least 0.08 percent for 
     every 100,000,000 vehicle miles traveled, based on the most 
     recently reported 3 calendar years of final data from the 
     Fatality Analysis Reporting System, as calculated in 
     accordance with regulations prescribed by the Administrator 
     of the National Highway Traffic Safety Administration.
       ``(C) High-range state.--The term `high-range State' means 
     a State that has an average impaired driving fatality rate of 
     0.60 or higher.
       ``(D) Low-range state.--The term `low-range State' means a 
     State that has an average impaired driving fatality rate of 
     0.30 or lower.
       ``(E) Mid-range state.--The term `mid-range State' means a 
     State that has an average impaired driving fatality rate that 
     is higher than 0.30 and lower than 0.60.
       ``(e) Distracted Driving Grants.--
       ``(1) In general.--The Secretary shall award a grant under 
     this subsection to any State that enacts and enforces a 
     statute that meets the requirements set forth in paragraphs 
     (2) and (3).
       ``(2) Prohibition on texting while driving.--A State 
     statute meets the requirements set forth in this paragraph if 
     the statute--
       ``(A) prohibits drivers from texting through a personal 
     wireless communications device while driving;
       ``(B) makes violation of the statute a primary offense; and
       ``(C) establishes--
       ``(i) a minimum fine for a first violation of the statute; 
     and
       ``(ii) increased fines for repeat violations.
       ``(3) Prohibition on youth cell phone use while driving.--A 
     State statute meets the requirements set forth in this 
     paragraph if the statute--
       ``(A) prohibits a driver who is younger than 18 years of 
     age from using a personal wireless communications device 
     while driving;
       ``(B) makes violation of the statute a primary offense;
       ``(C) requires distracted driving issues to be tested as 
     part of the State driver's license examination; and
       ``(D) establishes--
       ``(i) a minimum fine for a first violation of the statute; 
     and
       ``(ii) increased fines for repeat violations.
       ``(4) Permitted exceptions.--A statute that meets the 
     requirements set forth in paragraphs (2) and (3) may provide 
     exceptions for--
       ``(A) a driver who uses a personal wireless communications 
     device to contact emergency services;
       ``(B) emergency services personnel who use a personal 
     wireless communications device while--

[[Page 10619]]

       ``(i) operating an emergency services vehicle; and
       ``(ii) engaged in the performance of their duties as 
     emergency services personnel; and
       ``(C) an individual employed as a commercial motor vehicle 
     driver or a school bus driver who uses a personal wireless 
     communications device within the scope of such individual's 
     employment if such use is permitted under the regulations 
     promulgated pursuant to section 31152 of title 49.
       ``(5) Use of grant funds.--Of the amounts received by a 
     State under this subsection--
       ``(A) at least 50 percent shall be used--
       ``(i) to educate the public through advertising containing 
     information about the dangers of texting or using a cell 
     phone while driving;
       ``(ii) for traffic signs that notify drivers about the 
     distracted driving law of the State; or
       ``(iii) for law enforcement costs related to the 
     enforcement of the distracted driving law; and
       ``(B) up to 50 percent may be used for any eligible project 
     or activity under section 402.
       ``(6) Additional grants.--In the first fiscal year that 
     grants are awarded under this subsection, the Secretary may 
     use up to 25 percent of the amounts available for grants 
     under this subsection to award grants to States that--
       ``(A) enacted statutes before the date of enactment of the 
     Motor Vehicle and Highway Safety Improvement Act of 2012, 
     which meet the requirements set forth in subparagraphs (A) 
     and (B) of paragraph (2); and
       ``(B) are otherwise ineligible for a grant under this 
     subsection.
       ``(7) Allocation to support state distracted driving 
     laws.--Of the amounts available under this subsection in a 
     fiscal year for distracted driving grants, the Secretary may 
     expend up to $5,000,000 for the development and placement of 
     broadcast media to support the enforcement of State 
     distracted driving laws.
       ``(8) Distracted driving study.--
       ``(A) In general.--The Secretary shall conduct a study of 
     all forms of distracted driving.
       ``(B) Components.--The study conducted under subparagraph 
     (A) shall--
       ``(i) examine the effect of distractions other than the use 
     of personal wireless communications on motor vehicle safety;
       ``(ii) identify metrics to determine the nature and scope 
     of the distracted driving problem;
       ``(iii) identify the most effective methods to enhance 
     education and awareness; and
       ``(iv) identify the most effective method of reducing 
     deaths and injuries caused by all forms of distracted 
     driving.
       ``(C) Report.--Not later than 1 year after the date of 
     enactment of the Motor Vehicle and Highway Safety Improvement 
     Act of 2012, the Secretary shall submit a report containing 
     the results of the study conducted under this paragraph to--
       ``(i) the Committee on Commerce, Science, and 
     Transportation of the Senate; and
       ``(ii) the Committee on Transportation and Infrastructure 
     of the House of Representatives.
       ``(9) Definitions.--In this subsection:
       ``(A) Driving.--The term `driving'--
       ``(i) means operating a motor vehicle on a public road, 
     including operation while temporarily stationary because of 
     traffic, a traffic light or stop sign, or otherwise; and
       ``(ii) does not include operating a motor vehicle when the 
     vehicle has pulled over to the side of, or off, an active 
     roadway and has stopped in a location where it can safely 
     remain stationary.
       ``(B) Personal wireless communications device.--The term 
     `personal wireless communications device'--
       ``(i) means a device through which personal wireless 
     services (as defined in section 332(c)(7)(C)(i) of the 
     Communications Act of 1934 (47 U.S.C. 332(c)(7)(C)(i))) are 
     transmitted; and
       ``(ii) does not include a global navigation satellite 
     system receiver used for positioning, emergency notification, 
     or navigation purposes.
       ``(C) Primary offense.--The term `primary offense' means an 
     offense for which a law enforcement officer may stop a 
     vehicle solely for the purpose of issuing a citation in the 
     absence of evidence of another offense.
       ``(D) Public road.--The term `public road' has the meaning 
     given such term in section 402(c).
       ``(E) Texting.--The term `texting' means reading from or 
     manually entering data into a personal wireless 
     communications device, including doing so for the purpose of 
     SMS texting, e-mailing, instant messaging, or engaging in any 
     other form of electronic data retrieval or electronic data 
     communication.
       ``(f) Motorcyclist Safety.--
       ``(1) Grants authorized.--Subject to the requirements under 
     this subsection, the Secretary shall award grants to States 
     that adopt and implement effective programs to reduce the 
     number of single- and multi-vehicle crashes involving 
     motorcyclists.
       ``(2) Allocation.--The amount of a grant awarded to a State 
     for a fiscal year under this subsection may not exceed 25 
     percent of the amount apportioned to the State for fiscal 
     year 2003 under section 402.
       ``(3) Grant eligibility.--A State becomes eligible for a 
     grant under this subsection by adopting or demonstrating to 
     the satisfaction of the Secretary, at least 2 of the 
     following criteria:
       ``(A) Motorcycle rider training courses.--An effective 
     motorcycle rider training course that is offered throughout 
     the State, which--
       ``(i) provides a formal program of instruction in accident 
     avoidance and other safety-oriented operational skills to 
     motorcyclists; and
       ``(ii) may include innovative training opportunities to 
     meet unique regional needs.
       ``(B) Motorcyclists awareness program.--An effective 
     statewide program to enhance motorist awareness of the 
     presence of motorcyclists on or near roadways and safe 
     driving practices that avoid injuries to motorcyclists.
       ``(C) Reduction of fatalities and crashes involving 
     motorcycles.--A reduction for the preceding calendar year in 
     the number of motorcycle fatalities and the rate of motor 
     vehicle crashes involving motorcycles in the State (expressed 
     as a function of 10,000 motorcycle registrations).
       ``(D) Impaired driving program.--Implementation of a 
     statewide program to reduce impaired driving, including 
     specific measures to reduce impaired motorcycle operation.
       ``(E) Reduction of fatalities and accidents involving 
     impaired motorcyclists.--A reduction for the preceding 
     calendar year in the number of fatalities and the rate of 
     reported crashes involving alcohol- or drug-impaired 
     motorcycle operators (expressed as a function of 10,000 
     motorcycle registrations).
       ``(F) Fees collected from motorcyclists.--All fees 
     collected by the State from motorcyclists for the purposes of 
     funding motorcycle training and safety programs will be used 
     for motorcycle training and safety purposes.
       ``(4) Eligible uses.--
       ``(A) In general.--A State may use funds from a grant under 
     this subsection only for motorcyclist safety training and 
     motorcyclist awareness programs, including--
       ``(i) improvements to motorcyclist safety training 
     curricula;
       ``(ii) improvements in program delivery of motorcycle 
     training to both urban and rural areas, including--

       ``(I) procurement or repair of practice motorcycles;
       ``(II) instructional materials;
       ``(III) mobile training units; and
       ``(IV) leasing or purchasing facilities for closed-course 
     motorcycle skill training;

       ``(iii) measures designed to increase the recruitment or 
     retention of motorcyclist safety training instructors; and
       ``(iv) public awareness, public service announcements, and 
     other outreach programs to enhance driver awareness of 
     motorcyclists, such as the `share-the-road' safety messages 
     developed under subsection (g).
       ``(B) Suballocations of funds.--An agency of a State that 
     receives a grant under this subsection may suballocate funds 
     from the grant to a nonprofit organization incorporated in 
     that State to carry out this subsection.
       ``(5) Definitions.--In this subsection:
       ``(A) Motorcyclist awareness.--The term `motorcyclist 
     awareness' means individual or collective awareness of--
       ``(i) the presence of motorcycles on or near roadways; and
       ``(ii) safe driving practices that avoid injury to 
     motorcyclists.
       ``(B) Motorcyclist awareness program.--The term 
     `motorcyclist awareness program' means an informational or 
     public awareness program designed to enhance motorcyclist 
     awareness that is developed by or in coordination with the 
     designated State authority having jurisdiction over 
     motorcyclist safety issues, which may include the State 
     motorcycle safety administrator or a motorcycle advisory 
     council appointed by the governor of the State.
       ``(C) Motorcyclist safety training.--The term `motorcyclist 
     safety training' means a formal program of instruction that 
     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.
       ``(D) State.--The term `State' has the meaning given such 
     term in section 101(a) of title 23, United States Code.
       ``(g) State Graduated Driver Licensing Incentive Grant.--
       ``(1) Grants authorized.--Subject to the requirements under 
     this subsection, the Secretary shall award grants to States 
     that adopt and implement graduated driver licensing laws in 
     accordance with the requirements set forth in paragraph (2).
       ``(2) Minimum requirements.--
       ``(A) In general.--A State meets the requirements set forth 
     in this paragraph if the State has a graduated driver 
     licensing law that requires novice drivers younger than 21 
     years of age to comply with the 2-stage licensing process 
     described in subparagraph (B) before receiving an 
     unrestricted driver's license.
       ``(B) Licensing process.--A State is in compliance with the 
     2-stage licensing process described in this subparagraph if 
     the State's driver's license laws include--
       ``(i) a learner's permit stage that--

       ``(I) is at least 6 months in duration;
       ``(II) prohibits the driver from using a cellular telephone 
     or any communications device in a nonemergency situation; and
       ``(III) remains in effect until the driver--

       ``(aa) reaches 16 years of age and enters the intermediate 
     stage; or
       ``(bb) reaches 18 years of age;
       ``(ii) an intermediate stage that--

       ``(I) commences immediately after the expiration of the 
     learner's permit stage;
       ``(II) is at least 6 months in duration;
       ``(III) prohibits the driver from using a cellular 
     telephone or any communications device in a nonemergency 
     situation;
       ``(IV) restricts driving at night;
       ``(V) prohibits the driver from operating a motor vehicle 
     with more than 1 nonfamilial passenger younger than 21 years 
     of age unless a licensed driver who is at least 21 years of 
     age is in the motor vehicle; and

[[Page 10620]]

       ``(VI) remains in effect until the driver reaches 18 years 
     of age; and

       ``(iii) any other requirement prescribed by the Secretary 
     of Transportation, including--

       ``(I) in the learner's permit stage--

       ``(aa) at least 40 hours of behind-the-wheel training with 
     a licensed driver who is at least 21 years of age;
       ``(bb) a driver training course; and
       ``(cc) a requirement that the driver be accompanied and 
     supervised by a licensed driver, who is at least 21 years of 
     age, at all times while such driver is operating a motor 
     vehicle; and

       ``(II) in the learner's permit or intermediate stage, a 
     requirement, in addition to any other penalties imposed by 
     State law, that the grant of an unrestricted driver's license 
     be automatically delayed for any individual who, during the 
     learner's permit or intermediate stage, is convicted of a 
     driving-related offense, including--

       ``(aa) driving while intoxicated;
       ``(bb) misrepresentation of his or her true age;
       ``(cc) reckless driving;
       ``(dd) driving without wearing a seat belt;
       ``(ee) speeding; or
       ``(ff) any other driving-related offense, as determined by 
     the Secretary.
       ``(3) Rulemaking.--
       ``(A) In general.--The Secretary shall promulgate 
     regulations necessary to implement the requirements set forth 
     in paragraph (2), in accordance with the notice and comment 
     provisions under section 553 of title 5.
       ``(B) Exception.--A State that otherwise meets the minimum 
     requirements set forth in paragraph (2) shall be deemed by 
     the Secretary to be in compliance with the requirement set 
     forth in paragraph (2) if the State enacted a law before 
     January 1, 2011, establishing a class of license that permits 
     licensees or applicants younger than 18 years of age to drive 
     a motor vehicle--
       ``(i) in connection with work performed on, or for the 
     operation of, a farm owned by family members who are directly 
     related to the applicant or licensee; or
       ``(ii) if demonstrable hardship would result from the 
     denial of a license to the licensees or applicants.
       ``(4) Allocation.--Grant funds allocated to a State under 
     this subsection for a fiscal year shall be in proportion to a 
     State's apportionment under section 402 for such fiscal year.
       ``(5) Use of funds.--Of the grant funds received by a State 
     under this subsection--
       ``(A) at least 25 percent shall be used for--
       ``(i) enforcing a 2-stage licensing process that complies 
     with paragraph (2);
       ``(ii) training for law enforcement personnel and other 
     relevant State agency personnel relating to the enforcement 
     described in clause (i);
       ``(iii) publishing relevant educational materials that 
     pertain directly or indirectly to the State graduated driver 
     licensing law;
       ``(iv) carrying out other administrative activities that 
     the Secretary considers relevant to the State's 2-stage 
     licensing process; and
       ``(v) carrying out a teen traffic safety program described 
     in section 402(m); and
       ``(B) up to 75 percent may be used for any eligible project 
     or activity under section 402.''.
       (b) Conforming Amendment.--The analysis for chapter 4 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 405 and inserting the following:

``405. National priority safety programs.''.

     SEC. 31106. HIGH VISIBILITY ENFORCEMENT PROGRAM.

       Section 2009 of SAFETEA-LU (23 U.S.C. 402 note) is 
     amended--
       (1) in subsection (a)--
       (A) by striking ``at least 2'' and inserting ``at least 
     3''; and
       (B) by striking ``years 2006 through 2012.'' and inserting 
     ``fiscal years 2013 and 2014. The Administrator may also 
     initiate and support additional campaigns in each of fiscal 
     years 2013 and 2014 for the purposes specified in subsection 
     (b).'';
       (2) in subsection (b), by striking ``either or both'' and 
     inserting ``outcomes related to at least 1'';
       (3) in subsection (c), by inserting ``and Internet-based 
     outreach'' after ``print media advertising'';
       (4) in subsection (e), by striking ``subsections (a), (c), 
     and (f)'' and inserting ``subsection (c)'';
       (5) by striking subsection (f); and
       (6) by redesignating subsection (g) as subsection (f).

     SEC. 31107. AGENCY ACCOUNTABILITY.

       Section 412 of title 23, United States Code, is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) Triennial State Management Reviews.--
       ``(1) In general.--Except as provided under paragraph (2), 
     the Secretary shall conduct a review of each State highway 
     safety program at least once every 3 years.
       ``(2) Exceptions.--The Secretary may conduct reviews of the 
     highway safety programs of the United States Virgin Islands, 
     Guam, American Samoa, and the Commonwealth of the Northern 
     Mariana Islands as often as the Secretary determines to be 
     appropriate.
       ``(3) Components.--Reviews under this subsection shall 
     include--
       ``(A) a management evaluation of all grant programs funded 
     under this chapter;
       ``(B) an assessment of State data collection and evaluation 
     relating to performance measures established by the 
     Secretary;
       ``(C) a comparison of State efforts under subparagraphs (A) 
     and (B) to best practices and programs that have been 
     evaluated for effectiveness; and
       ``(D) the development of recommendations on how each State 
     could--
       ``(i) improve the management and oversight of its grant 
     activities; and
       ``(ii) provide a management and oversight plan for such 
     grant programs.''; and
       (2) by striking subsection (f).

     SEC. 31108. EMERGENCY MEDICAL SERVICES.

       Section 10202 of Public Law 109-59 (42 U.S.C. 300d-4), is 
     amended by adding at the end the following:
       ``(b) National Emergency Medical Services Advisory 
     Council.--
       ``(1) Establishment.--The Secretary of Transportation, in 
     coordination with the Secretary of Health and Human Services 
     and the Secretary of Homeland Security, shall establish a 
     National Emergency Medical Services Advisory Council 
     (referred to in this subsection as the `Advisory Council').
       ``(2) Membership.--The Advisory Council shall be composed 
     of 25 members, who--
       ``(A) shall be appointed by the Secretary of 
     Transportation; and
       ``(B) shall collectively be representative of all sectors 
     of the emergency medical services community.
       ``(3) Purposes.--The purposes of the Advisory Council are 
     to advise and consult with--
       ``(A) the Federal Interagency Committee on Emergency 
     Medical Services on matters relating to emergency medical 
     services issues; and
       ``(B) the Secretary of Transportation on matters relating 
     to emergency medical services issues affecting the Department 
     of Transportation.
       ``(4) Administration.--The Administrator of the National 
     Highway Traffic Safety Administration shall provide 
     administrative support to the Advisory Council, including 
     scheduling meetings, setting agendas, keeping minutes and 
     records, and producing reports.
       ``(5) Leadership.--The members of the Advisory Council 
     shall annually select a chairperson of the Advisory Council.
       ``(6) Meetings.--The Advisory Council shall meet as 
     frequently as is determined necessary by the chairperson of 
     the Advisory Council.
       ``(7) Annual reports.--The Advisory Council shall prepare 
     an annual report to the Secretary of Transportation regarding 
     the Advisory Council's actions and recommendations.''.

     SEC. 31109. REPEAL OF PROGRAMS.

       (a) General Provision.--A repeal made by this section shall 
     not affect amounts apportioned or allocated before the 
     effective date of such repeal, provided that such apportioned 
     or allocated funds continue to be subject to the requirements 
     to which such funds were subject under the repealed section 
     as in effect on the day before the date of the repeal.
       (b) Safety Belt Performance Grants.--Section 406 of title 
     23, United States Code, and the item relating to section 406 
     in the analysis for chapter 4 of title 23, United States 
     Code, are repealed.
       (c) Innovative Project Grants.--Section 407 of title 23, 
     United States Code, and the item relating to section 407 in 
     the analysis for chapter 4, are repealed.
       (d) State Traffic Safety Information System Improvements.--
     Section 408 of title 23, United States Code, and the item 
     relating to section 408 in the analysis for chapter 4, are 
     repealed.
       (e) Alcohol-impaired Driving Countermeasures.--Section 410 
     of title 23, United States Code, and the item relating to 
     section 410 in the analysis for chapter 4, are repealed.
       (f) State Highway Safety Data Improvements.--Section 411 of 
     title 23, United States Code, and the item relating to 
     section 411 in the analysis for chapter 4, are repealed.
       (g) Motorcyclist Safety.--Section 2010 of SAFETEA-LU (23 
     U.S.C. 402 note), and the item relating to section 2010 in 
     the table of contents under section 1(b) of such Act, are 
     repealed.
       (h) Child Safety and Child Booster Seat Incentive Grants.--
     Section 2011 of SAFETEA-LU (23 U.S.C. 405 note), and the item 
     relating to section 2011 in the table of contents under 
     section 1(b) of that Act, are repealed.
       (i) Drug-impaired Driving Enforcement.--Section 2013 of 
     SAFETEA-LU (23 U.S.C. 403 note), and the item relating to 
     section 2013 in the table of contents under section 1(b) of 
     that Act, are repealed.
       (j) First Responder Vehicle Safety Program.--Section 2014 
     of SAFETEA-LU (23 U.S.C. 402 note), and the item relating to 
     section 2014 in the table of contents under section 1(b) of 
     that Act, are repealed.
       (k) Rural State Emergency Medical Services Optimization 
     Pilot Program.--Section 2016 of SAFETEA-LU (119 Stat. 1541), 
     and the item relating to section 2016 in the table of 
     contents under section 1(b) of that Act, are repealed.
       (l) Older Driver Safety; Law Enforcement Training.--Section 
     2017 of SAFETEA-LU (119 Stat. 1541), and the item relating to 
     section 2017 in the table of contents under section 1(b) of 
     that Act, are repealed.
                Subtitle B--Enhanced Safety Authorities

     SEC. 31201. DEFINITION OF MOTOR VEHICLE EQUIPMENT.

       Section 30102(a)(7)(C) of title 49, United States Code, is 
     amended to read as follows:
       ``(C) any device or an article or apparel, including a 
     motorcycle helmet and excluding medicine or eyeglasses 
     prescribed by a licensed practitioner, that--
       ``(i) is not a system, part, or component of a motor 
     vehicle; and

[[Page 10621]]

       ``(ii) is manufactured, sold, delivered, or offered to be 
     sold for use on public streets, roads, and highways with the 
     apparent purpose of safeguarding users of motor vehicles 
     against risk of accident, injury, or death.''.

     SEC. 31202. PERMIT REMINDER SYSTEM FOR NON-USE OF SAFETY 
                   BELTS.

       (a) In General.--Chapter 301 of title 49, United States 
     Code, is amended--
       (1) in section 30122, by striking subsection (d); and
       (2) by amending section 30124 to read as follows:

     ``Sec. 30124. Nonuse of safety belts

       ``A motor vehicle safety standard prescribed under this 
     chapter may not require a manufacturer to comply with the 
     standard by using a safety belt interlock designed to prevent 
     starting or operating a motor vehicle if an occupant is not 
     using a safety belt.''.
       (b) Conforming Amendment.--The analysis for chapter 301 of 
     title 49, United States Code, is amended by striking the item 
     relating to section 30124 and inserting the following:

``Sec. 30124. Nonuse of safety belts.''.

     SEC. 31203. CIVIL PENALTIES.

       (a) In General.--Section 30165 of title 49, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``30123(d)'' and inserting ``30123(a)''; 
     and
       (ii) by striking ``$15,000,000'' and inserting 
     ``$35,000,000''; and
       (B) in paragraph (3), by striking ``$15,000,000'' and 
     inserting ``$35,000,000''; and
       (2) by amending subsection (c) to read as follows:
       ``(c) Relevant Factors in Determining Amount of Penalty or 
     Compromise.--In determining the amount of a civil penalty or 
     compromise under this section, the Secretary of 
     Transportation shall consider the nature, circumstances, 
     extent, and gravity of the violation. Such determination 
     shall include, as appropriate--
       ``(1) the nature of the defect or noncompliance;
       ``(2) knowledge by the person charged of its obligations 
     under this chapter;
       ``(3) the severity of the risk of injury;
       ``(4) the occurrence or absence of injury;
       ``(5) the number of motor vehicles or items of motor 
     vehicle equipment distributed with the defect or 
     noncompliance;
       ``(6) actions taken by the person charged to identify, 
     investigate, or mitigate the condition;
       ``(7) the appropriateness of such penalty in relation to 
     the size of the business of the person charged, including the 
     potential for undue adverse economic impacts;
       ``(8) whether the person has been assessed civil penalties 
     under this section during the most recent 5 years; and
       ``(9) other appropriate factors.''.
       (b) Civil Penalty Criteria.--Not later than 1 year after 
     the date of enactment of this Act, the Secretary shall issue 
     a final rule, in accordance with the procedures of section 
     553 of title 5, United States Code, which provides an 
     interpretation of the penalty factors described in section 
     30165(c) of title 49, United States Code.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the date that is the earlier of the date 
     on which final regulations are issued under subsection (b) or 
     1 year after the date of enactment of this Act.

     SEC. 31204. MOTOR VEHICLE SAFETY RESEARCH AND DEVELOPMENT.

       (a) In General.--Chapter 301 of title 49, United States 
     Code, is amended by adding at the end the following:

     ``SUBCHAPTER V--MOTOR VEHICLE SAFETY RESEARCH AND DEVELOPMENT

     ``Sec. 30181. Policy

       ``The Secretary of Transportation shall conduct research, 
     development, and testing on any area or aspect of motor 
     vehicle safety necessary to carry out this chapter.

     ``Sec. 30182. Powers and duties

       ``(a) In General.--The Secretary of Transportation shall--
       ``(1) conduct motor vehicle safety research, development, 
     and testing programs and activities, including activities 
     related to new and emerging technologies that impact or may 
     impact motor vehicle safety;
       ``(2) collect and analyze all types of motor vehicle and 
     highway safety data and related information to determine the 
     relationship between motor vehicle or motor vehicle equipment 
     performance characteristics and--
       ``(A) accidents involving motor vehicles; and
       ``(B) deaths or personal injuries resulting from those 
     accidents.
       ``(b) Activities.--In carrying out a program under this 
     section, the Secretary of Transportation may--
       ``(1) promote, support, and advance the education and 
     training of motor vehicle safety staff of the National 
     Highway Traffic Safety Administration in motor vehicle safety 
     research programs and activities, including using program 
     funds for planning, implementing, conducting, and presenting 
     results of program activities, and for related expenses;
       ``(2) obtain experimental and other motor vehicles and 
     motor vehicle equipment for research or testing;
       ``(3)(A) use any test motor vehicles and motor vehicle 
     equipment suitable for continued use, as determined by the 
     Secretary to assist in carrying out this chapter or any other 
     chapter of this title; or
       ``(B) sell or otherwise dispose of test motor vehicles and 
     motor vehicle equipment and use the resulting proceeds to 
     carry out this chapter;
       ``(4) award grants to States and local governments, 
     interstate authorities, and nonprofit institutions; and
       ``(5) enter into cooperative agreements, collaborative 
     research, or contracts with Federal agencies, interstate 
     authorities, State and local governments, other public 
     entities, private organizations and persons, nonprofit 
     institutions, colleges and universities, consumer advocacy 
     groups, corporations, partnerships, sole proprietorships, 
     trade associations, Federal laboratories (including 
     government-owned, government-operated laboratories and 
     government-owned, contractor-operated laboratories), and 
     research organizations.
       ``(c) Use of Public Agencies.--In carrying out this 
     subchapter, the Secretary shall avoid duplication by using 
     the services, research, and testing facilities of public 
     agencies, as appropriate.
       ``(d) Facilities.--The Secretary may plan, design, and 
     construct a new facility or modify an existing facility to 
     conduct research, development, and testing in traffic safety, 
     highway safety, and motor vehicle safety. An expenditure of 
     more than $1,500,000 for planning, design, or construction 
     may be made only if 60 days prior notice of the planning, 
     design, or construction is provided to the Committees on 
     Science, Space, and Technology and Transportation and 
     Infrastructure of the House of Representatives and the 
     Committees on Commerce, Science, and Transportation and 
     Environment and Public Works of the Senate. The notice shall 
     include--
       ``(1) a brief description of the facility being planned, 
     designed, or constructed;
       ``(2) the location of the facility;
       ``(3) an estimate of the maximum cost of the facility;
       ``(4) a statement identifying private and public agencies 
     that will use the facility and the contribution each agency 
     will make to the cost of the facility; and
       ``(5) a justification of the need for the facility.
       ``(e) Increasing Costs of Approved Facilities.--The 
     estimated maximum cost of a facility noticed under subsection 
     (d) may be increased by an amount equal to the percentage 
     increase in construction costs from the date the notice is 
     submitted to Congress. However, the increase in the cost of 
     the facility may not be more than 10 percent of the estimated 
     maximum cost included in the notice. The Secretary shall 
     decide what increase in construction costs has occurred.
       ``(f) Availability of Information, Patents, and 
     Developments.--When the United States Government makes more 
     than a minimal contribution to a research or development 
     activity under this chapter, the Secretary shall include in 
     the arrangement for the activity a provision to ensure that 
     all information, patents, and developments related to the 
     activity are available to the public. The owner of a 
     background patent may not be deprived of a right under the 
     patent.

     ``Sec. 30183. Prohibition on certain disclosures.

       ``Any report of the National Highway Traffic Safety 
     Administration, or of any officer, employee, or contractor of 
     the National Highway Traffic Safety Administration, relating 
     to any highway traffic accident or the investigation of such 
     accident conducted pursuant to this chapter or section 403 of 
     title 23, may be made available to the public only in a 
     manner that does not identify individuals.''.
       (b) Conforming Amendments.--
       (1) Amendment of chapter analysis.--The chapter analysis 
     for chapter 301 of title 49, United States Code, is amended 
     by adding at the end the following:

      ``subchapter v--motor vehicle safety research and development

``30181. Policy.
``30182. Powers and duties.
``30183. Prohibition on certain disclosures.''.

       (2) Deletion of redundant material.--Chapter 301 of title 
     49, United States Code, is amended--
       (A) in the chapter analysis, by striking the item relating 
     to section 30168; and
       (B) by striking section 30168.

     SEC. 31205. ODOMETER REQUIREMENTS.

       (a) Definition.--Section 32702(5) of title 49, United 
     States Code, is amended by inserting ``or system of 
     components'' after ``instrument''.
       (b) Electronic Disclosures of Odometer Information.--
     Section 32705 of title 49, United States Code, is amended by 
     adding at the end the following:
       ``(g) Electronic Disclosures.--Not later than 18 months 
     after the date of enactment of the Motor Vehicle and Highway 
     Safety Improvement Act of 2012, in carrying out this section, 
     the Secretary shall prescribe regulations permitting any 
     written disclosures or notices and related matters to be 
     provided electronically.''.

     SEC. 31206. INCREASED PENALTIES AND DAMAGES FOR ODOMETER 
                   FRAUD.

       Chapter 327 of title 49, United States Code, is amended--
       (1) in section 32709(a)(1)--
       (A) by striking ``$2,000'' and inserting ``$10,000''; and
       (B) by striking ``$100,000'' and inserting ``$1,000,000''; 
     and
       (2) in section 32710(a), by striking ``$1,500'' and 
     inserting ``$10,000''.

     SEC. 31207. EXTEND PROHIBITIONS ON IMPORTING NONCOMPLIANT 
                   VEHICLES AND EQUIPMENT TO DEFECTIVE VEHICLES 
                   AND EQUIPMENT.

       Section 30112 of title 49, United States Code, is amended--

[[Page 10622]]

       (1) in subsection (a), by adding at the end the following:
       ``(3) Except as provided in this section, section 30114, 
     subsections (i) and (j) of section 30120, and subchapter III, 
     a person may not sell, offer for sale, introduce or deliver 
     for introduction in interstate commerce, or import into the 
     United States any motor vehicle or motor vehicle equipment if 
     the vehicle or equipment contains a defect related to motor 
     vehicle safety about which notice was given under section 
     30118(c) or an order was issued under section 30118(b). 
     Nothing in this paragraph may be construed to prohibit the 
     importation of a new motor vehicle that receives a required 
     recall remedy before being sold to a consumer in the United 
     States.''; and
       (2) in subsection (b)(2)--
       (A) in subparagraph (A), by striking ``or'' at the end;
       (B) in subparagraph (B), by adding ``or'' at the end; and
       (C) by adding at the end the following:
       ``(C) having no reason to know, despite exercising 
     reasonable care, that a motor vehicle or motor vehicle 
     equipment contains a defect related to motor vehicle safety 
     about which notice was given under section 30118(c) or an 
     order was issued under section 30118(b);''.

     SEC. 31208. CONDITIONS ON IMPORTATION OF VEHICLES AND 
                   EQUIPMENT.

       Chapter 301 of title 49, United States Code, is amended--
       (1) in the chapter analysis, by striking the item relating 
     to section 30164 and inserting the following:

``30164. Service of process; conditions on importation of vehicles and 
              equipment.'';
     and
       (2) in section 30164--
       (A) in the section heading, by adding ``; CONDITIONS ON 
     IMPORTATION OF VEHICLES AND EQUIPMENT'' at the end; and
       (B) by adding at the end the following:
       ``(c) Identifying Information.--A manufacturer (including 
     an importer) offering a motor vehicle or motor vehicle 
     equipment for import shall provide, upon request, such 
     information that is necessary to identify and track the 
     products as the Secretary, by rule, may specify, including--
       ``(1) the product by name and the manufacturer's address; 
     and
       ``(2) each retailer or distributor to which the 
     manufacturer directly supplied motor vehicles or motor 
     vehicle equipment over which the Secretary has jurisdiction 
     under this chapter.
       ``(d) Regulations on the Import of a Motor Vehicle.--The 
     Secretary may issue regulations that--
       ``(1) condition the import of a motor vehicle or motor 
     vehicle equipment on the manufacturer's compliance with--
       ``(A) the requirements under this section;
       ``(B) paragraph (1) or (3) of section 30112(a) with respect 
     to such motor vehicle or motor vehicle equipment;
       ``(C) the provision of reports and records required to be 
     maintained with respect to such motor vehicle or motor 
     vehicle equipment under this chapter;
       ``(D) a request for inspection of premises, vehicle, or 
     equipment under section 30166;
       ``(E) an order or voluntary agreement to remedy such 
     vehicle or equipment; or
       ``(F) any rules implementing the requirements described in 
     this subsection;
       ``(2) provide an opportunity for the manufacturer to 
     present information before the Secretary's determination as 
     to whether the manufacturer's imports should be restricted; 
     and
       ``(3) establish a process by which a manufacturer may 
     petition for reinstatement of its ability to import motor 
     vehicles or motor vehicle equipment.
       ``(e) Exception.--The requirements of subsections (c) and 
     (d) shall not apply to original manufacturers (or wholly 
     owned subsidiaries) of motor vehicles that, prior to the date 
     of enactment of the Motor Vehicle and Highway Safety 
     Improvement Act of 2012--
       ``(1) have imported motor vehicles into the United States 
     that are certified to comply with all applicable Federal 
     motor vehicle safety standards;
       ``(2) have submitted to the Secretary appropriate 
     manufacturer identification information under part 566 of 
     title 49, Code of Federal Regulations; and
       ``(3) if applicable, have identified a current agent for 
     service of process in accordance with part 551 of title 49, 
     Code of Federal Regulations.
       ``(f) Rulemaking.--In issuing regulations under this 
     section, the Secretary shall seek to reduce duplicative 
     requirements by coordinating with the Department of Homeland 
     Security.''.

     SEC. 31209. PORT INSPECTIONS; SAMPLES FOR EXAMINATION OR 
                   TESTING.

       Section 30166(c) of title 49, United States Code, is 
     amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3)--
       (A) in subparagraph (A), by inserting ``(including at 
     United States ports of entry)'' after ``held for introduction 
     in interstate commerce''; and
       (B) in subparagraph (D), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(4) shall enter into a memorandum of understanding with 
     the Secretary of Homeland Security for inspections and 
     sampling of motor vehicle equipment being offered for import 
     to determine compliance with this chapter or a regulation or 
     order issued under this chapter.''.
              Subtitle C--Transparency and Accountability

     SEC. 31301. PUBLIC AVAILABILITY OF RECALL INFORMATION.

       (a) Vehicle Recall Information.--Not later than 1 year 
     after the date of enactment of this Act, the Secretary shall 
     require that motor vehicle safety recall information--
       (1) be available to the public on the Internet;
       (2) be searchable by vehicle make and model and vehicle 
     identification number;
       (3) be in a format that preserves consumer privacy; and
       (4) includes information about each recall that has not 
     been completed for each vehicle.
       (b) Rulemaking.--The Secretary may initiate a rulemaking 
     proceeding to require each manufacturer to provide the 
     information described in subsection (a), with respect to that 
     manufacturer's motor vehicles, on a publicly accessible 
     Internet website. Any rules promulgated under this 
     subsection--
       (1) shall limit the information that must be made available 
     under this section to include only those recalls issued not 
     more than 15 years prior to the date of enactment of this 
     Act;
       (2) may require information under paragraph (1) to be 
     provided to a dealer or an owner of a vehicle at no charge; 
     and
       (3) shall permit a manufacturer a reasonable period of time 
     after receiving information from a dealer with respect to a 
     vehicle to update the information about the vehicle on the 
     publicly accessible Internet website.
       (c) Promotion of Public Awareness.--The Secretary, in 
     consultation with the heads of other relevant agencies, shall 
     promote consumer awareness of the information made available 
     to the public pursuant to this section.

     SEC. 31302. NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION 
                   OUTREACH TO MANUFACTURER, DEALER, AND MECHANIC 
                   PERSONNEL.

       The Secretary shall publicize the means for contacting the 
     National Highway Traffic Safety Administration in a manner 
     that targets mechanics, passenger motor vehicle dealership 
     personnel, and manufacturer personnel.

     SEC. 31303. PUBLIC AVAILABILITY OF COMMUNICATIONS TO DEALERS.

       (a) Internet Accessibility.--Section 30166(f) of title 49, 
     United States Code, is amended--
       (1) by striking ``A manufacturer shall give the Secretary 
     of Transportation'' and inserting the following:
       ``(1) In general.--A manufacturer shall give the Secretary 
     of Transportation, and the Secretary shall make available on 
     a publicly accessible Internet website,''; and
       (2) by adding at the end the following:
       ``(2) Index.--Communications required to be submitted to 
     the Secretary under this subsection shall be accompanied by 
     an index to each communication, that--
       ``(A) identifies the make, model, and model year of the 
     affected vehicles;
       ``(B) includes a concise summary of the subject matter of 
     the communication; and
       ``(C) shall be made available by the Secretary to the 
     public on the Internet in a searchable format.''.

     SEC. 31304. CORPORATE RESPONSIBILITY FOR NATIONAL HIGHWAY 
                   TRAFFIC SAFETY ADMINISTRATION REPORTS.

       (a) In General.--Section 30166 of title 49, United States 
     Code, is amended by adding at the end the following:
       ``(o) Corporate Responsibility for Reports.--
       ``(1) In general.--The Secretary may promulgate rules 
     requiring a senior official responsible for safety in any 
     company submitting information to the Secretary in response 
     to a request for information in a safety defect or compliance 
     investigation under this chapter to certify that--
       ``(A) the signing official has reviewed the submission; and
       ``(B) based on the official's knowledge, the submission 
     does not--
       ``(i) contain any untrue statement of a material fact; or
       ``(ii) omit to state a material fact necessary in order to 
     make the statements made not misleading, in light of the 
     circumstances under which such statements were made.
       ``(2) Notice.--The certification requirements of this 
     section shall be clearly stated on any request for 
     information under paragraph (1).''.
       (b) Civil Penalty.--Section 30165(a) of title 49, United 
     States Code, is amended--
       (1) in paragraph (3), by striking ``A person'' and 
     inserting ``Except as provided in paragraph (4), a person''; 
     and
       (2) by adding at the end the following:
       ``(4) False or misleading reports.--A person who knowingly 
     and willfully submits materially false or misleading 
     information to the Secretary, after certifying the same 
     information as accurate under the certification process 
     established pursuant to section 30166(o), shall be subject to 
     a civil penalty of not more than $5,000 per day. The maximum 
     penalty under this paragraph for a related series of daily 
     violations is $1,000,000.''.

     SEC. 31305. PASSENGER MOTOR VEHICLE INFORMATION PROGRAM.

       (a) Definition.--Section 32301 of title 49, United States 
     Code, is amended--
       (1) by redesignating paragraphs (1) and (2) as paragraphs 
     (2) and (3), respectively;
       (2) by inserting before paragraph (2), as redesignated, the 
     following:
       ``(1) `crash avoidance' means preventing or mitigating a 
     crash;''; and
       (3) in paragraph (2), as redesignated, by striking the 
     period at the end and inserting ``; and''.
       (b) Information Included.--Section 32302(a) of title 49, 
     United States Code, is amended--
       (1) in paragraph (2), by inserting ``, crash avoidance, and 
     any other areas the Secretary

[[Page 10623]]

     determines will improve the safety of passenger motor 
     vehicles'' after ``crashworthiness''; and
       (2) by striking paragraph (4).

     SEC. 31306. PROMOTION OF VEHICLE DEFECT REPORTING.

       Section 32302 of title 49, United States Code, is amended 
     by adding at the end the following:
       ``(d) Motor Vehicle Defect Reporting Information.--
       ``(1) Rulemaking required.--Not later than 1 year after the 
     date of enactment of the Motor Vehicle and Highway Safety 
     Improvement Act of 2012, the Secretary shall prescribe 
     regulations that require passenger motor vehicle 
     manufacturers--
       ``(A) to affix, in the glove compartment or in another 
     readily accessible location on the vehicle, a sticker, decal, 
     or other device that provides, in simple and understandable 
     language, information about how to submit a safety-related 
     motor vehicle defect complaint to the National Highway 
     Traffic Safety Administration;
       ``(B) to prominently print the information described in 
     subparagraph (A) within the owner's manual; and
       ``(C) to not place such information on the label required 
     under section 3 of the Automobile Information Disclosure Act 
     (15 U.S.C. 1232).
       ``(2) Application.--The requirements under paragraph (1) 
     shall apply to passenger motor vehicles manufactured in any 
     model year beginning more than 1 year after the date on which 
     a final rule is published under paragraph (1).''.

     SEC. 31307. WHISTLEBLOWER PROTECTIONS FOR MOTOR VEHICLE 
                   MANUFACTURERS, PART SUPPLIERS, AND DEALERSHIP 
                   EMPLOYEES.

       (a) In General.--Subchapter IV of chapter 301 of title 49, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 30171. Protection of employees providing motor vehicle 
       safety information

       ``(a) Discrimination Against Employees of Manufacturers, 
     Part Suppliers, and Dealerships.--No motor vehicle 
     manufacturer, part supplier, or dealership may discharge an 
     employee or otherwise discriminate against an employee with 
     respect to compensation, terms, conditions, or privileges of 
     employment because the employee (or any person acting 
     pursuant to a request of the employee)--
       ``(1) provided, caused to be provided, or is about to 
     provide (with any knowledge of the employer) or cause to be 
     provided to the employer or the Secretary of Transportation 
     information relating to any motor vehicle defect, 
     noncompliance, or any violation or alleged violation of any 
     notification or reporting requirement of this chapter;
       ``(2) has filed, caused to be filed, or is about to file 
     (with any knowledge of the employer) or cause to be filed a 
     proceeding relating to any violation or alleged violation of 
     any motor vehicle defect, noncompliance, or any violation or 
     alleged violation of any notification or reporting 
     requirement of this chapter;
       ``(3) testified or is about to testify in such a 
     proceeding;
       ``(4) assisted or participated or is about to assist or 
     participate in such a proceeding; or
       ``(5) objected to, or refused to participate in, any 
     activity that the employee reasonably believed to be in 
     violation of any provision of chapter 301 of this title, or 
     any order, rule, regulation, standard, or ban under such 
     provision.
       ``(b) Complaint Procedure.--
       ``(1) Filing and notification.--A person who believes that 
     he or she has been discharged or otherwise discriminated 
     against by any person in violation of subsection (a) may file 
     (or have any person file on his or her behalf), not later 
     than 180 days after the date on which such violation occurs, 
     a complaint with the Secretary of Labor (hereinafter in this 
     section referred to as the `Secretary') alleging such 
     discharge or discrimination. Upon receipt of such a 
     complaint, the Secretary shall notify, in writing, the person 
     named in the complaint of the filing of the complaint, of the 
     allegations contained in the complaint, of the substance of 
     evidence supporting the complaint, and of the opportunities 
     that will be afforded to such person under paragraph (2).
       ``(2) Investigation; preliminary order.--
       ``(A) In general.--Not later than 60 days after the date of 
     receipt of a complaint filed under paragraph (1) and after 
     affording the person named in the complaint an opportunity to 
     submit to the Secretary a written response to the complaint 
     and an opportunity to meet with a representative of the 
     Secretary to present statements from witnesses, the Secretary 
     shall conduct an investigation and determine whether there is 
     reasonable cause to believe that the complaint has merit and 
     notify, in writing, the complainant and the person alleged to 
     have committed a violation of subsection (a) of the 
     Secretary's findings. If the Secretary concludes that there 
     is a reasonable cause to believe that a violation of 
     subsection (a) has occurred, the Secretary shall accompany 
     the Secretary's findings with a preliminary order providing 
     the relief prescribed by paragraph (3)(B). Not later than 30 
     days after the date of notification of findings under this 
     paragraph, either the person alleged to have committed the 
     violation or the complainant may file objections to the 
     findings or preliminary order, or both, and request a hearing 
     on the record. The filing of such objections shall not 
     operate to stay any reinstatement remedy contained in the 
     preliminary order. Such hearings shall be conducted 
     expeditiously. If a hearing is not requested in such 30-day 
     period, the preliminary order shall be deemed a final order 
     that is not subject to judicial review.
       ``(B) Requirements.--
       ``(i) Required showing by complainant.--The Secretary shall 
     dismiss a complaint filed under this subsection and shall not 
     conduct an investigation otherwise required under 
     subparagraph (A) unless the complainant makes a prima facie 
     showing that any behavior described in paragraphs (1) through 
     (5) of subsection (a) was a contributing factor in the 
     unfavorable personnel action alleged in the complaint.
       ``(ii) Showing by employer.--Notwithstanding a finding by 
     the Secretary that the complainant has made the showing 
     required under clause (i), no investigation otherwise 
     required under subparagraph (A) shall be conducted if the 
     employer demonstrates, by clear and convincing evidence, that 
     the employer would have taken the same unfavorable personnel 
     action in the absence of that behavior.
       ``(iii) Criteria for determination by secretary.--The 
     Secretary may determine that a violation of subsection (a) 
     has occurred only if the complainant demonstrates that any 
     behavior described in paragraphs (1) through (5) of 
     subsection (a) was a contributing factor in the unfavorable 
     personnel action alleged in the complaint.
       ``(iv) Prohibition.--Relief may not be ordered under 
     subparagraph (A) if the employer demonstrates, by clear and 
     convincing evidence, that the employer would have taken the 
     same unfavorable personnel action in the absence of that 
     behavior.
       ``(3) Final order.--
       ``(A) Deadline for issuance; settlement agreements.--Not 
     later than 120 days after the date of conclusion of a hearing 
     under paragraph (2), the Secretary shall issue a final order 
     providing the relief prescribed by this paragraph or denying 
     the complaint. At any time before issuance of a final order, 
     a proceeding under this subsection may be terminated on the 
     basis of a settlement agreement entered into by the 
     Secretary, the complainant, and the person alleged to have 
     committed the violation.
       ``(B) Remedy.--If, in response to a complaint filed under 
     paragraph (1), the Secretary determines that a violation of 
     subsection (a) has occurred, the Secretary shall order the 
     person who committed such violation--
       ``(i) to take affirmative action to abate the violation;
       ``(ii) to reinstate the complainant to his or her former 
     position together with the compensation (including back pay) 
     and restore the terms, conditions, and privileges associated 
     with his or her employment; and
       ``(iii) to provide compensatory damages to the complainant.
       ``(C) Attorneys' fees.--If such an order is issued under 
     this paragraph, the Secretary, at the request of the 
     complainant, shall assess against the person against whom the 
     order is issued a sum equal to the aggregate amount of all 
     costs and expenses (including attorneys' and expert witness 
     fees) reasonably incurred, as determined by the Secretary, by 
     the complainant for, or in connection with, bringing the 
     complaint upon which the order was issued.
       ``(D) Frivolous complaints.--If the Secretary determines 
     that a complaint under paragraph (1) is frivolous or has been 
     brought in bad faith, the Secretary may award to the 
     prevailing employer a reasonable attorney's fee not exceeding 
     $1,000.
       ``(E) De novo review.--With respect to a complaint under 
     paragraph (1), if the Secretary has not issued a final 
     decision within 210 days after the filing of the complaint 
     and if the delay is not due to the bad faith of the employee, 
     the employee may bring an original action at law or equity 
     for de novo review in the appropriate district court of the 
     United States, which shall have jurisdiction over such an 
     action without regard to the amount in controversy, and which 
     action shall, at the request of either party to the action, 
     be tried by the court with a jury. The action shall be 
     governed by the same legal burdens of proof specified in 
     paragraph (2)(B) for review by the Secretary.
       ``(4) Review.--
       ``(A) Appeal to court of appeals.--Any person adversely 
     affected or aggrieved by an order issued under paragraph (3) 
     may obtain review of the order in the United States Court of 
     Appeals for the circuit in which the violation, with respect 
     to which the order was issued, allegedly occurred or the 
     circuit in which the complainant resided on the date of such 
     violation. The petition for review shall be filed not later 
     than 60 days after the date of the issuance of the final 
     order of the Secretary. Review shall conform to chapter 7 of 
     title 5. The commencement of proceedings under this 
     subparagraph shall not, unless ordered by the court, operate 
     as a stay of the order.
       ``(B) Limitation on collateral attack.--An order of the 
     Secretary with respect to which review could have been 
     obtained under subparagraph (A) shall not be subject to 
     judicial review in any criminal or other civil proceeding.
       ``(5) Enforcement of order by secretary.--Whenever any 
     person fails to comply with an order issued under paragraph 
     (3), the Secretary may file a civil action in the United 
     States district court for the district in which the violation 
     was found to occur to enforce such order. In actions brought 
     under this paragraph, the district courts shall have 
     jurisdiction to grant all appropriate relief, including 
     injunctive relief and compensatory damages.
       ``(6) Enforcement of order by parties.--
       ``(A) Commencement of action.--A person on whose behalf an 
     order was issued under paragraph (3) may commence a civil 
     action against the person to whom such order was issued to 
     require compliance with such order. The appropriate United 
     States district court shall have jurisdiction, without regard 
     to the

[[Page 10624]]

     amount in controversy or the citizenship of the parties, to 
     enforce such order.
       ``(B) Attorney fees.--The court, in issuing any final order 
     under this paragraph, may award costs of litigation 
     (including reasonable attorney and expert witness fees) to 
     any party whenever the court determines such award is 
     appropriate.
       ``(c) Mandamus.--Any nondiscretionary duty imposed under 
     this section shall be enforceable in a mandamus proceeding 
     brought under section 1361 of title 28.
       ``(d) Nonapplicability To Deliberate Violations.--
     Subsection (a) shall not apply with respect to an employee of 
     a motor vehicle manufacturer, part supplier, or dealership 
     who, acting without direction from such motor vehicle 
     manufacturer, part supplier, or dealership (or such person's 
     agent), deliberately causes a violation of any requirement 
     relating to motor vehicle safety under this chapter.''.
       (b) Government Accountability Office Report.--Not later 
     than 2 years after the date of enactment of this Act, the 
     Comptroller General of the United States shall--
       (1) conduct a study of the whistleblower protections 
     established by law with respect to this program, and update 
     its study of other such programs administered by the 
     Secretary of Transportation; and
       (2) submit to Congress a report of the results of the study 
     under paragraph (1), including--
       (A) an identification of the differences between the 
     provisions applicable to different programs, the number of 
     claims brought pursuant to each provision, and the outcome of 
     each claim; and
       (B) any recommendations for program changes that the 
     Comptroller General considers appropriate based on the study 
     under paragraph (1).
       (c) Conforming Amendment.--The table of sections for 
     chapter 301 of title 49, United States Code, is amended by 
     inserting after the item relating to section 30170 the 
     following:

``30171. Protection of employees providing motor vehicle safety 
              information.''.

     SEC. 31308. ANTI-REVOLVING DOOR.

       (a) Study of Department of Transportation Policies on 
     Official Communication With Former Motor Vehicle Safety Issue 
     Employees.--Not later than 1 year after the date of enactment 
     of this Act, the Inspector General of the Department of 
     Transportation shall--
       (1) review the Department of Transportation's policies and 
     procedures applicable to official communication with former 
     employees concerning motor vehicle safety compliance matters 
     for which they had responsibility during the last 12 months 
     of their tenure at the Department, including any limitations 
     on the ability of such employees to submit comments, or 
     otherwise communicate directly with the Department, on motor 
     vehicle safety issues; and
       (2) submit a report to the Committee on Commerce, Science, 
     and Transportation of the Senate and the Committee on Energy 
     and Commerce of the House of Representatives that contains 
     the Inspector General's findings, conclusions, and 
     recommendations for strengthening those policies and 
     procedures to minimize the risk of undue influence without 
     compromising the ability of the Department to employ and 
     retain highly qualified individuals for such 
     responsibilities.
       (b) Post-Employment Policy Study.--
       (1) In general.--The Inspector General of the Department of 
     Transportation shall conduct a study of the Department's 
     policies relating to post-employment restrictions on 
     employees who perform functions related to transportation 
     safety.
       (2) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Inspector General shall submit a 
     report containing the results of the study conducted under 
     paragraph (1) to--
       (A) the Committee on Commerce, Science, and Transportation 
     of the Senate;
       (B) the Committee on Energy and Commerce of the House of 
     Representatives; and
       (C) the Secretary of Transportation.
       (3) Use of results.--The Secretary of Transportation shall 
     review the results of the study conducted under paragraph (1) 
     and take whatever action the Secretary determines to be 
     appropriate.

     SEC. 31309. STUDY OF CRASH DATA COLLECTION.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit a report to 
     the Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Energy and Commerce of the House 
     of Representatives regarding the quality of data collected 
     through the National Automotive Sampling System, including 
     the Special Crash Investigations Program.
       (b) Review.--The Administrator of the National Highway 
     Traffic Safety Administration (referred to in this section as 
     the ``Administration'') shall conduct a comprehensive review 
     of the data elements collected from each crash to determine 
     if additional data should be collected. The review under this 
     subsection shall include input from interested parties, 
     including suppliers, automakers, safety advocates, the 
     medical community, and research organizations.
       (c) Contents.--The report issued under this section shall 
     include--
       (1) the analysis and conclusions the Administration can 
     reach from the amount of motor vehicle crash data collected 
     in a given year;
       (2) the additional analysis and conclusions the 
     Administration could reach if more crash investigations were 
     conducted each year;
       (3) the number of investigations per year that would allow 
     for optimal data analysis and crash information;
       (4) the results of the comprehensive review conducted 
     pursuant to subsection (b);
       (5) the incremental costs of collecting and analyzing 
     additional data, as well as data from additional crashes;
       (6) the potential for obtaining private funding for all or 
     a portion of the costs under paragraph (5);
       (7) the potential for recovering any additional costs from 
     high volume users of the data, while continuing to make the 
     data available to the general public free of charge;
       (8) the advantages or disadvantages of expanding collection 
     of non-crash data instead of crash data;
       (9) recommendations for improvements to the 
     Administration's data collection program; and
       (10) the resources needed by the Administration to 
     implement such recommendations.

     SEC. 31310. UPDATE MEANS OF PROVIDING NOTIFICATION; IMPROVING 
                   EFFICACY OF RECALLS.

       (a) Update of Means of Providing Notification.--Section 
     30119(d) of title 49, United States Code, is amended--
       (1) in paragraph (1), by striking ``by first class mail'' 
     and inserting ``in the manner prescribed by the Secretary, by 
     regulation'';
       (2) in paragraph (2)--
       (A) by striking ``(except a tire) shall be sent by first 
     class mail'' and inserting ``shall be sent in the manner 
     prescribed by the Secretary, by regulation,''; and
       (B) by striking the second sentence;
       (3) in paragraph (3)--
       (A) by striking the first sentence;
       (B) by inserting ``to the notification required under 
     paragraphs (1) and (2)'' after ``addition''; and
       (C) by inserting ``by the manufacturer'' after ``given''; 
     and
       (4) in paragraph (4), by striking ``by certified mail or 
     quicker means if available'' and inserting ``in the manner 
     prescribed by the Secretary, by regulation''.
       (b) Improving Efficacy of Recalls.--Section 30119(e) of 
     title 49, United States Code, is amended--
       (1) in the subsection heading, by striking ``Second'' and 
     inserting ``Additional'';
       (2) by striking ``If the Secretary'' and inserting the 
     following:
       ``(1) Second notification.--If the Secretary''; and
       (3) by adding at the end the following:
       ``(2) Additional notifications.--If the Secretary 
     determines, after taking into account the severity of the 
     defect or noncompliance, that the second notification by a 
     manufacturer does not result in an adequate number of motor 
     vehicles or items of replacement equipment being returned for 
     remedy, the Secretary may order the manufacturer--
       ``(A)(i) to send additional notifications in the manner 
     prescribed by the Secretary, by regulation; or
       ``(ii) to take additional steps to locate and notify each 
     person registered under State law as the owner or lessee or 
     the most recent purchaser or lessee, as appropriate; and
       ``(B) to emphasize the magnitude of the safety risk caused 
     by the defect or noncompliance in such notification.''.

     SEC. 31311. EXPANDING CHOICES OF REMEDY AVAILABLE TO 
                   MANUFACTURERS OF REPLACEMENT EQUIPMENT.

       Section 30120 of title 49, United States Code, is amended--
       (1) in subsection (a)(1), by amending subparagraph (B) to 
     read as follows:
       ``(B) if replacement equipment, by repairing the equipment, 
     replacing the equipment with identical or reasonably 
     equivalent equipment, or by refunding the purchase price.'';
       (2) in the heading of subsection (i), by adding ``of New 
     Vehicles or Equipment'' at the end; and
       (3) in the heading of subsection (j), by striking 
     ``replaced'' and inserting ``replacement''.

     SEC. 31312. RECALL OBLIGATIONS AND BANKRUPTCY OF 
                   MANUFACTURER.

       (a) In General.--Chapter 301 of title 49, United States 
     Code, is amended by inserting the following after section 
     30120:

     ``Sec. 30120A. Recall obligations and bankruptcy of a 
       manufacturer

       ``A manufacturer's filing of a petition in bankruptcy under 
     chapter 11 of title 11, does not negate the manufacturer's 
     duty to comply with section 30112 or sections 30115 through 
     30120 of this title. In any bankruptcy proceeding, the 
     manufacturer's obligations under such sections shall be 
     treated as a claim of the United States Government against 
     such manufacturer, subject to subchapter II of chapter 37 of 
     title 31, United States Code, and given priority pursuant to 
     section 3713(a)(1)(A) of such chapter, notwithstanding 
     section 3713(a)(2), to ensure that consumers are adequately 
     protected from any safety defect or noncompliance determined 
     to exist in the manufacturer's products. This section shall 
     apply equally to actions of a manufacturer taken before or 
     after the filing of a petition in bankruptcy.''.
       (b) Conforming Amendment.--The chapter analysis of chapter 
     301 of title 49, United States Code, is amended by inserting 
     after the item relating to section 30120 the following:

``30120A. Recall obligations and bankruptcy of a manufacturer.''.

     SEC. 31313. REPEAL OF INSURANCE REPORTS AND INFORMATION 
                   PROVISION.

       Chapter 331 of title 49, United States Code, is amended--

[[Page 10625]]

       (1) in the chapter analysis, by striking the item relating 
     to section 33112; and
       (2) by striking section 33112.

     SEC. 31314. MONRONEY STICKER TO PERMIT ADDITIONAL SAFETY 
                   RATING CATEGORIES.

       Section 3(g)(2) of the Automobile Information Disclosure 
     Act (15 U.S.C. 1232(g)(2)), is amended by inserting ``safety 
     rating categories that may include'' after ``refers to''.
          Subtitle D--Vehicle Electronics and Safety Standards

     SEC. 31401. NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION 
                   ELECTRONICS, SOFTWARE, AND ENGINEERING 
                   EXPERTISE.

       (a) Council for Vehicle Electronics, Vehicle Software, and 
     Emerging Technologies.--
       (1) In general.--The Secretary shall establish, within the 
     National Highway Traffic Safety Administration, a Council for 
     Vehicle Electronics, Vehicle Software, and Emerging 
     Technologies (referred to in this section as the ``Council'') 
     to build, integrate, and aggregate the Administration's 
     expertise in passenger motor vehicle electronics and other 
     new and emerging technologies.
       (2) Implementation of roadmap.--The Council shall research 
     the inclusion of emerging lightweight plastic and composite 
     technologies in motor vehicles to increase fuel efficiency, 
     lower emissions, meet fuel economy standards, and enhance 
     passenger motor vehicle safety through continued utilization 
     of the Administration's Plastic and Composite Intensive 
     Vehicle Safety Roadmap (Report No. DOT HS 810 863).
       (3) Intra-agency coordination.--The Council shall 
     coordinate with all components of the Administration 
     responsible for vehicle safety, including research and 
     development, rulemaking, and defects investigation.
       (b) Honors Recruitment Program.--
       (1) Establishment.--The Secretary shall establish, within 
     the National Highway Traffic Safety Administration, an honors 
     program for engineering students, computer science students, 
     and other students interested in vehicle safety that will 
     enable such students to train with engineers and other safety 
     officials for careers in vehicle safety.
       (2) Stipend.--The Secretary is authorized to provide a 
     stipend to any student during the student's participation in 
     the program established under paragraph (1).
       (c) Assessment.--The Council, in consultation with affected 
     stakeholders, shall periodically assess the implications of 
     emerging safety technologies in passenger motor vehicles, 
     including the effect of such technologies on consumers, 
     product availability, and cost.

     SEC. 31402. ELECTRONIC SYSTEMS PERFORMANCE.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall complete an 
     examination of the need for safety standards with regard to 
     electronic systems in passenger motor vehicles. In conducting 
     this examination, the Secretary shall--
       (1) consider the electronic components, the interaction of 
     electronic components, the security needs for those 
     electronic systems to prevent unauthorized access, and the 
     effect of surrounding environments on the electronic systems; 
     and
       (2) allow for public comment.
       (b) Report.--Upon completion of the examination under 
     subsection (a), the Secretary shall submit a report on the 
     highest priority areas for safety with regard to the 
     electronic systems to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on Energy and 
     Commerce of the House of Representatives.
                   Subtitle E--Child Safety Standards

     SEC. 31501. CHILD SAFETY SEATS.

       (a) Side Impact Crashes.--Not later than 2 years after the 
     date of enactment of this Act, the Secretary shall issue a 
     final rule amending Federal Motor Vehicle Safety Standard 
     Number 213 to improve the protection of children seated in 
     child restraint systems during side impact crashes.
       (b) Frontal Impact Test Parameters.--
       (1) Commencement.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall commence a 
     rulemaking proceeding to amend the standard seat assembly 
     specifications under Federal Motor Vehicle Safety Standard 
     Number 213 to better simulate a single representative motor 
     vehicle rear seat.
       (2) Final rule.--Not later than 4 years after the date of 
     enactment of this Act, the Secretary shall issue a final rule 
     pursuant to paragraph (1).

     SEC. 31502. CHILD RESTRAINT ANCHORAGE SYSTEMS.

       (a) Initiation of Rulemaking Proceeding.--Not later than 1 
     year after the date of enactment of this Act, the Secretary 
     shall initiate a rulemaking proceeding to amend Federal Motor 
     Vehicle Safety Standard Number 225 (relating to child 
     restraint anchorage systems) to improve the ease of use for 
     lower anchorages and tethers in all rear seat seating 
     positions if such anchorages and tethers are feasible.
       (b) Final Rule.--
       (1) In general.--Except as provided under paragraph (2) and 
     section 31505, the Secretary shall issue a final rule under 
     subsection (a) not later than 3 years after the date of 
     enactment of this Act.
       (2) Report.--If the Secretary determines that an amendment 
     to the standard referred to in subsection (a) does not meet 
     the requirements and considerations set forth in subsections 
     (a) and (b) of section 30111 of title 49, United States Code, 
     the Secretary shall submit a report describing the reasons 
     for not prescribing such a standard to--
       (A) the Committee on Commerce, Science, and Transportation 
     of the Senate; and
       (B) the Committee on Energy and Commerce of the House of 
     Representatives.

     SEC. 31503. REAR SEAT BELT REMINDERS.

       (a) Initiation of Rulemaking Proceeding.--Not later than 2 
     years after the date of enactment of this Act, the Secretary 
     shall initiate a rulemaking proceeding to amend Federal Motor 
     Vehicle Safety Standard Number 208 (relating to occupant 
     crash protection) to provide a safety belt use warning system 
     for designated seating positions in the rear seat.
       (b) Final Rule.--
       (1) In general.--Except as provided under paragraph (2) and 
     section 31505, the Secretary shall issue a final rule under 
     subsection (a) not later than 3 years after the date of 
     enactment of this Act.
       (2) Report.--If the Secretary determines that an amendment 
     to the standard referred to in subsection (a) does not meet 
     the requirements and considerations set forth in subsections 
     (a) and (b) of section 30111 of title 49, United States Code, 
     the Secretary shall submit a report describing the reasons 
     for not prescribing such a standard to--
       (A) the Committee on Commerce, Science, and Transportation 
     of the Senate; and
       (B) the Committee on Energy and Commerce of the House of 
     Representatives.

     SEC. 31504. UNATTENDED PASSENGER REMINDERS.

       (a) Safety Research Initiative.--The Secretary may initiate 
     research into effective ways to minimize the risk of 
     hyperthermia or hypothermia to children or other unattended 
     passengers in rear seating positions.
       (b) Research Areas.--In carrying out subsection (a), the 
     Secretary may conduct research into the potential viability 
     of--
       (1) vehicle technology to provide an alert that a child or 
     unattended passenger remains in a rear seating position after 
     the vehicle motor is disengaged; or
       (2) public awareness campaigns to educate drivers on the 
     risks of leaving a child or unattended passenger in a vehicle 
     after the vehicle motor is disengaged; or
       (3) other ways to mitigate risk.
       (c) Coordination With Other Agencies.--The Secretary may 
     collaborate with other Federal agencies in conducting the 
     research under this section.

     SEC. 31505. NEW DEADLINE.

       If the Secretary determines that any deadline for issuing a 
     final rule under this Act cannot be met, the Secretary 
     shall--
       (1) provide the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on Energy and 
     Commerce of the House of Representatives with an explanation 
     for why such deadline cannot be met; and
       (2) establish a new deadline for that rule.
 Subtitle F--Improved Daytime and Nighttime Visibility of Agricultural 
                               Equipment

     SEC. 31601. RULEMAKING ON VISIBILITY OF AGRICULTURAL 
                   EQUIPMENT.

       (a) Definitions.--In this section:
       (1) Agricultural equipment.--The term ``agricultural 
     equipment'' has the meaning given the term ``agricultural 
     field equipment'' in ASABE Standard 390.4, entitled 
     ``Definitions and Classifications of Agricultural Field 
     Equipment'', which was published in January 2005 by the 
     American Society of Agriculture and Biological Engineers, or 
     any successor standard.
       (2) Public road.--The term ``public road'' has the meaning 
     given the term in section 101(a)(27) of title 23, United 
     States Code.
       (b) Rulemaking.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary of Transportation, after 
     consultation with representatives of the American Society of 
     Agricultural and Biological Engineers and appropriate Federal 
     agencies, and with other appropriate persons, shall 
     promulgate a rule to improve the daytime and nighttime 
     visibility of agricultural equipment that may be operated on 
     a public road.
       (2) Minimum standards.--The rule promulgated pursuant to 
     this subsection shall--
       (A) establish minimum lighting and marking standards for 
     applicable agricultural equipment manufactured at least 1 
     year after the date on which such rule is promulgated; and
       (B) provide for the methods, materials, specifications, and 
     equipment to be employed to comply with such standards, which 
     shall be equivalent to ASABE Standard 279.14, entitled 
     ``Lighting and Marking of Agricultural Equipment on 
     Highways'', which was published in July 2008 by the American 
     Society of Agricultural and Biological Engineers, or any 
     successor standard.
       (c) Review.--Not less frequently than once every 5 years, 
     the Secretary of Transportation shall--
       (1) review the standards established pursuant to subsection 
     (b); and
       (2) revise such standards to reflect the revision of ASABE 
     Standard 279 that is in effect at the time of such review.
       (d) Limitations.--
       (1) Compliance with successor standards.--Any rule 
     promulgated pursuant to this section may not prohibit the 
     operation on public roads of agricultural equipment that is 
     equipped in accordance with any adopted revision of ASABE 
     Standard 279 that is later than the revision of such standard 
     that was referenced during the promulgation of the rule.

[[Page 10626]]

       (2) No retrofitting required.--Any rule promulgated 
     pursuant to this section may not require the retrofitting of 
     agricultural equipment that was manufactured before the date 
     on which the lighting and marking standards are enforceable 
     under subsection (b)(2)(A).
       (3) No effect on additional materials and equipment.--Any 
     rule promulgated pursuant to this section may not prohibit 
     the operation on public roads of agricultural equipment that 
     is equipped with materials or equipment that are in addition 
     to the minimum materials and equipment specified in the 
     standard upon which such rule is based.
   TITLE II--COMMERCIAL MOTOR VEHICLE SAFETY ENHANCEMENT ACT OF 2012

     SEC. 32001. SHORT TITLE.

       This title may be cited as the ``Commercial Motor Vehicle 
     Safety Enhancement Act of 2012''.

     SEC. 32002. REFERENCES TO TITLE 49, UNITED STATES CODE.

       Except as otherwise expressly provided, whenever in this 
     title an amendment or repeal is expressed in terms of an 
     amendment to, or a repeal of, a section or other provision, 
     the reference shall be considered to be made to a section or 
     other provision of title 49, United States Code.
           Subtitle A--Commercial Motor Vehicle Registration

     SEC. 32101. REGISTRATION OF MOTOR CARRIERS.

       (a) Registration Requirements.--Section 13902(a)(1) is 
     amended to read as follows:
       ``(1) In general.--Except as otherwise provided in this 
     section, the Secretary of Transportation shall register a 
     person to provide transportation subject to jurisdiction 
     under subchapter I of chapter 135 as a motor carrier only if 
     the Secretary determines that the person--
       ``(A) is willing and able to comply with--
       ``(i) this part and the applicable regulations of the 
     Secretary and the Board;
       ``(ii) any safety regulations imposed by the Secretary;
       ``(iii) the duties of employers and employees established 
     by the Secretary under section 31135;
       ``(iv) the safety fitness requirements established by the 
     Secretary under section 31144;
       ``(v) the accessibility requirements established by the 
     Secretary under subpart H of part 37 of title 49, Code of 
     Federal Regulations (or successor regulations), for 
     transportation provided by an over-the-road bus; and
       ``(vi) the minimum financial responsibility requirements 
     established by the Secretary under sections 13906, 31138, and 
     31139;
       ``(B) has been issued a USDOT number under section 31134;
       ``(C) has disclosed any relationship involving common 
     ownership, common management, common control, or common 
     familial relationship between that person and any other motor 
     carrier, freight forwarder, or broker, or any other applicant 
     for motor carrier, freight forwarder, or broker registration, 
     if the relationship occurred in the 3-year period preceding 
     the date of the filing of the application for registration; 
     and
       ``(D) after the Secretary establishes a written proficiency 
     examination pursuant to section 32101(b) of the Commercial 
     Motor Vehicle Safety Enhancement Act of 2012, has passed the 
     written proficiency examination.''.
       (b) Written Proficiency Examination.--
       Not later than 18 months after the date of enactment of 
     this Act, the Secretary shall establish through a rulemaking 
     a written proficiency examination for applicant motor 
     carriers pursuant to section 13902(a)(1)(D) of title 49, 
     United States Code. The written proficiency examination shall 
     test a person's knowledge of applicable safety regulations, 
     standards, and orders of the Federal government.
       (c) Conforming Amendment.--Section 210(b) of the Motor 
     Carrier Safety Improvement Act of 1999 (49 U.S.C. 31144 note) 
     is amended--
       (1) by inserting ``, commercial regulations, and provisions 
     of subpart H of part 37 of title 49, Code of Federal 
     Regulations, or successor regulations'' after ``applicable 
     safety regulations''; and
       (2) by striking ``consider the establishment of'' and 
     inserting ``establish''.
       (d) Transportation of Agricultural Commodities and Farm 
     Supplies.--Section 229(a)(1) of the Motor Carrier Safety 
     Improvement Act of 1999 (49 U.S.C. 31136 note) is amended to 
     read as follows:
       ``(1) Transportation of agricultural commodities and farm 
     supplies.--Regulations prescribed by the Secretary under 
     sections 31136 and 31502 regarding maximum driving and on-
     duty time for drivers used by motor carriers shall not apply 
     during planting and harvest periods, as determined by each 
     State, to--
       ``(A) drivers transporting agricultural commodities from 
     the source of the agricultural commodities to a location 
     within a 150 air-mile radius from the source;
       ``(B) drivers transporting farm supplies for agricultural 
     purposes from a wholesale or retail distribution point of the 
     farm supplies to a farm or other location where the farm 
     supplies are intended to be used within a 150 air-mile radius 
     from the distribution point; or
       ``(C) drivers transporting farm supplies for agricultural 
     purposes from a wholesale distribution point of the farm 
     supplies to a retail distribution point of the farm supplies 
     within a 150 air-mile radius from the wholesale distribution 
     point.''.

     SEC. 32102. SAFETY FITNESS OF NEW OPERATORS.

       (a) Safety Reviews of New Operators.--Section 31144(g)(1) 
     is amended to read as follows:
       ``(1) Safety review.--
       ``(A) In general.--Except as provided under subparagraph 
     (B), the Secretary shall require, by regulation, each owner 
     and each operator granted new registration under section 
     13902 or 31134 to undergo a safety review not later than 12 
     months after the owner or operator, as the case may be, 
     begins operations under such registration.
       ``(B) Providers of motorcoach services.--The Secretary 
     shall require, by regulation, each owner and each operator 
     granted new registration to transport passengers under 
     section 13902 or 31134 to undergo a safety review not later 
     than 120 days after the owner or operator, as the case may 
     be, begins operations under such registration.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect 1 year after the date of enactment of this 
     Act.

     SEC. 32103. REINCARNATED CARRIERS.

       (a) Effective Periods of Registration.--
       (1) Suspensions, amendments, and revocations.--Section 
     13905(d) is amended--
       (A) by redesignating paragraph (2) as paragraph (4);
       (B) by striking paragraph (1) and inserting the following:
       ``(1) Applications.--On application of the registrant, the 
     Secretary may amend or revoke a registration.
       ``(2) Complaints and actions on secretary's own 
     initiative.--On complaint or on the Secretary's own 
     initiative and after notice and an opportunity for a 
     proceeding, the Secretary may--
       ``(A) suspend, amend, or revoke any part of the 
     registration of a motor carrier, broker, or freight forwarder 
     for willful failure to comply with--
       ``(i) this part;
       ``(ii) an applicable regulation or order of the Secretary 
     or the Board, including the accessibility requirements 
     established by the Secretary under subpart H of part 37 of 
     title 49, Code of Federal Regulations (or successor 
     regulations), for transportation provided by an over-the-road 
     bus; or
       ``(iii) a condition of its registration;
       ``(B) withhold, suspend, amend, or revoke any part of the 
     registration of a motor carrier, broker, or freight forwarder 
     for failure--
       ``(i) to pay a civil penalty imposed under chapter 5, 51, 
     149, or 311;
       ``(ii) to arrange and abide by an acceptable payment plan 
     for such civil penalty, not later than 90 days after the date 
     specified by order of the Secretary for the payment of such 
     penalty; or
       ``(iii) for failure to obey a subpoena issued by the 
     Secretary;
       ``(C) withhold, suspend, amend, or revoke any part of a 
     registration of a motor carrier, broker, or freight forwarder 
     following a determination by the Secretary that the motor 
     carrier, broker, or freight forwarder failed to disclose, in 
     its application for registration, a material fact relevant to 
     its willingness and ability to comply with--
       ``(i) this part;
       ``(ii) an applicable regulation or order of the Secretary 
     or the Board; or
       ``(iii) a condition of its registration; or
       ``(D) withhold, suspend, amend, or revoke any part of a 
     registration of a motor carrier, broker, or freight forwarder 
     if the Secretary finds that--
       ``(i) the motor carrier, broker, or freight forwarder does 
     not disclose any relationship through common ownership, 
     common management, common control, or common familial 
     relationship to any other motor carrier, broker, or freight 
     forwarder, or any other applicant for motor carrier, broker, 
     or freight forwarder registration that the Secretary 
     determines is or was unwilling or unable to comply with the 
     relevant requirements listed in section 13902, 13903, or 
     13904
       ``(3) Limitation.--Paragraph (2)(B) shall not apply to a 
     person who is unable to pay a civil penalty because the 
     person is a debtor in a case under chapter 11 of title 11.''; 
     and
       (C) in paragraph (4), as redesignated by section 
     32103(a)(1)(A) of this Act, by striking ``paragraph (1)(B)'' 
     and inserting ``paragraph (2)(B)''.
       (2) Procedure.--Section 13905(e) is amended by inserting 
     ``or if the Secretary determines that the registrant failed 
     to disclose a material fact in an application for 
     registration in accordance with subsection (d)(2)(C),'' after 
     ``registrant,''.
       (b) Information Systems.--Section 31106(a)(3) is amended--
       (1) in subparagraph (F), by striking ``and'' at the end;
       (2) in subparagraph (G), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(H) determine whether a person or employer is or was 
     related, through common ownership, common management, common 
     control, or common familial relationship, to any other 
     person, employer, or any other applicant for registration 
     under section 13902 or 31134.''.

     SEC. 32104. FINANCIAL RESPONSIBILITY REQUIREMENTS.

       Not later than 6 months after the date of enactment of this 
     Act, and every 4 years thereafter, the Secretary shall--
       (1) issue a report on the appropriateness of--
       (A) the current minimum financial responsibility 
     requirements under sections 31138 and 31139 of title 49, 
     United States Code; and
       (B) the current bond and insurance requirements under 
     sections 13904(f), 13903, and 13906 of title 49, United 
     States Code; and
       (2) submit the report issued under paragraph (1) to the 
     Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives.

[[Page 10627]]



     SEC. 32105. USDOT NUMBER REGISTRATION REQUIREMENT.

       (a) In General.--Chapter 311 is amended by inserting after 
     section 31133 the following:

     ``Sec. 31134. Requirement for registration and USDOT number

       ``(a) In General.--Upon application, and subject to 
     subsections (b) and (c), the Secretary shall register an 
     employer or person subject to the safety jurisdiction of this 
     subchapter. An employer or person may operate a commercial 
     motor vehicle in interstate commerce only if the employer or 
     person is registered by the Secretary under this section and 
     receives a USDOT number. Nothing in this section shall 
     preclude registration by the Secretary of an employer or 
     person not engaged in interstate commerce. An employer or 
     person subject to jurisdiction under subchapter I of chapter 
     135 of this title shall apply for commercial registration 
     under section 13902 of this title.
       ``(b) Withholding Registration.--The Secretary shall 
     register an employer or person under subsection (a) only if 
     the Secretary determines that--
       ``(1) the employer or person seeking registration is 
     willing and able to comply with the requirements of this 
     subchapter and the regulations prescribed thereunder and 
     chapter 51 and the regulations prescribed thereunder;
       ``(2)(A) during the 3-year period before the date of the 
     filing of the application, the employer or person is not or 
     was not related through common ownership, common management, 
     common control, or common familial relationship to any other 
     person or applicant for registration subject to this 
     subchapter who, during such 3-year period, is or was unfit, 
     unwilling, or unable to comply with the requirements listed 
     in subsection (b)(1); or
       ``(B) the employer or person has disclosed to the Secretary 
     any relationship involving common ownership, common 
     management, common control, or common familial relationship 
     to any other person or applicant for registration subject to 
     this subchapter.
       ``(c) Revocation or Suspension of Registration.--The 
     Secretary shall revoke the registration of an employer or 
     person issued under subsection (a) after notice and an 
     opportunity for a proceeding, or suspend the registration 
     after giving notice of the suspension to the employer or 
     person, if the Secretary determines that--
       ``(1) the employer's or person's authority to operate 
     pursuant to chapter 139 of this title is subject to 
     revocation or suspension under sections 13905(d)(1) or 
     13905(f) of this title;
       ``(2) the employer or person has knowingly failed to comply 
     with the requirements listed in subsection (b)(1);
       ``(3) the employer or person has not disclosed any 
     relationship through common ownership, common management, 
     common control, or common familial relationship to any other 
     person or applicant for registration subject to this 
     subchapter that the Secretary determines is or was unfit, 
     unwilling, or unable to comply with the requirements listed 
     in subsection (b)(1);
       ``(4) the employer or person refused to submit to the 
     safety review required by section 31144(g) of this title.
       ``(d) Periodic Registration Update.--The Secretary may 
     require an employer to update a registration under this 
     section not later than 30 days after a change in the 
     employer's address, other contact information, officers, 
     process agent, or other essential information, as determined 
     by the Secretary.
       ``(e) State Authority.--Nothing in this section shall be 
     construed as affecting the authority of a State to issue a 
     Department of Transportation number under State law to a 
     person operating in intrastate commerce.''.
       (b) Conforming Amendment.--The analysis of chapter 311 is 
     amended by inserting after the item relating to section 31133 
     the following:

``31134. Requirement for registration and USDOT number.''.

     SEC. 32106. REGISTRATION FEE SYSTEM.

       Section 13908(d)(1) is amended by striking ``but shall not 
     exceed $300''.

     SEC. 32107. REGISTRATION UPDATE.

       (a) Motor Carrier Update.--Section 13902 is amended by 
     adding at the end the following:
       ``(h) Update of Registration.--
       ``(1) In general.--The Secretary shall require a registrant 
     to update its registration under this section not later than 
     30 days after a change in the registrant's address, other 
     contact information, officers, process agent, or other 
     essential information, as determined by the Secretary.
       ``(2) Motor carriers of passengers.--In addition to the 
     requirements of paragraph (1), the Secretary shall require a 
     motor carrier of passengers to update its registration 
     information, including numbers of vehicles, annual mileage, 
     and individuals responsible for compliance with Federal 
     safety regulations quarterly for the first 2 years after 
     being issued a registration under this section.''.
       (b) Freight Forwarder Update.--Section 13903 is amended by 
     adding at the end the following:
       ``(c) Update of Registration.--The Secretary shall require 
     a freight forwarder to update its registration under this 
     section not later than 30 days after a change in the freight 
     forwarder's address, other contact information, officers, 
     process agent, or other essential information, as determined 
     by the Secretary.''.
       (c) Broker Update.--Section 13904 is amended by adding at 
     the end the following:
       ``(e) Update of Registration.--The Secretary shall require 
     a broker to update its registration under this section not 
     later than 30 days after a change in the broker's address, 
     other contact information, officers, process agent, or other 
     essential information, as determined by the Secretary.''.

     SEC. 32108. INCREASED PENALTIES FOR OPERATING WITHOUT 
                   REGISTRATION.

       (a) Penalties.--Section 14901(a) is amended--
       (1) by striking ``$500'' and inserting ``$1,000'';
       (2) by striking ``who is not registered under this part to 
     provide transportation of passengers,'';
       (3) by striking ``with respect to providing transportation 
     of passengers,'' and inserting ``or section 13902(c) of this 
     title,''; and
       (4) by striking ``$2,000 for each violation and each 
     additional day the violation continues'' and inserting 
     ``$10,000 for each violation, or $25,000 for each violation 
     relating to providing transportation of passengers''.
       (b) Transportation of Hazardous Wastes.--Section 14901(b) 
     is amended by striking ``not to exceed $20,000'' and 
     inserting ``not less than $20,000, but not to exceed 
     $40,000''.

     SEC. 32109. REVOCATION OF REGISTRATION FOR IMMINENT HAZARD.

       Section 13905(f)(2) is amended to read as follows:
       ``(2) Imminent hazard to public health.--Notwithstanding 
     subchapter II of chapter 5 of title 5, the Secretary shall 
     revoke the registration of a motor carrier if the Secretary 
     finds that the carrier is or was conducting unsafe operations 
     that are or were an imminent hazard to public health or 
     property.''.

     SEC. 32110. REVOCATION OF REGISTRATION AND OTHER PENALTIES 
                   FOR FAILURE TO RESPOND TO SUBPOENA.

       Section 525 is amended--
       (1) by striking ``subpenas'' in the section heading and 
     inserting ``subpoenas'';
       (2) by striking ``subpena'' and inserting ``subpoena'';
       (3) by striking ``$100'' and inserting ``$1,000'';
       (4) by striking ``$5,000'' and inserting ``$10,000''; and
       (5) by adding at the end the following:
       ``The Secretary may withhold, suspend, amend, or revoke any 
     part of the registration of a person required to register 
     under chapter 139 for failing to obey a subpoena or 
     requirement of the Secretary under this chapter to appear and 
     testify or produce records.''.

     SEC. 32111. FLEETWIDE OUT OF SERVICE ORDER FOR OPERATING 
                   WITHOUT REQUIRED REGISTRATION.

       Section 13902(e)(1) is amended--
       (1) by striking ``motor vehicle'' and inserting ``motor 
     carrier'' after ``the Secretary determines that a''; and
       (2) by striking ``order the vehicle'' and inserting ``order 
     the motor carrier operations'' after ``the Secretary may''.

     SEC. 32112. MOTOR CARRIER AND OFFICER PATTERNS OF SAFETY 
                   VIOLATIONS.

       Section 31135 is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Noncompliance.--
       ``(1) Motor carriers.--Two or more motor carriers, 
     employers, or persons shall not use common ownership, common 
     management, common control, or common familial relationship 
     to enable any or all such motor carriers, employers, or 
     persons to avoid compliance, or mask or otherwise conceal 
     non-compliance, or a history of non-compliance, with 
     regulations prescribed under this subchapter or an order of 
     the Secretary issued under this subchapter.
       ``(2) Pattern.--If the Secretary finds that a motor 
     carrier, employer, or person engaged in a pattern or practice 
     of avoiding compliance, or masking or otherwise concealing 
     noncompliance, with regulations prescribed under this 
     subchapter, the Secretary--
       ``(A) may withhold, suspend, amend, or revoke any part of 
     the motor carrier's, employer's, or person's registration in 
     accordance with section 13905 or 31134; and
       ``(B) shall take into account such non-compliance for 
     purposes of determining civil penalty amounts under section 
     521(b)(2)(D).
       ``(3) Officers.--If the Secretary finds, after notice and 
     an opportunity for proceeding, that an officer of a motor 
     carrier, employer, or owner or operator has engaged in a 
     pattern or practice of, or assisted a motor carrier, 
     employer, or owner or operator in avoiding compliance, or 
     masking or otherwise concealing noncompliance, while serving 
     as an officer or such motor carrier, employer, or owner or 
     operator, the Secretary may suspend, amend, or revoke any 
     part of a registration granted to the officer individually 
     under section 13902 or 31134.''.
              Subtitle B--Commercial Motor Vehicle Safety

     SEC. 32201. CRASHWORTHINESS STANDARDS.

       (a) In General.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary shall conduct a 
     comprehensive analysis on the need for crashworthiness 
     standards on property-carrying commercial motor vehicles with 
     a gross vehicle weight rating or gross vehicle weight of at 
     least 26,001 pounds involved in interstate commerce, 
     including an evaluation of the need for roof strength, pillar 
     strength, air bags, and other occupant protections standards, 
     and frontal and back wall standards.
       (b) Report.--Not later than 90 days after completing the 
     comprehensive analysis under subsection (a), the Secretary 
     shall report the results of the analysis and any 
     recommendations to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives.

     SEC. 32202. CANADIAN SAFETY RATING RECIPROCITY.

       Section 31144 is amended by adding at the end the 
     following:
       ``(h) Recognition of Canadian Motor Carrier Safety Fitness 
     Determinations.--

[[Page 10628]]

       ``(1) If an authorized agency of the Canadian federal 
     government or a Canadian Territorial or Provincial government 
     determines, by applying the procedure and standards 
     prescribed by the Secretary under subsection (b) or pursuant 
     to an agreement under paragraph (2), that a Canadian employer 
     is unfit and prohibits the employer from operating a 
     commercial motor vehicle in Canada or any Canadian Province, 
     the Secretary may prohibit the employer from operating such 
     vehicle in interstate and foreign commerce until the 
     authorized Canadian agency determines that the employer is 
     fit.
       ``(2) The Secretary may consult and participate in 
     negotiations with authorized officials of the Canadian 
     federal government or a Canadian Territorial or Provincial 
     government, as necessary, to provide reciprocal recognition 
     of each country's motor carrier safety fitness 
     determinations. An agreement shall provide, to the maximum 
     extent practicable, that each country will follow the 
     procedure and standards prescribed by the Secretary under 
     subsection (b) in making motor carrier safety fitness 
     determinations.''.

     SEC. 32203. STATE REPORTING OF FOREIGN COMMERCIAL DRIVER 
                   CONVICTIONS.

       (a) Definition of Foreign Commercial Driver.--Section 31301 
     is amended--
       (1) by redesignating paragraphs (10) through (14) as 
     paragraphs (11) through (15), respectively; and
       (2) by inserting after paragraph (9) the following:
       ``(10) `foreign commercial driver' means an individual 
     licensed to operate a commercial motor vehicle by an 
     authority outside the United States, or a citizen of a 
     foreign country who operates a commercial motor vehicle in 
     the United States.''.
       (b) State Reporting of Convictions.--Section 31311(a) is 
     amended by adding after paragraph (21) the following:
       ``(22) The State shall report a conviction of a foreign 
     commercial driver by that State to the Federal Convictions 
     and Withdrawal Database, or another information system 
     designated by the Secretary to record the convictions. A 
     report shall include--
       ``(A) for a driver holding a foreign commercial driver's 
     license--
       ``(i) each conviction relating to the operation of a 
     commercial motor vehicle; and
       ``(ii) each conviction relating to the operation of a non-
     commercial motor vehicle; and
       ``(B) for an unlicensed driver or a driver holding a 
     foreign non-commercial driver's license, each conviction 
     relating to the operation of a commercial motor vehicle.''.

     SEC. 32204. AUTHORITY TO DISQUALIFY FOREIGN COMMERCIAL 
                   DRIVERS.

       Section 31310 is amended by adding at the end the 
     following:
       ``(k) Foreign Commercial Drivers.--A foreign commercial 
     driver shall be subject to disqualification under this 
     section.''.

     SEC. 32205. REVOCATION OF FOREIGN MOTOR CARRIER OPERATING 
                   AUTHORITY FOR FAILURE TO PAY CIVIL PENALTIES.

       Section 13905(d)(2), as amended by section 32103(a) of this 
     Act, is amended by inserting ``foreign motor carrier, foreign 
     motor private carrier,'' after ``registration of a motor 
     carrier,'' each place it appears.

     SEC. 32206. RENTAL TRUCK ACCIDENT STUDY.

       (a) Definitions.--In this section:
       (1) Rental truck.--The term ``rental truck'' means a motor 
     vehicle with a gross vehicle weight rating of between 10,000 
     and 26,000 pounds that is made available for rental by a 
     rental truck company.
       (2) Rental truck company.--The term ``rental truck 
     company'' means a person or company that is in the business 
     of renting or leasing rental trucks to the public or for 
     private use.
       (b) Study.--
       (1) In general.--The Secretary shall conduct a study of the 
     safety of rental trucks during the 7-year period ending on 
     December 31, 2011.
       (2) Requirements.--The study conducted under paragraph (1) 
     shall--
       (A) evaluate available data on the number of crashes, 
     fatalities, and injuries involving rental trucks and the 
     cause of such crashes, utilizing police accident reports and 
     other sources;
       (B) estimate the property damage and costs resulting from a 
     subset of crashes involving rental truck operations, which 
     the Secretary believes adequately reflect all crashes 
     involving rental trucks;
       (C) analyze State and local laws regulating rental truck 
     companies, including safety and inspection requirements;
       (D) assess the rental truck maintenance programs of a 
     selection of small, medium, and large rental truck companies, 
     as selected by the Secretary, including the frequency of 
     rental truck maintenance inspections, and compare such 
     programs with inspection requirements for passenger vehicles 
     and commercial motor vehicles;
       (E) include any other information available regarding the 
     safety of rental trucks; and
       (F) review any other information that the Secretary 
     determines to be appropriate.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit a report to 
     the Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives that contains--
       (1) the findings of the study conducted pursuant to 
     subsection (b); and
       (2) any recommendations for legislation that the Secretary 
     determines to be appropriate.
                       Subtitle C--Driver Safety

     SEC. 32301. HOURS OF SERVICE STUDY AND ELECTRONIC LOGGING 
                   DEVICES.

       (a) Hours of Service Study.--
       (1) Field study.--
       (A) In general.--Not later than March 31, 2013, the 
     Secretary shall complete a field study on the efficacy of the 
     restart rule published on December 27, 2011 (in this section 
     referred to as the ``2011 restart rule''), applicable to 
     operators of commercial motor vehicles of property subject to 
     maximum driving time requirements of the Secretary.
       (B) Requirement.--The field study shall expand upon the 
     results of the laboratory-based study relating to commercial 
     motor vehicle driver fatigue sponsored by the Federal Motor 
     Carrier Safety Administration presented in the report of 
     December 2010 titled ``Investigation into Motor Carrier 
     Practices to Achieve Optimal Commercial Motor Vehicle Driver 
     Performance: Phase I''.
       (C) Criteria.--In conducting the field study, the Secretary 
     shall ensure that--
       (i) the methodology for the field study is consistent, to 
     the maximum extent possible, with the laboratory-based study 
     methodology;
       (ii) the data collected is representative of the drivers 
     and motor carriers regulated by the hours of service 
     regulations, including those drivers and carriers affected by 
     the maximum driving time requirements;
       (iii) the analysis is statistically valid; and
       (iv) the field study follows the plan for the ``Scheduling 
     and Fatigue Recovery Project'' developed by the Federal Motor 
     Carrier Safety Administration.
       (D) Report to congress.--Not later than September 30, 2013, 
     the Secretary shall submit to the Committee on Transportation 
     and Infrastructure of the House of Representatives and the 
     Committee on Commerce, Science, and Transportation of the 
     Senate a report detailing the results of the field study.
       (b) General Authority.--Section 31137 is amended--
       (1) by amending the section heading to read as follows:

     ``Sec. 31137. Electronic logging devices and brake 
       maintenance regulations'';

       (2) by redesignating subsection (b) as subsection (g); and
       (3) by amending (a) to read as follows:
       ``(a) Use of Electronic Logging Devices.--Not later than 1 
     year after the date of enactment of the Commercial Motor 
     Vehicle Safety Enhancement Act of 2012, the Secretary of 
     Transportation shall prescribe regulations--
       ``(1) requiring a commercial motor vehicle involved in 
     interstate commerce and operated by a driver subject to the 
     hours of service and the record of duty status requirements 
     under part 395 of title 49, Code of Federal Regulations, be 
     equipped with an electronic logging device to improve 
     compliance by an operator of a vehicle with hours of service 
     regulations prescribed by the Secretary; and
       ``(2) ensuring that an electronic logging device is not 
     used to harass a vehicle operator.
       ``(b) Electronic Logging Device Requirements.--
       ``(1) In general.--The regulations prescribed under 
     subsection (a) shall--
       ``(A) require an electronic logging device--
       ``(i) to accurately record commercial driver hours of 
     service;
       ``(ii) to record the location of a commercial motor 
     vehicle;
       ``(iii) to be tamper resistant; and
       ``(iv) to be synchronized to the operation of the vehicle 
     engine or be capable of recognizing when the vehicle is being 
     operated;
       ``(B) allow law enforcement to access the data contained in 
     the device during a roadside inspection; and
       ``(C) apply to a commercial motor vehicle beginning on the 
     date that is 2 years after the date that the regulations are 
     published as a final rule.
       ``(2) Performance and design standards.--The regulations 
     prescribed under subsection (a) shall establish performance 
     standards--
       ``(A) defining a standardized user interface to aid vehicle 
     operator compliance and law enforcement review;
       ``(B) establishing a secure process for standardized--
       ``(i) and unique vehicle operator identification;
       ``(ii) data access;
       ``(iii) data transfer for vehicle operators between motor 
     vehicles;
       ``(iv) data storage for a motor carrier; and
       ``(v) data transfer and transportability for law 
     enforcement officials;
       ``(C) establishing a standard security level for an 
     electronic logging device and related components to be tamper 
     resistant by using a methodology endorsed by a nationally 
     recognized standards organization; and
       ``(D) identifying each driver subject to the hours of 
     service and record of duty status requirements under part 395 
     of title 49, Code of Federal Regulations.
       ``(c) Certification Criteria.--
       ``(1) In general.--The regulations prescribed by the 
     Secretary under this section shall establish the criteria and 
     a process for the certification of electronic logging devices 
     to ensure that the device meets the performance requirements 
     under this section.
       ``(2) Effect of noncertification.--Electronic logging 
     devices that are not certified in accordance with the 
     certification process referred to in paragraph (1) shall not 
     be acceptable evidence of hours of service and record of duty 
     status requirements under part 395 of title 49, Code of 
     Federal Regulations.

[[Page 10629]]

       ``(d) Additional Considerations.--The Secretary, in 
     prescribing the regulations described in subsection (a), 
     shall consider how such regulations may--
       ``(1) reduce or eliminate requirements for drivers and 
     motor carriers to retain supporting documentation associated 
     with paper-based records of duty status if--
       ``(A) data contained in an electronic logging device 
     supplants such documentation; and
       ``(B) using such data without paper-based records does not 
     diminish the Secretary's ability to audit and review 
     compliance with the Secretary's hours of service regulations; 
     and
       ``(2) include such measures as the Secretary determines are 
     necessary to protect the privacy of each individual whose 
     personal data is contained in an electronic logging device.
       ``(e) Use of Data.--
       ``(1) In general.--The Secretary may utilize information 
     contained in an electronic logging device only to enforce the 
     Secretary's motor carrier safety and related regulations, 
     including record-of-duty status regulations.
       ``(2) Measures to preserve confidentiality of personal 
     data.--The Secretary shall institute appropriate measures to 
     preserve the confidentiality of any personal data contained 
     in an electronic logging device and disclosed in the course 
     of an action taken by the Secretary or by law enforcement 
     officials to enforce the regulations referred to in paragraph 
     (1).
       ``(3) Enforcement.--The Secretary shall institute 
     appropriate measures to ensure any information collected by 
     electronic logging devices is used by enforcement personnel 
     only for the purpose of determining compliance with hours of 
     service requirements.
       ``(f) Definitions.--In this section:
       ``(1) Electronic logging device.--The term `electronic 
     logging device' means an electronic device that--
       ``(A) is capable of recording a driver's hours of service 
     and duty status accurately and automatically; and
       ``(B) meets the requirements established by the Secretary 
     through regulation.
       ``(2) Tamper resistant.--The term `tamper resistant' means 
     resistant to allowing any individual to cause an electronic 
     device to record the incorrect date, time, and location for 
     changes to on-duty driving status of a commercial motor 
     vehicle operator under part 395 of title 49, Code of Federal 
     Regulations, or to subsequently alter the record created by 
     that device.''.
       (c) Civil Penalties.--Section 30165(a)(1) is amended by 
     striking ``or 30141 through 30147'' and inserting ``30141 
     through 30147, or 31137''.
       (d) Conforming Amendment.--The analysis for chapter 311 is 
     amended by striking the item relating to section 31137 and 
     inserting the following:

``31137. Electronic logging devices and brake maintenance 
              regulations.''.

     SEC. 32302. DRIVER MEDICAL QUALIFICATIONS.

       (a) Deadline for Establishment of National Registry of 
     Medical Examiners.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall establish a 
     national registry of medical examiners in accordance with 
     section 31149(d)(1) of title 49, United States Code.
       (b) Examination Requirement for National Registry of 
     Medical Examiners.--Section 31149(c)(1)(D) is amended to read 
     as follows:
       ``(D) not later than 1 year after enactment of the 
     Commercial Motor Vehicle Safety Enhancement Act of 2012, 
     develop requirements for a medical examiner to be listed in 
     the national registry under this section, including--
       ``(i) the completion of specific courses and materials;
       ``(ii) certification, including, at a minimum, self-
     certification, if the Secretary determines that self-
     certification is necessary for sufficient participation in 
     the national registry, to verify that a medical examiner 
     completed specific training, including refresher courses, 
     that the Secretary determines necessary to be listed in the 
     national registry;
       ``(iii) an examination that requires a passing grade; and
       ``(iv) demonstration of a medical examiner's willingness to 
     meet the reporting requirements established by the 
     Secretary;''.
       (c) Additional Oversight of Licensing Authorities.--
       (1) In general.--Section 31149(c)(1) is amended--
       (A) by amending subparagraph (E) to read as follows:
       ``(E) require medical examiners to transmit electronically, 
     on a monthly basis, the name of the applicant, a numerical 
     identifier, and additional information contained on the 
     medical examiner's certificate for any completed medical 
     examination report required under section 391.43 of title 49, 
     Code of Federal Regulations, to the chief medical 
     examiner;'';
       (B) in subparagraph (F), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(G) annually review the implementation of commercial 
     driver's license requirements by not fewer than 10 States to 
     assess the accuracy, validity, and timeliness of--
       ``(i) the submission of physical examination reports and 
     medical certificates to State licensing agencies; and
       ``(ii) the processing of the submissions by State licensing 
     agencies.''.
       (2) Internal oversight policy.--
       (A) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall establish an 
     oversight policy and procedure to carry out section 
     31149(c)(1)(G) of title 49, United States Code, as added by 
     section 32302(c)(1) of this Act.
       (B) Effective date.--The amendments made by section 
     32303(c)(1) of this Act shall take effect on the date the 
     oversight policies and procedures are established pursuant to 
     subparagraph (A).
       (d) Electronic Filing of Medical Examination 
     Certificates.--Section 31311(a), as amended by sections 
     32203(b) and 32305(b) of this Act, is amended by adding at 
     the end the following:
       ``(25) Not later than 5 years after the date of enactment 
     of the Commercial Motor Vehicle Safety Enhancement Act of 
     2012, the State shall establish and maintain, as part of its 
     driver information system, the capability to receive an 
     electronic copy of a medical examiner's certificate, from a 
     certified medical examiner, for each holder of a commercial 
     driver's license issued by the State who operates or intends 
     to operate in interstate commerce.''.
       (e) Funding.--The Secretary is authorized to utilize funds 
     provided under section 4101(c)(1) of SAFETEA-LU (119 Stat. 
     1715) to support development of costs of the information 
     technology needed to carry out section 31311(a)(25) of title 
     49, United States Code.

     SEC. 32303. COMMERCIAL DRIVER'S LICENSE NOTIFICATION SYSTEM.

       (a) In General.--Section 31304 is amended--
       (1) by striking ``An employer'' and inserting the 
     following:
       ``(a) In General.--An employer''; and
       (2) by adding at the end the following:
       ``(b) Driver Violation Records.--
       ``(1) Periodic review.--Except as provided in paragraph 
     (3), an employer shall ascertain the driving record of each 
     driver it employs--
       ``(A) by making an inquiry at least once every 12 months to 
     the appropriate State agency in which the driver held or 
     holds a commercial driver's license or permit during such 
     time period;
       ``(B) by receiving occurrence-based reports of changes in 
     the status of a driver's record from 1 or more driver record 
     notification systems that meet minimum standards issued by 
     the Secretary; or
       ``(C) by a combination of inquiries to States and reports 
     from driver record notification systems.
       ``(2) Record keeping.--A copy of the reports received under 
     paragraph (1) shall be maintained in the driver's 
     qualification file.
       ``(3) Exceptions to record review requirement.--Paragraph 
     (1) shall not apply to a driver employed by an employer who, 
     in any 7-day period, is employed or used as a driver by more 
     than 1 employer--
       ``(A) if the employer obtains the driver's identification 
     number, type, and issuing State of the driver's commercial 
     motor vehicle license; or
       ``(B) if the information described in subparagraph (A) is 
     furnished by another employer and the employer that regularly 
     employs the driver meets the other requirements under this 
     section.
       ``(4) Driver record notification system defined.--In this 
     section, the term `driver record notification system' means a 
     system that automatically furnishes an employer with a 
     report, generated by the appropriate agency of a State, on 
     the change in the status of an employee's driver's license 
     due to a conviction for a moving violation, a failure to 
     appear, an accident, driver's license suspension, driver's 
     license revocation, or any other action taken against the 
     driving privilege.''.
       (b) Standards for Driver Record Notification Systems.--Not 
     later than 1 year after the date of enactment of this Act, 
     the Secretary shall issue minimum standards for driver 
     notification systems, including standards for the accuracy, 
     consistency, and completeness of the information provided.
       (c) Plan for National Notification System.--
       (1) Development.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall develop 
     recommendations and a plan for the development and 
     implementation of a national driver record notification 
     system, including--
       (A) an assessment of the merits of achieving a national 
     system by expanding the Commercial Driver's License 
     Information System; and
       (B) an estimate of the fees that an employer will be 
     charged to offset the operating costs of the national system.
       (2) Submission to congress.--Not later than 90 days after 
     the recommendations and plan are developed under paragraph 
     (1), the Secretary shall submit a report on the 
     recommendations and plan to the Committee on Commerce, 
     Science, and Transportation of the Senate and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives.

     SEC. 32304. COMMERCIAL MOTOR VEHICLE OPERATOR TRAINING.

       (a) In General.--Section 31305 is amended by adding at the 
     end the following:
       ``(c) Standards for Training.--Not later than 1 year after 
     the date of enactment of the Commercial Motor Vehicle Safety 
     Enhancement Act of 2012, the Secretary shall issue final 
     regulations establishing minimum entry-level training 
     requirements for an individual operating a commercial motor 
     vehicle--
       ``(1) addressing the knowledge and skills that--
       ``(A) are necessary for an individual operating a 
     commercial motor vehicle to safely operate a commercial motor 
     vehicle; and
       ``(B) must be acquired before obtaining a commercial 
     driver's license for the first time or upgrading from one 
     class of commercial driver's license to another class;

[[Page 10630]]

       ``(2) addressing the specific training needs of a 
     commercial motor vehicle operator seeking passenger or 
     hazardous materials endorsements;
       ``(3) requiring effective instruction to acquire the 
     knowledge, skills, and training referred to in paragraphs (1) 
     and (2), including classroom and behind-the-wheel 
     instruction;
       ``(4) requiring certification that an individual operating 
     a commercial motor vehicle meets the requirements established 
     by the Secretary; and
       ``(5) requiring a training provider (including a public or 
     private driving school, motor carrier, or owner or operator 
     of a commercial motor vehicle) that offers training that 
     results in the issuance of a certification to an individual 
     under paragraph (4) to demonstrate that the training meets 
     the requirements of the regulations, through a process 
     established by the Secretary.''.
       (b) Commercial Driver's License Uniform Standards.--Section 
     31308(1) is amended to read as follows:
       ``(1) an individual issued a commercial driver's license--
       ``(A) pass written and driving tests for the operation of a 
     commercial motor vehicle that comply with the minimum 
     standards prescribed by the Secretary under section 31305(a); 
     and
       ``(B) present certification of completion of driver 
     training that meets the requirements established by the 
     Secretary under section 31305(c);''.
       (c) Conforming Amendment.--The section heading for section 
     31305 is amended to read as follows:

     ``Sec. 31305. General driver fitness, testing, and 
       training''.

       (d) Conforming Amendment.--The analysis for chapter 313 is 
     amended by striking the item relating to section 31305 and 
     inserting the following:

``31305. General driver fitness, testing, and training.''.

     SEC. 32305. COMMERCIAL DRIVER'S LICENSE PROGRAM.

       (a) In General.--Section 31309 is amended--
       (1) in subsection (e)(4), by amending subparagraph (A) to 
     read as follows:
       ``(A) In general.--The plan shall specify--
       ``(i) a date by which all States shall be operating 
     commercial driver's license information systems that are 
     compatible with the modernized information system under this 
     section; and
       ``(ii) that States must use the systems to receive and 
     submit conviction and disqualification data.''; and
       (2) in subsection (f), by striking ``use'' and inserting 
     ``use, subject to section 31313(a),''.
       (b) Requirements for State Participation.--Section 31311 is 
     amended--
       (1) in subsection (a), as amended by section 32203(b) of 
     this Act--
       (A) in paragraph (5), by striking ``At least'' and all that 
     follows through ``regulation),'' and inserting: ``Not later 
     than the time period prescribed by the Secretary by 
     regulation,''; and
       (B) by adding at the end the following:
       ``(23) Not later than 1 year after the date of enactment of 
     the Commercial Motor Vehicle Safety Enhancement Act of 2012, 
     the State shall implement a system and practices for the 
     exclusive electronic exchange of driver history record 
     information on the system the Secretary maintains under 
     section 31309, including the posting of convictions, 
     withdrawals, and disqualifications.
       ``(24) Before renewing or issuing a commercial driver's 
     license to an individual, the State shall request information 
     pertaining to the individual from the drug and alcohol 
     clearinghouse maintained under section 31306a.''; and
       (2) by adding at the end the following:
       ``(d) State Commercial Driver's License Program Plan.--
       ``(1) In general.--A State shall submit a plan to the 
     Secretary for complying with the requirements under this 
     section during the period beginning on the date the plan is 
     submitted and ending on September 30, 2016.
       ``(2) Contents.--A plan submitted by a State under 
     paragraph (1) shall identify--
       ``(A) the actions that the State will take to address any 
     deficiencies in the State's commercial driver's license 
     program, as identified by the Secretary in the most recent 
     audit of the program; and
       ``(B) other actions that the State will take to comply with 
     the requirements under subsection (a).
       ``(3) Priority.--
       ``(A) Implementation schedule.--A plan submitted by a State 
     under paragraph (1) shall include a schedule for the 
     implementation of the actions identified under paragraph (2). 
     In establishing the schedule, the State shall prioritize 
     actions to address any deficiencies highlighted by the 
     Secretary as critical in the most recent audit of the 
     program.
       ``(B) Deadline for compliance with requirements.--A plan 
     submitted by a State under paragraph (1) shall include 
     assurances that the State will take the necessary actions to 
     comply with the requirements of subsection (a) not later than 
     September 30, 2015.
       ``(4) Approval and disapproval.--The Secretary shall--
       ``(A) review each plan submitted under paragraph (1);
       ``(B)(i) approve a plan if the Secretary determines that 
     the plan meets the requirements under this subsection and 
     promotes the goals of this chapter; and
       ``(ii) disapprove a plan that the Secretary determines does 
     not meet the requirements or does not promote the goals.
       ``(5) Modification of disapproved plans.--If the Secretary 
     disapproves a plan under paragraph (4), the Secretary shall--
       ``(A) provide a written explanation of the disapproval to 
     the State; and
       ``(B) allow the State to modify the plan and resubmit it 
     for approval.
       ``(6) Plan updates.--The Secretary may require a State to 
     review and update a plan, as appropriate.
       ``(e) Annual Comparison of State Levels of Compliance.--The 
     Secretary shall annually--
       ``(1) compare the relative levels of compliance by States 
     with the requirements under subsection (a); and
       ``(2) make the results of the comparison available to the 
     public.''.

     SEC. 32306. COMMERCIAL MOTOR VEHICLE DRIVER INFORMATION 
                   SYSTEMS.

       Section 31106(c) is amended--
       (1) by striking the heading and inserting ``(1) In 
     General.'';
       (2) by redesignating paragraphs (1) through (4) as 
     subparagraphs (A) through (D); and
       (3) by adding at the end the following:
       ``(2) Access to records.--The Secretary may require a 
     State, as a condition of an award of grant money under this 
     section, to provide the Secretary access to all State 
     licensing status and driver history records via an electronic 
     information system, subject to section 2721 of title 18.''.

     SEC. 32307. EMPLOYER RESPONSIBILITIES.

       Section 31304, as amended by section 32303 of this Act, is 
     amended in subsection (a)--
       (1) by striking ``knowingly''; and
       (2) by striking ``in which'' and inserting ``that the 
     employer knows or should reasonably know that''.

     SEC. 32308. PROGRAM TO ASSIST VETERANS TO ACQUIRE COMMERCIAL 
                   DRIVER'S LICENSES.

       (a) Study.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary, in coordination with 
     the Secretary of Defense, and in consultation with the States 
     and other relevant stakeholders, shall commence a study to 
     assess Federal and State regulatory, economic, and 
     administrative challenges faced by members and former members 
     of the Armed Forces, who received safety training and 
     operated qualifying motor vehicles during their service, in 
     obtaining commercial driver's licenses (as defined in section 
     31301(3) of title 49, United States Code).
       (2) Requirements.--The study under this subsection shall--
       (A) identify written and behind-the-wheel safety training, 
     qualification standards, knowledge and skills tests, or other 
     operating experience members of the Armed Forces must meet 
     that satisfy the minimum standards prescribed by the 
     Secretary of Transportation for the operation of commercial 
     motor vehicles under section 31305 of title 49, United States 
     Code;
       (B) compare the alcohol and controlled substances testing 
     requirements for members of the Armed Forces with those 
     required for holders of a commercial driver's license;
       (C) evaluate the cause of delays in reviewing applications 
     for commercial driver's licenses of members and former 
     members of the Armed Forces;
       (D) identify duplicative application costs;
       (E) identify residency, domicile, training and testing 
     requirements, and other safety or health assessments that 
     affect or delay the issuance of commercial driver's licenses 
     to members and former members of the Armed Forces; and
       (F) include other factors that the Secretary determines to 
     be appropriate to meet the requirements of the study.
       (b) Report.--
       (1) In general.--Not later than 180 days after the 
     commencement of the study under subsection (a), the Secretary 
     shall submit a report to the Committee on Commerce, Science, 
     and Transportation of the Senate and the Committee on 
     Financial Services of the House of Representatives that 
     contains the findings and recommendations from the study.
       (2) Elements.--The report under paragraph (1) shall 
     include--
       (A) findings related to the study requirements under 
     subsection (a)(2);
       (B) recommendations for the Federal and State legislative, 
     regulatory, and administrative actions necessary to address 
     challenges identified in subparagraph (A); and
       (C) a plan to implement the recommendations for which the 
     Secretary has authority.
       (c) Implementation.--Not later than 1 year after the date 
     of enactment of this Act, the Secretary, in consultation with 
     the Secretary of Defense and in cooperation with the States, 
     shall implement the recommendations identified in subsection 
     (b) and establish accelerated licensing procedures to assist 
     veterans to acquire commercial driver's licenses.
       (d) Accelerated Licensing Procedures.--The procedures 
     established under subsection (a) shall be designed to be 
     applicable to any veteran who--
       (1) is attempting to acquire a commercial driver's license; 
     and
       (2) obtained, during military service, documented driving 
     experience that, in the determination of the Secretary, makes 
     the use of accelerated licensing procedures appropriate.
       (e) Definitions.--In this section:
       (1) Commercial driver's license.--The term ``commercial 
     driver's license'' has the meaning given that term in section 
     31301 of title 49, United States Code.
       (2) State.--The term ``State'' has the meaning given that 
     term in section 31301 of title 49, United States Code.

[[Page 10631]]

       (3) Veteran.--The term ``veteran'' has the meaning given 
     that term in section 101 of title 38, United States Code.
                   Subtitle D--Safe Roads Act of 2012

     SEC. 32401. SHORT TITLE.

       This subtitle may be cited as the ``Safe Roads Act of 
     2012''.

     SEC. 32402. NATIONAL CLEARINGHOUSE FOR CONTROLLED SUBSTANCE 
                   AND ALCOHOL TEST RESULTS OF COMMERCIAL MOTOR 
                   VEHICLE OPERATORS.

       (a) In General.--Chapter 313 is amended--
       (1) in section 31306(a), by inserting ``and section 
     31306a'' after ``this section''; and
       (2) by inserting after section 31306 the following:

     ``Sec. 31306a. National clearinghouse for controlled 
       substance and alcohol test results of commercial motor 
       vehicle operators

       ``(a) Establishment.--
       ``(1) In general.--Not later than 2 years after the date of 
     enactment of the Safe Roads Act of 2012, the Secretary of 
     Transportation shall establish, operate, and maintain a 
     national clearinghouse for records relating to alcohol and 
     controlled substances testing of commercial motor vehicle 
     operators.
       ``(2) Purposes.--The purposes of the clearinghouse shall 
     be--
       ``(A) to improve compliance with the Department of 
     Transportation's alcohol and controlled substances testing 
     program applicable to commercial motor vehicle operators; and
       ``(B) to enhance the safety of our United States roadways 
     by reducing accident and injuries involving the misuse of 
     alcohol or use of controlled substances by operators of 
     commercial motor vehicles.
       ``(3) Contents.--The clearinghouse shall function as a 
     repository for records relating to the positive test results 
     and test refusals of commercial motor vehicle operators and 
     violations by such operators of prohibitions set forth in 
     subpart B of part 382 of title 49, Code of Federal 
     Regulations (or any subsequent corresponding regulations).
       ``(4) Electronic exchange of records.--The Secretary shall 
     ensure that records can be electronically submitted to, and 
     requested from, the clearinghouse by authorized users.
       ``(5) Authorized operator.--The Secretary may authorize a 
     qualified private entity to operate and maintain the 
     clearinghouse and to collect fees on behalf of the Secretary 
     under subsection (e). The entity shall operate and maintain 
     the clearinghouse and permit access to driver information and 
     records from the clearinghouse in accordance with this 
     section.
       ``(b) Design of Clearinghouse.--
       ``(1) Use of federal motor carrier safety administration 
     recommendations.--In establishing the clearinghouse, the 
     Secretary shall consider--
       ``(A) the findings and recommendations contained in the 
     Federal Motor Carrier Safety Administration's March 2004 
     report to Congress required under section 226 of the Motor 
     Carrier Safety Improvement Act of 1999 (49 U.S.C. 31306 
     note); and
       ``(B) the findings and recommendations contained in the 
     Government Accountability Office's May 2008 report to 
     Congress entitled `Motor Carrier Safety: Improvements to Drug 
     Testing Programs Could Better Identify Illegal Drug Users and 
     Keep Them off the Road.'.
       ``(2) Development of secure processes.--In establishing the 
     clearinghouse, the Secretary shall develop a secure process 
     for--
       ``(A) administering and managing the clearinghouse in 
     compliance with applicable Federal security standards;
       ``(B) registering and authenticating authorized users of 
     the clearinghouse;
       ``(C) registering and authenticating persons required to 
     report to the clearinghouse under subsection (g);
       ``(D) preventing the unauthorized access of information 
     from the clearinghouse;
       ``(E) storing and transmitting data;
       ``(F) persons required to report to the clearinghouse under 
     subsection (g) to timely and accurately submit electronic 
     data to the clearinghouse;
       ``(G) generating timely and accurate reports from the 
     clearinghouse in response to requests for information by 
     authorized users; and
       ``(H) updating an individual's record upon completion of 
     the return-to-duty process described in title 49, Code of 
     Federal Regulations.
       ``(3) Employer alert of positive test result.--In 
     establishing the clearinghouse, the Secretary shall develop a 
     secure method for electronically notifying an employer of 
     each additional positive test result or other noncompliance--
       ``(A) for an employee, that is entered into the 
     clearinghouse during the 7-day period immediately following 
     an employer's inquiry about the employee; and
       ``(B) for an employee who is listed as having multiple 
     employers.
       ``(4) Archive capability.--In establishing the 
     clearinghouse, the Secretary shall develop a process for 
     archiving all clearinghouse records for the purposes of 
     auditing and evaluating the timeliness, accuracy, and 
     completeness of data in the clearinghouse.
       ``(5) Future needs.--
       ``(A) Interoperability with other data systems.--In 
     establishing the clearinghouse, the Secretary shall 
     consider--
       ``(i) the existing data systems containing regulatory and 
     safety data for commercial motor vehicle operators;
       ``(ii) the efficacy of using or combining clearinghouse 
     data with 1 or more of such systems; and
       ``(iii) the potential interoperability of the clearinghouse 
     with such systems.
       ``(B) Specific considerations.--In carrying out 
     subparagraph (A), the Secretary shall determine--
       ``(i) the clearinghouse's capability for interoperability 
     with--

       ``(I) the National Driver Register established under 
     section 30302;
       ``(II) the Commercial Driver's License Information System 
     established under section 31309;
       ``(III) the Motor Carrier Management Information System for 
     preemployment screening services under section 31150; and
       ``(IV) other data systems, as appropriate; and

       ``(ii) any change to the administration of the current 
     testing program, such as forms, that is necessary to collect 
     data for the clearinghouse.
       ``(c) Standard Formats.--The Secretary shall develop 
     standard formats to be used--
       ``(1) by an authorized user of the clearinghouse to--
       ``(A) request a record from the clearinghouse; and
       ``(B) obtain the consent of an individual who is the 
     subject of a request from the clearinghouse, if applicable; 
     and
       ``(2) to notify an individual that a positive alcohol or 
     controlled substances test result, refusing to test, and a 
     violation of any of the prohibitions under subpart B of part 
     382 of title 49, Code of Federal Regulations (or any 
     subsequent corresponding regulations), will be reported to 
     the clearinghouse.
       ``(d) Privacy.--A release of information from the 
     clearinghouse shall--
       ``(1) comply with applicable Federal privacy laws, 
     including the fair information practices under the Privacy 
     Act of 1974 (5 U.S.C. 552a);
       ``(2) comply with applicable sections of the Fair Credit 
     Reporting Act (15 U.S.C. 1681 et seq.); and
       ``(3) not be made to any person or entity unless expressly 
     authorized or required by law.
       ``(e) Fees.--
       ``(1) Authority to collect fees.--Except as provided under 
     paragraph (3), the Secretary may collect a reasonable, 
     customary, and nominal fee from an authorized user of the 
     clearinghouse for a request for information from the 
     clearinghouse.
       ``(2) Use of fees.--Fees collected under this subsection 
     shall be used for the operation and maintenance of the 
     clearinghouse.
       ``(3) Limitation.--The Secretary may not collect a fee from 
     an individual requesting information from the clearinghouse 
     that pertains to the record of that individual.
       ``(f) Employer Requirements.--
       ``(1) Determination concerning use of clearinghouse.--The 
     Secretary shall determine if an employer is authorized to use 
     the clearinghouse to meet the alcohol and controlled 
     substances testing requirements under title 49, Code of 
     Federal Regulations.
       ``(2) Applicability of existing requirements.--Each 
     employer and service agent shall continue to comply with the 
     alcohol and controlled substances testing requirements under 
     title 49, Code of Federal Regulations.
       ``(3) Employment prohibitions.--After the clearinghouse is 
     established under subsection (a), at a date determined to be 
     appropriate by the Secretary and published in the Federal 
     Register, an employer shall utilize the clearinghouse to 
     determine whether any employment prohibitions exist and shall 
     not hire an individual to operate a commercial motor vehicle 
     unless the employer determines that the individual, during 
     the preceding 3-year period--
       ``(A) if tested for the use of alcohol and controlled 
     substances, as required under title 49, Code of Federal 
     Regulations--
       ``(i) did not test positive for the use of alcohol or 
     controlled substances in violation of the regulations; or
       ``(ii) tested positive for the use of alcohol or controlled 
     substances and completed the required return-to-duty process 
     under title 49, Code of Federal Regulations;
       ``(B)(i) did not refuse to take an alcohol or controlled 
     substance test under title 49, Code of Federal Regulations; 
     or
       ``(ii) refused to take an alcohol or controlled substance 
     test and completed the required return-to-duty process under 
     title 49, Code of Federal Regulations; and
       ``(C) did not violate any other provision of subpart B of 
     part 382 of title 49, Code of Federal Regulations (or any 
     subsequent corresponding regulations).
       ``(4) Annual review.--After the clearinghouse is 
     established under subsection (a), at a date determined to be 
     appropriate by the Secretary and published in the Federal 
     Register, an employer shall request and review a commercial 
     motor vehicle operator's record from the clearinghouse 
     annually for as long as the commercial motor vehicle operator 
     is under the employ of the employer.
       ``(g) Reporting of Records.--
       ``(1) In general.--Beginning 30 days after the date that 
     the clearinghouse is established under subsection (a), a 
     medical review officer, employer, service agent, and other 
     appropriate person, as determined by the Secretary, shall 
     promptly submit to the Secretary any record generated after 
     the clearinghouse is initiated of an individual who--
       ``(A) refuses to take an alcohol or controlled substances 
     test required under title 49, Code of Federal Regulations;
       ``(B) tests positive for alcohol or a controlled substance 
     in violation of the regulations; or
       ``(C) violates any other provision of subpart B of part 382 
     of title 49, Code of Federal Regulations (or any subsequent 
     corresponding regulations).

[[Page 10632]]

       ``(2) Inclusion of records in clearinghouse.--The Secretary 
     shall include in the clearinghouse the records of positive 
     test results and test refusals received under paragraph (1).
       ``(3) Modifications and deletions.--If the Secretary 
     determines that a record contained in the clearinghouse is 
     not accurate, the Secretary shall modify or delete the 
     record, as appropriate.
       ``(4) Notification.--The Secretary shall expeditiously 
     notify an individual, unless such notification would be 
     duplicative, when--
       ``(A) a record relating to the individual is received by 
     the clearinghouse;
       ``(B) a record in the clearinghouse relating to the 
     individual is modified or deleted, and include in the 
     notification the reason for the modification or deletion; or
       ``(C) a record in the clearinghouse relating to the 
     individual is released to an employer and specify the reason 
     for the release.
       ``(5) Data quality and security standards for reporting and 
     releasing.--The Secretary may establish additional 
     requirements, as appropriate, to ensure that--
       ``(A) the submission of records to the clearinghouse is 
     timely and accurate;
       ``(B) the release of data from the clearinghouse is timely, 
     accurate, and released to the appropriate authorized user 
     under this section; and
       ``(C) an individual with a record in the clearinghouse has 
     a cause of action for any inappropriate use of information 
     included in the clearinghouse.
       ``(6) Retention of records.--The Secretary shall--
       ``(A) retain a record submitted to the clearinghouse for a 
     5-year period beginning on the date the record is submitted;
       ``(B) remove the record from the clearinghouse at the end 
     of the 5-year period, unless the individual fails to meet a 
     return-to-duty or follow-up requirement under title 49, Code 
     of Federal Regulations; and
       ``(C) retain a record after the end of the 5-year period in 
     a separate location for archiving and auditing purposes.
       ``(h) Authorized Users.--
       ``(1) Employers.--The Secretary shall establish a process 
     for an employer, or an employer's designated agent, to 
     request and receive an individual's record from the 
     clearinghouse.
       ``(A) Consent.--An employer may not access an individual's 
     record from the clearinghouse unless the employer--
       ``(i) obtains the prior written or electronic consent of 
     the individual for access to the record; and
       ``(ii) submits proof of the individual's consent to the 
     Secretary.
       ``(B) Access to records.--After receiving a request from an 
     employer for an individual's record under subparagraph (A), 
     the Secretary shall grant access to the individual's record 
     to the employer as expeditiously as practicable.
       ``(C) Retention of record requests.--The Secretary shall 
     require an employer to retain for a 3-year period--
       ``(i) a record of each request made by the employer for 
     records from the clearinghouse; and
       ``(ii) the information received pursuant to the request.
       ``(D) Use of records.--An employer may use an individual's 
     record received from the clearinghouse only to assess and 
     evaluate whether a prohibition applies with respect to the 
     individual to operate a commercial motor vehicle for the 
     employer.
       ``(E) Protection of privacy of individuals.--An employer 
     that receives an individual's record from the clearinghouse 
     under subparagraph (B) shall--
       ``(i) protect the privacy of the individual and the 
     confidentiality of the record; and
       ``(ii) ensure that information contained in the record is 
     not divulged to a person or entity that is not directly 
     involved in assessing and evaluating whether a prohibition 
     applies with respect to the individual to operate a 
     commercial motor vehicle for the employer.
       ``(2) State licensing authorities.--The Secretary shall 
     establish a process for the chief commercial driver's 
     licensing official of a State to request and receive an 
     individual's record from the clearinghouse if the individual 
     is applying for a commercial driver's license from the State.
       ``(A) Consent.--The Secretary may grant access to an 
     individual's record in the clearinghouse under this paragraph 
     without the prior written or electronic consent of the 
     individual. An individual who holds a commercial driver's 
     license shall be deemed to consent to such access by 
     obtaining a commercial driver's license.
       ``(B) Protection of privacy of individuals.--A chief 
     commercial driver's licensing official of a State that 
     receives an individual's record from the clearinghouse under 
     this paragraph shall--
       ``(i) protect the privacy of the individual and the 
     confidentiality of the record; and
       ``(ii) ensure that the information in the record is not 
     divulged to any person that is not directly involved in 
     assessing and evaluating the qualifications of the individual 
     to operate a commercial motor vehicle.
       ``(i) National Transportation Safety Board.--The Secretary 
     shall establish a process for the National Transportation 
     Safety Board to request and receive an individual's record 
     from the clearinghouse if the individual is involved in an 
     accident that is under investigation by the National 
     Transportation Safety Board.
       ``(j) Access to Clearinghouse by Individuals.--
       ``(1) In general.--The Secretary shall establish a process 
     for an individual to request and receive information from the 
     clearinghouse--
       ``(A) to determine whether the clearinghouse contains a 
     record pertaining to the individual;
       ``(B) to verify the accuracy of a record;
       ``(C) to update an individual's record, including 
     completing the return-to-duty process described in title 49, 
     Code of Federal Regulations; and
       ``(D) to determine whether the clearinghouse received 
     requests for the individual's information.
       ``(2) Dispute procedure.--The Secretary shall establish a 
     procedure, including an appeal process, for an individual to 
     dispute and remedy an administrative error in the 
     individual's record.
       ``(k) Penalties.--
       ``(1) In general.--An employer, employee, medical review 
     officer, or service agent who violates any provision of this 
     section shall be subject to civil penalties under section 
     521(b)(2)(C) and criminal penalties under section 
     521(b)(6)(B), and any other applicable civil and criminal 
     penalties, as determined by the Secretary.
       ``(2) Violation of privacy.--The Secretary shall establish 
     civil and criminal penalties, consistent with paragraph (1), 
     for an authorized user who violates paragraph (1) or (2) of 
     subsection (h).
       ``(l) Compatibility of State and Local Laws.--
       ``(1) Preemption.--Except as provided under paragraph (2), 
     any law, regulation, order, or other requirement of a State, 
     political subdivision of a State, or Indian tribe related to 
     a commercial driver's license holder subject to alcohol or 
     controlled substance testing under title 49, Code of Federal 
     Regulations, that is inconsistent with this section or a 
     regulation issued pursuant to this section is preempted.
       ``(2) Applicability.--The preemption under paragraph (1) 
     shall include--
       ``(A) the reporting of valid positive results from alcohol 
     screening tests and drug tests;
       ``(B) the refusal to provide a specimen for an alcohol 
     screening test or drug test; and
       ``(C) other violations of subpart B of part 382 of title 
     49, Code of Federal Regulations (or any subsequent 
     corresponding regulations).
       ``(3) Exception.--A law, regulation, order, or other 
     requirement of a State, political subdivision of a State, or 
     Indian tribe shall not be preempted under this subsection to 
     the extent it relates to an action taken with respect to a 
     commercial motor vehicle operator's commercial driver's 
     license or driving record as a result of the driver's--
       ``(A) verified positive alcohol or drug test result;
       ``(B) refusal to provide a specimen for the test; or
       ``(C) other violations of subpart B of part 382 of title 
     49, Code of Federal Regulations (or any subsequent 
     corresponding regulations).
       ``(m) Definitions.--In this section--
       ``(1) Authorized user.--The term `authorized user' means an 
     employer, State licensing authority, or other person granted 
     access to the clearinghouse under subsection (h).
       ``(2) Chief commercial driver's licensing official.--The 
     term `chief commercial driver's licensing official' means the 
     official in a State who is authorized to--
       ``(A) maintain a record about commercial driver's licenses 
     issued by the State; and
       ``(B) take action on commercial driver's licenses issued by 
     the State.
       ``(3) Clearinghouse.--The term `clearinghouse' means the 
     clearinghouse established under subsection (a).
       ``(4) Commercial motor vehicle operator.--The term 
     `commercial motor vehicle operator' means an individual who--
       ``(A) possesses a valid commercial driver's license issued 
     in accordance with section 31308; and
       ``(B) is subject to controlled substances and alcohol 
     testing under title 49, Code of Federal Regulations.
       ``(5) Employer.--The term `employer' means a person or 
     entity employing, or seeking to employ, 1 or more employees 
     (including an individual who is self-employed) to be 
     commercial motor vehicle operators.
       ``(6) Medical review officer.--The term `medical review 
     officer' means a licensed physician who is responsible for--
       ``(A) receiving and reviewing a laboratory result generated 
     under the testing program;
       ``(B) evaluating a medical explanation for a controlled 
     substances test under title 49, Code of Federal Regulations; 
     and
       ``(C) interpreting the results of a controlled substances 
     test.
       ``(7) Secretary.--The term `Secretary' means the Secretary 
     of Transportation.
       ``(8) Service agent.--The term `service agent' means a 
     person or entity, other than an employee of the employer, who 
     provides services to employers or employees under the testing 
     program.
       ``(9) Testing program.--The term `testing program' means 
     the alcohol and controlled substances testing program 
     required under title 49, Code of Federal Regulations.''.
       (b) Conforming Amendment.--The analysis for chapter 313 is 
     amended by inserting after the item relating to section 31306 
     the following:

``31306a. National clearinghouse for positive controlled substance and 
              alcohol test results of commercial motor vehicle 
              operators.''.

[[Page 10633]]


                        Subtitle E--Enforcement

     SEC. 32501. INSPECTION DEMAND AND DISPLAY OF CREDENTIALS.

       (a) Safety Investigations.--Section 504(c) is amended--
       (1) by inserting ``, or an employee of the recipient of a 
     grant issued under section 31102 of this title'' after ``a 
     contractor''; and
       (2) by inserting ``, in person or in writing'' after 
     ``proper credentials''.
       (b) Civil Penalty.--Section 521(b)(2)(E) is amended--
       (1) by redesignating subparagraph (E) as subparagraph 
     (E)(i); and
       (2) by adding at the end the following:
       ``(ii) Place out of service.--The Secretary may by 
     regulation adopt procedures for placing out of service the 
     commercial motor vehicle of a foreign-domiciled motor carrier 
     that fails to promptly allow the Secretary to inspect and 
     copy a record or inspect equipment, land, buildings, or other 
     property.''.
       (c) Hazardous Materials Investigations.--Section 5121(c)(2) 
     is amended by inserting ``, in person or in writing,'' after 
     ``proper credentials''.
       (d) Commercial Investigations.--Section 14122(b) is amended 
     by inserting ``, in person or in writing'' after ``proper 
     credentials''.

     SEC. 32502. OUT OF SERVICE PENALTY FOR DENIAL OF ACCESS TO 
                   RECORDS.

       Section 521(b)(2)(E) is amended--
       (1) by inserting after ``$10,000.'' the following: ``In the 
     case of a motor carrier, the Secretary may also place the 
     violator's motor carrier operations out of service.''; and
       (2) by striking ``such penalty'' after ``It shall be a 
     defense to'' and inserting ``a penalty''.

     SEC. 32503. PENALTIES FOR VIOLATION OF OPERATION OUT OF 
                   SERVICE ORDERS.

       Section 521(b)(2) is amended by adding at the end the 
     following:
       ``(F) Penalty for violations relating to out of service 
     orders.--A motor carrier or employer (as defined in section 
     31132) that operates a commercial motor vehicle in commerce 
     in violation of a prohibition on transportation under section 
     31144(c) of this title or an imminent hazard out of service 
     order issued under subsection (b)(5) of this section or 
     section 5121(d) of this title shall be liable for a civil 
     penalty not to exceed $25,000.''.

     SEC. 32504. IMPOUNDMENT AND IMMOBILIZATION OF COMMERCIAL 
                   MOTOR VEHICLES FOR IMMINENT HAZARD.

       Section 521(b) is amended by adding at the end the 
     following:
       ``(15) Impoundment of commercial motor vehicles.--
       ``(A) Enforcement of imminent hazard out-of-service 
     orders.--
       ``(i) The Secretary, or an authorized State official 
     carrying out motor carrier safety enforcement activities 
     under section 31102, may enforce an imminent hazard out-of-
     service order issued under chapters 5, 51, 131 through 149, 
     311, 313, or 315 of this title, or a regulation promulgated 
     thereunder, by towing and impounding a commercial motor 
     vehicle until the order is rescinded.
       ``(ii) Enforcement shall not unreasonably interfere with 
     the ability of a shipper, carrier, broker, or other party to 
     arrange for the alternative transportation of any cargo or 
     passenger being transported at the time the commercial motor 
     vehicle is immobilized. In the case of a commercial motor 
     vehicle transporting passengers, the Secretary or authorized 
     State official shall provide reasonable, temporary, and 
     secure shelter and accommodations for passengers in transit.
       ``(iii) The Secretary's designee or an authorized State 
     official carrying out motor carrier safety enforcement 
     activities under section 31102, shall immediately notify the 
     owner of a commercial motor vehicle of the impoundment and 
     the opportunity for review of the impoundment. A review shall 
     be provided in accordance with section 554 of title 5, except 
     that the review shall occur not later than 10 days after the 
     impoundment.
       ``(B) Issuance of regulations.--The Secretary shall 
     promulgate regulations on the use of impoundment or 
     immobilization of commercial motor vehicles as a means of 
     enforcing additional out-of-service orders issued under 
     chapters 5, 51, 131 through 149, 311, 313, or 315 of this 
     title, or a regulation promulgated thereunder. Regulations 
     promulgated under this subparagraph shall include 
     consideration of public safety, the protection of passengers 
     and cargo, inconvenience to passengers, and the security of 
     the commercial motor vehicle.
       ``(C) Definition.--In this paragraph, the term 
     `impoundment' or 'impounding' means the seizing and taking 
     into custody of a commercial motor vehicle or the 
     immobilizing of a commercial motor vehicle through the 
     attachment of a locking device or other mechanical or 
     electronic means.''.

     SEC. 32505. INCREASED PENALTIES FOR EVASION OF REGULATIONS.

       (a) Penalties.--Section 524 is amended--
       (1) by striking ``knowingly and willfully'';
       (2) by inserting after ``this chapter'' the following: ``, 
     chapter 51, subchapter III of chapter 311 (except sections 
     31138 and 31139) or section 31302, 31303, 31304, 31305(b), 
     31310(g)(1)(A), or 31502 of this title, or a regulation 
     issued under any of those provisions,'';
       (3) by striking ``$200 but not more than $500'' and 
     inserting ``$2,000 but not more than $5,000''; and
       (4) by striking ``$250 but not more than $2,000'' and 
     inserting ``$2,500 but not more than $7,500''.
       (b) Evasion of Regulation.--Section 14906 is amended--
       (1) by striking ``$200'' and inserting ``at least $2,000'';
       (2) by striking ``$250'' and inserting ``$5,000''; and
       (3) by inserting after ``a subsequent violation'' the 
     following:
       ``, and may be subject to criminal penalties''.

     SEC. 32506. VIOLATIONS RELATING TO COMMERCIAL MOTOR VEHICLE 
                   SAFETY REGULATION AND OPERATORS.

       Section 521(b)(2)(D) is amended by striking ``ability to 
     pay,''.

     SEC. 32507. EMERGENCY DISQUALIFICATION FOR IMMINENT HAZARD.

       Section 31310(f) is amended--
       (1) in paragraph (1) by inserting ``section 521 or'' before 
     ``section 5102''; and
       (2) in paragraph (2) by inserting ``section 521 or'' before 
     ``section 5102''.

     SEC. 32508. DISCLOSURE TO STATE AND LOCAL LAW ENFORCEMENT 
                   AGENCIES.

       Section 31106(e) is amended--
       (1) by redesignating subsection (e) as subsection (e)(1); 
     and
       (2) by inserting at the end the following:
       ``(2) In general.--Notwithstanding any prohibition on 
     disclosure of information in section 31105(h) or 31143(b) of 
     this title or section 552a of title 5, the Secretary may 
     disclose information maintained by the Secretary pursuant to 
     chapters 51, 135, 311, or 313 of this title to appropriate 
     personnel of a State agency or instrumentality authorized to 
     carry out State commercial motor vehicle safety activities 
     and commercial driver's license laws, or appropriate 
     personnel of a local law enforcement agency, in accordance 
     with standards, conditions, and procedures as determined by 
     the Secretary. Disclosure under this section shall not 
     operate as a waiver by the Secretary of any applicable 
     privilege against disclosure under common law or as a basis 
     for compelling disclosure under section 552 of title 5.''.

     SEC. 32509. GRADE CROSSING SAFETY REGULATIONS.

       Section 112(2) of the Hazardous Materials Transportation 
     Authorization Act of 1994 (Public Law 103-311) is amended by 
     striking ``315 of such title (relating to motor carrier 
     safety)'' and inserting ``311 of such title (relating to 
     commercial motor vehicle safety)''.
             Subtitle F--Compliance, Safety, Accountability

     SEC. 32601. MOTOR CARRIER SAFETY ASSISTANCE PROGRAM.

       (a) In General.--Section 31102(b) is amended--
       (1) by amending the heading to read as follows:
       ``(b) Motor Carrier Safety Assistance Program.--'';
       (2) by redesignating paragraphs (1) through (3) as (2) 
     through (4), respectively;
       (3) by inserting before paragraph (2), as redesignated, the 
     following:
       ``(1) Program goal.--The goal of the Motor Carrier Safety 
     Assistance Program is to ensure that the Secretary, States, 
     local government agencies, and other political jurisdictions 
     work in partnership to establish programs to improve motor 
     carrier, commercial motor vehicle, and driver safety to 
     support a safe and efficient surface transportation system 
     by--
       ``(A) making targeted investments to promote safe 
     commercial motor vehicle transportation, including 
     transportation of passengers and hazardous materials;
       ``(B) investing in activities likely to generate maximum 
     reductions in the number and severity of commercial motor 
     vehicle crashes and fatalities resulting from such crashes;
       ``(C) adopting and enforcing effective motor carrier, 
     commercial motor vehicle, and driver safety regulations and 
     practices consistent with Federal requirements; and
       ``(D) assessing and improving statewide performance by 
     setting program goals and meeting performance standards, 
     measures, and benchmarks.'';
       (4) in paragraph (2), as redesignated--
       (A) by striking ``make a declaration of'' in subparagraph 
     (I) and inserting ``demonstrate'';
       (B) by amending subparagraph (M) to read as follows:
       ``(M) ensures participation in appropriate Federal Motor 
     Carrier Safety Administration systems and other information 
     systems by all appropriate jurisdictions receiving Motor 
     Carrier Safety Assistance Program funding;'';
       (C) in subparagraph (Q), by inserting ``and dedicated 
     sufficient resources to'' between ``established'' and ``a 
     program'';
       (D) in subparagraph (W), by striking ``and'' after the 
     semicolon;
       (E) in subparagraph (X), by striking the period and 
     inserting ``; and''; and
       (F) by adding after subparagraph (X) the following:
       ``(Y) ensures that the State will transmit to its roadside 
     inspectors the notice of each Federal exemption granted 
     pursuant to section 31315(b) and provided to the State by the 
     Secretary, including the name of the person granted the 
     exemption and any terms and conditions that apply to the 
     exemption.''; and
       (5) by amending paragraph (4), as redesignated, to read as 
     follows:
       ``(4) Maintenance of effort.--
       ``(A) In general.--A plan submitted by a State under 
     paragraph (2) shall provide that the total expenditure of 
     amounts of the lead State agency responsible for implementing 
     the plan will be maintained at a level at least equal to the 
     average level of that expenditure for fiscal years 2004 and 
     2005.

[[Page 10634]]

       ``(B) Average level of state expenditures.--In estimating 
     the average level of State expenditure under subparagraph 
     (A), the Secretary--
       ``(i) may allow the State to exclude State expenditures for 
     Government-sponsored demonstration or pilot programs; and
       ``(ii) shall require the State to exclude State matching 
     amounts used to receive Government financing under this 
     subsection.
       ``(C) Waiver.--Upon the request of a State, the Secretary 
     may waive or modify the requirements of this paragraph for 1 
     fiscal year, if the Secretary determines that a waiver is 
     equitable due to exceptional or uncontrollable circumstances, 
     such as a natural disaster or a serious decline in the 
     financial resources of the State motor carrier safety 
     assistance program agency.''.

     SEC. 32602. PERFORMANCE AND REGISTRATION INFORMATION SYSTEMS 
                   MANAGEMENT PROGRAM.

       Section 31106(b) is amended by amending paragraph (3)(C) to 
     read as follows:
       ``(C) establish and implement a process--
       ``(i) to cancel the motor vehicle registration and seize 
     the registration plates of a vehicle when an employer is 
     found liable under section 31310(i)(2)(C) for knowingly 
     allowing or requiring an employee to operate such a 
     commercial motor vehicle in violation of an out-of-service 
     order; and
       ``(ii) to reinstate the vehicle registration or return the 
     registration plates of the commercial motor vehicle, subject 
     to sanctions under clause (i), if the Secretary permits such 
     carrier to resume operations after the date of issuance of 
     such order.''.

     SEC. 32603. AUTHORIZATION OF APPROPRIATIONS.

       (a) Motor Carrier Safety Grants.--Section 31104(a) is 
     amended--
       (1) by striking ``and'' at the end of paragraph (7);
       (2) by striking paragraph (8); and
       (3) by inserting after paragraph (7) the following:
       ``(8) $215,000,000 for fiscal year 2013; and
       ``(9) $218,000,000 for fiscal year 2014.''.
       (b) Administrative Expenses.--Section 31104(i)(1) is 
     amended--
       (1) by striking ``and'' at the end of subparagraph (G); and
       (2) by striking subparagraph (H); and
       (3) by inserting after subparagraph (G) the following:
       ``(H) $251,000,000 for fiscal year 2013; and
       ``(I) $259,000,000 for fiscal year 2014.''.
       (c) Grant Programs.--Section 4101(c) of SAFETEA-LU (119 
     Stat. 1715) is amended to read as follows:
       ``(c) Grant Programs.--There are authorized to be 
     appropriated from the Highway Trust Fund (other than the Mass 
     Transit Account) the following sums for the following Federal 
     Motor Carrier Safety Administration programs:
       ``(1) Commercial driver's license program improvement 
     grants.--For commercial driver's license program improvement 
     grants under section 31313 of title 49, United States Code 
     $30,000,000 for each of fiscal years 2013 and 2014.
       ``(2) Border enforcement grants.--For border enforcement 
     grants under section 31107 of such title $32,000,000 for each 
     of fiscal years 2013 and 2014.
       ``(3) Performance and registration information system 
     management grant program.--For the performance and 
     registration information system management grant program 
     under section 31109 of such title $5,000,000 for each of 
     fiscal years 2013 and 2014.
       ``(4) Commercial vehicle information systems and networks 
     deployment.--For carrying out the commercial vehicle 
     information systems and networks deployment program under 
     section 4126 of this Act, $25,000,000 for each of fiscal 
     years 2013 and 2014.
       ``(5) Safety data improvement grants.--For safety data 
     improvement grants under section 4128 of this Act, $3,000,000 
     for each of fiscal years 2013 and 2014.''.
       (d) High-priority Activities.--Section 31104(k)(2) is 
     amended by striking ``2011 and $11,250,000 for the period 
     beginning on October 1, 2011, and ending on June 30, 2012,'' 
     and inserting ``2014''.
       (e) New Entrant Audits.--Section 31144(g)(5)(B) is amended 
     to read as follows:
       ``(B) Set aside.--The Secretary shall set aside from 
     amounts made available by section 31104(a) up to $32,000,000 
     per fiscal year for audits of new entrant motor carriers 
     conducted pursuant to this paragraph.''.
       (f) Outreach and Education.--Section 4127(e) of SAFETEA-LU 
     (119 Stat. 1741) is amended to read as follows:
       ``(e) Funding.--From amounts made available under section 
     31104(i) of title 49, United States Code, the Secretary shall 
     make available $4,000,000 to the Federal Motor Carrier Safety 
     Administration for each of fiscal years 2013 and 2014 to 
     carry out this section (other than subsection (f)).''.
       (g) Grant Program for Commercial Motor Vehicle Operators.--
     Section 4134(c) of SAFETEA-LU (49 U.S.C. 31301 note) is 
     amended by striking ``2011 and $750,000 for the period 
     beginning on October 1, 2011, and ending on June 30, 2012,'' 
     and inserting ``2014''.
       (h) Border Enforcement Grants.--Section 31107 is amended--
       (1) by striking subsection (b); and
       (2) redesignating subsections (c) and (d) as subsections 
     (b) and (c), respectively.
       (i) Administration of Grant Programs.--The Secretary is 
     authorized to identify and implement processes to reduce the 
     administrative burden on the States and the Department of 
     Transportation concerning the application and management of 
     the grant programs authorized under chapter 311 and chapter 
     313 of title 49, United States Code.

     SEC. 32604. GRANTS FOR COMMERCIAL DRIVER'S LICENSE PROGRAM 
                   IMPLEMENTATION.

       (a) Grants for Commercial Driver's License Program 
     Implementation.--Section 31313(a) is amended to read as 
     follows:
       ``(a) Commercial Driver's License Program Improvement 
     Grants.--
       ``(1) Program goal.--The Secretary of Transportation may 
     make a grant to a State in a fiscal year--
       ``(A) to comply with the requirements of section 31311;
       ``(B) in the case of a State that is making a good faith 
     effort toward substantial compliance with the requirements of 
     this section and section 31311, to improve its implementation 
     of its commercial driver's license program, including 
     expenses--
       ``(i) for computer hardware and software;
       ``(ii) for publications, testing, personnel, training, and 
     quality control;
       ``(iii) for commercial driver's license program 
     coordinators;
       ``(iv) to implement or maintain a system to notify an 
     employer of an operator of a commercial motor vehicle of the 
     suspension or revocation of the operator's commercial 
     driver's license consistent with the standards developed 
     under section 32303(b) of the Commercial Motor Vehicle Safety 
     Enhancement Act of 2012.
       ``(2) Prohibitions.--A State may not use grant funds under 
     this subsection to rent, lease, or buy land or buildings.''.
       (b) Conforming Amendment.--
       (1) The heading for section 31313 is amended by striking 
     ``improvements'' and inserting ``implementation''.
       (2) The analysis of chapter 313 is amended by striking the 
     item relating to section 31313 and inserting the following:

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

     SEC. 32605. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND 
                   NETWORKS.

       Not later than 6 months after the date of enactment of this 
     Act, the Secretary shall submit a report to the Committee on 
     Commerce, Science, and Transportation of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives that includes--
       (1) established time frames and milestones for resuming the 
     Commercial Vehicle Information Systems and Networks Program; 
     and
       (2) a strategic workforce plan for its grants management 
     office to ensure that it has determined the skills and 
     competencies that are critical to achieving its mission 
     goals.
           Subtitle G--Motorcoach Enhanced Safety Act of 2012

     SEC. 32701. SHORT TITLE.

       This subtitle may be cited as the ``Motorcoach Enhanced 
     Safety Act of 2012''.

     SEC. 32702. DEFINITIONS.

       In this subtitle:
       (1) Advanced glazing.--The term ``advanced glazing'' means 
     glazing installed in a portal on the side or the roof of a 
     motorcoach that is designed to be highly resistant to partial 
     or complete occupant ejection in all types of motor vehicle 
     crashes.
       (2) Bus.--The term ``bus'' has the meaning given the term 
     in section 571.3(b) of title 49, Code of Federal Regulations 
     (as in effect on the day before the date of enactment of this 
     Act).
       (3) Commercial motor vehicle.--Except as otherwise 
     specified, the term ``commercial motor vehicle'' has the 
     meaning given the term in section 31132(1) of title 49, 
     United States Code.
       (4) Direct tire pressure monitoring system.--The term 
     ``direct tire pressure monitoring system'' means a tire 
     pressure monitoring system that is capable of directly 
     detecting when the air pressure level in any tire is 
     significantly under-inflated and providing the driver a low 
     tire pressure warning as to which specific tire is 
     significantly under-inflated.
       (5) Motor carrier.--The term ``motor carrier'' means--
       (A) a motor carrier (as defined in section 13102(14) of 
     title 49, United States Code); or
       (B) a motor private carrier (as defined in section 
     13102(15) of that title).
       (6) Motorcoach.--The term ``motorcoach'' has the meaning 
     given the term ``over-the-road bus'' in section 3038(a)(3) of 
     the Transportation Equity Act for the 21st Century (49 U.S.C. 
     5310 note), but does not include--
       (A) a bus used in public transportation provided by, or on 
     behalf of, a public transportation agency; or
       (B) a school bus, including a multifunction school activity 
     bus.
       (7) Motorcoach services.--The term ``motorcoach services'' 
     means passenger transportation by motorcoach for 
     compensation.
       (8) Multifunction school activity bus.--The term 
     ``multifunction school activity bus'' has the meaning given 
     the term in section 571.3(b) of title 49, Code of Federal 
     Regulations (as in effect on the day before the date of 
     enactment of this Act).
       (9) Portal.--The term ``portal'' means any opening on the 
     front, side, rear, or roof of a motorcoach that could, in the 
     event of a crash involving the motorcoach, permit the partial 
     or complete ejection of any occupant from the motorcoach, 
     including a young child.
       (10) Provider of motorcoach services.--The term ``provider 
     of motorcoach services'' means a motor carrier that provides 
     passenger

[[Page 10635]]

     transportation services with a motorcoach, including per-trip 
     compensation and contracted or chartered compensation.
       (11) Public transportation.--The term ``public 
     transportation'' has the meaning given the term in section 
     5302 of title 49, United States Code.
       (12) Safety belt.--The term ``safety belt'' has the meaning 
     given the term in section 153(i)(4)(B) of title 23, United 
     States Code.
       (13) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.

     SEC. 32703. REGULATIONS FOR IMPROVED OCCUPANT PROTECTION, 
                   PASSENGER EVACUATION, AND CRASH AVOIDANCE.

       (a) Regulations Required Within 1 Year.--Not later than 1 
     year after the date of enactment of this Act, the Secretary 
     shall prescribe regulations requiring safety belts to be 
     installed in motorcoaches at each designated seating 
     position.
       (b) Regulations Required Within 2 Years.--Not later than 2 
     years after the date of enactment of this Act, the Secretary 
     shall prescribe regulations that address the following 
     commercial motor vehicle standards, if the Secretary 
     determines that such standards meet the requirements and 
     considerations set forth in subsections (a) and (b) of 
     section 30111 of title 49, United States Code:
       (1) Roof strength and crush resistance.--The Secretary 
     shall establish improved roof and roof support standards for 
     motorcoaches that substantially improve the resistance of 
     motorcoach roofs to deformation and intrusion to prevent 
     serious occupant injury in rollover crashes involving 
     motorcoaches.
       (2) Anti-ejection safety countermeasures.--The Secretary 
     shall consider requiring advanced glazing standards for each 
     motorcoach portal and shall consider other portal 
     improvements to prevent partial and complete ejection of 
     motorcoach passengers, including children. In prescribing 
     such standards, the Secretary shall consider the impact of 
     such standards on the use of motorcoach portals as a means of 
     emergency egress.
       (3) Rollover crash avoidance.--The Secretary shall consider 
     requiring motorcoaches to be equipped with stability 
     enhancing technology, such as electronic stability control 
     and torque vectoring, to reduce the number and frequency of 
     rollover crashes among motorcoaches.
       (c) Commercial Motor Vehicle Tire Pressure Monitoring 
     Systems.--Not later than 3 years after the date of enactment 
     of this Act, the Secretary shall prescribe the following 
     commercial vehicle regulation:
       (1) In general.--The Secretary shall consider requiring 
     motorcoaches to be equipped with direct tire pressure 
     monitoring systems that warn the operator of a commercial 
     motor vehicle when any tire exhibits a level of air pressure 
     that is below a specified level of air pressure established 
     by the Secretary, if the Secretary determines that such 
     standards meet the requirements and considerations set forth 
     in subsections (a) and (b) of section 30111 of title 49, 
     United States Code.
       (2) Performance requirements.--In any standard adopted 
     under paragraph (1), the Secretary shall include performance 
     requirements to meet the objectives identified in paragraph 
     (1) of this subsection.
       (d) Tire Performance Standard.--Not later than 3 years 
     after the date of enactment of this Act, the Secretary shall 
     consider--
       (1) issuing a rule to upgrade performance standards for 
     tires used on motorcoaches, including an enhanced endurance 
     test and a new high-speed performance test; or
       (2) if the Secretary determines that a standard does not 
     meet the requirements and considerations set forth in 
     subsections (a) and (b) of section 30111 of title 49, United 
     States Code, submit a report that describes the reasons for 
     not prescribing such a standard to--
       (A) the Committee on Commerce, Science, and Transportation 
     of the Senate;
       (B) the Committee on Transportation and Infrastructure of 
     the House of Representatives; and
       (C) the Committee on Energy and Commerce of the House of 
     Representatives.
       (e) Application of Regulations.--
       (1) New motorcoaches.--Any regulation prescribed in 
     accordance with subsection (a), (b), (c), or (d) shall--
       (A) apply to all motorcoaches manufactured more than 3 
     years after the date on which the regulation is published as 
     a final rule;
       (B) take into account the impact to seating capacity of 
     changes to size and weight of motorcoaches and the ability to 
     comply with State and Federal size and weight requirements; 
     and
       (C) be based on the best available science.
       (2) Retrofit assessment for existing motorcoaches.--
       (A) In general.--The Secretary may assess the feasibility, 
     benefits, and costs with respect to the application of any 
     requirement established under subsection (a) or (b)(2) to 
     motorcoaches manufactured before the date on which the 
     requirement applies to new motorcoaches under paragraph (1).
       (B) Report.--The Secretary shall submit a report on the 
     assessment to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on 
     Transportation and Infrastructure and the Committee on Energy 
     and Commerce of the House of Representatives not later than 2 
     years after the date of enactment of this Act.

     SEC. 32704. FIRE PREVENTION AND MITIGATION.

       (a) Research and Testing.--The Secretary shall conduct 
     research and testing to determine the most prevalent causes 
     of motorcoach fires and the best methods to prevent such 
     fires and to mitigate the effect of such fires, both inside 
     and outside the motorcoach. Such research and testing shall 
     consider flammability of exterior components, smoke 
     suppression, prevention of and resistance to wheel well 
     fires, automatic fire suppression, passenger evacuation, 
     causation and prevention of motorcoach fires, and improved 
     fire extinguishers.
       (b) Standards.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary may issue fire 
     prevention and mitigation standards for motorcoaches, based 
     on the results of the Secretary's research and testing, 
     taking into account highway size and weight restrictions 
     applicable to motorcoaches, if the Secretary determines that 
     such standards meet the requirements and considerations set 
     forth in subsections (a) and (b) of section 30111 of title 
     49, United States Code.

     SEC. 32705. OCCUPANT PROTECTION, COLLISION AVOIDANCE, FIRE 
                   CAUSATION, AND FIRE EXTINGUISHER RESEARCH AND 
                   TESTING.

       (a) Safety Research Initiatives.--Not later than 3 years 
     after the date of enactment of this Act, the Secretary shall 
     complete the following research and testing:
       (1) Interior impact protection.--The Secretary shall 
     research and test enhanced occupant impact protection 
     technologies for motorcoach interiors to reduce serious 
     injuries for all passengers of motorcoaches.
       (2) Compartmentalization safety countermeasures.--The 
     Secretary shall research and test enhanced 
     compartmentalization safety countermeasures for motorcoaches, 
     including enhanced seating designs.
       (3) Collision avoidance systems.--The Secretary shall 
     research and test forward and lateral crash warning systems 
     applications for motorcoaches.
       (b) Rulemaking.--Not later than 2 years after the 
     completion of each research and testing initiative required 
     under subsection (a), the Secretary shall issue final motor 
     vehicle safety standards if the Secretary determines that 
     such standards meet the requirements and considerations set 
     forth in subsections (a) and (b) of section 30111 of title 
     49, United States Code.

     SEC. 32706. CONCURRENCE OF RESEARCH AND RULEMAKING.

       (a) Requirements.--To the extent feasible, the Secretary 
     shall ensure that research programs are carried out 
     concurrently, and in a manner that concurrently assesses 
     results, potential countermeasures, costs, and benefits.
       (b) Authority to Combine Rulemakings.--When considering 
     each of the rulemaking provisions, the Secretary may initiate 
     a single rulemaking proceeding encompassing all aspects or 
     may combine the rulemakings as the Secretary deems 
     appropriate.
       (c) Considerations.--If the Secretary undertakes separate 
     rulemaking proceedings, the Secretary shall--
       (1) consider whether each added aspect of rulemaking may 
     contribute to addressing the safety need determined to 
     require rulemaking;
       (2) consider the benefits obtained through the safety belts 
     rulemaking in section 32703(a); and
       (3) avoid duplicative benefits, costs, and countermeasures.

     SEC. 32707. IMPROVED OVERSIGHT OF MOTORCOACH SERVICE 
                   PROVIDERS.

       (a) Safety Reviews.--Section 31144, as amended by section 
     32202 of this Act, is amended by adding at the end the 
     following:
       ``(i) Periodic Safety Reviews of Owners and Operators of 
     Interstate For-hire Commercial Motor Vehicles Designed or 
     Used to Transport Passengers.--
       ``(1) Safety review.--
       ``(A) In general.--The Secretary shall--
       ``(i) determine the safety fitness of each motor carrier of 
     passengers who the Secretary registers under section 13902 or 
     31134 through a simple and understandable rating system that 
     allows passengers to compare the safety performance of each 
     such motor carrier; and
       ``(ii) assign a safety fitness rating to each such motor 
     carrier.
       ``(B) Applicability.--Subparagraph (A) shall apply--
       ``(i) to any provider of motorcoach services registered 
     with the Administration after the date of enactment of the 
     Motorcoach Enhanced Safety Act of 2012 beginning not later 
     than 2 years after the date of such registration; and
       ``(ii) to any provider of motorcoach services registered 
     with the Administration on or before the date of enactment of 
     that Act beginning not later than 3 years after the date of 
     enactment of that Act.
       ``(2) Periodic review.--The Secretary shall establish, by 
     regulation, a process for monitoring the safety performance 
     of each motor carrier of passengers on a regular basis 
     following the assignment of a safety fitness rating, 
     including progressive intervention to correct unsafe 
     practices.
       ``(3) Enforcement strike forces.--In addition to the 
     enhanced monitoring and enforcement actions required under 
     paragraph (2), the Secretary may organize special enforcement 
     strike forces targeting motor carriers of passengers.
       ``(4) Periodic update of safety fitness rating.--In 
     conducting the safety reviews required under this subsection, 
     the Secretary shall--
       ``(A) reassess the safety fitness rating of each motor 
     carrier of passengers not less frequently than once every 3 
     years; and
       ``(B) annually assess the safety fitness of certain motor 
     carriers of passengers that serve primarily urban areas with 
     high passenger loads.''.

[[Page 10636]]

       (b) Disclosure of Safety Performance Ratings of Motorcoach 
     Services and Operations.--
       (1) Definitions.--In this subsection:
       (A) Motorcoach.--
       (i) In general.--Except as provided in clause (ii), the 
     term ``motorcoach'' has the meaning given the term ``over-
     the-road bus'' in section 3038(a)(3) of the Transportation 
     Equity Act for the 21st Century (49 U.S.C. 5310 note).
       (ii) Exclusions.--The term ``motorcoach'' does not 
     include--

       (I) a bus used in public transportation that is provided by 
     a State or local government; or
       (II) a school bus (as defined in section 30125(a)(1) of 
     title 49, United States Code), including a multifunction 
     school activity bus.

       (B) Motorcoach services and operations.--The term 
     ``motorcoach services and operations'' means passenger 
     transportation by a motorcoach for compensation.
       (2) Requirements for the disclosure of safety performance 
     ratings of motorcoach services and operations.--
       (A) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall establish, through 
     notice and opportunity for public to comment, requirements to 
     improve the accessibility to the public of safety rating 
     information of motorcoach services and operations.
       (B) Display.--In establishing the requirements under 
     subparagraph (A), the Secretary shall consider requirements 
     for each motor carrier that owns or leases 1 or more 
     motorcoaches that transport passengers subject to the 
     Secretary's jurisdiction under section 13501 of title 49, 
     United States Code, to prominently display safety fitness 
     information pursuant to section 31144 of title 49, United 
     States Code--
       (i) in each terminal of departure;
       (ii) in the motorcoach and visible from a position exterior 
     to the vehicle at the point of departure, if the motorcoach 
     does not depart from a terminal; and
       (iii) at all points of sale for such motorcoach services 
     and operations.

     SEC. 32708. REPORT ON FEASIBILITY, BENEFITS, AND COSTS OF 
                   ESTABLISHING A SYSTEM OF CERTIFICATION OF 
                   TRAINING PROGRAMS.

       Not later than 2 years after the date of enactment of this 
     Act, the Secretary of Transportation shall submit a report to 
     the Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives that describes the 
     feasibility, benefits, and costs of establishing a system of 
     certification of public and private schools and of motor 
     carriers and motorcoach operators that provide motorcoach 
     driver training.

     SEC. 32709. COMMERCIAL DRIVER'S LICENSE PASSENGER ENDORSEMENT 
                   REQUIREMENTS.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary of Transportation shall 
     review and assess the current knowledge and skill testing 
     requirements for a commercial driver's license passenger 
     endorsement to determine what improvements to the knowledge 
     test, the examination of driving skills, and the application 
     of such requirements are necessary to ensure the safe 
     operation of commercial motor vehicles designed or used to 
     transport passengers.
       (b) Report.--Not later than 120 days after completion of 
     the review and assessment under subsection (a), the Secretary 
     of Transportation shall submit to the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives and the Committee on Commerce, Science, and 
     Transportation of the Senate--
       (1) a report on the review and assessment conducted under 
     subsection (a);
       (2) a plan to implement any changes to the knowledge and 
     skills tests; and
       (3) a timeframe by which the Secretary will implement the 
     changes.

     SEC. 32710. SAFETY INSPECTION PROGRAM FOR COMMERCIAL MOTOR 
                   VEHICLES OF PASSENGERS.

       Not later than 3 years after the date of enactment of this 
     Act, the Secretary of Transportation shall complete a 
     rulemaking proceeding to consider requiring States to 
     establish a program for annual inspections of commercial 
     motor vehicles designed or used to transport passengers, 
     including an assessment of--
       (1) the risks associated with improperly maintained or 
     inspected commercial motor vehicles designed or used to 
     transport passengers;
       (2) the effectiveness of existing Federal standards for the 
     inspection of such vehicles in--
       (A) mitigating the risks described in paragraph (1); and
       (B) ensuring the safe and proper operation condition of 
     such vehicles; and
       (3) the costs and benefits of a mandatory inspection 
     program.

     SEC. 32711. REGULATIONS.

       Any standard or regulation prescribed or modified pursuant 
     to the Motorcoach Enhanced Safety Act of 2012 shall be 
     prescribed or modified in accordance with section 553 of 
     title 5, United States Code.
       Subtitle H--Safe Highways and Infrastructure Preservation

     SEC. 32801. COMPREHENSIVE TRUCK SIZE AND WEIGHT LIMITS STUDY.

       (a) Truck Size and Weight Limits Study.--Not later than 45 
     days after the date of enactment of this Act, the Secretary, 
     in consultation with each relevant State and other applicable 
     Federal agencies, shall commence a comprehensive truck size 
     and weight limits study. The study shall--
       (1) provide data on accident frequency and evaluate factors 
     related to accident risk of vehicles that operate with size 
     and weight limits that are in excess of the Federal law and 
     regulations in each State that allows vehicles to operate 
     with size and weight limits that are in excess of the Federal 
     law and regulations, or to operate under a Federal exemption 
     or grandfather right, in comparison to vehicles that do not 
     operate in excess of Federal law and regulations (other than 
     vehicles with exemptions or grandfather rights);
       (2) evaluate the impacts to the infrastructure in each 
     State that allows a vehicle to operate with size and weight 
     limits that are in excess of the Federal law and regulations, 
     or to operate under a Federal exemption or grandfather right, 
     in comparison to vehicles that do not operate in excess of 
     Federal law and regulations (other than vehicles with 
     exemptions or grandfather rights), including--
       (A) the cost and benefits of the impacts in dollars;
       (B) the percentage of trucks operating in excess of the 
     Federal size and weight limits; and
       (C) the ability of each State to recover the cost for the 
     impacts, or the benefits incurred;
       (3) evaluate the frequency of violations in excess of the 
     Federal size and weight law and regulations, the cost of the 
     enforcement of the law and regulations, and the effectiveness 
     of the enforcement methods;
       (4) assess the impacts that vehicles that operate with size 
     and weight limits in excess of the Federal law and 
     regulations, or that operate under a Federal exemption or 
     grandfather right, in comparison to vehicles that do not 
     operate in excess of Federal law and regulations (other than 
     vehicles with exemptions or grandfather rights), have on 
     bridges, including the impacts resulting from the number of 
     bridge loadings;
       (5) compare and contrast the potential safety and 
     infrastructure impacts of the current Federal law and 
     regulations regarding truck size and weight limits in 
     relation to--
       (A) six-axle and other alternative configurations of 
     tractor-trailers; and
       (B) where available, safety records of foreign nations with 
     truck size and weight limits and tractor-trailer 
     configurations that differ from the Federal law and 
     regulations; and
       (6) estimate--
       (A) the extent to which freight would likely be diverted 
     from other surface transportation modes to principal arterial 
     routes and National Highway System intermodal connectors if 
     alternative truck configuration is allowed to operate and the 
     effect that any such diversion would have on other modes of 
     transportation;
       (B) the effect that any such diversion would have on public 
     safety, infrastructure, cost responsibilities, fuel 
     efficiency, freight transportation costs, and the 
     environment;
       (C) the effect on the transportation network of the United 
     States that allowing alternative truck configuration to 
     operate would have; and
       (D) whether allowing alternative truck configuration to 
     operate would result in an increase or decrease in the total 
     number of trucks operating on principal arterial routes and 
     National Highway System intermodal connectors; and
       (7) identify all Federal rules and regulations impacted by 
     changes in truck size and weight limits.
       (b) Report.--Not later than 2 years after the date that the 
     study is commenced under subsection (a), the Secretary shall 
     submit a final report on the study, including all findings 
     and recommendations, to the Committee on Commerce, Science, 
     and Transportation and the Committee on Environment and 
     Public Works of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives.

     SEC. 32802. COMPILATION OF EXISTING STATE TRUCK SIZE AND 
                   WEIGHT LIMIT LAWS.

       (a) In General.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the States, shall begin to compile--
       (1) a list for each State, as applicable, that describes 
     each route of the National Highway System that allows a 
     vehicle to operate in excess of the Federal truck size and 
     weight limits that--
       (A) was authorized under State law on or before the date of 
     enactment of this Act; and
       (B) was in actual and lawful operation on a regular or 
     periodic basis (including seasonal operations) on or before 
     the date of enactment of this Act;
       (2) a list for each State, as applicable, that describes--
       (A) the size and weight limitations applicable to each 
     segment of the National Highway System in that State as 
     listed under paragraph (1);
       (B) each combination that exceeds the Interstate weight 
     limit, but that the Department of Transportation, other 
     Federal agency, or a State agency has determined on or before 
     the date of enactment of this Act, could be or could have 
     been lawfully operated in the State; and
       (C) each combination that exceeds the Interstate weight 
     limit, but that the Secretary determines could have been 
     lawfully operated on a non-Interstate segment of the National 
     Highway System in the State on or before the date of 
     enactment of this Act; and
       (3) a list of each State law that designates or allows 
     designation of size and weight limitations in excess of 
     Federal law and regulations on routes of the National Highway 
     System, including nondivisible loads.
       (b) Specifications.--The Secretary, in consultation with 
     the States, shall specify whether the determinations under 
     paragraphs (1) and (2) of subsection (a) were made by the 
     Department

[[Page 10637]]

     of Transportation, other Federal agency, or a State agency.
       (c) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit a final 
     report of the compilation under subsection (a) to the 
     Committee on Commerce, Science, and Transportation and the 
     Committee on Environment and Public Works of the Senate and 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives.
                       Subtitle I--Miscellaneous

                         PART I--MISCELLANEOUS

     SEC. 32911. PROHIBITION OF COERCION.

       Section 31136(a) is amended by--
       (1) striking ``and'' at the end of paragraph (3);
       (2) striking the period at the end of paragraph (4) and 
     inserting ``; and''; and
       (3) adding after subsection (4) the following:
       ``(5) an operator of a commercial motor vehicle is not 
     coerced by a motor carrier, shipper, receiver, or 
     transportation intermediary to operate a commercial motor 
     vehicle in violation of a regulation promulgated under this 
     section, or chapter 51 or chapter 313 of this title.''.

     SEC. 32912. MOTOR CARRIER SAFETY ADVISORY COMMITTEE.

       Section 4144(d) of the Safe, Accountable, Flexible, 
     Efficient Transportation Equity Act: A Legacy for Users (49 
     U.S.C. 31100 note), is amended by striking ``June 30, 2012'' 
     and inserting ``September 30, 2013''.

     SEC. 32913. WAIVERS, EXEMPTIONS, AND PILOT PROGRAMS.

       (a) Exemption Standards.--Section 31315(b)(4) is amended--
       (1) in subparagraph (A), by inserting ``(or, in the case of 
     a request for an exemption from the physical qualification 
     standards for commercial motor vehicle drivers, post on a web 
     site established by the Secretary to implement the 
     requirements of section 31149)'' after ``Federal Register'';
       (2) by amending subparagraph (B) to read as follows:
       ``(B) Upon granting a request.--Upon granting a request and 
     before the effective date of the exemption, the Secretary 
     shall publish in the Federal Register (or, in the case of an 
     exemption from the physical qualification standards for 
     commercial motor vehicle drivers, post on a web site 
     established by the Secretary to implement the requirements of 
     section 31149) the name of the person granted the exemption, 
     the provisions from which the person is exempt, the effective 
     period, and the terms and conditions of the exemption.''; and
       (3) in subparagraph (C), by inserting ``(or, in the case of 
     a request for an exemption from the physical qualification 
     standards for commercial motor vehicle drivers, post on a web 
     site established by the Secretary to implement the 
     requirements of section 31149)'' after ``Federal Register''.
       (b) Providing Notice of Exemptions to State Personnel.--
     Section 31315(b)(7) is amended to read as follows:
       ``(7) Notification of state compliance and enforcement 
     personnel.--Before the effective date of an exemption, the 
     Secretary shall notify a State safety compliance and 
     enforcement agency, and require the agency to notify the 
     State's roadside inspectors, that a person will be operating 
     pursuant to an exemption and the terms and conditions that 
     apply to the exemption.''.
       (c) Pilot Programs.--Section 31315(c)(1) is amended by 
     striking ``in the Federal Register''.
       (d) Report to Congress.--Section 31315 is amended by adding 
     after subsection (d) the following:
       ``(e) Report to Congress.--The Secretary shall submit an 
     annual report to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives listing the waivers, exemptions, and pilot 
     programs granted under this section, and any impacts on 
     safety.
       ``(f) Web Site.--The Secretary shall ensure that the 
     Federal Motor Carrier Safety Administration web site includes 
     a link to the web site established by the Secretary to 
     implement the requirements under sections 31149 and 31315. 
     The link shall be in a clear and conspicuous location on the 
     home page of the Federal Motor Carrier Safety Administration 
     web site and be easily accessible to the public.''.

     SEC. 32914. REGISTRATION REQUIREMENTS.

       (a) Requirements for Registration.--Section 13901 is 
     amended to read as follows:

     ``Sec. 13901. Requirements for registration

       ``(a) In General.--A person may provide transportation as a 
     motor carrier subject to jurisdiction under subchapter I of 
     chapter 135 or service as a freight forwarder subject to 
     jurisdiction under subchapter III of such chapter, or service 
     as a broker for transportation subject to jurisdiction under 
     subchapter I of such chapter only if the person is registered 
     under this chapter to provide such transportation or service.
       ``(b) Registration Numbers.--
       ``(1) In general.--If the Secretary registers a person 
     under this chapter to provide transportation or service, 
     including as a motor carrier, freight forwarder, or broker, 
     the Secretary shall issue a distinctive registration number 
     to the person for each such authority to provide 
     transportation or service for which the person is registered.
       ``(2) Transportation or service type indicator.--A number 
     issued under paragraph (1) shall include an indicator of the 
     type of transportation or service for which the registration 
     number is issued, including whether the registration number 
     is issued for registration of a motor carrier, freight 
     forwarder, or broker.
       ``(c) Specification of Authority.--For each agreement to 
     provide transportation or service for which registration is 
     required under this chapter, the registrant shall specify, in 
     writing, the authority under which the person is providing 
     such transportation or service.''.
       (b) Availability of Information.--
       (1) In general.--Chapter 139 is amended by adding at the 
     end the following:

     ``Sec. 13909. Availability of information

       ``The Secretary shall make information relating to 
     registration and financial security required by this chapter 
     publicly available on the Internet, including--
       ``(1) the names and business addresses of the principals of 
     each entity holding such registration;
       ``(2) the status of such registration; and
       ``(3) the electronic address of the entity's surety 
     provider for the submission of claims.''.
       (2) Conforming amendment.--The analysis for chapter 139 is 
     amended by adding at the end the following:

``13909. Availability of information.''.

     SEC. 32915. ADDITIONAL MOTOR CARRIER REGISTRATION 
                   REQUIREMENTS.

       Section 13902, as amended by sections 32101 and 32107(a) of 
     this Act, is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by inserting ``using self-propelled 
     vehicles the motor carrier owns, rents, or leases'' after 
     ``motor carrier''; and
       (B) by adding at the end the following:
       ``(6) Separate registration required.--A motor carrier may 
     not broker transportation services unless the motor carrier 
     has registered as a broker under this chapter.''; and
       (2) by inserting after subsection (h) the following:
       ``(i) Registration as Freight Forwarder or Broker 
     Required.--A motor carrier registered under this chapter--
       ``(1) may only provide transportation of property with--
       ``(A) self-propelled motor vehicles owned or leased by the 
     motor carrier; or
       ``(B) interchanges under regulations issued by the 
     Secretary if the originating carrier--
       ``(i) physically transports the cargo at some point; and
       ``(ii) retains liability for the cargo and for payment of 
     interchanged carriers; and
       ``(2) may not arrange transportation described in paragraph 
     (1) unless the motor carrier has obtained a separate 
     registration as a freight forwarder or broker for 
     transportation under section 13903 or 13904, as 
     applicable.''.

     SEC. 32916. REGISTRATION OF FREIGHT FORWARDERS AND BROKERS.

       (a) Registration of Freight Forwarders.--Section 13903, as 
     amended by section 32107(b) of this Act, is amended--
       (1) in subsection (a)--
       (A) by striking ``finds that the person is fit'' and 
     inserting the following: ``determines that the person--
       ``(1) has sufficient experience to qualify the person to 
     act as a freight forwarder; and
       ``(2) is fit''; and
       (B) by striking ``and the Board'';
       (2) by redesignating subsections (b) and (c) as subsections 
     (d) and (e), respectively;
       (3) by inserting after subsection (a) the following:
       ``(b) Duration.--A registration issued under subsection (a) 
     shall only remain in effect while the freight forwarder is in 
     compliance with section 13906(c).
       ``(c) Experience or Training Requirement.--Each freight 
     forwarder shall employ, as an officer, an individual who--
       ``(1) has at least 3 years of relevant experience; or
       ``(2) provides the Secretary with satisfactory evidence of 
     the individual's knowledge of related rules, regulations, and 
     industry practices.''; and
       (4) by amending subsection (d), as redesignated, to read as 
     follows:
       ``(d) Registration as Motor Carrier Required.--
       ``(1) In general.--A freight forwarder may not provide 
     transportation as a motor carrier unless the freight 
     forwarder has registered separately under this chapter to 
     provide transportation as a motor carrier.''.
       (b) Registration of Brokers.--Section 13904, as amended by 
     section 32107(c) of this Act, is amended--
       (1) in subsection (a), by striking ``finds that the person 
     is fit'' and inserting the following: ``determines that the 
     person--
       ``(1) has sufficient experience to qualify the person to 
     act as a broker for transportation; and
       ``(2) is fit'';
       (2) by redesignating subsections (b), (c), (d), and (e) as 
     subsections (d), (e), (f), and (g) respectively;
       (3) by inserting after subsection (a) the following:
       ``(b) Duration.--A registration issued under subsection (a) 
     shall only remain in effect while the broker for 
     transportation is in compliance with section 13906(b).
       ``(c) Experience or Training Requirements.--Each broker 
     shall employ, as an officer, an individual who--
       ``(1) has at least 3 years of relevant experience; or
       ``(2) provides the Secretary with satisfactory evidence of 
     the individual's knowledge of related rules, regulations, and 
     industry practices.'';

[[Page 10638]]

       (4) by amending subsection (d), as redesignated, to read as 
     follows:
       ``(d) Registration as Motor Carrier Required.--
       ``(1) In general.--A broker for transportation may not 
     provide transportation as a motor carrier unless the broker 
     has registered separately under this chapter to provide 
     transportation as a motor carrier.
       ``(2) Limitation.--This subsection does not apply to a 
     motor carrier registered under this chapter or to an employee 
     or agent of the motor carrier to the extent the 
     transportation is to be provided entirely by the motor 
     carrier, with other registered motor carriers, or with rail 
     or water carriers.''; and
       (5) by amending subsection (e), as redesignated, to read as 
     follows:
       ``(e) Regulation to Protect Motor Carriers and Shippers.--
     Regulations of the Secretary applicable to brokers registered 
     under this section shall provide for the protection of motor 
     carriers and shippers by motor vehicle.''.

     SEC. 32917. EFFECTIVE PERIODS OF REGISTRATION.

       Section 13905(c) is amended to read as follows:
       ``(c) Effective Period.--
       ``(1) In general.--Except as otherwise provided in this 
     part, each registration issued under section 13902, 13903, or 
     13904--
       ``(A) shall be effective beginning on the date specified by 
     the Secretary; and
       ``(B) shall remain in effect for such period as the 
     Secretary determines appropriate by regulation.
       ``(2) Reissuance of registration.--
       ``(A) Requirement.--Not later than 4 years after the date 
     of enactment of the Commercial Motor Vehicle Safety 
     Enhancement Act of 2012, the Secretary shall require a 
     freight forwarder or broker to renew its registration issued 
     under this chapter.
       ``(B) Effective period.--Each registration renewal under 
     subparagraph (A)--
       ``(i) shall expire not later than 5 years after the date of 
     such renewal; and
       ``(ii) may be further renewed as provided under this 
     chapter.''.

     SEC. 32918. FINANCIAL SECURITY OF BROKERS AND FREIGHT 
                   FORWARDERS.

       (a) In General.--Section 13906 is amended by striking 
     subsections (b) and (c) and inserting the following:
       ``(b) Broker Financial Security Requirements.--
       ``(1) Requirements.--
       ``(A) In general.--The Secretary may register a person as a 
     broker under section 13904 only if the person files with the 
     Secretary a surety bond, proof of trust fund, or other 
     financial security, or a combination thereof, in a form and 
     amount, and from a provider, determined by the Secretary to 
     be adequate to ensure financial responsibility.
       ``(B) Use of a group surety bond, trust fund, or other 
     surety.--In implementing the standards established by 
     subparagraph (A), the Secretary may authorize the use of a 
     group surety bond, trust fund, or other financial security, 
     or a combination thereof, that meets the requirements of this 
     subsection.
       ``(C) Proof of trust or other financial security.--For 
     purposes of subparagraph (A), a trust fund or other financial 
     security may be acceptable to the Secretary only if the trust 
     fund or other financial security consists of assets readily 
     available to pay claims without resort to personal guarantees 
     or collection of pledged accounts receivable.
       ``(2) Scope of financial responsibility.--
       ``(A) Payment of claims.--A surety bond, trust fund, or 
     other financial security obtained under paragraph (1) shall 
     be available to pay any claim against a broker arising from 
     its failure to pay freight charges under its contracts, 
     agreements, or arrangements for transportation subject to 
     jurisdiction under chapter 135 if--
       ``(i) subject to the review by the surety provider, the 
     broker consents to the payment;
       ``(ii) in any case in which the broker does not respond to 
     adequate notice to address the validity of the claim, the 
     surety provider determines that the claim is valid; or
       ``(iii) the claim is not resolved within a reasonable 
     period of time following a reasonable attempt by the claimant 
     to resolve the claim under clauses (i) and (ii), and the 
     claim is reduced to a judgment against the broker.
       ``(B) Response of surety providers to claims.--If a surety 
     provider receives notice of a claim described in subparagraph 
     (A), the surety provider shall--
       ``(i) respond to the claim on or before the 30th day 
     following the date on which the notice was received; and
       ``(ii) in the case of a denial, set forth in writing for 
     the claimant the grounds for the denial.
       ``(C) Costs and attorney's fees.--In any action against a 
     surety provider to recover on a claim described in 
     subparagraph (A), the prevailing party shall be entitled to 
     recover its reasonable costs and attorney's fees.
       ``(3) Minimum financial security.--Each broker subject to 
     the requirements of this section shall provide financial 
     security of $75,000 for purposes of this subsection, 
     regardless of the number of branch offices or sales agents of 
     the broker.
       ``(4) Cancellation notice.--If a financial security 
     required under this subsection is canceled--
       ``(A) the holder of the financial security shall provide 
     electronic notification to the Secretary of the cancellation 
     not later than 30 days before the effective date of the 
     cancellation; and
       ``(B) the Secretary shall immediately post such 
     notification on the public Internet Website of the Department 
     of Transportation.
       ``(5) Suspension.--The Secretary shall immediately suspend 
     the registration of a broker issued under this chapter if the 
     available financial security of that person falls below the 
     amount required under this subsection.
       ``(6) Payment of claims in cases of financial failure or 
     insolvency.--If a broker registered under this chapter 
     experiences financial failure or insolvency, the surety 
     provider of the broker shall--
       ``(A) submit a notice to cancel the financial security to 
     the Administrator in accordance with paragraph (4);
       ``(B) publicly advertise for claims for 60 days beginning 
     on the date of publication by the Secretary of the notice to 
     cancel the financial security; and
       ``(C) pay, not later than 30 days after the expiration of 
     the 60-day period for submission of claims--
       ``(i) all uncontested claims received during such period; 
     or
       ``(ii) a pro rata share of such claims if the total amount 
     of such claims exceeds the financial security available.
       ``(7) Penalties.--
       ``(A) Civil actions.--Either the Secretary or the Attorney 
     General of the United States may bring a civil action in an 
     appropriate district court of the United States to enforce 
     the requirements of this subsection or a regulation 
     prescribed or order issued under this subsection. The court 
     may award appropriate relief, including injunctive relief.
       ``(B) Civil penalties.--If the Secretary determines, after 
     notice and opportunity for a hearing, that a surety provider 
     of a broker registered under this chapter has violated the 
     requirements of this subsection or a regulation prescribed 
     under this subsection, the surety provider shall be liable to 
     the United States for a civil penalty in an amount not to 
     exceed $10,000.
       ``(C) Eligibility.--If the Secretary determines, after 
     notice and opportunity for a hearing, that a surety provider 
     of a broker registered under this chapter has violated the 
     requirements of this subsection or a regulation prescribed 
     under this subsection, the surety provider shall be 
     ineligible to provider broker financial security for 3 years.
       ``(8) Deduction of costs prohibited.--The amount of the 
     financial security required under this subsection may not be 
     reduced by deducting attorney's fees or administrative costs.
       ``(c) Freight Forwarder Financial Security Requirements.--
       ``(1) Requirements.--
       ``(A) In general.--The Secretary may register a person as a 
     freight forwarder under section 13903 only if the person 
     files with the Secretary a surety bond, proof of trust fund, 
     other financial security, or a combination of such 
     instruments, in a form and amount, and from a provider, 
     determined by the Secretary to be adequate to ensure 
     financial responsibility.
       ``(B) Use of a group surety bond, trust fund, or other 
     financial security.--In implementing the standards 
     established under subparagraph (A), the Secretary may 
     authorize the use of a group surety bond, trust fund, other 
     financial security, or a combination of such instruments, 
     that meets the requirements of this subsection.
       ``(C) Surety bonds.--A surety bond obtained under this 
     section may only be obtained from a bonding company that has 
     been approved by the Secretary of the Treasury.
       ``(D) Proof of trust or other financial security.--For 
     purposes of subparagraph (A), a trust fund or other financial 
     security may not be accepted by the Secretary unless the 
     trust fund or other financial security consists of assets 
     readily available to pay claims without resort to personal 
     guarantees or collection of pledged accounts receivable.
       ``(2) Scope of financial responsibility.--
       ``(A) Payment of claims.--A surety bond, trust fund, or 
     other financial security obtained under paragraph (1) shall 
     be available to pay any claim against a freight forwarder 
     arising from its failure to pay freight charges under its 
     contracts, agreements, or arrangements for transportation 
     subject to jurisdiction under chapter 135 if--
       ``(i) subject to the review by the surety provider, the 
     freight forwarder consents to the payment;
       ``(ii) in the case the freight forwarder does not respond 
     to adequate notice to address the validity of the claim, the 
     surety provider determines the claim is valid; or
       ``(iii) the claim--

       ``(I) is not resolved within a reasonable period of time 
     following a reasonable attempt by the claimant to resolve the 
     claim under clauses (i) and (ii); and
       ``(II) is reduced to a judgment against the freight 
     forwarder.

       ``(B) Response of surety providers to claims.--If a surety 
     provider receives notice of a claim described in subparagraph 
     (A), the surety provider shall--
       ``(i) respond to the claim on or before the 30th day 
     following receipt of the notice; and
       ``(ii) in the case of a denial, set forth in writing for 
     the claimant the grounds for the denial.
       ``(C) Costs and attorney's fees.--In any action against a 
     surety provider to recover on a claim described in 
     subparagraph (A), the prevailing party shall be entitled to 
     recover its reasonable costs and attorney's fees.
       ``(3) Freight forwarder insurance.--
       ``(A) In general.--The Secretary may register a person as a 
     freight forwarder under section

[[Page 10639]]

     13903 only if the person files with the Secretary a surety 
     bond, insurance policy, or other type of financial security 
     that meets standards prescribed by the Secretary.
       ``(B) Liability insurance.--A financial security filed by a 
     freight forwarder under subparagraph (A) shall be sufficient 
     to pay an amount, not to exceed the amount of the financial 
     security, for each final judgment against the freight 
     forwarder for bodily injury to, or death of, an individual, 
     or loss of, or damage to, property (other than property 
     referred to in subparagraph (C)), resulting from the 
     negligent operation, maintenance, or use of motor vehicles 
     by, or under the direction and control of, the freight 
     forwarder while providing transfer, collection, or delivery 
     service under this part.
       ``(C) Cargo insurance.--The Secretary may require a 
     registered freight forwarder to file with the Secretary a 
     surety bond, insurance policy, or other type of financial 
     security approved by the Secretary, that will pay an amount, 
     not to exceed the amount of the financial security, for loss 
     of, or damage to, property for which the freight forwarder 
     provides service.
       ``(4) Minimum financial security.--Each freight forwarder 
     subject to the requirements of this section shall provide 
     financial security of $75,000, regardless of the number of 
     branch offices or sales agents of the freight forwarder.
       ``(5) Cancellation notice.--If a financial security 
     required under this subsection is canceled--
       ``(A) the holder of the financial security shall provide 
     electronic notification to the Secretary of the cancellation 
     not later than 30 days before the effective date of the 
     cancellation; and
       ``(B) the Secretary shall immediately post such 
     notification on the public Internet web site of the 
     Department of Transportation.
       ``(6) Suspension.--The Secretary shall immediately suspend 
     the registration of a freight forwarder issued under this 
     chapter if its available financial security falls below the 
     amount required under this subsection.
       ``(7) Payment of claims in cases of financial failure or 
     insolvency.--If a freight forwarder registered under this 
     chapter experiences financial failure or insolvency, the 
     surety provider of the freight forwarder shall--
       ``(A) submit a notice to cancel the financial security to 
     the Administrator in accordance with paragraph (5);
       ``(B) publicly advertise for claims for 60 days beginning 
     on the date of publication by the Secretary of the notice to 
     cancel the financial security; and
       ``(C) pay, not later than 30 days after the expiration of 
     the 60-day period for submission of claims--
       ``(i) all uncontested claims received during such period; 
     or
       ``(ii) a pro rata share of such claims if the total amount 
     of such claims exceeds the financial security available.
       ``(8) Penalties.--
       ``(A) Civil actions.--Either the Secretary or the Attorney 
     General may bring a civil action in an appropriate district 
     court of the United States to enforce the requirements of 
     this subsection or a regulation prescribed or order issued 
     under this subsection. The court may award appropriate 
     relief, including injunctive relief.
       ``(B) Civil penalties.--If the Secretary determines, after 
     notice and opportunity for a hearing, that a surety provider 
     of a freight forwarder registered under this chapter has 
     violated the requirements of this subsection or a regulation 
     prescribed under this subsection, the surety provider shall 
     be liable to the United States for a civil penalty in an 
     amount not to exceed $10,000.
       ``(C) Eligibility.--If the Secretary determines, after 
     notice and opportunity for a hearing, that a surety provider 
     of a freight forwarder registered under this chapter has 
     violated the requirements of this subsection or a regulation 
     prescribed under this subsection, the surety provider shall 
     be ineligible to provide freight forwarder financial security 
     for 3 years
       ``(9) Deduction of costs prohibited.--The amount of the 
     financial security required under this subsection may not be 
     reduced by deducting attorney's fees or administrative 
     costs.''.
       (b) Rulemaking.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall issue regulations 
     to implement and enforce the requirements under subsections 
     (b) and (c) of section 13906 of title 49, United States Code, 
     as amended by subsection (a).
       (c) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the date that is 1 year after the date 
     of enactment of this Act.

     SEC. 32919. UNLAWFUL BROKERAGE ACTIVITIES.

       (a) In General.--Chapter 149 is amended by adding at the 
     end the following:

     ``SEC. 14916. UNLAWFUL BROKERAGE ACTIVITIES.

       ``(a) Prohibited Activities.--A person may provide 
     interstate brokerage services as a broker only if that 
     person--
       ``(1) is registered under, and in compliance with, section 
     13904; and
       ``(2) has satisfied the financial security requirements 
     under section 13906.
       ``(b) Exceptions.--Subsection (a) shall not apply to--
       ``(1) a non-vessel-operating common carrier (as defined in 
     section 40102 of title 46) or an ocean freight forwarder (as 
     defined in section 40102 of title 46) when arranging for 
     inland transportation as part of an international through 
     movement involving ocean transportation between the United 
     States and a foreign port;
       ``(2) a customs broker licensed in accordance with section 
     111.2 of title 19, Code of Federal Regulations, only to the 
     extent that the customs broker is engaging in a movement 
     under a customs bond or in a transaction involving customs 
     business, as defined by section 111.1 of title 19, Code of 
     Federal Regulations; or
       ``(3) an indirect air carrier holding a Standard Security 
     Program approved by the Transportation Security 
     Administration, only to the extent that the indirect air 
     carrier is engaging in the activities as an air carrier as 
     defined in section 40102(2) or in the activities defined in 
     section 40102(3).
       ``(c) Civil Penalties and Private Cause of Action.--Any 
     person who knowingly authorizes, consents to, or permits, 
     directly or indirectly, either alone or in conjunction with 
     any other person, a violation of subsection (a) is liable--
       ``(1) to the United States Government for a civil penalty 
     in an amount not to exceed $10,000 for each violation; and
       ``(2) to the injured party for all valid claims incurred 
     without regard to amount.
       ``(d) Liable Parties.--The liability for civil penalties 
     and for claims under this section for unauthorized brokering 
     shall apply, jointly and severally--
       ``(1) to any corporate entity or partnership involved; and
       ``(2) to the individual officers, directors, and principals 
     of such entities.''.
       (b) Clerical Amendment.--The analysis for chapter 149 is 
     amended by adding at the end the following:

``14916. Unlawful brokerage activities.''.

                PART II--HOUSEHOLD GOODS TRANSPORTATION

     SEC. 32921. ADDITIONAL REGISTRATION REQUIREMENTS FOR 
                   HOUSEHOLD GOODS MOTOR CARRIERS.

       (a) Section 13902(a)(2) is amended--
       (1) in subparagraph (B), by striking ``section 13702(c);'' 
     and inserting ``section 13702(c); and'';
       (2) by amending subparagraph (C) to read as follows:
       ``(C) demonstrates, before being registered, through 
     successful completion of a proficiency examination 
     established by the Secretary, knowledge and intent to comply 
     with applicable Federal laws relating to consumer protection, 
     estimating, consumers' rights and responsibilities, and 
     options for limitations of liability for loss and damage.''; 
     and
       (3) by striking subparagraph (D).
       (b) Compliance Reviews of New Household Goods Motor 
     Carriers.--Section 31144(g), as amended by section 32102 of 
     this Act, is amended by adding at the end the following:
       ``(6) Additional requirements for household goods motor 
     carriers.--(A) In addition to the requirements of this 
     subsection, the Secretary shall require, by regulation, each 
     registered household goods motor carrier to undergo a 
     consumer protection standards review not later than 18 months 
     after the household goods motor carrier begins operations 
     under such authority.
       ``(B) Elements.--In the regulations issued pursuant to 
     subparagraph (A), the Secretary shall establish the elements 
     of the consumer protections standards review, including basic 
     management controls. In establishing the elements, the 
     Secretary shall consider the effects on small businesses and 
     shall consider establishing alternate locations where such 
     reviews may be conducted for the convenience of small 
     businesses.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect 2 years after the date of enactment of this 
     Act.

     SEC. 32922. FAILURE TO GIVE UP POSSESSION OF HOUSEHOLD GOODS.

       (a) Injunctive Relief.--Section 14704(a)(1) is amended by 
     striking ``and 14103'' and inserting ``, 14103, and 
     14915(c)''.
       (b) Civil Penalties.--Section 14915(a)(1) is amended by 
     adding at the end the following:
       ``The United States may assign all or a portion of the 
     civil penalty to an aggrieved shipper. The Secretary of 
     Transportation shall establish criteria upon which such 
     assignments shall be made. The Secretary may order, after 
     notice and an opportunity for a proceeding, that a person 
     found holding a household goods shipment hostage return the 
     goods to an aggrieved shipper.''.

     SEC. 32923. SETTLEMENT AUTHORITY.

       (a) Settlement of General Civil Penalties.--Section 14901 
     is amended by adding at the end the following:
       ``(h) Settlement of Household Goods Civil Penalties.--
     Nothing in this section shall be construed to prohibit the 
     Secretary from accepting partial payment of a civil penalty 
     as part of a settlement agreement in the public interest, or 
     from holding imposition of any part of a civil penalty in 
     abeyance.''.
       (b) Settlement of Household Goods Civil Penalties.--Section 
     14915(a) is amended by adding at the end the following:
       ``(4) Settlement authority.--Nothing in this section shall 
     be construed as prohibiting the Secretary from accepting 
     partial payment of a civil penalty as part of a settlement 
     agreement in the public interest, or from holding imposition 
     of any part of a civil penalty in abeyance.''.

                     PART III--TECHNICAL AMENDMENTS

     SEC. 32931. UPDATE OF OBSOLETE TEXT.

       (a) Section 31137(g), as redesignated by section 32301 of 
     this Act, is amended by striking ``Not later than December 1, 
     1990, the Secretary shall prescribe'' and inserting ``The 
     Secretary shall maintain''.
       (b) Section 31151(a) is amended--
       (1) by amending paragraph (1) to read as follows:

[[Page 10640]]

       ``(1) In general.--The Secretary of Transportation shall 
     maintain a program to ensure that intermodal equipment used 
     to transport intermodal containers is safe and systematically 
     maintained.''; and
       (2) by striking paragraph (4).
       (c) Section 31307(b) is amended by striking ``Not later 
     than December 18, 1994, the Secretary shall prescribe'' and 
     inserting ``The Secretary shall maintain''.
       (d) Section 31310(g)(1) is amended by striking ``Not later 
     than 1 year after the date of enactment of this Act, the'' 
     and inserting ``The''.

     SEC. 32932. CORRECTION OF INTERSTATE COMMERCE COMMISSION 
                   REFERENCES.

       (a) Safety Information and Intervention in Interstate 
     Commerce Commission Proceedings.--Chapter 3 is amended--
       (1) by repealing section 307;
       (2) in the analysis, by striking the item relating to 
     section 307;
       (3) in section 333(d)(1)(C), by striking ``Interstate 
     Commerce Commission'' and inserting ``Surface Transportation 
     Board''; and
       (4) in section 333(e)--
       (A) by striking ``Interstate Commerce Commission'' and 
     inserting ``Surface Transportation Board''; and
       (B) by striking ``Commission'' and inserting ``Board''.
       (b) Filing and Procedure for Application to Abandon or 
     Discontinue.--Section 10903(b)(2) is amended by striking 
     ``24706(c) of this title'' and inserting ``24706(c) of this 
     title before May 31, 1998''.
       (c) Technical Amendments to Part C of Subtitle V.--
       (1) Section 24307(b)(3) is amended by striking ``Interstate 
     Commerce Commission'' and inserting ``Surface Transportation 
     Board''.
       (2) Section 24311 is amended--
       (A) by striking ``Interstate Commerce Commission'' and 
     inserting ``Surface Transportation Board'';
       (B) by striking ``Commission'' each place it appears and 
     inserting ``Board''; and
       (C) by striking ``Commission's'' and inserting ``Board's''.
       (3) Section 24902 is amended--
       (A) by striking ``Interstate Commerce Commission'' each 
     place it appears and inserting ``Surface Transportation 
     Board''; and
       (B) by striking ``Commission'' each place it appears and 
     inserting ``Board''.
       (4) Section 24904 is amended--
       (A) by striking ``Interstate Commerce Commission'' and 
     inserting ``Surface Transportation Board''; and
       (B) by striking ``Commission'' each place it appears and 
     inserting ``Board''.

     SEC. 32933. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Section 13905(f)(1)(A) is amended by striking ``section 
     13904(c)'' and inserting ``section 13904(e)'';
       (b) Section 14504a(c)(1) is amended--
       (1) in subparagraph (C), by striking ``sections'' and 
     inserting ``section''; and
       (2) in subparagraph (D)(ii)(II) by striking the period at 
     the end and inserting ``; and''.
       (c) Section 31103(a) is amended by striking ``section 
     31102(b)(1)(E)'' and inserting ``section 31102(b)(2)(E)''.
       (d) Section 31103(b) is amended by striking ``authorized by 
     section 31104(f)(2)''.
       (e) Section 31309(b)(2) is amended by striking ``31308(2)'' 
     and inserting ``31308(3)''.

     SEC. 32934. EXEMPTIONS FROM REQUIREMENTS FOR COVERED FARM 
                   VEHICLES.

       (a) Federal Requirements.--A covered farm vehicle, 
     including the individual operating that vehicle, shall be 
     exempt from the following:
       (1) Any requirement relating to commercial driver's 
     licenses established under chapter 313 of title 49, United 
     States Code.
       (2) Any requirement relating to drug-testing established 
     under chapter 313 of title 49, United States Code.
       (3) Any requirement relating to medical certificates 
     established under--
       (A) subchapter III of chapter 311 of title 49, United 
     States Code; or
       (B) chapter 313 of title 49, United States Code.
       (4) Any requirement relating to hours of service 
     established under--
       (A) subchapter III of chapter 311 of title 49, United 
     States Code; or
       (B) chapter 315 of title 49, United States Code.
       (5) Any requirement relating to vehicle inspection, repair, 
     and maintenance established under--
       (A) subchapter III of chapter 311 of title 49, United 
     States Code; or
       (B) chapter 315 of title 49, United States Code.
       (b) State Requirements.--
       (1) In general.--Federal transportation funding to a State 
     may not be terminated, limited, or otherwise interfered with 
     as a result of the State exempting a covered farm vehicle, 
     including the individual operating that vehicle, from any 
     State requirement relating to the operation of that vehicle.
       (2) Exception.--Paragraph (1) does not apply with respect 
     to a covered farm vehicle transporting hazardous materials 
     that require a placard.
       (c) Covered Farm Vehicle Defined.--
       (1) In general.--In this section, the term ``covered farm 
     vehicle'' means a motor vehicle (including an articulated 
     motor vehicle)--
       (A) that--
       (i) is traveling in the State in which the vehicle is 
     registered or another State;
       (ii) is operated by--

       (I) a farm owner or operator;
       (II) a ranch owner or operator; or
       (III) an employee or family member of an individual 
     specified in subclause (I) or (II);

       (iii) is transporting to or from a farm or ranch--

       (I) agricultural commodities;
       (II) livestock; or
       (III) machinery or supplies;

       (iv) except as provided in paragraph (2), is not used in 
     the operations of a for-hire motor carrier; and
       (v) is equipped with a special license plate or other 
     designation by the State in which the vehicle is registered 
     to allow for identification of the vehicle as a farm vehicle 
     by law enforcement personnel; and
       (B) that has a gross vehicle weight rating or gross vehicle 
     weight, whichever is greater, that is--
       (i) 26,001 pounds or less; or
       (ii) greater than 26,001 pounds and traveling within the 
     State or within 150 air miles of the farm or ranch with 
     respect to which the vehicle is being operated.
       (2) Inclusion.--In this section, the term ``covered farm 
     vehicle'' includes a motor vehicle that meets the 
     requirements of paragraph (1) (other than paragraph 
     (1)(A)(iv)) and--
       (A) is operated pursuant to a crop share farm lease 
     agreement;
       (B) is owned by a tenant with respect to that agreement; 
     and
       (C) is transporting the landlord's portion of the crops 
     under that agreement.
       (d) Safety Study.--The Secretary of Transportation shall 
     conduct a study of the exemption required by subsection (a) 
     as follows:
       (1) Data and analysis of covered farm vehicles shall 
     include--
       (A) the number of vehicles that are operated subject to 
     each of the regulatory exemptions permitted under subsection 
     (a);
       (B) the number of drivers that operate covered farm 
     vehicles subject to each of the regulatory exemptions 
     permitted under subsection (a);
       (C) the number of crashes involving covered farm vehicles;
       (D) the number of occupants and non-occupants injured in 
     crashes involving covered farm vehicles;
       (E) the number of fatalities of occupants and non-occupants 
     killed in crashes involving farm vehicles;
       (F) crash investigations and accident reconstruction 
     investigations of all fatalities in crashes involving covered 
     farm vehicles;
       (G) overall operating mileage of covered farm vehicles;
       (H) numbers of covered farm vehicles that operate in 
     neighboring States; and
       (I) any other data the Secretary deems necessary to analyze 
     and include.
       (2) A listing of State regulations issued and maintained in 
     each State that are identical to the Federal regulations that 
     are subject to exemption in subsection (a).
       (3) The Secretary shall report the findings of the study to 
     the appropriate committees of Congress not later than 18 
     months after the date of enactment of this Act.
       (e) Construction.--Nothing in this section shall be 
     construed as authority for the Secretary of Transportation to 
     prescribe regulations.
TITLE III--HAZARDOUS MATERIALS TRANSPORTATION SAFETY IMPROVEMENT ACT OF 
                                  2012

     SEC. 33001. SHORT TITLE.

       This title may be cited as the ``Hazardous Materials 
     Transportation Safety Improvement Act of 2012''.

     SEC. 33002. DEFINITION.

       In this title, the term ``Secretary'' means the Secretary 
     of Transportation.

     SEC. 33003. REFERENCES TO TITLE 49, UNITED STATES CODE.

       Except as otherwise expressly provided, whenever in this 
     title an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of title 49, United States Code.

     SEC. 33004. TRAINING FOR EMERGENCY RESPONDERS.

       (a) Training Curriculum.--Section 5115 is amended--
       (1) in subsection (b)(1)(B), by striking ``basic'';
       (2) in subsection (b)(2), by striking ``basic''; and
       (3) in subsection (c), by striking ``basic''.
       (b) Operations Level Training.--Section 5116 is amended--
       (1) in subsection (b)(1), by adding at the end the 
     following: ``To the extent that a grant is used to train 
     emergency responders, the State or Indian tribe shall provide 
     written certification to the Secretary that the emergency 
     responders who receive training under the grant will have the 
     ability to protect nearby persons, property, and the 
     environment from the effects of accidents or incidents 
     involving the transportation of hazardous material in 
     accordance with existing regulations or National Fire 
     Protection Association standards for competence of responders 
     to accidents and incidents involving hazardous materials.'';
       (2) in subsection (j)--
       (A) in paragraph (1), by striking ``funds'' and all that 
     follows through ``fighting fires for'' and inserting ``funds 
     and through a competitive process, make a grant or make 
     grants to national nonprofit fire service organizations 
     for'';
       (B) in paragraph (3)(A), by striking ``train'' and 
     inserting ``provide training, including portable training, 
     for'';
       (C) in paragraph (4)--
       (i) by striking ``train'' and inserting ``provide training, 
     including portable training, for''; and
       (ii) by inserting ``comply with Federal regulations and 
     national consensus standards for hazardous materials response 
     and'' after ``training course shall'';

[[Page 10641]]

       (D) by redesignating paragraph (5) as paragraph (8); and
       (E) by inserting after paragraph (4) the following:
       ``(5) The Secretary may not award a grant to an 
     organization under this subsection unless the organization 
     ensures that emergency responders who receive training under 
     the grant will have the ability to protect nearby persons, 
     property, and the environment from the effects of accidents 
     or incidents involving the transportation of hazardous 
     material in accordance with existing regulations or National 
     Fire Protection Association standards for competence of 
     responders to accidents and incidents involving hazardous 
     materials.
       ``(6) Notwithstanding paragraphs (1) and (3), to the extent 
     determined appropriate by the Secretary, a grant awarded by 
     the Secretary to an organization under this subsection to 
     conduct hazardous material response training programs may be 
     used to train individuals with responsibility to respond to 
     accidents and incidents involving hazardous material.
       ``(7) For the purposes of this subsection, the term 
     `portable training' means live, instructor-led training 
     provided by certified fire service instructors that can be 
     offered in any suitable setting, rather than specific 
     designated facilities. Under this training delivery model, 
     instructors travel to locations convenient to students and 
     utilize local facilities and resources.''; and
       (3) in subsection (k)--
       (A) by striking ``annually'' and inserting ``an annual 
     report'';
       (B) by inserting ``the report'' after ``make available'';
       (C) by striking ``information'' and inserting ``. The 
     report submitted under this subsection shall include 
     information''; and
       (D) by striking ``The report shall identify'' and all that 
     follows and inserting the following: ``The report submitted 
     under this subsection shall identify the ultimate recipients 
     of such grants and include--
       ``(A) a detailed accounting and description of each grant 
     expenditure by each grant recipient, including the amount of, 
     and purpose for, each expenditure;
       ``(B) the number of persons trained under the grant 
     program, by training level;
       ``(C) an evaluation of the efficacy of such planning and 
     training programs; and
       ``(D) any recommendations the Secretary may have for 
     improving such grant programs.''.

     SEC. 33005. PAPERLESS HAZARD COMMUNICATIONS PILOT PROGRAM.

       (a) In General.--The Secretary may conduct pilot projects 
     to evaluate the feasibility and effectiveness of using 
     paperless hazard communications systems. At least 1 of the 
     pilot projects under this section shall take place in a rural 
     area.
       (b) Requirements.--In conducting pilot projects under this 
     section, the Secretary--
       (1) may not waive the requirements under section 5110 of 
     title 49, United States Code; and
       (2) shall consult with organizations representing--
       (A) fire services personnel;
       (B) law enforcement and other appropriate enforcement 
     personnel;
       (C) other emergency response providers;
       (D) persons who offer hazardous material for 
     transportation;
       (E) persons who transport hazardous material by air, 
     highway, rail, and water; and
       (F) employees of persons who transport or offer for 
     transportation hazardous material by air, highway, rail, and 
     water.
       (c) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall--
       (1) prepare a report on the results of the pilot projects 
     carried out under this section, including--
       (A) a detailed description of the pilot projects;
       (B) an evaluation of each pilot project, including an 
     evaluation of the performance of each paperless hazard 
     communications system in such project;
       (C) an assessment of the safety and security impact of 
     using paperless hazard communications systems, including any 
     impact on the public, emergency response, law enforcement, 
     and the conduct of inspections and investigations;
       (D) an analysis of the associated benefits and costs of 
     using the paperless hazard communications systems for each 
     mode of transportation; and
       (E) a recommendation that incorporates the information 
     gathered in subparagraphs (A), (B), (C), and (D) on whether 
     paperless hazard communications systems should be permanently 
     incorporated into the Federal hazardous material 
     transportation safety program under chapter 51 of title 49, 
     United States Code; and
       (2) submit a final report to the Committee on Commerce, 
     Science, and Transportation of the Senate and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives that contains the results of the pilot 
     projects carried out under this section, including the 
     matters described in paragraph (1).
       (d) Paperless Hazard Communications System Defined.--In 
     this section, the term ``paperless hazard communications 
     system'' means the use of advanced communications methods, 
     such as wireless communications devices, to convey hazard 
     information between all parties in the transportation chain, 
     including emergency responders and law enforcement personnel. 
     The format of communication may be equivalent to that used by 
     the carrier.

     SEC. 33006. IMPROVING DATA COLLECTION, ANALYSIS, AND 
                   REPORTING.

       (a) Assessment.--
       (1) In general.--Not later than 6 months after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the Commandant of the United States Coast Guard, as 
     appropriate, shall conduct an assessment to improve the 
     collection, analysis, reporting, and use of data related to 
     accidents and incidents involving the transportation of 
     hazardous material.
       (2) Review.--The assessment conducted under this subsection 
     shall review the methods used by the Pipeline and Hazardous 
     Materials Safety Administration (referred to in this section 
     as the ``Administration'') for collecting, analyzing, and 
     reporting accidents and incidents involving the 
     transportation of hazardous material, including the adequacy 
     of--
       (A) information requested on the accident and incident 
     reporting forms required to be submitted to the 
     Administration;
       (B) methods used by the Administration to verify that the 
     information provided on such forms is accurate and complete;
       (C) accident and incident reporting requirements, including 
     whether such requirements should be expanded to include 
     shippers and consignees of hazardous materials;
       (D) resources of the Administration related to data 
     collection, analysis, and reporting, including staff and 
     information technology; and
       (E) the database used by the Administration for recording 
     and reporting such accidents and incidents, including the 
     ability of users to adequately search the database and find 
     information.
       (b) Development of Action Plan.--Not later than 9 months 
     after the date of enactment of this Act, the Secretary shall 
     develop an action plan and timeline for improving the 
     collection, analysis, reporting, and use of data by the 
     Administration, including revising the database of the 
     Administration, as appropriate.
       (c) Submission to Congress.--Not later than 15 days after 
     the completion of the action plan and timeline under 
     subsection (c), the Secretary shall submit the action plan 
     and timeline to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives.
       (d) Reporting Requirements.--Section 5125(b)(1)(D) is 
     amended by inserting ``and other written hazardous materials 
     transportation incident reporting involving State or local 
     emergency responders in the initial response to the 
     incident'' before the period at the end.

     SEC. 33007. HAZARDOUS MATERIAL TECHNICAL ASSESSMENT, RESEARCH 
                   AND DEVELOPMENT, AND ANALYSIS PROGRAM.

       (a) In General.--Chapter 51 is amended by inserting after 
     section 5117 the following:

     ``Sec. 5118. Hazardous material technical assessment, 
       research and development, and analysis program

       ``(a) Risk Reduction.--
       ``(1) Program authorized.--The Secretary of Transportation 
     may develop and implement a hazardous material technical 
     assessment, research and development, and analysis program 
     for the purpose of--
       ``(A) reducing the risks associated with the transportation 
     of hazardous material; and
       ``(B) identifying and evaluating new technologies to 
     facilitate the safe, secure, and efficient transportation of 
     hazardous material.
       ``(2) Coordination.--In developing the program under 
     paragraph (1), the Secretary shall--
       ``(A) utilize information gathered from other modal 
     administrations with similar programs; and
       ``(B) coordinate with other modal administrations, as 
     appropriate.
       ``(b) Cooperation.--In carrying out subsection (a), the 
     Secretary shall work cooperatively with regulated and other 
     entities, including shippers, carriers, emergency responders, 
     State and local officials, and academic institutions.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     51 is amended by inserting after the item relating to section 
     5117 the following:

``5118. Hazardous material technical assessment, research and 
              development, and analysis program.''.

     SEC. 33008. HAZARDOUS MATERIAL ENFORCEMENT TRAINING.

       (a) In General.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary shall develop uniform 
     performance standards for training hazardous material 
     inspectors and investigators on--
       (1) how to collect, analyze, and publish findings from 
     inspections and investigations of accidents or incidents 
     involving the transportation of hazardous material; and
       (2) how to identify noncompliance with regulations issued 
     under chapter 51 of title 49, United States Code, and take 
     appropriate enforcement action.
       (b) Standards and Guidelines.--The Secretary may develop--
       (1) guidelines for hazardous material inspector and 
     investigator qualifications;
       (2) best practices and standards for hazardous material 
     inspector and investigator training programs; and
       (3) standard protocols to coordinate investigation efforts 
     among Federal, State, and local jurisdictions on accidents or 
     incidents involving the transportation of hazardous material.
       (c) Availability.--The standards, protocols, and guidelines 
     established under this section--
       (1) shall be mandatory for--
       (A) the Department of Transportation's multimodal personnel 
     conducting hazardous material enforcement inspections or 
     investigations; and

[[Page 10642]]

       (B) State employees who conduct federally funded compliance 
     reviews, inspections, or investigations; and
       (2) shall be made available to Federal, State, and local 
     hazardous material safety enforcement personnel.

     SEC. 33009. INSPECTIONS.

       (a) Notice of Enforcement Measures.--Section 5121(c)(1) is 
     amended--
       (1) in subparagraph (E), by striking ``and'' at the end;
       (2) in subparagraph (F), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(G) shall provide to the affected offeror, carrier, 
     packaging manufacturer or tester, or other person responsible 
     for the package reasonable notice of--
       ``(i) his or her decision to exercise his or her authority 
     under paragraph (1);
       ``(ii) any findings made; and
       ``(iii) any actions being taken as a result of a finding of 
     noncompliance.''.
       (b) Regulations.--
       (1) Matters to be addressed.--Section 5121(e) is amended by 
     adding at the end the following:
       ``(3) Matters to be addressed.--The regulations issued 
     under this subsection shall address--
       ``(A) the safe and expeditious resumption of transportation 
     of perishable hazardous material, including 
     radiopharmaceuticals and other medical products, that may 
     require timely delivery due to life-threatening situations;
       ``(B) the means by which--
       ``(i) noncompliant packages that present an imminent hazard 
     are placed out-of-service until the condition is corrected; 
     and
       ``(ii) noncompliant packages that do not present a hazard 
     are moved to their final destination;
       ``(C) appropriate training and equipment for inspectors; 
     and
       ``(D) the proper closure of packaging in accordance with 
     the hazardous material regulations.''.
       (2) Finalizing regulations.--In accordance with section 
     5103(b)(2) of title 49, United States Code, not later than 1 
     year after the date of enactment of this Act, the Secretary 
     shall take all actions necessary to finalize a regulation 
     under paragraph (1) of this subsection.
       (c) Grants and Cooperative Agreements.--Section 5121(g)(1) 
     is amended by inserting ``safety and'' before ``security''.

     SEC. 33010. CIVIL PENALTIES.

       Section 5123 is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``at least $250 but''; and
       (ii) by striking ``$50,000'' and inserting ``$75,000'';
       (B) in paragraph (2), by striking ``$100,000'' and 
     inserting ``$175,000''; and
       (C) by amending paragraph (3) to read as follows:
       ``(3) If the violation is related to training, a person 
     described in paragraph (1) shall be liable for a civil 
     penalty of at least $450.''; and
       (2) by adding at the end the following:
       ``(h) Penalty for Obstruction of Inspections and 
     Investigations.--
       ``(1) The Secretary may impose a penalty on a person who 
     obstructs or prevents the Secretary from carrying out 
     inspections or investigations under subsection (c) or (i) of 
     section 5121.
       ``(2) For the purposes of this subsection, the term 
     `obstructs' means actions that were known, or reasonably 
     should have been known, to prevent, hinder, or impede an 
     investigation.
       ``(i) Prohibition on Hazardous Material Operations After 
     Nonpayment of Penalties.--
       ``(1) In general.--Except as provided under paragraph (2), 
     a person subject to the jurisdiction of the Secretary under 
     this chapter who fails to pay a civil penalty assessed under 
     this chapter, or fails to arrange and abide by an acceptable 
     payment plan for such civil penalty, may not conduct any 
     activity regulated under this chapter beginning on the 91st 
     day after the date specified by order of the Secretary for 
     payment of such penalty unless the person has filed a formal 
     administrative or judicial appeal of the penalty.
       ``(2) Exception.--Paragraph (1) shall not apply to any 
     person who is unable to pay a civil penalty because such 
     person is a debtor in a case under chapter 11 of title 11.
       ``(3) Rulemaking.--Not later than 2 years after the date of 
     enactment of this subsection, the Secretary, after providing 
     notice and an opportunity for public comment, shall issue 
     regulations that--
       ``(A) set forth procedures to require a person who is 
     delinquent in paying civil penalties to cease any activity 
     regulated under this chapter until payment has been made or 
     an acceptable payment plan has been arranged; and
       ``(B) ensures that the person described in subparagraph 
     (A)--
       ``(i) is notified in writing; and
       ``(ii) is given an opportunity to respond before the person 
     is required to cease the activity.''.

     SEC. 33011. REPORTING OF FEES.

       Section 5125(f)(2) is amended by striking ``, upon the 
     Secretary's request,'' and inserting ``biennially''.

     SEC. 33012. SPECIAL PERMITS, APPROVALS, AND EXCLUSIONS.

       (a) Rulemaking.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary, after providing notice 
     and an opportunity for public comment, shall issue 
     regulations that establish--
       (1) standard operating procedures to support administration 
     of the special permit and approval programs; and
       (2) objective criteria to support the evaluation of special 
     permit and approval applications.
       (b) Review of Special Permits.--
       (1) Review.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall conduct a review 
     and analysis of special permits that have been in continuous 
     effect for a 10-year period to determine which special 
     permits may be converted into the hazardous materials 
     regulations.
       (2) Factors.--In conducting the review and analysis under 
     paragraph (1), the Secretary may consider--
       (A) the safety record for hazardous materials transported 
     under the special permit;
       (B) the application of a special permit;
       (C) the suitability of provisions in the special permit for 
     incorporation into the hazardous materials regulations; and
       (D) rulemaking activity in related areas.
       (3) Rulemaking.--After completing the review and analysis 
     under paragraph (1), but not later than 3 years after the 
     date of enactment of this Act, and after providing notice and 
     opportunity for public comment, the Secretary shall issue 
     regulations to incorporate into the hazardous materials 
     regulations any special permits identified in the review 
     under paragraph (1) that the Secretary determines are 
     appropriate for incorporation, based on the factors 
     identified in paragraph (2).
       (c) Incorporation Into Regulation.--Section 5117 is amended 
     by adding at the end the following:
       ``(f) Incorporation Into Regulations.--
       ``(1) In general.--Not later than 1 year after the date on 
     which a special permit has been in continuous effect for a 
     10-year period, the Secretary shall conduct a review and 
     analysis of that special permit to determine whether it may 
     be converted into the hazardous materials regulations.
       ``(2) Factors.--In conducting the review and analysis under 
     paragraph (1), the Secretary may consider--
       ``(A) the safety record for hazardous materials transported 
     under the special permit;
       ``(B) the application of a special permit;
       ``(C) the suitability of provisions in the special permit 
     for incorporation into the hazardous materials regulations; 
     and
       ``(D) rulemaking activity in related areas.
       ``(3) Rulemaking.--After completing the review and analysis 
     under paragraph (1) and after providing notice and 
     opportunity for public comment, the Secretary shall either 
     institute a rulemaking to incorporate the special permit into 
     the hazardous materials regulations or publish in the Federal 
     Register the Secretary's justification for why the special 
     permit is not appropriate for incorporation into the 
     regulations.''.

     SEC. 33013. HIGHWAY ROUTING DISCLOSURES.

       (a) List of Route Designations.--Section 5112(c) is 
     amended--
       (1) by striking ``In coordination'' and inserting the 
     following:
       ``(1) In general.--In coordination''; and
       (2) by adding at the end the following:
       ``(2) State responsibilities.--
       ``(A) In general.--Each State shall submit to the 
     Secretary, in a form and manner to be determined by the 
     Secretary and in accordance with subparagraph (B)--
       ``(i) the name of the State agency responsible for 
     hazardous material highway route designations; and
       ``(ii) a list of the State's currently effective hazardous 
     material highway route designations.
       ``(B) Frequency.--Each State shall submit the information 
     described in subparagraph (A)(ii)--
       ``(i) at least once every 2 years; and
       ``(ii) not later than 60 days after a hazardous material 
     highway route designation is established, amended, or 
     discontinued.''.
       (b) Compliance With Section 5112.--Section 5125(c)(1) is 
     amended by inserting ``, and is published in the Department's 
     hazardous materials route registry under section 5112(c)'' 
     before the period at the end.

     SEC. 33014. MOTOR CARRIER SAFETY PERMITS.

       (a) Review.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall conduct a study 
     of, and transmit to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives a report on, the implementation of the 
     hazardous material safety permit program under section 5109 
     of title 49, United States Code. In conducting the study, the 
     Secretary shall review, at a minimum--
       (1) the list of hazardous materials requiring a safety 
     permit;
       (2) the number of permits that have been issued, denied, 
     revoked, or suspended since inception of the program and the 
     number of commercial motor carriers that have never had a 
     permit denied, revoked, or suspended since inception of the 
     program;
       (3) the reasons for such denials, revocations, or 
     suspensions;
       (4) the criteria used by the Federal Motor Carrier Safety 
     Administration to determine whether a hazardous material 
     safety permit issued by a State is equivalent to the Federal 
     permit; and
       (5) actions the Secretary could implement to improve the 
     program, including whether to provide opportunities for an 
     additional level of fitness review prior to the denial, 
     revocation, or suspension of a safety permit.
       (b) Actions Taken.--Not later than 2 years after the date 
     of enactment of this Act, based on

[[Page 10643]]

     the study conducted under subsection (a), the Secretary shall 
     either institute a rulemaking to make any necessary 
     improvements to the hazardous materials safety permit program 
     under section 5109 of title 49, United States Code or publish 
     in the Federal Register the Secretary's justification for why 
     a rulemaking is not necessary.

     SEC. 33015. WETLINES.

       (a) Evaluation.--Not later than 1 year after the date of 
     enactment of this Act, the United States Government 
     Accountability Office shall evaluate, and transmit to the 
     Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives, a report on the safety of 
     transporting flammable liquids in the external product piping 
     of cargo tank motor vehicles (commonly referred to as 
     wetlines). The evaluation shall--
       (1) review the safety of transporting flammable liquids in 
     the external product piping of cargo tank motor vehicles;
       (2) accurately quantify the number of incidents involving 
     the transportation of flammable liquids in external product 
     piping of cargo tank motor vehicles;
       (3) identify various alternatives to loading, transporting, 
     and unloading flammable liquids in such piping;
       (4) examine the costs and benefits of each alternative; and
       (5) identify any obstacles to implementing each 
     alternative.
       (b) Regulations.--The Secretary may not issue a final rule 
     regarding transporting flammable liquids in the external 
     product piping of cargo tank motor vehicles prior to 
     completion of the evaluation conducted under subsection (a), 
     or 2 years after the date of enactment of this Act, whichever 
     is earlier, unless the Secretary determines that a risk to 
     public safety, property, or the environment is present or an 
     imminent hazard (as defined in section 5102 of title 49, 
     United States Code) exists and that the regulations will 
     address the risk or hazard.

     SEC. 33016. HAZMAT EMPLOYEE TRAINING REQUIREMENTS AND GRANTS.

       Section 5107(e)(2) is amended--
       (1) by inserting ``through a competitive process'' between 
     ``made'' and ``to''; and
       (2) by striking ``hazmat employee''.

     SEC. 33017. AUTHORIZATION OF APPROPRIATIONS.

       Section 5128 is amended to read as follows:

     ``Sec. 5128. Authorization of appropriations

       ``(a) In General.--There are authorized to be appropriated 
     to the Secretary to carry out this chapter (except sections 
     5107(e), 5108(g)(2), 5113, 5115, 5116, and 5119)--
       ``(1) $42,338,000 for fiscal year 2013; and
       ``(2) $42,762,000 for fiscal year 2014.
       ``(b) Hazardous Materials Emergency Preparedness Fund.--
     From the Hazardous Materials Emergency Preparedness Fund 
     established under section 5116(i), the Secretary may expend, 
     during each of fiscal years 2013 and 2014--
       ``(1) $188,000 to carry out section 5115;
       ``(2) $21,800,000 to carry out subsections (a) and (b) of 
     section 5116, of which not less than $13,650,000 shall be 
     available to carry out section 5116(b);
       ``(3) $150,000 to carry out section 5116(f);
       ``(4) $625,000 to publish and distribute the Emergency 
     Response Guidebook under section 5116(i)(3); and
       ``(5) $1,000,000 to carry out section 5116(j).
       ``(c) Hazardous Materials Training Grants.--From the 
     Hazardous Materials Emergency Preparedness Fund established 
     pursuant to section 5116(i), the Secretary may expend 
     $4,000,000 for each of the fiscal years 2013 and 2014 to 
     carry out section 5107(e).
       ``(d) Credits to Appropriations.--
       ``(1) Expenses.--In addition to amounts otherwise made 
     available to carry out this chapter, the Secretary may credit 
     amounts received from a State, Indian tribe, or other public 
     authority or private entity for expenses the Secretary incurs 
     in providing training to the State, authority, or entity.
       ``(2) Availability of amounts.--Amounts made available 
     under this section shall remain available until expended.''.
TITLE IV--SPORT FISH RESTORATION AND RECREATIONAL BOATING SAFETY ACT OF 
                                  2012

     SEC. 34001. SHORT TITLE.

       This title may be cited as the ``Sport Fish Restoration and 
     Recreational Boating Safety Act of 2012''.

     SEC. 34002. AMENDMENT OF FEDERAL AID IN SPORT FISH 
                   RESTORATION ACT.

       Section 4 of the Federal Aid in Fish Restoration Act (16 
     U.S.C. 777c) is amended--
       (1) in subsection (a), by striking ``of fiscal years 2006 
     through 2011 and for the period beginning on October 1, 2011, 
     and ending on June 30, 2012,'' and inserting ``fiscal year 
     through 2014,''; and
       (2) in subsection (b)(1)(A), by striking ``of fiscal years 
     2006 through 2011 and for the period beginning on October 1, 
     2011, and ending on March 31, 2012,'' and inserting ``fiscal 
     year through 2014,''.
                         TITLE V--MISCELLANEOUS

     SEC. 35001. OVERFLIGHTS IN GRAND CANYON NATIONAL PARK.

       (a) Determinations With Respect to Substantial Restoration 
     of Natural Quiet and Experience.--
       (1) In general.--Notwithstanding any other provision of 
     law, for purposes of section 3(b)(1) of Public Law 100-91 (16 
     U.S.C. 1a-1 note), the substantial restoration of the natural 
     quiet and experience of the Grand Canyon National Park (in 
     this section referred to as the ``Park'') shall be considered 
     to be achieved in the Park if, for at least 75 percent of 
     each day, 50 percent of the Park is free of sound produced by 
     commercial air tour operations that have an allocation to 
     conduct commercial air tours in the Park as of the date of 
     enactment of this Act.
       (2) Considerations.--
       (A) In general.--For purposes of determining whether 
     substantial restoration of the natural quiet and experience 
     of the Park has been achieved in accordance with paragraph 
     (1), the Secretary of the Interior (in this section referred 
     to as the ``Secretary'') shall use--
       (i) the 2-zone system for the Park in effect on the date of 
     enactment of this Act to assess impacts relating to 
     substantial restoration of natural quiet at the Park, 
     including--

       (I) the thresholds for noticeability and audibility; and
       (II) the distribution of land between the 2 zones; and

       (ii) noise modeling science that is--

       (I) developed for use at the Park, specifically Integrated 
     Noise Model Version 6.2;
       (II) validated by reasonable standards for conducting field 
     observations of model results; and
       (III) accepted and validated by the Federal Interagency 
     Committee on Aviation Noise.

       (B) Sound from other sources.--The Secretary shall not 
     consider sound produced by sources other than commercial air 
     tour operations, including sound emitted by other types of 
     aircraft operations or other noise sources, for purposes of--
       (i) making recommendations, developing a final plan, or 
     issuing regulations relating to commercial air tour 
     operations in the Park; or
       (ii) determining under paragraph (1) whether substantial 
     restoration of the natural quiet and experience of the Park 
     has been achieved.
       (3) Continued monitoring.--The Secretary shall continue 
     monitoring noise from aircraft operating over the Park below 
     17,999 feet MSL to ensure continued compliance with the 
     substantial restoration of natural quiet and experience of 
     the Park.
       (4) Day defined.--For purposes of this section, the term 
     ``day'' means the hours between 7:00 a.m. and 7:00 p.m.
       (b) Conversion to Quiet Technology Aircraft.--
       (1) In general.--Not later than 15 years after the date of 
     enactment of this Act, all commercial air tour aircraft 
     operating in the Grand Canyon National Park Special Flight 
     Rules Area shall be required to fully convert to quiet 
     aircraft technology (as determined in accordance with 
     regulations in effect on the day before the date of enactment 
     of this Act).
       (2) Conversion incentives.--Not later than 60 days after 
     the date of enactment of this Act, the Secretary and the 
     Administrator of the Federal Aviation Administration shall 
     provide incentives for commercial air tour operators that 
     convert to quiet aircraft technology (as determined in 
     accordance with the regulations in effect on the day before 
     the date of enactment of this Act) before the date specified 
     in paragraph (1), such as increasing the flight allocations 
     for such operators on a net basis consistent with section 
     804(c) of the National Park Air Tours Management Act of 2000 
     (title VIII of Public Law 106-181), provided that the 
     cumulative impact of such operations does not increase noise 
     at Grand Canyon National Park.

     SEC. 35002. COMMERCIAL AIR TOUR OPERATIONS.

       Section 40128(b)(1)(C) of title 49, United States Code, is 
     amended to read as follows:
       ``(C) Exception.--An application to begin or expand 
     commercial air tour operations at Crater Lake National Park 
     or Great Smoky Mountains National Park may be denied without 
     the establishment of an air tour management plan by the 
     Director of the National Park Service if the Director 
     determines that such operations would adversely affect park 
     resources or visitor experiences.''.

     SEC. 35003. QUALIFICATIONS FOR PUBLIC AIRCRAFT STATUS.

       Section 40125 of title 49, United States Code, is amended 
     by adding at the end the following:
       ``(d) Search and Rescue Purposes.--An aircraft described in 
     section 40102(a)(41)(D) that is not exclusively leased for at 
     least 90 continuous days by the government of a State, the 
     District of Columbia, or a territory or possession of the 
     United States or a political subdivision of 1 of those 
     governments, qualifies as a public aircraft if the 
     Administrator determines that--
       ``(1) there are extraordinary circumstances;
       ``(2) the aircraft will be used for the performance of 
     search and rescue missions;
       ``(3) a community would not otherwise have access to search 
     and rescue services; and
       ``(4) a government entity demonstrates that granting the 
     waiver is necessary to prevent an undue economic burden on 
     that government.''.
                          DIVISION D--FINANCE

     SEC. 40001. SHORT TITLE.

       This division may be cited as the ``Highway Investment, Job 
     Creation, and Economic Growth Act of 2012''.
  TITLE I--EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND 
                             RELATED TAXES

     SEC. 40101. EXTENSION OF TRUST FUND EXPENDITURE AUTHORITY.

       (a) Highway Trust Fund.--Section 9503 of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``July 1, 2012'' in subsections (b)(6)(B), 
     (c)(1), and (e)(3) and inserting ``October 1, 2014'', and
       (2) by striking ``Surface Transportation Extension Act of 
     2012'' in subsections (c)(1) and (e)(3) and inserting ``MAP-
     21''.

[[Page 10644]]

       (b) Sport Fish Restoration and Boating Trust Fund.--Section 
     9504 of the Internal Revenue Code of 1986 is amended--
       (1) by striking ``Surface Transportation Extension Act of 
     2012'' each place it appears in subsection (b)(2) and 
     inserting ``MAP-21'', and
       (2) by striking ``July 1, 2012'' in subsection (d)(2) and 
     inserting ``October 1, 2014''.
       (c) Leaking Underground Storage Tank Trust Fund.--Paragraph 
     (2) of section 9508(e) of the Internal Revenue Code of 1986 
     is amended by striking ``July 1, 2012'' and inserting 
     ``October 1, 2014''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2012.

     SEC. 40102. EXTENSION OF HIGHWAY-RELATED TAXES.

       (a) In General.--
       (1) Each of the following provisions of the Internal 
     Revenue Code of 1986 is amended by striking ``June 30, 2012'' 
     and inserting ``September 30, 2016'':
       (A) Section 4041(a)(1)(C)(iii)(I).
       (B) Section 4041(m)(1)(B).
       (C) Section 4081(d)(1).
       (2) Each of the following provisions of such Code is 
     amended by striking ``July 1, 2012'' and inserting ``October 
     1, 2016'':
       (A) Section 4041(m)(1)(A).
       (B) Section 4051(c).
       (C) Section 4071(d).
       (D) Section 4081(d)(3).
       (b) Extension of Tax, etc., on Use of Certain Heavy 
     Vehicles.--
       (1) In general.--Each of the following provisions of the 
     Internal Revenue Code of 1986 is amended by striking ``2013'' 
     each place it appears and inserting ``2017'':
       (A) Section 4481(f).
       (B) Section 4482(d).
       (2) Extension and technical correction.--
       (A) In general.--Paragraph (4) of section 4482(c) of such 
     Code is amended to read as follows:
       ``(4) Taxable period.--The term `taxable period' means any 
     year beginning before July 1, 2017, and the period which 
     begins on July 1, 2017, and ends at the close of September 
     30, 2017.''.
       (B) Effective date.--The amendment made by this paragraph 
     shall take effect as if included in the amendments made by 
     section 142 of the Surface Transportation Extension Act of 
     2011, Part II.
       (c) Floor Stocks Refunds.--Section 6412(a)(1) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``July 1, 2012'' each place it appears and 
     inserting ``October 1, 2016'',
       (2) by striking ``December 31, 2012'' each place it appears 
     and inserting ``March 31, 2017'', and
       (3) by striking ``October 1, 2012'' and inserting ``January 
     1, 2017''.
       (d) Extension of Certain Exemptions.--
       (1) Section 4221(a) of the Internal Revenue Code of 1986 is 
     amended by striking ``July 1, 2012'' and inserting ``October 
     1, 2016''.
       (2) Section 4483(i) of such Code is amended by striking 
     ``July 1, 2012'' and inserting ``October 1, 2017''.
       (e) Extension of Transfers of Certain Taxes.--
       (1) In general.--Section 9503 of the Internal Revenue Code 
     of 1986 is amended--
       (A) in subsection (b)--
       (i) by striking ``July 1, 2012'' each place it appears in 
     paragraphs (1) and (2) and inserting ``October 1, 2016'',
       (ii) by striking ``July 1, 2012'' in the heading of 
     paragraph (2) and inserting ``October 1, 2016'',
       (iii) by striking ``June 30, 2012'' in paragraph (2) and 
     inserting ``September 30, 2016'', and
       (iv) by striking ``April 1, 2013'' in paragraph (2) and 
     inserting ``July 1, 2017'', and
       (B) in subsection (c)(2), by striking ``April 1, 2013'' and 
     inserting ``July 1, 2017''.
       (2) Motorboat and small-engine fuel tax transfers.--
       (A) In general.--Paragraphs (3)(A)(i) and (4)(A) of section 
     9503(c) of such Code are each amended by striking ``July 1, 
     2012'' and inserting ``October 1, 2016''.
       (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 ``July 1, 2013'' each place it appears and 
     inserting ``October 1, 2017'', and
       (ii) by striking ``July 1, 2012'' and inserting ``October 
     1, 2016''.
       (f) Effective Date.--Except as otherwise provided in this 
     section, the amendments made by this section shall take 
     effect on July 1, 2012.
                      TITLE II--REVENUE PROVISIONS
        Subtitle A--Leaking Underground Storage Tank Trust Fund

     SEC. 40201. TRANSFER FROM LEAKING UNDERGROUND STORAGE TANK 
                   TRUST FUND TO HIGHWAY TRUST FUND.

       (a) In General.--Subsection (c) of section 9508 of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``Amounts'' and inserting:
       ``(1) In general.--Except as provided in paragraph (2), 
     amounts'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Transfer to highway trust fund.--Out of amounts in 
     the Leaking Underground Storage Tank Trust Fund there is 
     hereby appropriated $2,400,000,000 to be transferred under 
     section 9503(f)(3) to the Highway Account (as defined in 
     section 9503(e)(5)(B)) in the Highway Trust Fund.''.
       (b) Transfer to Highway Trust Fund.--
       (1) In general.--Subsection (f) of section 9503 of the 
     Internal Revenue Code of 1986 is amended by inserting after 
     paragraph (2) the following new paragraph:
       ``(3) Increase in fund balance.--There is hereby 
     transferred to the Highway Account (as defined in subsection 
     (e)(5)(B)) in the Highway Trust Fund amounts appropriated 
     from the Leaking Underground Storage Tank Trust Fund under 
     section 9508(c)(2).''.
       (2) Conforming amendments.--Paragraph (4) of section 
     9503(f) of such Code is amended--
       (A) by inserting ``or transferred'' after ``appropriated'', 
     and
       (B) by striking ``appropriated'' in the heading thereof.
                     Subtitle B--Pension Provisions

                 PART I--PENSION FUNDING STABILIZATION

     SEC. 40211. PENSION FUNDING STABILIZATION.

       (a) Amendments to Internal Revenue Code of 1986.--
       (1) In general.--Subparagraph (C) of section 430(h)(2) of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new clause:
       ``(iv) Segment rate stabilization.--

       ``(I) In general.--If a segment rate described in clause 
     (i), (ii), or (iii) with respect to any applicable month 
     (determined without regard to this clause) is less than the 
     applicable minimum percentage, or more than the applicable 
     maximum percentage, of the average of the segment rates 
     described in such clause for years in the 25-year period 
     ending with September 30 of the calendar year preceding the 
     calendar year in which the plan year begins, then the segment 
     rate described in such clause with respect to the applicable 
     month shall be equal to the applicable minimum percentage or 
     the applicable maximum percentage of such average, whichever 
     is closest. The Secretary shall determine such average on an 
     annual basis and may prescribe equivalent rates for years in 
     any such 25-year period for which the rates described in any 
     such clause are not available.
       ``(II) Applicable minimum percentage; applicable maximum 
     percentage.--For purposes of subclause (I), the applicable 
     minimum percentage and the applicable maximum percentage for 
     a plan year beginning in a calendar year shall be determined 
     in accordance with the following table:


------------------------------------------------------------------------
                                                                The
                                           The applicable    applicable
        ``If the calendar year is:             minimum        maximum
                                           percentage is:    percentage
                                                                is:
------------------------------------------------------------------------
2012.....................................             90%        110%
2013.....................................             85%        115%
2014.....................................             80%        120%
2015.....................................             75%        125%
After 2015...............................             70%        130%.''.
------------------------------------------------------------------------

       (2) Conforming amendments.--
       (A) Paragraph (6) of section 404(o) of such Code is amended 
     by inserting ``(determined by not taking into account any 
     adjustment under clause (iv) of subsection (h)(2)(C) 
     thereof)'' before the period.
       (B) Subparagraph (F) of section 430(h)(2) of such Code is 
     amended by inserting ``and the averages determined under 
     subparagraph (C)(iv)'' after ``subparagraph (C)''.
       (C) Subparagraphs (C) and (D) of section 417(e)(3) of such 
     Code are each amended by striking ``section 430(h)(2)(C)'' 
     and inserting ``section 430(h)(2)(C) (determined by not 
     taking into account any adjustment under clause (iv) 
     thereof)''.
       (D) Section 420 of such Code is amended by adding at the 
     end the following new subsection:
       ``(g) Segment Rates Determined Without Pension 
     Stabilization.--For purposes of this section, section 430 
     shall be applied without regard to subsection (h)(2)(C)(iv) 
     thereof.''.
       (b) Amendments to Employee Retirement Income Security Act 
     of 1974.--
       (1) In general.--Subparagraph (C) of section 303(h)(2) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1083(h)(2)) is amended by adding at the end the 
     following new clause:
       ``(iv) Segment rate stabilization.--

       ``(I) In general.--If a segment rate described in clause 
     (i), (ii), or (iii) with respect to any applicable month 
     (determined without regard to this clause) is less than the 
     applicable minimum percentage, or more than the applicable 
     maximum percentage, of the average of the segment rates 
     described in such clause for years in the 25-year period 
     ending with September 30 of the calendar year preceding the 
     calendar year in which the plan year begins, then the segment 
     rate described in such clause with respect to the applicable 
     month shall be equal to the applicable minimum percentage or 
     the applicable maximum percentage of such average, whichever 
     is closest. The Secretary of the Treasury shall determine 
     such average on an annual basis and may prescribe equivalent 
     rates for years in any such 25-year period for which the 
     rates described in any such clause are not available.
       ``(II) Applicable minimum percentage; applicable maximum 
     percentage.--For purposes of subclause (I), the applicable 
     minimum percentage and the applicable maximum percentage for 
     a plan year beginning in a calendar year shall be determined 
     in accordance with the following table:


------------------------------------------------------------------------
                                                                The
                                           The applicable    applicable
        ``If the calendar year is:             minimum        maximum
                                           percentage is:    percentage
                                                                is:
------------------------------------------------------------------------
2012.....................................             90%        110%

[[Page 10645]]

 
2013.....................................             85%        115%
2014.....................................             80%        120%
2015.....................................             75%        125%
After 2015...............................             70%        130%.''.
------------------------------------------------------------------------

       (2) Disclosure of effect of segment rate stabilization on 
     plan funding.--
       (A) In general.--Paragraph (2) of section 101(f) of such 
     Act (29 U.S.C. 1021(f)) is amended by adding at the end the 
     following new subparagraph:
       ``(D) Effect of segment rate stabilization on plan 
     funding.--
       ``(i) In general.--In the case of a single-employer plan 
     for an applicable plan year, each notice under paragraph (1) 
     shall include--

       ``(I) a statement that the MAP-21 modified the method for 
     determining the interest rates used to determine the 
     actuarial value of benefits earned under the plan, providing 
     for a 25-year average of interest rates to be taken into 
     account in addition to a 2-year average,
       ``(II) a statement that, as a result of the MAP-21, the 
     plan sponsor may contribute less money to the plan when 
     interest rates are at historical lows, and
       ``(III) a table which shows (determined both with and 
     without regard to section 303(h)(2)(C)(iv)) the funding 
     target attainment percentage (as defined in section 
     303(d)(2)), the funding shortfall (as defined in section 
     303(c)(4)), and the minimum required contribution (as 
     determined under section 303), for the applicable plan year 
     and each of the 2 preceding plan years.

       ``(ii) Applicable plan year.--For purposes of this 
     subparagraph, the term `applicable plan year' means any plan 
     year beginning after December 31, 2011, and before January 1, 
     2015, for which--

       ``(I) the funding target (as defined in section 303(d)(2)) 
     is less than 95 percent of such funding target determined 
     without regard to section 303(h)(2)(C)(iv),
       ``(II) the plan has a funding shortfall (as defined in 
     section 303(c)(4) and determined without regard to section 
     303(h)(2)(C)(iv)) greater than $500,000, and
       ``(III) the plan had 50 or more participants on any day 
     during the preceding plan year.

     For purposes of any determination under subclause (III), the 
     aggregation rule under the last sentence of section 
     303(g)(2)(B) shall apply.
       ``(iii) Special rule for plan years beginning before 
     2012.--In the case of a preceding plan year referred to in 
     clause (i)(III) which begins before January 1, 2012, the 
     information described in such clause shall be provided only 
     without regard to section 303(h)(2)(C)(iv).''.
       (B) Model notice.--The Secretary of Labor shall modify the 
     model notice required to be published under section 501(c) of 
     the Pension Protection Act of 2006 to prominently include the 
     information described in section 101(f)(2)(D) of the Employee 
     Retirement Income Security Act of 1974, as added by this 
     paragraph.
       (3) Conforming amendments.--
       (A) Subparagraph (F) of section 303(h)(2) of such Act (29 
     U.S.C. 1083(h)(2)) is amended by inserting ``and the averages 
     determined under subparagraph (C)(iv)'' after ``subparagraph 
     (C)''.
       (B) Clauses (ii) and (iii) of section 205(g)(3)(B) of such 
     Act (29 U.S.C. 1055(g)(3)(B)) are each amended by striking 
     ``section 303(h)(2)(C)'' and inserting ``section 303(h)(2)(C) 
     (determined by not taking into account any adjustment under 
     clause (iv) thereof)''.
       (C) Clause (iv) of section 4006(a)(3)(E) of such Act (29 
     U.S.C. 1306(a)(3)(E)) is amended by striking ``section 
     303(h)(2)(C)'' and inserting ``section 303(h)(2)(C) 
     (notwithstanding any regulations issued by the corporation, 
     determined by not taking into account any adjustment under 
     clause (iv) thereof)''.
       (D) Section 4010(d) of such Act (29 U.S.C. 1310(d)) is 
     amended by adding at the end the following:
       ``(3) Pension stabilization disregarded.--For purposes of 
     this section, the segment rates used in determining the 
     funding target and funding target attainment percentage shall 
     be determined by not taking into account any adjustment under 
     section 302(h)((2)(C)(iv).''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply with respect to plan years beginning after December 31, 
     2011.
       (2) Rules with respect to elections.--
       (A) Adjusted funding target attainment percentage.--A plan 
     sponsor may elect not to have the amendments made by this 
     section apply to any plan year beginning before January 1, 
     2013, either (as specified in the election)--
       (i) for all purposes for which such amendments apply, or
       (ii) solely for purposes of determining the adjusted 
     funding target attainment percentage under sections 436 of 
     the Internal Revenue Code of 1986 and 206(g) of the Employee 
     Retirement Income Security Act of 1974 for such plan year.
     A plan shall not be treated as failing to meet the 
     requirements of sections 204(g) of such Act and 411(d)(6) of 
     such Code solely by reason of an election under this 
     paragraph.
       (B) Opt out of existing elections.--If, on the date of the 
     enactment of this Act, an election is in effect with respect 
     to any plan under sections 303(h)((2)(D)(ii) of the Employee 
     Retirement Income Security Act of 1974 and 430(h)((2)(D)(ii) 
     of the Internal Revenue Code of 1986, then, notwithstanding 
     the last sentence of each such section, the plan sponsor may 
     revoke such election without the consent of the Secretary of 
     the Treasury. The plan sponsor may make such revocation at 
     any time before the date which is 1 year after such date of 
     enactment and such revocation shall be effective for the 1st 
     plan year to which the amendments made by this section apply 
     and all subsequent plan years. Nothing in this subparagraph 
     shall preclude a plan sponsor from making a subsequent 
     election in accordance with such sections.

                         PART II--PBGC PREMIUMS

     SEC. 40221. SINGLE EMPLOYER PLAN ANNUAL PREMIUM RATES.

       (a) Flat-rate Premium.--
       (1) In general.--Clause (i) of section 4006(a)(3)(A) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1306(a)(3)(A)) is amended to read as follows:
       ``(i) in the case of a single-employer plan, an amount for 
     each individual who is a participant in such plan during the 
     plan year equal to the sum of the additional premium (if any) 
     determined under subparagraph (E) and--
       ``(I) for plan years beginning after December 31, 2005, and 
     before January 1, 2013, $30;
       ``(II) for plan years beginning after December 31, 2012, 
     and before January 1, 2014, $42; and
       ``(III) for plan years beginning after December 31, 2013, 
     $49.''.
       (2) Adjustment for inflation.--Subparagraph (F) of section 
     4006(a)(3) of such Act (29 U.S.C. 1306(a)(3)) is amended--
       (A) in clause (i)(II), by inserting ``(2012 in the case of 
     plan years beginning after calendar year 2014)'' after 
     ``2004''; and
       (B) by adding at the end the following new sentence: ``This 
     subparagraph shall not apply to plan years beginning in 2013 
     or 2014.''.
       (b) Variable-rate Premium.--
       (1) In general.--Subparagraph (E)(ii) of section 4006(a)(3) 
     of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1306(a)(3)) is amended by striking ``$9.00'' and 
     inserting ``the applicable dollar amount under paragraph 
     (8)''.
       (2) Applicable dollar amount.--Section 4006(a) of such Act 
     (29 U.S.C. 1306(a)) is amended by adding at the end the 
     following:
       ``(8) Applicable dollar amount for variable rate premium.--
     For purposes of paragraph (3)(E)(ii)--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     and (C), the applicable dollar amount shall be--
       ``(i) $9 for plan years beginning in a calendar year before 
     2015;
       ``(ii) for plan years beginning in calendar year 2015, the 
     amount in effect for plan years beginning in 2014 (determined 
     after application of subparagraph (C)); and
       ``(iii) for plan years beginning after calendar year 2015, 
     the amount in effect for plan years beginning in 2015 
     (determined after application of subparagraph (C)).
       ``(B) Adjustment for inflation.--For each plan year 
     beginning in a calendar year after 2012, there shall be 
     substituted for the applicable dollar amount specified under 
     subparagraph (A) an amount equal to the greater of--
       ``(i) the product derived by multiplying such applicable 
     dollar amount for plan years beginning in that calendar year 
     by the ratio of--

       ``(I) the national average wage index (as defined in 
     section 209(k)(1) of the Social Security Act) for the first 
     of the 2 calendar years preceding the calendar year in which 
     such plan year begins, to
       ``(II) the national average wage index (as so defined) for 
     the base year; and

       ``(ii) such applicable dollar amount in effect for plan 
     years beginning in the preceding calendar year.

     If the amount determined under this subparagraph is not a 
     multiple of $1, such product shall be rounded to the nearest 
     multiple of $1.
       ``(C) Additional increase in 2014 and 2015.--The applicable 
     dollar amount determined under subparagraph (A) (after the 
     application of subparagraph (B)) shall be increased--
       ``(i) in the case of plan years beginning in calendar year 
     2014, by $4; and
       ``(ii) in the case of plan years beginning in calendar year 
     2015, by $5.
       ``(D) Base year.--For purposes of subparagraph (B), the 
     base year is--
       ``(i) 2010, in the case of plan years beginning in calendar 
     year 2013 or 2014;
       ``(ii) 2012, in the case of plan years beginning in 
     calendar year 2015; and
       ``(iii) 2013, in the case of plan years beginning after 
     calendar year 2015.''.
       (3) Cap.--
       (A) In general.--Subparagraph (E)(i) of section 4006(a)(3) 
     of such Act (29 U.S.C. 1306(a)(3)) is amended by striking 
     ``for any plan year shall be'' and all that follows through 
     the end and inserting the following ``for any plan year--
       ``(I) shall be an amount equal to the amount determined 
     under clause (ii) divided by the number of participants in 
     such plan as of the close of the preceding plan year; and
       ``(II) in the case of plan years beginning in a calendar 
     year after 2012, shall not exceed $400.''.
       (B) Adjustment for inflation.--Paragraph (3) of section 
     4006(a) of such Act (29 U.S.C. 1306(a)(3)), as amended by 
     this Act, is amended by adding at the end the following:
       ``(J) For each plan year beginning in a calendar year after 
     2013, there shall be substituted for the dollar amount 
     specified in subclause (II) of subparagraph (E)(i) an amount 
     equal to the greater of--
       ``(i) the product derived by multiplying such dollar amount 
     by the ratio of--
       ``(I) the national average wage index (as defined in 
     section 209(k)(1) of the Social Security

[[Page 10646]]

     Act) for the first of the 2 calendar years preceding the 
     calendar year in which such plan year begins, to
       ``(II) the national average wage index (as so defined) for 
     2011; and
       ``(ii) such dollar amount for plan years beginning in the 
     preceding calendar year.
     If the amount determined under this subparagraph is not a 
     multiple of $1, such product shall be rounded to the nearest 
     multiple of $1.''.

     SEC. 40222. MULTIEMPLOYER ANNUAL PREMIUM RATES.

       (a) In General.--Subparagraph (A) of section 4006(a)(3) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1306(a)(3)) is amended--
       (1) by inserting ``and before January 1, 2013,'' after 
     ``December 31, 2005,'' in clause (iv),
       (2) by striking ``or'' at the end of clause (iii),
       (3) by striking the period at the end of clause (iv) and 
     inserting ``, or'', and
       (4) by adding at the end the following new clause:
       ``(v) in the case of a multiemployer plan, for plan years 
     beginning after December 31, 2012, $12.00 for each individual 
     who is a participant in such plan during the applicable plan 
     year.''.
       (b) Inflation Adjustment.--Paragraph (3) of section 4006(a) 
     of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1306(a)(3)) is amended by adding at the end the 
     following:
       ``(I) For each plan year beginning in a calendar year after 
     2013, there shall be substituted for the premium rate 
     specified in clause (v) of subparagraph (A) an amount equal 
     to the greater of--
       ``(i) the product derived by multiplying the premium rate 
     specified in clause (v) of subparagraph (A) by the ratio of--
       ``(I) the national average wage index (as defined in 
     section 209(k)(1) of the Social Security Act) for the first 
     of the 2 calendar years preceding the calendar year in which 
     such plan year begins, to
       ``(II) the national average wage index (as so defined) for 
     2011; and
       ``(ii) the premium rate in effect under clause (v) of 
     subparagraph (A) for plan years beginning in the preceding 
     calendar year.

     If the amount determined under this subparagraph is not a 
     multiple of $1, such product shall be rounded to the nearest 
     multiple of $1.''.

                     PART III--IMPROVEMENTS OF PBGC

     SEC. 40231. PENSION BENEFIT GUARANTY CORPORATION GOVERNANCE 
                   IMPROVEMENT.

       (a) Board of Directors of the Pension Benefit Guaranty 
     Corporation.--
       (1) In general.--Section 4002(d) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1302(d)) is amended--
       (A) by striking ``(d) The board of directors'' and 
     inserting ``(d)(1) The board of directors''; and
       (B) by adding at the end the following:
       ``(2) A majority of the members of the board of directors 
     in office shall constitute a quorum for the transaction of 
     business. The vote of the majority of the members present and 
     voting at a meeting at which a quorum is present shall be the 
     act of the board of directors.
       ``(3) Each member of the board of directors shall designate 
     in writing an official, not below the level of Assistant 
     Secretary, to serve as the voting representative of such 
     member on the board. Such designation shall be effective 
     until revoked or until a date or event specified therein. Any 
     such representative may refer for board action any matter 
     under consideration by the designating board member, but such 
     representative shall not count toward establishment of a 
     quorum as described under paragraph (2).
       ``(4) The Inspector General of the corporation shall report 
     to the board of directors, and not less than twice a year, 
     shall attend a meeting of the board of directors to provide a 
     report on the activities and findings of the Inspector 
     General, including with respect to monitoring and review of 
     the operations of the corporation.
       ``(5) The General Counsel of the corporation shall--
       ``(A) serve as the secretary to the board of directors, and 
     advise such board as needed; and
       ``(B) have overall responsibility for all legal matters 
     affecting the corporation and provide the corporation with 
     legal advice and opinions on all matters of law affecting the 
     corporation, except that the authority of the General Counsel 
     shall not extend to the Office of Inspector General and the 
     independent legal counsel of such Office.
       ``(6) Notwithstanding any other provision of this Act, the 
     Office of Inspector General and the legal counsel of such 
     Office are independent of the management of the corporation 
     and the General Counsel of the corporation.
       ``(7) The board of directors may appoint and fix the 
     compensation of employees as may be required to enable the 
     board of directors to perform its duties. The board of 
     directors shall determine the qualifications and duties of 
     such employees and may appoint and fix the compensation of 
     experts and consultants in accordance with the provisions of 
     section 3109 of title 5, United States Code.''.
       (2) Number of meetings; public availability.--Section 
     4002(e) of such Act (29 U.S.C. 1302(e)) is amended--
       (A) by striking ``The board'' and inserting ``(1) The 
     board'';
       (B) by striking ``the corporation.'' and inserting ``the 
     corporation, but in no case less than 4 times a year with not 
     fewer than 2 members present. Not less than 1 meeting of the 
     board of directors during each year shall be a joint meeting 
     with the advisory committee under subsection (h).''; and
       (C) by adding at the end the following:
       ``(2)(A) Except as provided in subparagraph (B), the 
     chairman of the board of directors shall make available to 
     the public the minutes from each meeting of the board of 
     directors.
       ``(B) The minutes of a meeting of the board of directors, 
     or a portion thereof, shall not be subject to disclosure 
     under subparagraph (A) if the chairman reasonably determines 
     that such minutes, or portion thereof, contain confidential 
     employer information including information obtained under 
     section 4010, information about the investment activities of 
     the corporation, or information regarding personnel decisions 
     of the corporation.
       ``(C) The minutes of a meeting, or portion of thereof, 
     exempt from disclosure pursuant to subparagraph (B) shall be 
     exempt from disclosure under section 552(b) of title 5, 
     United States Code. For purposes of such section 552, this 
     subparagraph shall be considered a statute described in 
     subsection (b)(3) of such section 552.''.
       (3) Advisory committee.--
       (A) Issues considered by the committee.--Section 4002(h)(1) 
     of such Act (29 U.S.C. 1302(h)(1)) is amended--
       (i) by striking ``, and (D)'' and inserting ``, (D)''; and
       (ii) by striking ``time to time.'' and inserting ``time to 
     time, and (E) other issues as determined appropriate by the 
     advisory committee.''.
       (B) Joint meeting.--Section 4002(h)(3) of such Act (29 
     U.S.C. 1302(h)(3)) is amended by adding at the end the 
     following: ``Not less than 1 meeting of the advisory 
     committee during each year shall be a joint meeting with the 
     board of directors under subsection (e).''.
       (b) Avoiding Conflicts of Interest.--Section 4002 of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1302) is amended by adding at the end the following:
       ``(j) Conflicts of Interest.--
       ``(1) In general.--The Director of the corporation and each 
     member of the board of directors shall not participate in a 
     decision of the corporation in which the Director or such 
     member has a direct financial interest. The Director of the 
     corporation shall not participate in any activities that 
     would present a potential conflict of interest or appearance 
     of a conflict of interest without approval of the board of 
     directors.
       ``(2) Establishment of policy.--The board of directors 
     shall establish a policy that will inform the identification 
     of potential conflicts of interests of the members of the 
     board of directors and mitigate perceived conflicts of 
     interest of such members and the Director of the 
     corporation.''.
       (c) Risk Mitigation.--Section 4002 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1302), as 
     amended by subsection (b), is further amended by adding at 
     the end the following:
       ``(k) Risk Management Officer.--The corporation shall have 
     a risk management officer whose duties include evaluating and 
     mitigating the risk that the corporation might experience. 
     The individual in such position shall coordinate the risk 
     management efforts of the corporation, explain risks and 
     controls to senior management and the board of directors of 
     the corporation, and make recommendations.''.
       (d) Director.--Section 4002(c) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1302(c)) is amended to 
     read as follows:
       ``(c) The Director shall be accountable to the board of 
     directors. The Director shall serve for a term of 5 years 
     unless removed by the President or the board of directors 
     before the expiration of such 5-year term.''.
       (e) Senses of Congress.--
       (1) Formation of committees.--It is the sense of Congress 
     that the board of directors of the Pension Benefit Guaranty 
     Corporation established under section 4002 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1302), as 
     amended by this section, should form committees, including an 
     audit committee and an investment committee composed of not 
     less than 2 members, to enhance the overall effectiveness of 
     the board of directors.
       (2) Advisory committee.--It is the sense of Congress that 
     the advisory committee to the Pension Benefit Guaranty 
     Corporation established under section 4002 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1302), as 
     amended by this section, should provide to the board of 
     directors of such corporation policy recommendations 
     regarding changes to the law that would be beneficial to the 
     corporation or the voluntary private pension system.
       (f) Study Regarding Governance Structures.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Pension Benefit Guaranty 
     Corporation shall enter into a contract with the National 
     Academy of Public Administration to conduct the study 
     described in paragraph (2) with respect to the Pension 
     Benefit Guaranty Corporation.
       (2) Content of study.--The study conducted under paragraph 
     (1) shall include--
       (A) a review of the governance structures of governmental 
     and nongovernmental organizations that are analogous to the 
     Pension Benefit Guaranty Corporation; and
       (B) recommendations regarding--
       (i) the ideal size and composition of the board of 
     directors of the Pension Benefit Guaranty Corporation;
       (ii) procedures to select and remove members of such board;
       (iii) qualifications and term lengths of members of such 
     board; and

[[Page 10647]]

       (iv) policies necessary to enhance Congressional oversight 
     and transparency of such board and to mitigate potential 
     conflicts of interest of the members of such board.
       (3) Submission to congress.--Not later than 1 year after 
     the initiation of the study under paragraph (1), the National 
     Academy of Public Administration shall submit the results of 
     the study to the Committees on Health, Education, Labor, and 
     Pensions and Finance of the Senate and the Committees on 
     Education and the Workforce and Ways and Means of the House 
     of Representatives.

     SEC. 40232. PARTICIPANT AND PLAN SPONSOR ADVOCATE.

       (a) In General.--Title IV of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1301 et seq.) is amended by 
     inserting after section 4003 the following:

     ``SEC. 4004. PARTICIPANT AND PLAN SPONSOR ADVOCATE.

       ``(a) In General.--The board of directors of the 
     corporation shall select a Participant and Plan Sponsor 
     Advocate from the candidates nominated by the advisory 
     committee to the corporation under section 4002(h)(1) and 
     without regard to the provisions of title 5, United States 
     Code, relating to appointments in the competitive service or 
     Senior Executive Service.
       ``(b) Duties.--The Participant and Plan Sponsor Advocate 
     shall--
       ``(1) act as a liaison between the corporation, sponsors of 
     defined benefit pension plans insured by the corporation, and 
     participants in pension plans trusteed by the corporation;
       ``(2) advocate for the full attainment of the rights of 
     participants in plans trusteed by the corporation;
       ``(3) assist pension plan sponsors and participants in 
     resolving disputes with the corporation;
       ``(4) identify areas in which participants and plan 
     sponsors have persistent problems in dealings with the 
     corporation;
       ``(5) to the extent possible, propose changes in the 
     administrative practices of the corporation to mitigate 
     problems;
       ``(6) identify potential legislative changes which may be 
     appropriate to mitigate problems; and
       ``(7) refer instances of fraud, waste, and abuse, and 
     violations of law to the Office of the Inspector General of 
     the corporation.
       ``(c) Removal.--If the Participant and Plan Sponsor 
     Advocate is removed from office or is transferred to another 
     position or location within the corporation or the Department 
     of Labor, the board of the directors of the corporation shall 
     communicate in writing the reasons for any such removal or 
     transfer to Congress not less than 30 days before the removal 
     or transfer. Nothing in this subsection shall prohibit a 
     personnel action otherwise authorized by law, other than 
     transfer or removal.
       ``(d) Compensation.--The annual rate of basic pay for the 
     Participant and Plan Sponsor Advocate shall be the same rate 
     as the highest rate of basic pay established for the Senior 
     Executive Service under section 5382 of title 5, United 
     States Code, or, if the board of directors of the corporation 
     so determines, at a rate fixed under section 9503 of such 
     title.
       ``(e) Annual Report.--
       ``(1) In general.--Not later than December 31 of each 
     calendar year, the Participant and Plan Sponsor Advocate 
     shall report to the Health, Education, Labor, and Pensions 
     Committee of the Senate, the Committee on Finance of the 
     Senate, the Committee on Education and the Workforce of the 
     House of Representatives, and the Committee on Ways and Means 
     of the House of Representatives on the activities of the 
     Office of the Participant and Plan Sponsor Advocate during 
     the fiscal year ending during such calendar year.
       ``(2) Content.--Each report submitted under paragraph (1) 
     shall--
       ``(A) summarize the assistance requests received from 
     participants and plan sponsors and describe the activities, 
     and evaluate the effectiveness, of the Participant and Plan 
     Sponsor Advocate during the preceding year;
       ``(B) identify significant problems the Participant and 
     Plan Sponsor Advocate has identified;
       ``(C) include specific legislative and regulatory changes 
     to address the problems; and
       ``(D) identify any actions taken to correct problems 
     identified in any previous report.
       ``(3) Concurrent submission.--The Participant and Plan 
     Sponsor Advocate shall submit a copy of each report to the 
     Secretary of Labor, the Director of the corporation, and any 
     other appropriate official at the same time such report is 
     submitted to the committees of Congress under paragraph 
     (1).''.
       (b) Advisory Committee Nominations.--Section 4002(h)(1) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C.1302(h)(1)) is amended by adding at the end the 
     following new sentence: ``In the event of a vacancy or 
     impending vacancy in the office of the Participant and Plan 
     Sponsor Advocate established under section 4004, the Advisory 
     Committee shall, in consultation with the Director of the 
     corporation and participant and plan sponsor advocacy groups, 
     nominate at least two but no more than three individuals to 
     serve as the Participant and Plan Sponsor Advocate.''.
       (c) Clerical Amendment.--The table of contents in section 1 
     of the Employee Retirement Income Security Act of 1974 is 
     amended by inserting after the item relating to section 4003 
     the following new item:

``4004. Participant and Plan Sponsor Advocate.''.

     SEC. 40233. QUALITY CONTROL PROCEDURES FOR THE PENSION 
                   BENEFIT GUARANTY CORPORATION.

       (a) Annual Peer Review of Insurance Modeling Systems.--The 
     Pension Benefit Guaranty Corporation shall contract with a 
     capable agency or organization that is independent from the 
     Corporation, such as the Social Security Administration, to 
     conduct an annual peer review of the Corporation's Single-
     Employer Pension Insurance Modeling System and the 
     Corporation's Multiemployer Pension Insurance Modeling 
     System. The board of directors of the Corporation shall 
     designate the agency or organization with which any such 
     contract is entered into. The first of such annual peer 
     reviews shall be initiated no later than 3 months after the 
     date of enactment of this Act.
       (b) Policies and Procedures Relating to the Policy, 
     Research, and Analysis Department.--The Pension Benefit 
     Guaranty Corporation shall--
       (1) develop written quality review policies and procedures 
     for all modeling and actuarial work performed by the 
     Corporation's Policy, Research, and Analysis Department; and
       (2) conduct a record management review of such Department 
     to determine what records must be retained as Federal 
     records.
       (c) Report Relating to OIG Recommendations.--Not later than 
     2 months after the date of enactment of this Act, the Pension 
     Benefit Guaranty Corporation shall submit to Congress a 
     report, approved by the board of directors of the 
     Corporation, setting forth a timetable for addressing the 
     outstanding recommendations of the Office of the Inspector 
     General relating to the Policy, Research, and Analysis 
     Department and the Benefits Administration and Payment 
     Department.

     SEC. 40234. LINE OF CREDIT REPEAL.

       (a) In General.--Subsection (c) of section 4005 of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1305) is repealed.
       (b) Conforming Amendments.--
       (1) Section 4005 of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1305) is amended--
       (A) in subsection (b)--
       (i) paragraph (1)--

       (I) by striking subparagraph (A); and
       (II) by redesignating subparagraphs (B) through (G) as 
     subparagraphs (A) through (F), respectively;

       (ii) in paragraph (2)--

       (I) by striking subparagraph (C); and
       (II) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D), respectively; and

       (iii) in paragraph (3), by striking ``but,'' and all that 
     follows through the end and inserting a period; and
       (B) in subsection (g)--
       (i) by striking paragraph (2); and
       (ii) by redesignating paragraph (3) as paragraph (2).
       (2) Section 4402 of such Act (29 U.S.C. 1461) is amended--
       (A) in subsection (c)(4)--
       (i) by striking subparagraph (C); and
       (ii) by redesignating subparagraph (D) as subparagraph (C); 
     and
       (B) in subsection (d), by striking ``or (D)''.

              PART IV--TRANSFERS OF EXCESS PENSION ASSETS

     SEC. 40241. EXTENSION FOR TRANSFERS OF EXCESS PENSION ASSETS 
                   TO RETIREE HEALTH ACCOUNTS.

       (a) In General.--Paragraph (5) of section 420(b) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``December 31, 2013'' and inserting ``December 31, 2021''.
       (b) Conforming ERISA Amendments.--
       (1) Sections 101(e)(3), 403(c)(1), and 408(b)(13) of the 
     Employee Retirement Income Security Act of 1974 are each 
     amended by striking ``Pension Protection Act of 2006'' and 
     inserting ``MAP-21''.
       (2) Section 408(b)(13) of such Act (29 U.S.C. 1108(b)(13)) 
     is amended by striking ``January 1, 2014'' and inserting 
     ``January 1, 2022''.
       (c) Effective Date.--The amendments made by this Act shall 
     take effect on the date of the enactment of this Act.

     SEC. 40242. TRANSFER OF EXCESS PENSION ASSETS TO RETIREE 
                   GROUP TERM LIFE INSURANCE ACCOUNTS.

       (a) In General.--Subsection (a) of section 420 of the 
     Internal Revenue Code of 1986 is amended by inserting ``, or 
     an applicable life insurance account,'' after ``health 
     benefits account''.
       (b) Applicable Life Insurance Account Defined.--
       (1) In general.--Subsection (e) of section 420 of the 
     Internal Revenue Code of 1986 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) Applicable life insurance account.--The term 
     `applicable life insurance account' means a separate account 
     established and maintained for amounts transferred under this 
     section for qualified current retiree liabilities based on 
     premiums for applicable life insurance benefits.''.
       (2) Applicable life insurance benefits defined.--Paragraph 
     (1) of section 420(e) of such Code is amended by 
     redesignating subparagraph (D) as subparagraph (E) and by 
     inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) Applicable life insurance benefits.--The term 
     `applicable life insurance benefits' means group-term life 
     insurance coverage provided to retired employees who, 
     immediately before the qualified transfer, are entitled to 
     receive such coverage by reason of retirement and who

[[Page 10648]]

     are entitled to pension benefits under the plan, but only to 
     the extent that such coverage is provided under a policy for 
     retired employees and the cost of such coverage is excludable 
     from the retired employee's gross income under section 79.''.
       (3) Collectively bargained life insurance benefits 
     defined.--
       (A) In general.--Paragraph (6) of section 420(f) of such 
     Code is amended by redesignating subparagraph (D) as 
     subparagraph (E) and by inserting after subparagraph (C) the 
     following new subparagraph:
       ``(D) Collectively bargained life insurance benefits.--The 
     term `collectively bargained life insurance benefits' means, 
     with respect to any collectively bargained transfer--
       ``(i) applicable life insurance benefits which are provided 
     to retired employees who, immediately before the transfer, 
     are entitled to receive such benefits by reason of 
     retirement, and
       ``(ii) if specified by the provisions of the collective 
     bargaining agreement governing the transfer, applicable life 
     insurance benefits which will be provided at retirement to 
     employees who are not retired employees at the time of the 
     transfer.''.
       (B) Conforming amendments.--
       (i) Clause (i) of section 420(e)(1)(C) of such Code is 
     amended by striking ``upon retirement'' and inserting ``by 
     reason of retirement''.
       (ii) Subparagraph (C) of section 420(f)(6) of such Code is 
     amended--

       (I) by striking ``which are provided to'' in the matter 
     preceding clause (i),
       (II) by inserting ``which are provided to'' before 
     ``retired employees'' in clause (i),
       (III) by striking ``upon retirement'' in clause (i) and 
     inserting ``by reason of retirement'', and
       (IV) by striking ``active employees who, following their 
     retirement,'' and inserting ``which will be provided at 
     retirement to employees who are not retired employees at the 
     time of the transfer and who''.

       (c) Maintenance of Effort.--
       (1) In general.--Subparagraph (A) of section 420(c)(3) of 
     the Internal Revenue Code of 1986 is amended by inserting ``, 
     and each group-term life insurance plan under which 
     applicable life insurance benefits are provided,'' after 
     ``health benefits are provided''.
       (2) Conforming amendments.--
       (A) Subparagraph (B) of section 420(c)(3) of such Code is 
     amended--
       (i) by redesignating subclauses (I) and (II) of clause (i) 
     as subclauses (II) and (III) of such clause, respectively, 
     and by inserting before subclause (II) of such clause, as so 
     redesignated, the following new subclause:

       ``(I) separately with respect to applicable health benefits 
     and applicable life insurance benefits,'', and

       (ii) by striking ``for applicable health benefits'' and all 
     that follows in clause (ii) and inserting ``was provided 
     during such taxable year for the benefits with respect to 
     which the determination under clause (i) is made.''.
       (B) Subparagraph (C) of section 420(c)(3) of such Code is 
     amended--
       (i) by inserting ``for applicable health benefits'' after 
     ``applied separately'', and
       (ii) by inserting ``, and separately for applicable life 
     insurance benefits with respect to individuals age 65 or 
     older at any time during the taxable year and with respect to 
     individuals under age 65 during the taxable year'' before the 
     period.
       (C) Subparagraph (E) of section 420(c)(3) of such Code is 
     amended--
       (i) in clause (i), by inserting ``or retiree life insurance 
     coverage, as the case may be,'' after ``retiree health 
     coverage'',
       (ii) in clause (ii), by inserting ``for retiree health 
     coverage'' after ``cost reductions'' in the heading thereof, 
     and
       (iii) in clause (ii)(II), by inserting ``with respect to 
     applicable health benefits'' after ``liabilities of the 
     employer''.
       (D) Paragraph (2) of section 420(f) of such Code is amended 
     by striking ``collectively bargained retiree health 
     liabilities'' each place it occurs and inserting 
     ``collectively bargained retiree liabilities''.
       (E) Clause (i) of section 420(f)(2)(D) of such Code is 
     amended--
       (i) by inserting ``, and each group-term life insurance 
     plan or arrangement under which applicable life insurance 
     benefits are provided,'' in subclause (I) after ``applicable 
     health benefits are provided'',
       (ii) by inserting ``or applicable life insurance benefits, 
     as the case may be,'' in subclause (I) after ``provides 
     applicable health benefits'',
       (iii) by striking ``group health'' in subclause (II), and
       (iv) by inserting ``or collectively bargained life 
     insurance benefits'' in subclause (II) after ``collectively 
     bargained health benefits''.
       (F) Clause (ii) of section 420(f)(2)(D) of such Code is 
     amended--
       (i) by inserting ``with respect to applicable health 
     benefits or applicable life insurance benefits'' after 
     ``requirements of subsection (c)(3)'', and
       (ii) by adding at the end the following: ``Such election 
     may be made separately with respect to applicable health 
     benefits and applicable life insurance benefits. In the case 
     of an election with respect to applicable life insurance 
     benefits, the first sentence of this clause shall be applied 
     as if subsection (c)(3) as in effect before the amendments 
     made by such Act applied to such benefits.''.
       (G) Clause (iii) of section 420(f)(2)(D) of such Code is 
     amended--
       (i) by striking ``retiree'' each place it occurs, and
       (ii) by inserting ``, collectively bargained life insurance 
     benefits, or both, as the case may be,'' after ``health 
     benefits'' each place it occurs.
       (d) Coordination With Section 79.--Section 79 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subsection:
       ``(f) Exception for Life Insurance Purchased in Connection 
     With Qualified Transfer of Excess Pension Assets.--Subsection 
     (b)(3) and section 72(m)(3) shall not apply in the case of 
     any cost paid (whether directly or indirectly) with assets 
     held in an applicable life insurance account (as defined in 
     section 420(e)(4)) under a defined benefit plan.''.
       (e) Conforming Amendments.--
       (1) Section 420 of the Internal Revenue Code of 1986 is 
     amended by striking ``qualified current retiree health 
     liabilities'' each place it appears and inserting ``qualified 
     current retiree liabilities''.
       (2) Section 420 of such Code is amended by inserting ``, or 
     an applicable life insurance account,'' after ``a health 
     benefits account'' each place it appears in subsection 
     (b)(1)(A), subparagraphs (A), (B)(i), and (C) of subsection 
     (c)(1), subsection (d)(1)(A), and subsection (f)(2)(E)(ii).
       (3) Section 420(b) of such Code is amended--
       (A) by adding the following at the end of paragraph (2)(A): 
     ``If there is a transfer from a defined benefit plan to both 
     a health benefits account and an applicable life insurance 
     account during any taxable year, such transfers shall be 
     treated as 1 transfer for purposes of this paragraph.'', and
       (B) by inserting ``to an account'' after ``may be 
     transferred'' in paragraph (3).
       (4) The heading for section 420(c)(1)(B) of such Code is 
     amended by inserting ``or life insurance'' after ``health 
     benefits''.
       (5) Paragraph (1) of section 420(e) of such Code is 
     amended--
       (A) by inserting ``and applicable life insurance benefits'' 
     in subparagraph (A) after ``applicable health benefits'', and
       (B) by striking ``health'' in the heading thereof.
       (6) Subparagraph (B) of section 420(e)(1) of such Code is 
     amended--
       (A) in the matter preceding clause (i), by inserting 
     ``(determined separately for applicable health benefits and 
     applicable life insurance benefits)'' after ``shall be 
     reduced by the amount'',
       (B) in clause (i), by inserting ``or applicable life 
     insurance accounts'' after ``health benefit accounts'', and
       (C) in clause (i), by striking ``qualified current retiree 
     health liability'' and inserting ``qualified current retiree 
     liability''.
       (7) The heading for subsection (f) of section 420 of such 
     Code is amended by striking ``health'' each place it occurs.
       (8) Subclause (II) of section 420(f)(2)(B)(ii) of such Code 
     is amended by inserting ``or applicable life insurance 
     account, as the case may be,'' after ``health benefits 
     account''.
       (9) Subclause (III) of section 420(f)(2)(E)(i) of such Code 
     is amended--
       (A) by inserting ``defined benefit'' before ``plan 
     maintained by an employer'', and
       (B) by inserting ``health'' before ``benefit plans 
     maintained by the employer''.
       (10) Paragraphs (4) and (6) of section 420(f) of such Code 
     are each amended by striking ``collectively bargained retiree 
     health liabilities'' each place it occurs and inserting 
     ``collectively bargained retiree liabilities''.
       (11) Subparagraph (A) of section 420(f)(6) of such Code is 
     amended--
       (A) in clauses (i) and (ii), by inserting ``, in the case 
     of a transfer to a health benefits account,'' before ``his 
     covered spouse and dependents'', and
       (B) in clause (ii), by striking ``health plan'' and 
     inserting ``plan''.
       (12) Subparagraph (B) of section 420(f)(6) of such Code is 
     amended--
       (A) in clause (i), by inserting ``, and collectively 
     bargained life insurance benefits,'' after ``collectively 
     bargained health benefits'',
       (B) in clause (ii)--
       (i) by adding at the end the following: ``The preceding 
     sentence shall be applied separately for collectively 
     bargained health benefits and collectively bargained life 
     insurance benefits.'', and
       (ii) by inserting ``, applicable life insurance accounts,'' 
     after ``health benefit accounts'', and
       (C) by striking ``health'' in the heading thereof.
       (13) Subparagraph (E) of section 420(f)(6) of such Code, as 
     redesignated by subsection (b), is amended--
       (A) by striking ``bargained health'' and inserting 
     ``bargained'',
       (B) by inserting ``, or a group-term life insurance plan or 
     arrangement for retired employees,'' after ``dependents'', 
     and
       (C) by striking ``health'' in the heading thereof.
       (14) Section 101(e) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1021(e)) is amended--
       (A) in paragraphs (1) and (2), by inserting ``or applicable 
     life insurance account'' after ``health benefits account'' 
     each place it appears, and
       (B) in paragraph (1), by inserting ``or applicable life 
     insurance benefit liabilities'' after ``health benefits 
     liabilities''.
       (f) Technical Correction.--Clause (iii) of section 
     420(f)(6)(B) of the Internal Revenue Code of 1986 is amended 
     by striking ``416(I)(1)'' and inserting ``416(i)(1)''.
       (g) Repeal of Deadwood.--
       (1) Subparagraph (A) of section 420(b)(1) of the Internal 
     Revenue Code of 1986 is amended

[[Page 10649]]

     by striking ``in a taxable year beginning after December 31, 
     1990''.
       (2) Subsection (b) of section 420 of such Code is amended 
     by striking paragraph (4) and by redesignating paragraph (5), 
     as amended by this Act, as paragraph (4).
       (3) Paragraph (2) of section 420(b) of such Code, as 
     amended by this section, is amended--
       (A) by striking subparagraph (B), and
       (B) by striking ``per year.--'' and all that follows 
     through ``No more than'' and inserting ``per year.--No more 
     than''.
       (4) Paragraph (2) of section 420(c) of such Code is 
     amended--
       (A) by striking subparagraph (B),
       (B) by moving subparagraph (A) two ems to the left, and
       (C) by striking ``before transfer.--'' and all that follows 
     through ``The requirements of this paragraph'' and inserting 
     the following: ``before transfer.--The requirements of this 
     paragraph''.
       (5) Paragraph (2) of section 420(d) of such Code is amended 
     by striking ``after December 31, 1990''.
       (h) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to transfers made after the date of the enactment of 
     this Act.
       (2) Conforming amendments relating to pension protection 
     act.--The amendments made by subsections (b)(3)(B) and (f) 
     shall take effect as if included in the amendments made by 
     section 841(a) of the Pension Protection Act of 2006.
         Subtitle C--Additional Transfers to Highway Trust Fund

     SEC. 40251. ADDITIONAL TRANSFERS TO HIGHWAY TRUST FUND.

       Subsection (f) of section 9503 of the Internal Revenue Code 
     of 1986, as amended by this Act, is amended by redesignating 
     paragraph (4) as paragraph (5) and by inserting after 
     paragraph (3) the following new paragraph:
       ``(4) Additional appropriations to trust fund.--Out of 
     money in the Treasury not otherwise appropriated, there is 
     hereby appropriated to--
       ``(A) the Highway Account (as defined in subsection 
     (e)(5)(B)) in the Highway Trust Fund--
       ``(i) for fiscal year 2013, $6,200,000,000, and
       ``(ii) for fiscal year 2014, $10,400,000,000, and
       ``(B) the Mass Transit Account in the Highway Trust Fund, 
     for fiscal year 2014, $2,200,000,000.''.
                   DIVISION E--RESEARCH AND EDUCATION

     SEC. 50001. SHORT TITLE.

       This division may be cited as the ``Transportation Research 
     and Innovative Technology Act of 2012''.
                            TITLE I--FUNDING

     SEC. 51001. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--The following amounts are authorized to be 
     appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account):
       (1) Highway research and development program.--To carry out 
     sections 503(b), 503(d), and 509 of title 23, United States 
     Code, $115,000,000 for each of fiscal years 2013 and 2014.
       (2) Technology and innovation deployment program.--To carry 
     out section 503(c) of title 23, United States Code, 
     $62,500,000 for each of fiscal years 2013 and 2014.
       (3) Training and education.--To carry out section 504 of 
     title 23, United States Code, $24,000,000 for each of fiscal 
     years 2013 and 2014.
       (4) Intelligent transportation systems program.--To carry 
     out sections 512 through 518 of title 23, United States Code, 
     $100,000,000 for each of fiscal years 2013 and 2014.
       (5) University transportation centers program.--To carry 
     out section 5505 of title 49, United States Code, $72,500,000 
     for each of fiscal years 2013 and 2014.
       (6) Bureau of transportation statistics.--To carry out 
     chapter 63 of title 49, United States Code, $26,000,000 for 
     each of fiscal years 2013 and 2014.
       (b) Applicability of Title 23, United States Code.--Funds 
     authorized to be appropriated by subsection (a) shall--
       (1) be available for obligation in the same manner as if 
     those 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 those funds shall 
     be 80 percent, unless otherwise expressly provided by this 
     Act (including the amendments by this Act) or otherwise 
     determined by the Secretary; and
       (2) remain available until expended and not be 
     transferable.
             TITLE II--RESEARCH, TECHNOLOGY, AND EDUCATION

     SEC. 52001. RESEARCH, TECHNOLOGY, AND EDUCATION.

       Section 501 of title 23, United States Code, is amended--
       (1) by redesignating paragraph (2) as paragraph (8);
       (2) by inserting after paragraph (1) the following:
       ``(2) Incident.--The term `incident' means a crash, natural 
     disaster, workzone activity, special event, or other 
     emergency road user occurrence that adversely affects or 
     impedes the normal flow of traffic.
       ``(3) Innovation lifecycle.--The term `innovation 
     lifecycle' means the process of innovating through--
       ``(A) the identification of a need;
       ``(B) the establishment of the scope of research to address 
     that need;
       ``(C) setting an agenda;
       ``(D) carrying out research, development, deployment, and 
     testing of the resulting technology or innovation; and
       ``(E) carrying out an evaluation of the costs and benefits 
     of the resulting technology or innovation.
       ``(4) Intelligent transportation infrastructure.--The term 
     `intelligent transportation infrastructure' means fully 
     integrated public sector intelligent transportation system 
     components, as defined by the Secretary.
       ``(5) Intelligent transportation system.--The terms 
     `intelligent transportation system' and `ITS' mean 
     electronics, photonics, communications, or information 
     processing used singly or in combination to improve the 
     efficiency or safety of a surface transportation system.
       ``(6) National architecture.--For purposes of this chapter, 
     the term `national architecture' means the common framework 
     for interoperability that defines--
       ``(A) the functions associated with intelligent 
     transportation system user services;
       ``(B) the physical entities or subsystems within which the 
     functions reside;
       ``(C) the data interfaces and information flows between 
     physical subsystems; and
       ``(D) the communications requirements associated with the 
     information flows.
       ``(7) Project.--The term `project' means an undertaking to 
     research, develop, or operationally test intelligent 
     transportation systems or any other undertaking eligible for 
     assistance under this chapter.''; and
       (3) by inserting after paragraph (8) (as so redesignated) 
     the following:
       ``(9) 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 the intended purposes of 
     the materials, products, processes, and services; and
       ``(B) may support the national architecture and promote--
       ``(i) the widespread use and adoption of intelligent 
     transportation system technology as a component of the 
     surface transportation systems of the United States; and
       ``(ii) interoperability among intelligent transportation 
     system technologies implemented throughout the States.''.

     SEC. 52002. SURFACE TRANSPORTATION RESEARCH, DEVELOPMENT, AND 
                   TECHNOLOGY.

       (a) Surface Transportation Research, Development, and 
     Technology.--Section 502 of title 23, United States Code, is 
     amended--
       (1) in the section heading by inserting ``, DEVELOPMENT, 
     AND TECHNOLOGY'' after ``SURFACE TRANSPORTATION RESEARCH'';
       (2) in subsection (a)--
       (A) by redesignating paragraphs (1) through (8) as 
     paragraphs (2) through (9), respectively;
       (B) by inserting before paragraph (2) (as redesignated by 
     subparagraph (A)) the following:
       ``(1) Applicability.--The research, development, and 
     technology provisions of this section shall apply throughout 
     this chapter.'';
       (C) in paragraph (2) (as redesignated by subparagraph 
     (A))--
       (i) by inserting ``within the innovation lifecycle'' after 
     ``activities''; and
       (ii) by inserting ``communications, impact analysis,'' 
     after ``training,'';
       (D) in paragraph (3) (as redesignated by subparagraph 
     (A))--
       (i) in subparagraph (B) by striking ``supports research in 
     which there is a clear public benefit and'' and inserting 
     ``delivers a clear public benefit and occurs where'';
       (ii) in subparagraph (C) by striking ``or'' after the 
     semicolon;
       (iii) by redesignating subparagraph (D) as subparagraph 
     (I); and
       (iv) by inserting after subparagraph (C) the following:
       ``(D) meets and addresses current or emerging needs;
       ``(E) addresses current gaps in research;
       ``(F) presents the best means to align resources with 
     multiyear plans and priorities;
       ``(G) ensures the coordination of highway research and 
     technology transfer activities, including through activities 
     performed by university transportation centers;
       ``(H) educates transportation professionals; or'';
       (E) in paragraph (4) (as redesignated by subparagraph (A)) 
     by striking subparagraphs (B) through (D) and inserting the 
     following:
       ``(B) partner with State highway agencies and other 
     stakeholders as appropriate to facilitate research and 
     technology transfer activities;
       ``(C) communicate the results of ongoing and completed 
     research;
       ``(D) lead efforts to coordinate national emphasis areas of 
     highway research, technology, and innovation deployment;
       ``(E) leverage partnerships with industry, academia, 
     international entities, and State departments of 
     transportation;
       ``(F) lead efforts to reduce unnecessary duplication of 
     effort; and
       ``(G) lead efforts to accelerate innovation delivery.'';
       (F) in paragraph (5)(C) (as redesignated by subparagraph 
     (A)) by striking ``policy and planning'' and inserting ``all 
     highway objectives seeking to improve the performance of the 
     transportation system'';

[[Page 10650]]

       (G) in paragraph (6) (as redesignated by subparagraph (A)) 
     in the second sentence, by inserting ``tribal governments,'' 
     after ``local governments,'';
       (H) in paragraph (8) (as redesignated by subparagraph 
     (A))--
       (i) in the first sentence, by striking ``To the maximum'' 
     and inserting the following:
       ``(A) In general.--To the maximum'';
       (ii) in the second sentence, by striking ``Performance 
     measures'' and inserting the following:
       ``(B) Performance measures.--Performance measures'';
       (iii) in the third sentence, by striking ``All 
     evaluations'' and inserting the following:
       ``(D) Availability of evaluations.--All evaluations under 
     this paragraph''; and
       (iv) by inserting after subparagraph (B) the following:
       ``(C) Program plan.--To the maximum extent practicable, 
     each program pursued under this chapter shall be part of a 
     data-driven, outcome-oriented program plan.''; and
       (I) in paragraph (9) (as redesignated by subparagraph (A)), 
     by striking ``surface'';
       (3) in subsection (b)--
       (A) in paragraph (4) by striking ``surface transportation 
     research and technology development strategic plan developed 
     under section 508'' and inserting ``transportation research 
     and development strategic plan of the Secretary developed 
     under section 508'';
       (B) in paragraph (5) by striking ``section'' each place it 
     appears and inserting ``chapter'';
       (C) in paragraph (6) by adding at the end the following:
       ``(C) Transfer of amounts among states or to federal 
     highway administration.--The Secretary may, at the request of 
     a State, transfer amounts apportioned or allocated to that 
     State under this chapter to another State or the Federal 
     Highway Administration to fund research, development, and 
     technology transfer activities of mutual interest on a pooled 
     funds basis.
       ``(D) Transfer of obligation authority.--Obligation 
     authority for amounts transferred under this subsection shall 
     be disbursed in the same manner and for the same amount as 
     provided for the project being transferred.''; and
       (D) by adding at the end the following:
       ``(7) Prize competitions.--
       ``(A) In general.--The Secretary may use up to 1 percent of 
     the funds made available under section 51001 of the 
     Transportation Research and Innovative Technology Act of 2012 
     to carry out a program to competitively award cash prizes to 
     stimulate innovation in basic and applied research and 
     technology development that has the potential for application 
     to the national transportation system.
       ``(B) Topics.--In selecting topics for prize competitions 
     under this paragraph, the Secretary shall--
       ``(i) consult with a wide variety of governmental and 
     nongovernmental representatives; and
       ``(ii) give consideration to prize goals that demonstrate 
     innovative approaches and strategies to improve the safety, 
     efficiency, and sustainability of the national transportation 
     system.
       ``(C) Advertising.--The Secretary shall encourage 
     participation in the prize competitions through advertising 
     efforts.
       ``(D) Requirements and registration.--For each prize 
     competition, the Secretary shall publish a notice on a public 
     website that describes--
       ``(i) the subject of the competition;
       ``(ii) the eligibility rules for participation in the 
     competition;
       ``(iii) the amount of the prize; and
       ``(iv) the basis on which a winner will be selected.
       ``(E) Eligibility.--An individual or entity may not receive 
     a prize under this paragraph unless the individual or 
     entity--
       ``(i) has registered to participate in the competition 
     pursuant to any rules promulgated by the Secretary under this 
     section;
       ``(ii) has complied with all requirements under this 
     paragraph;
       ``(iii)(I) in the case of a private entity, is incorporated 
     in, and maintains a primary place of business in, the United 
     States; or
       ``(II) in the case of an individual, whether participating 
     singly or in a group, is a citizen or permanent resident of 
     the United States;
       ``(iv) is not a Federal entity or Federal employee acting 
     within the scope of his or her employment; and
       ``(v) has not received a grant to perform research on the 
     same issue for which the prize is awarded.
       ``(F) Liability.--
       ``(i) Assumption of risk.--

       ``(I) In general.--A registered participant shall agree to 
     assume any and all risks and waive claims against the Federal 
     Government and its related entities, except in the case of 
     willful misconduct, for any injury, death, damage, or loss of 
     property, revenue, or profits, whether direct, indirect, or 
     consequential, arising from participation in a competition, 
     whether such injury, death, damage, or loss arises through 
     negligence or otherwise.
       ``(II) Related entity.--In this subparagraph, the term 
     `related entity' means a contractor, subcontractor (at any 
     tier), supplier, user, customer, cooperating party, grantee, 
     investigator, or detailee.

       ``(ii) Financial responsibility.--A participant shall 
     obtain liability insurance or demonstrate financial 
     responsibility, in amounts determined by the Secretary, for 
     claims by--

       ``(I) a third party for death, bodily injury, or property 
     damage, or loss resulting from an activity carried out in 
     connection with participation in a competition, with the 
     Federal Government named as an additional insured under the 
     registered participant's insurance policy and registered 
     participants agreeing to indemnify the Federal Government 
     against third party claims for damages arising from or 
     related to competition activities; and
       ``(II) the Federal Government for damage or loss to 
     Government property resulting from such an activity.

       ``(G) Judges.--
       ``(i) Selection.--Subject to clause (iii), for each prize 
     competition, the Secretary, either directly or through an 
     agreement under subparagraph (H), may appoint 1 or more 
     qualified judges to select the winner or winners of the prize 
     competition on the basis of the criteria described in 
     subparagraph (D).
       ``(ii) Selection.--Judges for each competition shall 
     include individuals from outside the Federal Government, 
     including the private sector.
       ``(iii) Limitations.--A judge selected under this 
     subparagraph may not--

       ``(I) have personal or financial interests in, or be an 
     employee, officer, director, or agent of, any entity that is 
     a registered participant in a prize competition under this 
     paragraph; or
       ``(II) have a familial or financial relationship with an 
     individual who is a registered participant.

       ``(H) Administering the competition.--The Secretary may 
     enter into an agreement with a private, nonprofit entity to 
     administer the prize competition, subject to the provisions 
     of this paragraph.
       ``(I) Funding.--
       ``(i) In general.--

       ``(I) Private sector funding.--A cash prize under this 
     paragraph may consist of funds appropriated by the Federal 
     Government and funds provided by the private sector.
       ``(II) Government funding.--The Secretary may accept funds 
     from other Federal agencies, State and local governments, and 
     metropolitan planning organizations for a cash prize under 
     this paragraph.
       ``(III) No special consideration.--The Secretary may not 
     give any special consideration to any private sector entity 
     in return for a donation under this subparagraph.

       ``(ii) Availability of funds.--Notwithstanding any other 
     provision of law, amounts appropriated for prize awards under 
     this paragraph--

       ``(I) shall remain available until expended; and
       ``(II) may not be transferred, reprogrammed, or expended 
     for other purposes until after the expiration of the 10-year 
     period beginning on the last day of the fiscal year for which 
     the funds were originally appropriated.

       ``(iii) Savings provision.--Nothing in this subparagraph 
     may be construed to permit the obligation or payment of funds 
     in violation of the Anti-Deficiency Act (31 U.S.C. 1341).
       ``(iv) Prize announcement.--A prize may not be announced 
     under this paragraph until all the funds needed to pay out 
     the announced amount of the prize have been appropriated by a 
     governmental source or committed to in writing by a private 
     source.
       ``(v) Prize increases.--The Secretary may increase the 
     amount of a prize after the initial announcement of the prize 
     under this paragraph if--

       ``(I) notice of the increase is provided in the same manner 
     as the initial notice of the prize; and
       ``(II) the funds needed to pay out the announced amount of 
     the increase have been appropriated by a governmental source 
     or committed to in writing by a private source.

       ``(vi) Congressional notification.--A prize competition 
     under this paragraph may offer a prize in an amount greater 
     than $1,000,000 only after 30 days have elapsed after written 
     notice has been transmitted to the Committee on Commerce, 
     Science, and Transportation of the Senate and the Committees 
     on Transportation and Infrastructure and Science, Space, and 
     Technology of the House of Representatives.
       ``(vii) Award limit.--A prize competition under this 
     section may not result in the award of more than $25,000 in 
     cash prizes without the approval of the Secretary.
       ``(J) Compliance with existing law.--The Federal Government 
     shall not, by virtue of offering or providing a prize under 
     this paragraph, be responsible for compliance by registered 
     participants in a prize competition with Federal law, 
     including licensing, export control, and non-proliferation 
     laws, and related regulations.
       ``(K) Notice and annual report.--
       ``(i) In general.--Not later than 30 days prior to carrying 
     out an activity under subparagraph (A), the Secretary shall 
     notify the Committees on Transportation and Infrastructure 
     and Science, Space, and Technology of the House of 
     Representatives and the Committees on Environment and Public 
     Works and Commerce, Science, and Transportation of the Senate 
     of the intent to use such authority.
       ``(ii) Reports.--

       ``(I) In general.--The Secretary shall submit to the 
     committees described in clause (i) on an annual basis a 
     report on the activities carried out under subparagraph (A) 
     in the preceding fiscal year if the Secretary exercised the 
     authority under subparagraph (A) in that fiscal year.
       ``(II) Information included.--A report under this 
     subparagraph shall include, for each prize competition under 
     subparagraph (A)--

       ``(aa) a description of the proposed goals of the prize 
     competition;

[[Page 10651]]

       ``(bb) an analysis of why the use of the authority under 
     subparagraph (A) was the preferable method of achieving the 
     goals described in item (aa) as opposed to other authorities 
     available to the Secretary, such as contracts, grants, and 
     cooperative agreements;
       ``(cc) the total amount of cash prizes awarded for each 
     prize competition, including a description of the amount of 
     private funds contributed to the program, the source of such 
     funds, and the manner in which the amounts of cash prizes 
     awarded and claimed were allocated among the accounts of the 
     Department for recording as obligations and expenditures;
       ``(dd) the methods used for the solicitation and evaluation 
     of submissions under each prize competition, together with an 
     assessment of the effectiveness of such methods and lessons 
     learned for future prize competitions;
       ``(ee) a description of the resources, including personnel 
     and funding, used in the execution of each prize competition 
     together with a detailed description of the activities for 
     which such resources were used and an accounting of how 
     funding for execution was allocated among the accounts of the 
     agency for recording as obligations and expenditures; and
       ``(ff) a description of how each prize competition advanced 
     the mission of the Department.'';
       (4) in subsection (c)--
       (A) in paragraph (3)(A)--
       (i) by striking ``subsection'' and inserting ``chapter''; 
     and
       (ii) by striking ``50'' and inserting ``80''; and
       (B) in paragraph (4) by striking ``subsection'' and 
     inserting ``chapter''; and
       (5) by striking subsections (d) through (j).
       (b) Conforming Amendment.--The analysis for chapter 5 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 502 and inserting the following:

``502. Surface transportation research, development, and technology.''

     SEC. 52003. RESEARCH AND TECHNOLOGY DEVELOPMENT AND 
                   DEPLOYMENT.

       (a) In General.--Section 503 of title 23, United States 
     Code, is amended to read as follows:

     ``Sec. 503. Research and technology development and 
       deployment

       ``(a) In General.--The Secretary shall--
       ``(1) carry out research, development, and deployment 
     activities that encompass the entire innovation lifecycle; 
     and
       ``(2) ensure that all research carried out under this 
     section aligns with the transportation research and 
     development strategic plan of the Secretary under section 
     508.
       ``(b) Highway Research and Development Program.--
       ``(1) Objectives.--In carrying out the highway research and 
     development program, the Secretary, to address current and 
     emerging highway transportation needs, shall--
       ``(A) identify research topics;
       ``(B) coordinate research and development activities;
       ``(C) carry out research, testing, and evaluation 
     activities; and
       ``(D) provide technology transfer and technical assistance.
       ``(2) Improving highway safety.--
       ``(A) In general.--The Secretary shall carry out research 
     and development activities from an integrated perspective to 
     establish and implement systematic measures to improve 
     highway safety.
       ``(B) Objectives.--In carrying out this paragraph, the 
     Secretary shall carry out research and development 
     activities--
       ``(i) to achieve greater long-term safety gains;
       ``(ii) to reduce the number of fatalities and serious 
     injuries on public roads;
       ``(iii) to fill knowledge gaps that limit the effectiveness 
     of research;
       ``(iv) to support the development and implementation of 
     State strategic highway safety plans;
       ``(v) to advance improvements in, and use of, performance 
     prediction analysis for decisionmaking; and
       ``(vi) to expand technology transfer to partners and 
     stakeholders.
       ``(C) Contents.--Research and technology activities carried 
     out under this paragraph may include--
       ``(i) safety assessments and decisionmaking tools;
       ``(ii) data collection and analysis;
       ``(iii) crash reduction projections;
       ``(iv) low-cost safety countermeasures;
       ``(v) innovative operational improvements and designs of 
     roadway and roadside features;
       ``(vi) evaluation of countermeasure costs and benefits;
       ``(vii) development of tools for projecting impacts of 
     safety countermeasures;
       ``(viii) rural road safety measures;
       ``(ix) safety measures for vulnerable road users, including 
     bicyclists and pedestrians;
       ``(x) safety policy studies;
       ``(xi) human factors studies and measures;
       ``(xii) safety technology deployment;
       ``(xiii) safety workforce professional capacity building 
     initiatives;
       ``(xiv) safety program and process improvements; and
       ``(xv) tools and methods to enhance safety performance, 
     including achievement of statewide safety performance 
     targets.
       ``(3) Improving infrastructure integrity.--
       ``(A) In general.--The Secretary shall carry out and 
     facilitate highway and bridge infrastructure research and 
     development activities--
       ``(i) to maintain infrastructure integrity;
       ``(ii) to meet user needs; and
       ``(iii) to link Federal transportation investments to 
     improvements in system performance.
       ``(B) Objectives.--In carrying out this paragraph, the 
     Secretary shall carry out research and development 
     activities--
       ``(i) to reduce the number of fatalities attributable to 
     infrastructure design characteristics and work zones;
       ``(ii) to improve the safety and security of highway 
     infrastructure;
       ``(iii) to increase the reliability of lifecycle 
     performance predictions used in infrastructure design, 
     construction, and management;
       ``(iv) to improve the ability of transportation agencies to 
     deliver projects that meet expectations for timeliness, 
     quality, and cost;
       ``(v) to reduce user delay attributable to infrastructure 
     system performance, maintenance, rehabilitation, and 
     construction;
       ``(vi) to improve highway condition and performance through 
     increased use of design, materials, construction, and 
     maintenance innovations;
       ``(vii) to reduce the environmental impacts of highway 
     infrastructure through innovations in design, construction, 
     operation, preservation, and maintenance; and
       ``(viii) to study vulnerabilities of the transportation 
     system to seismic activities and extreme events and methods 
     to reduce those vulnerabilities.
       ``(C) Contents.--Research and technology activities carried 
     out under this paragraph may include--
       ``(i) long-term infrastructure performance programs 
     addressing pavements, bridges, tunnels, and other structures;
       ``(ii) short-term and accelerated studies of infrastructure 
     performance;
       ``(iii) research to develop more durable infrastructure 
     materials and systems;
       ``(iv) advanced infrastructure design methods;
       ``(v) accelerated highway and bridge construction;
       ``(vi) performance-based specifications;
       ``(vii) construction and materials quality assurance;
       ``(viii) comprehensive and integrated infrastructure asset 
     management;
       ``(ix) infrastructure safety assurance;
       ``(x) sustainable infrastructure design and construction;
       ``(xi) infrastructure rehabilitation and preservation 
     techniques, including techniques to rehabilitate and preserve 
     historic infrastructure;
       ``(xii) hydraulic, geotechnical, and aerodynamic aspects of 
     infrastructure;
       ``(xiii) improved highway construction technologies and 
     practices;
       ``(xiv) improved tools, technologies, and models for 
     infrastructure management, including assessment and 
     monitoring of infrastructure condition;
       ``(xv) studies to improve flexibility and resiliency of 
     infrastructure systems to withstand climate variability;
       ``(xvi) studies on the effectiveness of fiber-based 
     additives to improve the durability of surface transportation 
     materials in various geographic regions;
       ``(xvii) studies of infrastructure resilience and other 
     adaptation measures;
       ``(xviii) maintenance of seismic research activities, 
     including research carried out in conjunction with other 
     Federal agencies to study the vulnerability of the 
     transportation system to seismic activity and methods to 
     reduce that vulnerability; and
       ``(xix) technology transfer and adoption of permeable, 
     pervious, or porous paving materials, practices, and systems 
     that are designed to minimize environmental impacts, 
     stormwater runoff, and flooding and to treat or remove 
     pollutants by allowing stormwater to infiltrate through the 
     pavement in a manner similar to predevelopment hydrologic 
     conditions.
       ``(D) Lifecycle costs analysis study.--
       ``(i) In general.--In this subparagraph, the term 
     `lifecycle costs analysis' means a process for evaluating the 
     total economic worth of a usable project segment by analyzing 
     initial costs and discounted future costs, such as 
     maintenance, user, reconstruction, rehabilitation, restoring, 
     and resurfacing costs, over the life of the project segment.
       ``(ii) Study.--The Comptroller General shall conduct a 
     study of the best practices for calculating lifecycle costs 
     and benefits for federally funded highway projects, which 
     shall include, at a minimum, a thorough literature review and 
     a survey of current lifecycle cost practices of State 
     departments of transportation.
       ``(iii) Consultation.--In carrying out the study, the 
     Comptroller shall consult with, at a minimum--

       ``(I) the American Association of State Highway and 
     Transportation Officials;
       ``(II) appropriate experts in the field of lifecycle cost 
     analysis; and
       ``(III) appropriate industry experts and research centers.

       ``(E) Report.--Not later than 1 year after the date of 
     enactment of the Transportation Research and Innovative 
     Technology Act of 2012, the Comptroller General shall submit 
     to the Committee on Environment and Public Works of the 
     Senate and the Committees on Transportation and 
     Infrastructure and Science, Space, and Technology of the 
     House of Representatives a report on the results of the study 
     which shall include--
       ``(i) a summary of the latest research on lifecycle cost 
     analysis; and
       ``(ii) recommendations on the appropriate--

       ``(I) period of analysis;
       ``(II) design period;
       ``(III) discount rates; and
       ``(IV) use of actual material life and maintenance cost 
     data.

[[Page 10652]]

       ``(4) Strengthening transportation planning and 
     environmental decisionmaking.--
       ``(A) In general.--The Secretary may carry out research--
       ``(i) to minimize the cost of transportation planning and 
     environmental decisionmaking processes;
       ``(ii) to improve transportation planning and environmental 
     decisionmaking processes; and
       ``(iii) to minimize the potential impact of surface 
     transportation on the environment.
       ``(B) Objectives.--In carrying out this paragraph the 
     Secretary may carry out research and development activities--
       ``(i) to minimize the cost of highway infrastructure and 
     operations;
       ``(ii) to reduce the potential impact of highway 
     infrastructure and operations on the environment;
       ``(iii) to advance improvements in environmental analyses 
     and processes and context sensitive solutions for 
     transportation decisionmaking;
       ``(iv) to improve construction techniques;
       ``(v) to accelerate construction to reduce congestion and 
     related emissions;
       ``(vi) to reduce the impact of highway runoff on the 
     environment;
       ``(vii) to improve understanding and modeling of the 
     factors that contribute to the demand for transportation; and
       ``(viii) to improve transportation planning decisionmaking 
     and coordination.
       ``(C) Contents.--Research and technology activities carried 
     out under this paragraph may include--
       ``(i) creation of models and tools for evaluating 
     transportation measures and transportation system designs, 
     including the costs and benefits;
       ``(ii) congestion reduction efforts;
       ``(iii) transportation and economic development planning in 
     rural areas and small communities;
       ``(iv) improvement of State, local, and tribal government 
     capabilities relating to surface transportation planning and 
     the environment; and
       ``(v) streamlining of project delivery processes.
       ``(5) Reducing congestion, improving highway operations, 
     and enhancing freight productivity.--
       ``(A) In general.--The Secretary shall carry out research 
     under this paragraph with the goals of--
       ``(i) addressing congestion problems;
       ``(ii) reducing the costs of congestion;
       ``(iii) improving freight movement;
       ``(iv) increasing productivity; and
       ``(v) improving the economic competitiveness of the United 
     States.
       ``(B) Objectives.--In carrying out this paragraph, the 
     Secretary shall carry out research and development activities 
     to identify, develop, and assess innovations that have the 
     potential--
       ``(i) to reduce traffic congestion;
       ``(ii) to improve freight movement; and
       ``(iii) to reduce freight-related congestion throughout the 
     transportation network.
       ``(C) Contents.--Research and technology activities carried 
     out under this paragraph may include--
       ``(i) active traffic and demand management;
       ``(ii) acceleration of the implementation of Intelligent 
     Transportation Systems technology;
       ``(iii) advanced transportation concepts and analysis;
       ``(iv) arterial management and traffic signal operation;
       ``(v) congestion pricing;
       ``(vi) corridor management;
       ``(vii) emergency operations;
       ``(viii) research relating to enabling technologies and 
     applications;
       ``(ix) freeway management;
       ``(x) evaluation of enabling technologies;
       ``(xi) impacts of vehicle size and weight on congestion;
       ``(xii) freight operations and technology;
       ``(xiii) operations and freight performance measurement and 
     management;
       ``(xiv) organization and planning for operations;
       ``(xv) planned special events management;
       ``(xvi) real-time transportation information;
       ``(xvii) road weather management;
       ``(xviii) traffic and freight data and analysis tools;
       ``(xix) traffic control devices;
       ``(xx) traffic incident management;
       ``(xxi) work zone management;
       ``(xxii) communication of travel, roadway, and emergency 
     information to persons with disabilities;
       ``(xxiii) research on enhanced mode choice and intermodal 
     connectivity;
       ``(xxiv) techniques for estimating and quantifying public 
     benefits derived from freight transportation projects; and
       ``(xxv) other research areas to identify and address 
     emerging needs related to freight transportation by all 
     modes.
       ``(6) Exploratory advanced research.--The Secretary shall 
     carry out research and development activities relating to 
     exploratory advanced research--
       ``(A) to leverage the targeted capabilities of the Turner-
     Fairbank Highway Research Center to develop technologies and 
     innovations of national importance; and
       ``(B) to develop potentially transformational solutions to 
     improve the durability, efficiency, environmental impact, 
     productivity, and safety aspects of highway and intermodal 
     transportation systems.
       ``(7) Turner-fairbank highway research center.--
       ``(A) In general.--The Secretary shall continue to operate 
     in the Federal Highway Administration a Turner-Fairbank 
     Highway Research Center.
       ``(B) Uses of the center.--The Turner-Fairbank Highway 
     Research Center shall support--
       ``(i) the conduct of highway research and development 
     relating to emerging highway technology;
       ``(ii) the development of understandings, tools, and 
     techniques that provide solutions to complex technical 
     problems through the development of economical and 
     environmentally sensitive designs, efficient and quality-
     controlled construction practices, and durable materials;
       ``(iii) the development of innovative highway products and 
     practices; and
       ``(iv) the conduct of long-term, high-risk research to 
     improve the materials used in highway infrastructure.
       ``(8) Infrastructure investment needs report.--
       ``(A) In general.--Not later than July 31, 2013, and July 
     31 of every second year thereafter, the Secretary shall 
     submit to the Committee on Transportation and Infrastructure 
     of the House of Representatives and the Committee on 
     Environment and Public Works of the Senate a report that 
     describes estimates of the future highway and bridge needs of 
     the United States and the backlog of current highway and 
     bridge needs.
       ``(B) Comparisons.--Each report under subparagraph (A) 
     shall include all information necessary to relate and compare 
     the conditions and service measures used in the previous 
     biennial reports to conditions and service measures used in 
     the current report.
       ``(C) Inclusions.--Each report under subparagraph (A) shall 
     provide recommendations to Congress on changes to the highway 
     performance monitoring system that address--
       ``(i) improvements to the quality and standardization of 
     data collection on all functional classifications of Federal-
     aid highways for accurate system length, lane length, and 
     vehicle-mile of travel; and
       ``(ii) changes to the reporting requirements authorized 
     under section 315, to reflect recommendations under this 
     paragraph for collection, storage, analysis, reporting, and 
     display of data for Federal-aid highways and, to the maximum 
     extent practical, all public roads.
       ``(c) Technology and Innovation Deployment Program.--
       ``(1) In general.--The Secretary shall carry out a 
     technology and innovation deployment program relating to all 
     aspects of highway transportation, including planning, 
     financing, operation, structures, materials, pavements, 
     environment, construction, and the duration of time between 
     project planning and project delivery, with the goals of--
       ``(A) significantly accelerating the adoption of innovative 
     technologies by the surface transportation community;
       ``(B) providing leadership and incentives to demonstrate 
     and promote state-of-the-art technologies, elevated 
     performance standards, and new business practices in highway 
     construction processes that result in improved safety, faster 
     construction, reduced congestion from construction, and 
     improved quality and user satisfaction;
       ``(C) constructing longer-lasting highways through the use 
     of innovative technologies and practices that lead to faster 
     construction of efficient and safe highways and bridges;
       ``(D) improving highway efficiency, safety, mobility, 
     reliability, service life, environmental protection, and 
     sustainability; and
       ``(E) developing and deploying new tools, techniques, and 
     practices to accelerate the adoption of innovation in all 
     aspects of highway transportation.
       ``(2) Implementation.--
       ``(A) In general.--The Secretary shall promote, facilitate, 
     and carry out the program established under paragraph (1) to 
     distribute the products, technologies, tools, methods, or 
     other findings that result from highway research and 
     development activities, including research and development 
     activities carried out under this chapter.
       ``(B) Accelerated innovation deployment.--In carrying out 
     the program established under paragraph (1), the Secretary 
     shall--
       ``(i) establish and carry out demonstration programs;
       ``(ii) provide technical assistance, and training to 
     researchers and developers; and
       ``(iii) develop improved tools and methods to accelerate 
     the adoption of proven innovative practices and technologies 
     as standard practices.
       ``(C) Implementation of future strategic highway research 
     program findings and results.--
       ``(i) In general.--The Secretary, in consultation with the 
     American Association of State Highway and Transportation 
     Officials and the Transportation Research Board of the 
     National Academy of Sciences, shall promote research results 
     and products developed under the future strategic highway 
     research program administered by the Transportation Research 
     Board of the National Academy of Sciences.
       ``(ii) Basis for findings.--The activities carried out 
     under this subparagraph shall be based on the report 
     submitted to Congress by the Transportation Research Board of 
     the National Academy of Sciences under section 510(e).
       ``(iii) Personnel.--The Secretary may use funds made 
     available to carry out this subsection for administrative 
     costs under this subparagraph.

[[Page 10653]]

       ``(3) Accelerated implementation and deployment of pavement 
     technologies.--
       ``(A) In general.--The Secretary shall establish and 
     implement a program under the technology and innovation 
     deployment program to promote, implement, deploy, 
     demonstrate, showcase, support, and document the application 
     of innovative pavement technologies, practices, performance, 
     and benefits.
       ``(B) Goals.--The goals of the accelerated implementation 
     and deployment of pavement technologies program shall 
     include--
       ``(i) the deployment of new, cost-effective designs, 
     materials, recycled materials, and practices to extend the 
     pavement life and performance and to improve user 
     satisfaction;
       ``(ii) the reduction of initial costs and lifecycle costs 
     of pavements, including the costs of new construction, 
     replacement, maintenance, and rehabilitation;
       ``(iii) the deployment of accelerated construction 
     techniques to increase safety and reduce construction time 
     and traffic disruption and congestion;
       ``(iv) the deployment of engineering design criteria and 
     specifications for new and efficient practices, products, and 
     materials for use in highway pavements;
       ``(v) the deployment of new nondestructive and real-time 
     pavement evaluation technologies and construction techniques; 
     and
       ``(vi) effective technology transfer and information 
     dissemination to accelerate implementation of new 
     technologies and to improve life, performance, cost 
     effectiveness, safety, and user satisfaction.
       ``(C) Funding.--The Secretary shall obligate for each of 
     fiscal years 2013 through 2014 from funds made available to 
     carry out this subsection $12,000,000 to accelerate the 
     deployment and implementation of pavement technology.''.
       (b) Conforming Amendment.--The analysis for chapter 5 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 503 and inserting the following:

``503. Research and technology development and deployment.''.

     SEC. 52004. TRAINING AND EDUCATION.

       Section 504 of title 23, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (2)(A) by inserting ``and the employees of 
     any other applicable Federal agency'' before the semicolon at 
     the end; and
       (B) in paragraph (3)(A)(ii)(V) by striking ``expediting'' 
     and inserting ``reducing the amount of time required for'';
       (2) in subsection (b) by striking paragraph (3) and 
     inserting the following:
       ``(3) Federal share.--
       ``(A) Local technical assistance centers.--
       ``(i) In general.--Subject to subparagraph (B), the Federal 
     share of the cost of an activity carried out by a local 
     technical assistance center under paragraphs (1) and (2) 
     shall be 50 percent.
       ``(ii) Non-federal share.--The non-Federal share of the 
     cost of an activity described in clause (i) may consist of 
     amounts provided to a recipient under subsection (e) or 
     section 505, up to 100 percent of the non-Federal share.
       ``(B) Tribal technical assistance centers.--The Federal 
     share of the cost of an activity carried out by a tribal 
     technical assistance center under paragraph (2)(D)(ii) shall 
     be 100 percent.'';
       (3) in subsection (c)(2)--
       (A) by striking ``The Secretary'' and inserting the 
     following:
       ``(A) In general.--The Secretary'';
       (B) in subparagraph (A) (as designated by subparagraph (A)) 
     by striking ``. The program'' and inserting ``, which 
     program''; and
       (C) by adding at the end the following:
       ``(B) Use of amounts.--Amounts provided to institutions of 
     higher education to carry out this paragraph shall be used to 
     provide direct support of student expenses.'';
       (4) in subsection (e)--
       (A) in paragraph (1)--
       (i) in the matter preceding subparagraph (A) by striking 
     ``sections 104(b)(1), 104(b)(2), 104(b)(3), 104(b)(4), and 
     144(e)'' and inserting ``paragraphs (1) through (4) of 
     section 104(b)'';
       (ii) in subparagraph (D) by striking ``and'' at the end;
       (iii) in subparagraph (E) by striking the period and 
     inserting a semicolon; and
       (iv) by adding at the end the following:
       ``(F) activities carried out by the National Highway 
     Institute under subsection (a); and
       ``(G) local technical assistance programs under subsection 
     (b).''; and
       (B) in paragraph (2) by inserting ``, except for activities 
     carried out under paragraph (1)(G), for which the Federal 
     share shall be 50 percent'' before the period at the end;
       (5) in subsection (f) in the heading, by striking 
     ``Pilot'';
       (6) in subsection (g)(4)(F) by striking ``excellence'' and 
     inserting ``stewardship''; and
       (7) by adding at the end the following:
       ``(h) Centers for Surface Transportation Excellence.--
       ``(1) In general.--The Secretary shall make grants under 
     this section to establish and maintain centers for surface 
     transportation excellence.
       ``(2) Goals.--The goals of a center referred to in 
     paragraph (1) shall be to promote and support strategic 
     national surface transportation programs and activities 
     relating to the work of State departments of transportation 
     in the areas of environment, surface transportation safety, 
     rural safety, and project finance.
       ``(3) Role of the centers.--To achieve the goals set forth 
     in paragraph (2), any centers established under paragraph (1) 
     shall provide technical assistance, information sharing of 
     best practices, and training in the use of tools and 
     decisionmaking processes that can assist States in 
     effectively implementing surface transportation programs, 
     projects, and policies.
       ``(4) Program administration.--
       ``(A) Competition.--A party entering into a contract, 
     cooperative agreement, or other transaction with the 
     Secretary under this subsection, or receiving a grant to 
     perform research or provide technical assistance under this 
     subsection, shall be selected on a competitive basis.
       ``(B) Strategic plan.--The Secretary shall require each 
     center to develop a multiyear strategic plan, that--
       ``(i) is submitted to the Secretary at such time as the 
     Secretary requires; and
       ``(ii) describes--

       ``(I) the activities to be undertaken by the center; and
       ``(II) how the work of the center will be coordinated with 
     the activities of the Federal Highway Administration and the 
     various other research, development, and technology transfer 
     activities authorized under this chapter.''.

     SEC. 52005. STATE PLANNING AND RESEARCH.

       Section 505 of title 23, United States Code, is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1) by striking 
     ``section 104 (other than sections 104(f) and 104(h)) and 
     under section 144'' and inserting ``paragraphs (1) through 
     (4) of section 104(b)''; and
       (B) in paragraph (3) by striking ``under section 303'' and 
     inserting ``, plans, and processes under sections 119, 148, 
     149, and 167'';
       (2) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively;
       (3) by inserting after subsection (b) the following:
       ``(c) Implementation of Future Strategic Highway Research 
     Program Findings and Results.--
       ``(1) Funds.--A State shall make available to the Secretary 
     to carry out section 503(c)(2)(C) a percentage of funds 
     subject to subsection (a) that are apportioned to that State, 
     that is agreed to by \3/4\ of States for each of fiscal years 
     2013 and 2014.
       ``(2) Treatment of funds.--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).''; and
       (4) in subsection (e) (as so redesignated) by striking 
     ``section 118(b)(2)'' and inserting ``section 118(b)''.

     SEC. 52006. INTERNATIONAL HIGHWAY TRANSPORTATION PROGRAM.

       (a) In General.--Section 506 of title 23, United States 
     Code, is repealed.
       (b) Conforming Amendment.--The analysis for chapter 5 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 506.

     SEC. 52007. SURFACE TRANSPORTATION ENVIRONMENTAL COOPERATIVE 
                   RESEARCH PROGRAM.

       (a) In General.--Section 507 of title 23, United States 
     Code, is repealed.
       (b) Conforming Amendment.--The analysis for chapter 5 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 507.

     SEC. 52008. NATIONAL COOPERATIVE FREIGHT RESEARCH.

       (a) In General.--Section 509 of title 23, United States 
     Code, is repealed.
       (b) Conforming Amendment.--The analysis for chapter 5 of 
     title 23, United States Code, is amended by striking the item 
     relating to section 509.

     SEC. 52009. UNIVERSITY TRANSPORTATION CENTERS PROGRAM.

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

     ``Sec. 5505. University transportation centers program

       ``(a) University Transportation Centers Program.--
       ``(1) Establishment and operation.--The Secretary shall 
     make grants under this section to eligible nonprofit 
     institutions of higher education to establish and operate 
     university transportation centers.
       ``(2) Role of centers.--The role of each university 
     transportation center referred to in paragraph (1) shall be--
       ``(A) to advance transportation expertise and technology in 
     the varied disciplines that comprise the field of 
     transportation through education, research, and technology 
     transfer activities;
       ``(B) to provide for a critical transportation knowledge 
     base outside of the Department of Transportation; and
       ``(C) to address critical workforce needs and educate the 
     next generation of transportation leaders.
       ``(b) Competitive Selection Process.--
       ``(1) Applications.--To receive a grant under this section, 
     a nonprofit institution of higher education shall submit to 
     the Secretary an application that is in such form and 
     contains such information as the Secretary may require.
       ``(2) Restriction.--A nonprofit institution of higher 
     education or the lead institution of a consortium of 
     nonprofit institutions of higher education, as applicable, 
     that receives a grant for a national transportation center or 
     a regional transportation center in a fiscal year shall not 
     be eligible to receive as a lead institution or member of a 
     consortium an additional

[[Page 10654]]

     grant in that fiscal year for a national transportation 
     center or a regional transportation center.
       ``(3) Coordination.--The Secretary shall solicit grant 
     applications for national transportation centers, regional 
     transportation centers, and Tier 1 university transportation 
     centers with identical advertisement schedules and deadlines.
       ``(4) General selection criteria.--
       ``(A) In general.--Except as otherwise provided by this 
     section, the Secretary shall award grants under this section 
     in nonexclusive candidate topic areas established by the 
     Secretary that address the research priorities identified in 
     section 503 of title 23.
       ``(B) Criteria.--The Secretary, in consultation as 
     appropriate with the Administrators of the Federal Highway 
     Administration and the Federal Transit Administration, shall 
     select each recipient of a grant under this section through a 
     competitive process based on the assessment of the Secretary 
     relating to--
       ``(i) the demonstrated ability of the recipient to address 
     each specific topic area described in the research and 
     strategic plans of the recipient;
       ``(ii) the demonstrated research, technology transfer, and 
     education resources available to the recipient to carry out 
     this section;
       ``(iii) the ability of the recipient to provide leadership 
     in solving immediate and long-range national and regional 
     transportation problems;
       ``(iv) the ability of the recipient to carry out research, 
     education, and technology transfer activities that are 
     multimodal and multidisciplinary in scope;
       ``(v) the demonstrated commitment of the recipient to carry 
     out transportation workforce development programs through--

       ``(I) degree-granting programs; and
       ``(II) outreach activities to attract new entrants into the 
     transportation field;

       ``(vi) the demonstrated ability of the recipient to 
     disseminate results and spur the implementation of 
     transportation research and education programs through 
     national or statewide continuing education programs;
       ``(vii) the demonstrated commitment of the recipient to the 
     use of peer review principles and other research best 
     practices in the selection, management, and dissemination of 
     research projects;
       ``(viii) the strategic plan submitted by the recipient 
     describing the proposed research to be carried out by the 
     recipient and the performance metrics to be used in assessing 
     the performance of the recipient in meeting the stated 
     research, technology transfer, education, and outreach goals; 
     and
       ``(ix) the ability of the recipient to implement the 
     proposed program in a cost-efficient manner, such as through 
     cost sharing and overall reduced overhead, facilities, and 
     administrative costs.
       ``(5) Transparency.--
       ``(A) In general.--The Secretary shall provide to each 
     applicant, upon request, any materials, including copies of 
     reviews (with any information that would identify a reviewer 
     redacted), used in the evaluation process of the proposal of 
     the applicant.
       ``(B) Reports.--The Secretary shall submit to the 
     Committees on Transportation and Infrastructure and Science, 
     Space, and Technology of the House of Representatives and the 
     Committee on Environment and Public Works of the Senate a 
     report describing the overall review process under paragraph 
     (3) that includes--
       ``(i) specific criteria of evaluation used in the review;
       ``(ii) descriptions of the review process; and
       ``(iii) explanations of the selected awards.
       ``(6) Outside stakeholders.--The Secretary shall, to the 
     maximum extent practicable, consult external stakeholders 
     such as the Transportation Research Board of the National 
     Academy of Sciences to evaluate and competitively review all 
     proposals.
       ``(c) Grants.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of the Transportation Research and Innovative 
     Technology Act of 2012, the Secretary, in consultation as 
     appropriate with the Administrators of the Federal Highway 
     Administration and the Federal Transit Administration, shall 
     select grant recipients under subsection (b) and make grant 
     amounts available to the selected recipients.
       ``(2) National transportation centers.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall provide grants to 5 recipients that the 
     Secretary determines best meet the criteria described in 
     subsection (b)(3).
       ``(B) Restrictions.--
       ``(i) In general.--For each fiscal year, a grant made 
     available under this paragraph shall be $3,000,000 per 
     recipient.
       ``(ii) Focused research.--The grant recipients under this 
     paragraph shall focus research on national transportation 
     issues, as determined by the Secretary.
       ``(C) Matching requirement.--
       ``(i) In general.--As a condition of receiving a grant 
     under this paragraph, a grant recipient shall match 100 
     percent of the amounts made available under the grant.
       ``(ii) Sources.--The matching amounts referred to in clause 
     (i) may include amounts made available to the recipient under 
     section 504(b) or 505 of title 23.
       ``(3) Regional university transportation centers.--
       ``(A) Location of regional centers.--One regional 
     university transportation center shall be located in each of 
     the 10 Federal regions that comprise the Standard Federal 
     Regions established by the Office of Management and Budget in 
     the document entitled `Standard Federal Regions' and dated 
     April, 1974 (circular A-105).
       ``(B) Selection criteria.--In conducting a competition 
     under subsection (b), the Secretary shall provide grants to 
     10 recipients on the basis of--
       ``(i) the criteria described in subsection (b)(3);
       ``(ii) the location of the center within the Federal region 
     to be served; and
       ``(iii) whether the institution (or, in the case of 
     consortium of institutions, the lead institution) 
     demonstrates that the institution has a well-established, 
     nationally recognized program in transportation research and 
     education, as evidenced by--

       ``(I) recent expenditures by the institution in highway or 
     public transportation research;
       ``(II) a historical track record of awarding graduate 
     degrees in professional fields closely related to highways 
     and public transportation; and
       ``(III) an experienced faculty who specialize in 
     professional fields closely related to highways and public 
     transportation.

       ``(C) Restrictions.--For each fiscal year, a grant made 
     available under this paragraph shall be $2,750,000 for each 
     recipient.
       ``(D) Matching requirements.--
       ``(i) In general.--As a condition of receiving a grant 
     under this paragraph, a grant recipient shall match 100 
     percent of the amounts made available under the grant.
       ``(ii) Sources.--The matching amounts referred to in the 
     clause (i) may include amounts made available to the 
     recipient under section 504(b) or 505 of title 23.
       ``(E) Focused research.--The Secretary shall make a grant 
     to 1 of the 10 regional university transportation centers 
     established under this paragraph for the purpose of 
     furthering the objectives described in subsection (a)(2) in 
     the field of comprehensive transportation safety.
       ``(4) Tier 1 university transportation centers.--
       ``(A) In general.--The Secretary shall provide grants of 
     $1,500,000 each to not more than 20 recipients to carry out 
     this paragraph.
       ``(B) Restriction.--A lead institution of a consortium that 
     receives a grant under paragraph (2) or (3) shall not be 
     eligible to receive a grant under this paragraph.
       ``(C) Matching requirement.--
       ``(i) In general.--Subject to clause (iii), as a condition 
     of receiving a grant under this paragraph, a grant recipient 
     shall match 50 percent of the amounts made available under 
     the grant.
       ``(ii) Sources.--The matching amounts referred to in clause 
     (i) may include amounts made available to the recipient under 
     section 504(b) or 505 of title 23.
       ``(iii) Exemption.--This subparagraph shall not apply on a 
     demonstration of financial hardship by the applicant 
     institution.
       ``(D) Focused research.--In awarding grants under this 
     paragraph, consideration shall be given to minority 
     institutions, as defined by section 365 of the Higher 
     Education Act of 1965 (20 U.S.C. 1067k), or consortia that 
     include such institutions that have demonstrated an ability 
     in transportation-related research.
       ``(d) Program Coordination.--
       ``(1) In general.--The Secretary shall--
       ``(A) coordinate the research, education, and technology 
     transfer activities carried out by grant recipients under 
     this section; and
       ``(B) disseminate the results of that research through the 
     establishment and operation of an information clearinghouse.
       ``(2) Annual review and evaluation.--Not less frequently 
     than annually, and consistent with the plan developed under 
     section 508 of title 23, the Secretary shall--
       ``(A) review and evaluate the programs carried out under 
     this section by grant recipients; and
       ``(B) submit to the Committees on Transportation and 
     Infrastructure and Science, Space, and Technology of the 
     House of Representatives and the Committee on Environment and 
     Public Works of the Senate a report describing that review 
     and evaluation.
       ``(3) Program evaluation and oversight.--For each of fiscal 
     years 2013 and 2014, the Secretary shall expend not more than 
     1\1/2\ percent of the amounts made available to the Secretary 
     to carry out this section for any coordination, evaluation, 
     and oversight activities of the Secretary under this section.
       ``(e) Limitation on Availability of Amounts.--Amounts made 
     available to the Secretary to carry out this section shall 
     remain available for obligation by the Secretary for a period 
     of 3 years after the last day of the fiscal year for which 
     the amounts are appropriated.
       ``(f) Information Collection.--Any survey, questionnaire, 
     or interview that the Secretary determines to be necessary to 
     carry out reporting requirements relating to any program 
     assessment or evaluation activity under this section, 
     including customer satisfaction assessments, shall not be 
     subject to chapter 35 of title 44.''.
       (b) Conforming Amendment.--The analysis for chapter 55 of 
     title 49, United States Code, is amended by striking the item 
     relating to section 5505 and inserting the following:

``5505. University transportation centers program.''.

     SEC. 52010. UNIVERSITY TRANSPORTATION RESEARCH.

       (a) In General.--Section 5506 of title 49, United States 
     Code, is repealed.
       (b) Conforming Amendment.--The analysis for chapter 55 of 
     title 49, United States Code, is amended by striking the item 
     relating to section 5506.

[[Page 10655]]



     SEC. 52011. BUREAU OF TRANSPORTATION STATISTICS.

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

           ``CHAPTER 63--BUREAU OF TRANSPORTATION STATISTICS

``Sec.
``6301. Definitions.
``6302. Bureau of Transportation Statistics.
``6303. Intermodal transportation database.
``6304. National Transportation Library.
``6305. Advisory council on transportation statistics.
``6306. Transportation statistical collection, analysis, and 
              dissemination.
``6307. Furnishing of information, data, or reports by Federal 
              agencies.
``6308. Proceeds of data product sales.
``6309. National transportation atlas database.
``6310. Limitations on statutory construction.
``6311. Research and development grants.
``6312. Transportation statistics annual report.
``6313. Mandatory response authority for freight data collection.

     ``Sec. 6301. Definitions

       ``In this chapter, the following definitions apply:
       ``(1) Bureau.--The term `Bureau' means the Bureau of 
     Transportation Statistics established by section 6302(a).
       ``(2) Department.--The term `Department' means the 
     Department of Transportation.
       ``(3) Director.--The term `Director' means the Director of 
     the Bureau.
       ``(4) Library.--The term `Library' means the National 
     Transportation Library established by section 6304(a).
       ``(5) Secretary.--The term `Secretary' means the Secretary 
     of Transportation.

     ``Sec. 6302. Bureau of Transportation Statistics

       ``(a) Establishment.--There is established in the Research 
     and Innovative Technology Administration the Bureau of 
     Transportation Statistics.
       ``(b) Director.--
       ``(1) Appointment.--The Bureau shall be headed by a 
     Director, who shall be appointed in the competitive service 
     by the Secretary.
       ``(2) Qualifications.--The Director shall be appointed from 
     among individuals who are qualified to serve as the Director 
     by virtue of their training and experience in the collection, 
     analysis, and use of transportation statistics.
       ``(3) Duties.--
       ``(A) In general.--The Director shall--
       ``(i) serve as the senior advisor to the Secretary on data 
     and statistics; and
       ``(ii) be responsible for carrying out the duties described 
     in subparagraph (B).
       ``(B) Duties.--The Director shall--
       ``(i) ensure that the statistics compiled under clause (vi) 
     are designed to support transportation decisionmaking by--

       ``(I) the Federal Government;
       ``(II) State and local governments;
       ``(III) metropolitan planning organizations;
       ``(IV) transportation-related associations;
       ``(V) the private sector, including the freight community; 
     and
       ``(VI) the public;

       ``(ii) establish on behalf of the Secretary a program--

       ``(I) to effectively integrate safety data across modes; 
     and
       ``(II) to address gaps in existing safety data programs of 
     the Department;

       ``(iii) work with the operating administrations of the 
     Department--

       ``(I) to establish and implement the data programs of the 
     Bureau; and
       ``(II) to improve the coordination of information 
     collection efforts with other Federal agencies;

       ``(iv) continually improve surveys and data collection 
     methods of the Department to improve the accuracy and utility 
     of transportation statistics;
       ``(v) encourage the standardization of data, data 
     collection methods, and data management and storage 
     technologies for data collected by--

       ``(I) the Bureau;
       ``(II) the operating administrations of the Department;
       ``(III) State and local governments;
       ``(IV) metropolitan planning organizations; and
       ``(V) private sector entities;

       ``(vi) collect, compile, analyze, and publish a 
     comprehensive set of transportation statistics on the 
     performance and impacts of the national transportation 
     system, including statistics on--

       ``(I) transportation safety across all modes and 
     intermodally;
       ``(II) the state of good repair of United States 
     transportation infrastructure;
       ``(III) the extent, connectivity, and condition of the 
     transportation system, building on the national 
     transportation atlas database developed under section 6310;
       ``(IV) economic efficiency across the entire transportation 
     sector;
       ``(V) the effects of the transportation system on global 
     and domestic economic competitiveness;
       ``(VI) demographic, economic, and other variables 
     influencing travel behavior, including choice of 
     transportation mode and goods movement;
       ``(VII) transportation-related variables that influence the 
     domestic economy and global competitiveness;
       ``(VIII) economic costs and impacts for passenger travel 
     and freight movement;
       ``(IX) intermodal and multimodal passenger movement;
       ``(X) intermodal and multimodal freight movement; and
       ``(XI) consequences of transportation for the human and 
     natural environment;

       ``(vii) build and disseminate the transportation layer of 
     the National Spatial Data Infrastructure developed under 
     Executive Order 12906 (59 Fed. Reg. 17671) (or a successor 
     Executive Order), including by coordinating the development 
     of transportation geospatial data standards, compiling 
     intermodal geospatial data, and collecting geospatial data 
     that is not being collected by other entities;
       ``(viii) issue guidelines for the collection of information 
     by the Department that the Director determines necessary to 
     develop transportation statistics and carry out modeling, 
     economic assessment, and program assessment activities to 
     ensure that such information is accurate, reliable, relevant, 
     uniform, and in a form that permits systematic analysis by 
     the Department;
       ``(ix) review and report to the Secretary on the sources 
     and reliability of--

       ``(I) the statistics proposed by the heads of the operating 
     administrations of the Department to measure outputs and 
     outcomes as required by the Government Performance and 
     Results Act of 1993 (Public Law 103-62;107 Stat. 285); and
       ``(II) at the request of the Secretary, any other data 
     collected or statistical information published by the heads 
     of the operating administrations of the Department; and

       ``(x) ensure that the statistics published under this 
     section are readily accessible to the public, consistent with 
     applicable security constraints and confidentiality 
     interests.
       ``(c) Access to Federal Data.--In carrying out subsection 
     (b)(3)(B)(ii), the Director shall be given access to all 
     safety data that the Director determines necessary to carry 
     out that subsection that is held by the Department or any 
     other Federal agency upon written request and subject to any 
     statutory or regulatory restrictions.

     ``Sec. 6303. Intermodal transportation database

       ``(a) In General.--In consultation with the Under Secretary 
     Transportation for Policy, the Assistant Secretaries of the 
     Department, and the heads of the operating administrations of 
     the Department, the Director shall establish and maintain a 
     transportation database for all modes of transportation.
       ``(b) Use.--The database established under this section 
     shall be suitable for analyses carried out by the Federal 
     Government, the States, and metropolitan planning 
     organizations.
       ``(c) Contents.--The database established under this 
     section shall include--
       ``(1) information on the volumes and patterns of movement 
     of goods, including local, interregional, and international 
     movement, by all modes of transportation, intermodal 
     combinations, and relevant classification;
       ``(2) information on the volumes and patterns of movement 
     of people, including local, interregional, and international 
     movements, by all modes of transportation (including bicycle 
     and pedestrian modes), intermodal combinations, and relevant 
     classification;
       ``(3) information on the location and connectivity of 
     transportation facilities and services; and
       ``(4) a national accounting of expenditures and capital 
     stocks on each mode of transportation and intermodal 
     combination.

     ``Sec. 6304. National Transportation Library

       ``(a) Purpose and Establishment.--To support the 
     information management and decisionmaking needs of 
     transportation officials at the Federal, State, and local 
     levels, there is established in the Bureau a National 
     Transportation Library which shall--
       ``(1) be headed by an individual who is highly qualified in 
     library and information science;
       ``(2) acquire, preserve, and manage transportation 
     information and information products and services for use by 
     the Department, other Federal agencies, and the general 
     public;
       ``(3) provide reference and research assistance;
       ``(4) serve as a central depository for research results 
     and technical publications of the Department;
       ``(5) provide a central clearinghouse for transportation 
     data and information of the Federal Government;
       ``(6) serve as coordinator and policy lead for 
     transportation information access;
       ``(7) provide transportation information and information 
     products and services to--
       ``(A) the Department;
       ``(B) other Federal agencies;
       ``(C) public and private organizations; and
       ``(D) individuals, within the United States and 
     internationally;
       ``(8) coordinate efforts among, and cooperate with, 
     transportation libraries, information providers, and 
     technical assistance centers, in conjunction with private 
     industry and other transportation library and information 
     centers, with the goal of developing a comprehensive 
     transportation information and knowledge network that 
     supports the activities described in section 
     6302(b)(3)(B)(vi); and
       ``(9) engage in such other activities as the Director 
     determines to be necessary and as the resources of the 
     Library permit.
       ``(b) Access.--The Director shall publicize, facilitate, 
     and promote access to the information products and services 
     described in subsection (a), to improve the ability of the 
     transportation community to share information and the ability 
     of the Director to make statistics and other information 
     readily accessible as required under section 
     6302(b)(3)(B)(x).

[[Page 10656]]

       ``(c) Agreements.--
       ``(1) In general.--To carry out this section, the Director 
     may enter into agreements with, award grants to, and receive 
     amounts from, any--
       ``(A) State or local government;
       ``(B) organization;
       ``(C) business; or
       ``(D) individual.
       ``(2) Contracts, grants, and agreements.--The Library may 
     initiate and support specific information and data 
     management, access, and exchange activities in connection 
     with matters relating to the Department's strategic goals, 
     knowledge networking, and national and international 
     cooperation, by entering into contracts or other agreements 
     or awarding grants for the conduct of such activities.
       ``(3) Amounts.--Any amounts received by the Library as 
     payment for library products and services or other activities 
     shall be made available to the Director to carry out this 
     section, deposited in the Research and Innovative Technology 
     Administration's general fund account, and remain available 
     until expended.

     ``Sec. 6305. Advisory council on transportation statistics

       ``(a) In General.--The Director shall establish and consult 
     with an advisory council on transportation statistics.
       ``(b) Function.--The advisory council established under 
     this section shall advise the Director on--
       ``(1) the quality, reliability, consistency, objectivity, 
     and relevance of transportation statistics and analyses 
     collected, supported, or disseminated by the Bureau and the 
     Department; and
       ``(2) methods to encourage cooperation and interoperability 
     of transportation data collected by the Bureau, the operating 
     administrations of the Department, States, local governments, 
     metropolitan planning organizations, and private sector 
     entities.
       ``(c) Membership.--
       ``(1) In general.--The advisory council shall be composed 
     of not fewer than 9 and not more than 11 members appointed by 
     the Director.
       ``(2) Selection.--In selecting members for the advisory 
     council, the Director shall appoint individuals who--
       ``(A) are not officers or employees of the United States;
       ``(B) possess expertise in--
       ``(i) transportation data collection, analysis, or 
     application;
       ``(ii) economics; or
       ``(iii) transportation safety; and
       ``(C) represent a cross section of transportation 
     stakeholders, to the greatest extent possible.
       ``(d) Terms of Appointment.--
       ``(1) In general.--Except as provided in paragraph (2), 
     members of the advisory council shall be appointed to 
     staggered terms not to exceed 3 years.
       ``(2) Additional terms.--A member may be renominated for 1 
     additional 3-year term.
       ``(3) Current members.--A member serving on an advisory 
     council on transportation statistics on the day before the 
     date of enactment of the Transportation Research and 
     Innovative Technology Act of 2012 shall serve until the end 
     of the appointed term of the member.
       ``(e) Applicability of Federal Advisory Committee Act.--The 
     Federal Advisory Committee Act (5 U.S.C. App.) shall apply to 
     the advisory council established under this section, except 
     that section 14 of that Act shall not apply.

     ``Sec. 6306. Transportation statistical collection, analysis, 
       and dissemination

       ``To ensure that all transportation statistical collection, 
     analysis, and dissemination is carried out in a coordinated 
     manner, the Director may--
       ``(1) use the services, equipment, records, personnel, 
     information, and facilities of other Federal agencies, or 
     State, local, and private agencies and instrumentalities, 
     subject to the conditions that the applicable agency or 
     instrumentality consents to that use and with or without 
     reimbursement for such use;
       ``(2) enter into agreements with the agencies and 
     instrumentalities described in paragraph (1) for purposes of 
     data collection and analysis;
       ``(3) confer and cooperate with foreign governments, 
     international organizations, and State, municipal, and other 
     local agencies;
       ``(4) request such information, data, and reports from any 
     Federal agency as the Director determines necessary to carry 
     out this chapter;
       ``(5) encourage replication, coordination, and sharing of 
     information among transportation agencies regarding 
     information systems, information policy, and data; and
       ``(6) confer and cooperate with Federal statistical 
     agencies as the Director determines necessary to carry out 
     this chapter, including by entering into cooperative data 
     sharing agreements in conformity with all laws and 
     regulations applicable to the disclosure and use of data.

     ``Sec. 6307. Furnishing of information, data, or reports by 
       Federal agencies

       ``(a) In General.--Except as provided in subsection (b), a 
     Federal agency requested to furnish information, data, or 
     reports by the Director under section 6302(b)(3)(B) shall 
     provide the information to the Director.
       ``(b) Prohibition on Certain Disclosures.--
       ``(1) In general.--An officer, employee, or contractor of 
     the Bureau may not--
       ``(A) make any disclosure in which the data provided by an 
     individual or organization under section 6302(b)(3)(B) can be 
     identified;
       ``(B) use the information provided under section 
     6302(b)(3)(B) for a nonstatistical purpose; or
       ``(C) permit anyone other than an individual authorized by 
     the Director to examine any individual report provided under 
     section 6302(b)(3)(B).
       ``(2) Copies of reports.--
       ``(A) In general.--No department, bureau, agency, officer, 
     or employee of the United States (except the Director in 
     carrying out this chapter) may require, for any reason, a 
     copy of any report that has been filed under section 
     6302(b)(3)(B) with the Bureau or retained by an individual 
     respondent.
       ``(B) Limitation on judicial proceedings.--A copy of a 
     report described in subparagraph (A) that has been retained 
     by an individual respondent or filed with the Bureau or any 
     of the employees, contractors, or agents of the Bureau--
       ``(i) shall be immune from legal process; and
       ``(ii) shall not, without the consent of the individual 
     concerned, be admitted as evidence or used for any purpose in 
     any action, suit, or other judicial or administrative 
     proceedings.
       ``(C) Applicability.--This paragraph shall apply only to 
     reports that permit information concerning an individual or 
     organization to be reasonably determined by direct or 
     indirect means.
       ``(3) Informing respondent of use of data.--If the Bureau 
     is authorized by statute to collect data or information for a 
     nonstatistical purpose, the Director shall clearly 
     distinguish the collection of the data or information, by 
     rule and on the collection instrument, in a manner that 
     informs the respondent who is requested or required to supply 
     the data or information of the nonstatistical purpose.
       ``(c) Transportation and Transportation-related Data 
     Access.--The Director shall be provided access to any 
     transportation and transportation-related information in the 
     possession of any Federal agency, except--
       ``(1) information that is expressly prohibited by law from 
     being disclosed to another Federal agency; or
       ``(2) information that the agency possessing the 
     information determines could not be disclosed without 
     significantly impairing the discharge of authorities and 
     responsibilities which have been delegated to, or vested by 
     law, in such agency.

     ``Sec. 6308. Proceeds of data product sales

       ``Notwithstanding section 3302 of title 31, amounts 
     received by the Bureau from the sale of data products for 
     necessary expenses incurred may be credited to the Highway 
     Trust Fund (other than the Mass Transit Account) for the 
     purpose of reimbursing the Bureau for those expenses.

     ``Sec. 6309. National transportation atlas database

       ``(a) In General.--The Director shall develop and maintain 
     a national transportation atlas database that is comprised of 
     geospatial databases that depict--
       ``(1) transportation networks;
       ``(2) flows of people, goods, vehicles, and craft over the 
     transportation networks; and
       ``(3) social, economic, and environmental conditions that 
     affect or are affected by the transportation networks.
       ``(b) Intermodal Network Analysis.--The databases referred 
     to in subsection (a) shall be capable of supporting 
     intermodal network analysis.

     ``Sec. 6310. Limitations on statutory construction

       ``Nothing in this chapter--
       ``(1) authorizes the Bureau to require any other Federal 
     agency to collect data; or
       ``(2) alters or diminishes the authority of any other 
     officer of the Department to collect and disseminate data 
     independently.

     ``Sec. 6311. Research and development grants

       ``The Secretary may make grants to, or enter into 
     cooperative agreements or contracts with, public and 
     nonprofit private entities (including State transportation 
     departments, metropolitan planning organizations, and 
     institutions of higher education) for--
       ``(1) investigation of the subjects described in section 
     6302(b)(3)(B)(vi);
       ``(2) research and development of new methods of data 
     collection, standardization, management, integration, 
     dissemination, interpretation, and analysis;
       ``(3) demonstration programs by States, local governments, 
     and metropolitan planning organizations to coordinate data 
     collection, reporting, management, storage, and archiving to 
     simplify data comparisons across jurisdictions;
       ``(4) development of electronic clearinghouses of 
     transportation data and related information, as part of the 
     Library; and
       ``(5) development and improvement of methods for sharing 
     geographic data, in support of the database under section 
     6310 and the National Spatial Data Infrastructure developed 
     under Executive Order 12906 (59 Fed. Reg. 17671) (or a 
     successor Executive Order).

     ``Sec. 6312. Transportation statistics annual report

       ``The Director shall submit to the President and Congress a 
     transportation statistics annual report, which shall 
     include--
       ``(1) information on the progress of the Director in 
     carrying out the duties described in section 6302(b)(3)(B);
       ``(2) documentation of the methods used to obtain and 
     ensure the quality of the statistics presented in the report; 
     and
       ``(3) any recommendations of the Director for improving 
     transportation statistical information.

     ``Sec. 6313. Mandatory response authority for freight data 
       collection

       ``(a) Freight Data Collection.--

[[Page 10657]]

       ``(1) In general.--An owner, official, agent, person in 
     charge, or assistant to the person in charge of a freight 
     corporation, company, business, institution, establishment, 
     or organization described in paragraph (2) shall be fined in 
     accordance with subsection (b) if that individual neglects or 
     refuses, when requested by the Director or other authorized 
     officer, employee, or contractor of the Bureau to submit data 
     under section 6302(b)(3)(B)--
       ``(A) to answer completely and correctly to the best 
     knowledge of that individual all questions relating to the 
     corporation, company, business, institution, establishment, 
     or other organization; or
       ``(B) to make available records or statistics in the 
     official custody of the individual.
       ``(2) Description of entities.--A freight corporation, 
     company, business, institution, establishment, or 
     organization referred to in paragraph (1) is a corporation, 
     company, business, institution, establishment, or 
     organization that--
       ``(A) receives Federal funds relating to the freight 
     program; and
       ``(B) has consented to be subject to a fine under this 
     subsection on--
       ``(i) refusal to supply any data requested; or
       ``(ii) failure to respond to a written request.
       ``(b) Fines.--
       ``(1) In general.--Subject to paragraph (2), an individual 
     described in subsection (a) shall be fined not more than 
     $500.
       ``(2) Willful actions.--If an individual willfully gives a 
     false answer to a question described in subsection (a)(1), 
     the individual shall be fined not more than $10,000.''.
       (b) Rules of Construction.--If the provisions of section 
     111 of title 49, United States Code, are transferred to 
     chapter 63 of that title, the following rules of construction 
     apply:
       (1) For purposes of determining whether 1 provision of law 
     supersedes another based on enactment later in time, a 
     chapter 63 provision is deemed to have been enacted on the 
     date of enactment of the corresponding section 111 provision.
       (2) A reference to a section 111 provision, including a 
     reference in a regulation, order, or other law, is deemed to 
     refer to the corresponding chapter 63 provision.
       (3) A regulation, order, or other administrative action in 
     effect under a section 111 provision continues in effect 
     under the corresponding chapter 63 provision.
       (4) An action taken or an offense committed under a section 
     111 provision is deemed to have been taken or committed under 
     the corresponding chapter 63 provision.
       (c) Conforming Amendments.--
       (1) Repeal.--Section 111 of title 49, United States Code, 
     is repealed, and the item relating to section 111 in the 
     analysis for chapter 1 of that title is deleted.
       (2) Analysis for subtitle iii.--The analysis for subtitle 
     III of title 49, United States Code, is amended by inserting 
     after the items for chapter 61 the following:

         ``Chapter 63--Bureau of Transportation Statistics.''.

     SEC. 52012. ADMINISTRATIVE AUTHORITY.

       Section 112 of title 49, United States Code, is amended by 
     adding at the end the following:
       ``(f) Program Evaluation and Oversight.--For each of fiscal 
     years 2013 and 2014, the Administrator is authorized to 
     expend not more than 1\1/2\ percent of the amounts authorized 
     to be appropriated for necessary expenses for administration 
     and operations of the Research and Innovative Technology 
     Administration for the coordination, evaluation, and 
     oversight of the programs administered by the Administration.
       ``(g) Collaborative Research and Development.--
       ``(1) In general.--To encourage innovative solutions to 
     multimodal transportation problems and stimulate the 
     deployment of new technology, the Administrator may carry 
     out, on a cost-shared basis, collaborative research and 
     development with--
       ``(A) non-Federal entities, including State and local 
     governments, foreign governments, institutions of higher 
     education, corporations, institutions, partnerships, sole 
     proprietorships, and trade associations that are incorporated 
     or established under the laws of any State;
       ``(B) Federal laboratories; and
       ``(C) other Federal agencies.
       ``(2) Cooperation, grants, contracts, and agreements.--
     Notwithstanding any other provision of law, the Administrator 
     may directly initiate contracts, grants, cooperative research 
     and development agreements (as defined in section 12 of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710a)), and other agreements to fund, and accept funds from, 
     the Transportation Research Board of the National Research 
     Council of the National Academy of Sciences, State 
     departments of transportation, cities, counties, institutions 
     of higher education, associations, and the agents of those 
     entities to carry out joint transportation research and 
     technology efforts.
       ``(3) Federal share.--
       ``(A) In general.--Subject to subparagraph (B), the Federal 
     share of the cost of an activity carried out under paragraph 
     (2) shall not exceed 50 percent.
       ``(B) Exception.--If the Secretary determines that the 
     activity is of substantial public interest or benefit, the 
     Secretary may approve a greater Federal share.
       ``(C) Non-federal share.--All costs directly incurred by 
     the non-Federal partners, including personnel, travel, 
     facility, and hardware development costs, shall be credited 
     toward the non-Federal share of the cost of an activity 
     described in subparagraph (A).
       ``(4) Use of technology.--The research, development, or use 
     of a technology under a contract, grant, cooperative research 
     and development agreement, or other 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 6101 of 
     title 41 shall not apply to a contract, grant, or other 
     agreement entered into under this section.''.

     SEC. 52013. TRANSPORTATION RESEARCH AND DEVELOPMENT STRATEGIC 
                   PLANNING.

       Section 508(a) of title 23, United States Code, is 
     amended--
       (1) in paragraph (1), by striking ``SAFETEA-LU'' and 
     inserting ``Transportation Research and Innovative Technology 
     Act of 2012''; and
       (2) in paragraph (2), by striking subparagraph (A) and 
     inserting the following:
       ``(A) describe the primary purposes of the transportation 
     research and development program, which shall include, at a 
     minimum--
       ``(i) promoting safety;
       ``(ii) reducing congestion and improving mobility;
       ``(iii) preserving the environment;
       ``(iv) preserving the existing transportation system;
       ``(v) improving the durability and extending the life of 
     transportation infrastructure; and
       ``(vi) improving goods movement.''.
         TITLE III--INTELLIGENT TRANSPORTATION SYSTEMS RESEARCH

     SEC. 53001. USE OF FUNDS FOR ITS ACTIVITIES.

       Section 513 of title 23, United States Code, is amended to 
     read as follows:

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

       ``(a) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Eligible entity.--The term `eligible entity' means a 
     State or local government, tribal government, transit agency, 
     public toll authority, metropolitan planning organization, 
     other political subdivision of a State or local government, 
     or a multistate or multijurisdictional group applying through 
     a single lead applicant.
       ``(2) Multijurisdictional group.--The term 
     `multijurisdictional group' means a combination of State 
     governments, local governments, metropolitan planning 
     agencies, transit agencies, or other political subdivisions 
     of a State that--
       ``(A) have signed a written agreement to implement an 
     activity that meets the grant criteria under this section; 
     and
       ``(B) is comprised of at least 2 members, each of whom is 
     an eligible entity.
       ``(b) Purpose.--The purpose of this section is to develop, 
     administer, communicate, and promote the use of products of 
     research, technology, and technology transfer programs.
       ``(c) ITS Adoption.--
       ``(1) Innovative technologies and strategies.--The 
     Secretary shall encourage the deployment of ITS technologies 
     that will improve the performance of the National Highway 
     System in such areas as traffic operations, emergency 
     response, incident management, surface transportation network 
     management, freight management, traffic flow information, and 
     congestion management by accelerating the adoption of 
     innovative technologies through the use of--
       ``(A) demonstration programs;
       ``(B) grant funding;
       ``(C) incentives to eligible entities; and
       ``(D) other tools, strategies, or methods that will result 
     in the deployment of innovative ITS technologies.
       ``(2) Comprehensive plan.--To carry out this section, the 
     Secretary shall develop a detailed and comprehensive plan 
     that addresses the manner in which incentives may be adopted, 
     as appropriate, through the existing deployment activities 
     carried out by surface transportation modal 
     administrations.''.

     SEC. 53002. GOALS AND PURPOSES.

       (a) In General.--Chapter 5 of title 23, United States Code, 
     is amended by adding after section 513 the following:

     ``Sec. 514. Goals and purposes

       ``(a) Goals.--The goals of the intelligent transportation 
     system program include--
       ``(1) enhancement of surface transportation efficiency and 
     facilitation of intermodalism and international trade to 
     enable existing facilities to meet a significant portion of 
     future transportation needs, including public access to 
     employment, goods, and services and to reduce regulatory, 
     financial, and other transaction costs to public agencies and 
     system users;
       ``(2) achievement of national transportation safety goals, 
     including enhancement of safe operation of motor vehicles and 
     nonmotorized vehicles and improved emergency response to 
     collisions, with particular emphasis on decreasing the number 
     and severity of collisions;
       ``(3) protection and enhancement of the natural environment 
     and communities affected by surface transportation, with 
     particular emphasis on assisting State and local governments 
     to achieve national environmental goals;
       ``(4) accommodation of the needs of all users of surface 
     transportation systems, including operators of commercial 
     motor vehicles, passenger motor vehicles, motorcycles, 
     bicycles, and pedestrians (including individuals with 
     disabilities); and
       ``(5) enhancement of national defense mobility and 
     improvement of the ability of the United

[[Page 10658]]

     States to respond to security-related or other manmade 
     emergencies and natural disasters.
       ``(b) Purposes.--The Secretary shall implement activities 
     under the intelligent transportation system program, at a 
     minimum--
       ``(1) to expedite, in both metropolitan and rural areas, 
     deployment and integration of intelligent transportation 
     systems for consumers of passenger and freight 
     transportation;
       ``(2) to ensure that Federal, State, and local 
     transportation officials have adequate knowledge of 
     intelligent transportation systems for consideration in the 
     transportation planning process;
       ``(3) to improve regional cooperation and operations 
     planning for effective intelligent transportation system 
     deployment;
       ``(4) to promote the innovative use of private resources in 
     support of intelligent transportation system development;
       ``(5) to facilitate, in cooperation with the motor vehicle 
     industry, the introduction of vehicle-based safety enhancing 
     systems;
       ``(6) to support the application of intelligent 
     transportation systems that increase the safety and 
     efficiency of commercial motor vehicle operations;
       ``(7) to develop a workforce capable of developing, 
     operating, and maintaining intelligent transportation 
     systems;
       ``(8) to provide continuing support for operations and 
     maintenance of intelligent transportation systems; and
       ``(9) to ensure a systems approach that includes 
     cooperation among vehicles, infrastructure, and users.''.
       (b) Conforming Amendment.--The analysis for chapter 5 of 
     title 23, United States Code, is amended by adding after the 
     item relating to section 513 the following:

``514. Goals and purposes.''.

     SEC. 53003. GENERAL AUTHORITIES AND REQUIREMENTS.

       (a) In General.--Chapter 5 of title 23, United States Code, 
     is amended by adding after section 514 (as added by section 
     53002) the following:

     ``Sec. 515. General authorities and requirements

       ``(a) Scope.--Subject to the provisions of this chapter, 
     the Secretary shall conduct an ongoing intelligent 
     transportation system 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 research 
     projects and operational tests funded pursuant to this 
     chapter shall encourage and 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 program in cooperation with 
     State and local governments and other public entities, the 
     private sector firms of the United States, the Federal 
     laboratories, and institutions of higher education, including 
     historically Black colleges and universities and other 
     minority institutions of higher education.
       ``(d) Consultation With Federal Officials.--In carrying out 
     the intelligent transportation system program, the Secretary 
     shall consult with the heads of other Federal agencies, as 
     appropriate.
       ``(e) Technical Assistance, Training, and Information.--The 
     Secretary may provide technical assistance, training, and 
     information to State and local governments seeking to 
     implement, operate, maintain, or evaluate intelligent 
     transportation system technologies and services.
       ``(f) Transportation Planning.--The Secretary may provide 
     funding to support adequate consideration of transportation 
     systems management and operations, including intelligent 
     transportation systems, within metropolitan and statewide 
     transportation planning processes.
       ``(g) Information Clearinghouse.--
       ``(1) In general.--The Secretary shall--
       ``(A) maintain a repository for technical and safety data 
     collected as a result of federally sponsored projects carried 
     out under this chapter; and
       ``(B) make, on request, that information (except for 
     proprietary information and data) readily available to all 
     users of the repository at an appropriate cost.
       ``(2) Agreement.--
       ``(A) In general.--The Secretary may enter into an 
     agreement with a third party for the maintenance of the 
     repository for technical and safety data under paragraph 
     (1)(A).
       ``(B) Federal financial assistance.--If the Secretary 
     enters into an agreement with an entity for the maintenance 
     of the repository, the entity shall be eligible for Federal 
     financial assistance under this section.
       ``(3) Availability of information.--Information in the 
     repository shall not be subject to sections 552 and 555 of 
     title 5, United States Code.
       ``(h) Advisory Committee.--
       ``(1) In general.--The Secretary shall establish an 
     Advisory Committee to advise the Secretary on carrying out 
     this chapter.
       ``(2) Membership.--The Advisory Committee shall have no 
     more than 20 members, be balanced between metropolitan and 
     rural interests, and include, at a minimum--
       ``(A) a representative from a State highway department;
       ``(B) a representative from a local highway department who 
     is not from a metropolitan planning organization;
       ``(C) a representative from a State, local, or regional 
     transit agency;
       ``(D) a representative from a metropolitan planning 
     organization;
       ``(E) a private sector user of intelligent transportation 
     system technologies;
       ``(F) an academic researcher with expertise in computer 
     science or another information science field related to 
     intelligent transportation systems, and who is not an expert 
     on transportation issues;
       ``(G) an academic researcher who is a civil engineer;
       ``(H) an academic researcher who is a social scientist with 
     expertise in transportation issues;
       ``(I) a representative from a nonprofit group representing 
     the intelligent transportation system industry;
       ``(J) a representative from a public interest group 
     concerned with safety;
       ``(K) a representative from a public interest group 
     concerned with the impact of the transportation system on 
     land use and residential patterns; and
       ``(L) members with expertise in planning, safety, 
     telecommunications, utilities, and operations.
       ``(3) Duties.--The Advisory Committee shall, at a minimum, 
     perform the following duties:
       ``(A) Provide input into the development of the intelligent 
     transportation system aspects of the strategic plan under 
     section 508.
       ``(B) Review, at least annually, areas of intelligent 
     transportation systems research being considered for funding 
     by the Department, to determine--
       ``(i) whether these activities are likely to advance either 
     the state-of-the-practice or state-of-the-art in intelligent 
     transportation systems;
       ``(ii) whether the intelligent transportation system 
     technologies are likely to be deployed by users, and if not, 
     to determine the barriers to deployment; and
       ``(iii) the appropriate roles for government and the 
     private sector in investing in the research and technologies 
     being considered.
       ``(4) Report.--Not later than February 1 of each year after 
     the date of enactment of the Transportation Research and 
     Innovative Technology Act of 2012, the Secretary shall submit 
     to Congress a report that includes--
       ``(A) all recommendations made by the Advisory Committee 
     during the preceding calendar year;
       ``(B) an explanation of the manner in which the Secretary 
     has implemented those recommendations; and
       ``(C) for recommendations not implemented, the reasons for 
     rejecting the recommendations.
       ``(5) Applicability of federal advisory committee act.--The 
     Advisory Committee shall be subject to the Federal Advisory 
     Committee Act (5 U.S.C. App.).
       ``(i) Reporting.--
       ``(1) Guidelines and requirements.--
       ``(A) In general.--The Secretary shall issue guidelines and 
     requirements for the reporting and evaluation of operational 
     tests and deployment projects carried out under this chapter.
       ``(B) Objectivity and independence.--The guidelines and 
     requirements issued under subparagraph (A) shall include 
     provisions to ensure the objectivity and independence of the 
     reporting entity so as to avoid any real or apparent conflict 
     of interest or potential influence on the outcome by parties 
     to any such test or deployment project or by any other formal 
     evaluation carried out under this chapter.
       ``(C) Funding.--The guidelines and requirements issued 
     under subparagraph (A) shall establish reporting funding 
     levels based on the size and scope of each test or project 
     that ensure adequate reporting of the results of the test or 
     project.
       ``(2) Special rule.--Any survey, questionnaire, or 
     interview that the Secretary considers necessary to carry out 
     the reporting of any test, deployment project, or program 
     assessment activity under this chapter shall not be subject 
     to chapter 35 of title 44, United States Code.''.
       (b) Conforming Amendment.--The analysis for chapter 5 of 
     title 23, United States Code, is amended by adding after the 
     item relating to section 514 (as added by section 53002) the 
     following:

``515. General authorities and requirements.''.

     SEC. 53004. RESEARCH AND DEVELOPMENT.

       (a) In General.--Chapter 5 of title 23, United States Code, 
     is amended by adding after section 515 (as added by section 
     53003) the following:

     ``Sec. 516. Research and development

       ``(a) In General.--The Secretary shall carry out a 
     comprehensive program of intelligent transportation system 
     research and development, and operational tests of 
     intelligent vehicles, intelligent infrastructure systems, and 
     other similar activities that are necessary to carry out this 
     chapter.
       ``(b) Priority Areas.--Under the program, the Secretary 
     shall give higher priority to funding projects that--
       ``(1) enhance mobility and productivity through improved 
     traffic management, incident management, transit management, 
     freight management, road weather management, toll collection, 
     traveler information, or highway operations systems and 
     remote sensing products;
       ``(2) use interdisciplinary approaches to develop traffic 
     management strategies and tools to address multiple impacts 
     of congestion concurrently;
       ``(3) address traffic management, incident management, 
     transit management, toll collection traveler information, or 
     highway operations systems;
       ``(4) incorporate research on the potential impact of 
     environmental, weather, and natural

[[Page 10659]]

     conditions on intelligent transportation systems, including 
     the effects of cold climates;
       ``(5) enhance intermodal use of intelligent transportation 
     systems for diverse groups, including for emergency and 
     health-related services;
       ``(6) enhance safety through improved crash avoidance and 
     protection, crash and other notification, commercial motor 
     vehicle operations, and infrastructure-based or cooperative 
     safety systems; or
       ``(7) facilitate the integration of intelligent 
     infrastructure, vehicle, and control technologies.
       ``(c) Federal Share.--The Federal share payable on account 
     of any project or activity carried out under subsection (a) 
     shall not exceed 80 percent.''.
       (b) Conforming Amendment.--The analysis for chapter 5 of 
     title 23, United States Code, is amended by adding after the 
     item relating to section 515 (as added by section 53003) the 
     following:

``516. Research and development.''.

     SEC. 53005. NATIONAL ARCHITECTURE AND STANDARDS.

       (a) In General.--Chapter 5 of title 23, United States Code, 
     is amended by adding after section 516 (as added by section 
     53004) the following:

     ``Sec. 517. National 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; 115 Stat. 1241), the Secretary shall develop and 
     maintain a national ITS architecture and supporting ITS 
     standards and protocols to promote the use of systems 
     engineering methods in the widespread deployment and 
     evaluation of intelligent transportation systems 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 and 
     supporting ITS standards and protocols shall promote 
     interoperability among, and efficiency of, intelligent 
     transportation systems and technologies implemented 
     throughout the United States.
       ``(3) Use of standards development organizations.--In 
     carrying out this section, the Secretary shall support the 
     development and maintenance of standards and protocols using 
     the services of such standards development organizations as 
     the Secretary determines to be necessary and whose 
     memberships are comprised of, and represent, the surface 
     transportation and intelligent transportation systems 
     industries.
       ``(b) Standards for National Policy Implementation.--If the 
     Secretary finds that a standard is necessary for 
     implementation of a nationwide policy relating to user fee 
     collection or other capability requiring nationwide 
     uniformity, the Secretary, after consultation with 
     stakeholders, may establish and require the use of that 
     standard.
       ``(c) Provisional Standards.--
       ``(1) In general.--If the Secretary finds that the 
     development or balloting of an intelligent transportation 
     system standard jeopardizes the timely achievement of the 
     objectives described in subsection (a), the Secretary may 
     establish a provisional standard, after consultation with 
     affected parties, using, to the maximum extent practicable, 
     the work product of appropriate standards development 
     organizations.
       ``(2) Period of effectiveness.--A provisional standard 
     established under paragraph (1) shall be published in the 
     Federal Register and remain in effect until the appropriate 
     standards development organization adopts and publishes a 
     standard.
       ``(d) Conformity With National Architecture.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall ensure that intelligent transportation system 
     projects carried out using amounts made available from the 
     Highway Trust Fund, including amounts made available to 
     deploy intelligent transportation systems, conform to the 
     appropriate regional ITS architecture, applicable standards, 
     and protocols developed under subsection (a) or (c).
       ``(2) Discretion of the secretary.--The Secretary, at the 
     discretion of the Secretary, may offer an exemption from 
     paragraph (1) for projects designed to achieve specific 
     research objectives outlined in the national intelligent 
     transportation system program plan or the surface 
     transportation research and development strategic plan 
     developed under section 508.''.
       (b) Conforming Amendment.--The analysis for chapter 5 of 
     title 23, United States Code, is amended by adding after the 
     item relating to section 516 (as added by section 53004) the 
     following:

``517. National architecture and standards.''.

     SEC. 53006. VEHICLE-TO-VEHICLE AND VEHICLE-TO-INFRASTRUCTURE 
                   COMMUNICATIONS SYSTEMS DEPLOYMENT.

       (a) In General.--Chapter 5 of title 23, United States Code, 
     is amended by adding after section 517 (as added by section 
     53005) the following:

     ``Sec. 518. Vehicle-to-vehicle and vehicle-to-infrastructure 
       communications systems deployment

       ``(a) In General.--Not later than 3 years after the date of 
     enactment of this section, the Secretary shall submit to the 
     Committees on Commerce, Science, and Transportation and 
     Environment and Public Works of the Senate and the Committees 
     on Transportation and Infrastructure, Energy and Commerce, 
     and Science, Space, and Technology of the House of 
     Representatives that--
       ``(1) assesses the status of dedicated short-range 
     communications technology and applications developed through 
     research and development;
       ``(2) analyzes the known and potential gaps in short-range 
     communications technology and applications;
       ``(3) defines a recommended implementation path for 
     dedicated short-range communications technology and 
     applications that--
       ``(A) is based on the assessment described in paragraph 
     (1); and
       ``(B) takes into account the analysis described in 
     paragraph (2);
       ``(4) includes guidance on the relationship of the proposed 
     deployment of dedicated short-range communications to the 
     National ITS Architecture and ITS Standards; and
       ``(5) ensures competition by not preferencing the use of 
     any particular frequency for vehicle to infrastructure 
     operations.
       ``(b) Report Review.--The Secretary shall enter into 
     agreements with the National Research Council and an 
     independent third party with subject matter expertise for the 
     review of the report described in subsection (a).''.
       (b) Conforming Amendment.--The analysis for chapter 5 of 
     title 23, United States Code, is amended by adding after 
     section 517 (as added by section 53005) the following:

``518. Vehicle-to-vehicle and vehicle-to-infrastructure communications 
              systems deployment.''.
                       DIVISION F--MISCELLANEOUS
              TITLE I--REAUTHORIZATION OF CERTAIN PROGRAMS
   Subtitle A--Secure Rural Schools and Community Self-determination 
                                Program

     SEC. 100101. SECURE RURAL SCHOOLS AND COMMUNITY SELF-
                   DETERMINATION PROGRAM.

       (a) Amendments.--The Secure Rural Schools and Community 
     Self-Determination Act of 2000 (16 U.S.C. 7101 et seq.) is 
     amended--
       (1) in section 3(11)--
       (A) in subparagraph (A), by striking ``and'' after the 
     semicolon at the end;
       (B) in subparagraph (B)--
       (i) by striking ``fiscal year 2009 and each fiscal year 
     thereafter'' and inserting ``each of fiscal years 2009 
     through 2011''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following:
       ``(C) for fiscal year 2012 and each fiscal year thereafter, 
     the amount that is equal to 95 percent of the full funding 
     amount for the preceding fiscal year.'';
       (2) in sections 101, 102, 203, 207, 208, 304, and 402, by 
     striking ``2011'' each place it appears and inserting 
     ``2012'';
       (3) in section 102--
       (A) by striking ``2008'' each place it appears and 
     inserting ``2012'';
       (B) in subsection (b)(2)(B), by inserting ``in 2012'' 
     before ``, the election''; and
       (C) in subsection (d)--
       (i) in paragraph (1)(A), by striking ``paragraph (3)(B)'' 
     and inserting ``subparagraph (D)''; and
       (ii) in paragraph (3)--

       (I) by striking subparagraph (A) and inserting the 
     following:

       ``(A) Notification.--The Governor of each eligible State 
     shall notify the Secretary concerned of an election by an 
     eligible county under this subsection not later than 
     September 30, 2012, and each September 30 thereafter for each 
     succeeding fiscal year.'';

       (II) by redesignating subparagraph (B) as subparagraph (D) 
     and moving the subparagraph so as to appear at the end of 
     paragraph (1) of subsection (d); and
       (III) by inserting after subparagraph (A) the following:

       ``(B) Failure to elect.--If the Governor of an eligible 
     State fails to notify the Secretary concerned of the election 
     for an eligible county by the date specified in subparagraph 
     (A)--
       ``(i) the eligible county shall be considered to have 
     elected to expend 80 percent of the funds in accordance with 
     paragraph (1)(A); and
       ``(ii) the remainder shall be available to the Secretary 
     concerned to carry out projects in the eligible county to 
     further the purpose described in section 202(b).'';
       (4) in section 103(d)(2), by striking ``fiscal year 2011'' 
     and inserting ``each of fiscal years 2011 and 2012'';
       (5) in section 202, by adding at the end the following:
       ``(c) Administrative Expenses.--A resource advisory 
     committee may, in accordance with section 203, propose to use 
     not more than 10 percent of the project funds of an eligible 
     county for any fiscal year for administrative expenses 
     associated with operating the resource advisory committee 
     under this title.'';
       (6) in section 204(e)(3)(B)(iii), by striking ``and 2011'' 
     and inserting ``through 2012'';
       (7) in section 205(a)(4), by striking ``2006'' each place 
     it appears and inserting ``2011'';
       (8) in section 208(b), by striking ``2012'' and inserting 
     ``2013'';
       (9) in section 302(a)(2)(A), by inserting ``and'' after the 
     semicolon; and
       (10) in section 304(b), by striking ``2012'' and inserting 
     ``2013''.
       (b) Failure To Make Election.--For each county that failed 
     to make an election for fiscal year 2011 in accordance with 
     section 102(d)(3)(A) of the Secure Rural Schools and 
     Community Self-Determination Act of 2000 (16 U.S.C. 
     7112(d)(3)(A)), there shall be available to the Secretary of 
     Agriculture to carry out projects to further the purpose 
     described in section 202(b) of that Act (16 U.S.C. 7122(b)), 
     from amounts in the Treasury not otherwise appropriated, the 
     amount that is equal to 15 percent

[[Page 10660]]

     of the total share of the State payment that otherwise would 
     have been made to the county under that Act for fiscal year 
     2011.
              Subtitle B--Payment in Lieu of Taxes Program

     SEC. 100111. PAYMENTS IN LIEU OF TAXES.

       Section 6906 of title 31, United States Code, is amended by 
     striking ``2012'' and inserting ``2013''.
                          Subtitle C--Offsets

     SEC. 100121. PHASED RETIREMENT AUTHORITY.

       (a) CSRS.--Chapter 83 of title 5, United States Code, is 
     amended--
       (1) in section 8331--
       (A) in paragraph (30) by striking ``and'' at the end;
       (B) in paragraph (31) by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(32) `Director' means the Director of the Office of 
     Personnel Management.'';
       (2) by inserting after section 8336 the following:

     ``Sec. 8336a. Phased retirement

       ``(a) For the purposes of this section--
       ``(1) the term `composite retirement annuity' means the 
     annuity computed when a phased retiree attains full 
     retirement status;
       ``(2) the term `full retirement status' means that a phased 
     retiree has ceased employment and is entitled, upon 
     application, to a composite retirement annuity;
       ``(3) the term `phased employment' means the less-than-
     full-time employment of a phased retiree;
       ``(4) the term `phased retiree' means a retirement-eligible 
     employee who--
       ``(A) makes an election under subsection (b); and
       ``(B) has not entered full retirement status;
       ``(5) the term `phased retirement annuity' means the 
     annuity payable under this section before full retirement;
       ``(6) the term `phased retirement percentage' means the 
     percentage which, when added to the working percentage for a 
     phased retiree, produces a sum of 100 percent;
       ``(7) the term `phased retirement period' means the period 
     beginning on the date on which an individual becomes entitled 
     to receive a phased retirement annuity and ending on the date 
     on which the individual dies or separates from phased 
     employment;
       ``(8) the term `phased retirement status' means that a 
     phased retiree is concurrently employed in phased employment 
     and eligible to receive a phased retirement annuity;
       ``(9) the term `retirement-eligible employee'--
       ``(A) means an individual who, if the individual separated 
     from the service, would meet the requirements for retirement 
     under subsection (a) or (b) of section 8336; but
       ``(B) does not include an employee described in section 
     8335 after the date on which the employee is required to be 
     separated from the service by reason of such section; and
       ``(10) the term `working percentage' means the percentage 
     of full-time employment equal to the quotient obtained by 
     dividing--
       ``(A) the number of hours per pay period to be worked by a 
     phased retiree, as scheduled in accordance with subsection 
     (b)(2); by
       ``(B) the number of hours per pay period to be worked by an 
     employee serving in a comparable position on a full-time 
     basis.
       ``(b)(1) With the concurrence of the head of the employing 
     agency, and under regulations promulgated by the Director, a 
     retirement-eligible employee who has been employed on a full-
     time basis for not less than the 3-year period ending on the 
     date on which the retirement-eligible employee makes an 
     election under this subsection may elect to enter phased 
     retirement status.
       ``(2)(A) Subject to subparagraph (B), at the time of 
     entering phased retirement status, a phased retiree shall be 
     appointed to a position for which the working percentage is 
     50 percent.
       ``(B) The Director may, by regulation, provide for working 
     percentages different from the percentage specified under 
     subparagraph (A), which shall be not less than 20 percent and 
     not more than 80 percent.
       ``(C) The working percentage for a phased retiree may not 
     be changed during the phased retiree's phased retirement 
     period.
       ``(D)(i) Not less than 20 percent of the hours to be worked 
     by a phased retiree shall consist of mentoring.
       ``(ii) The Director may, by regulation, provide for 
     exceptions to the requirement under clause (i).
       ``(iii) Clause (i) shall not apply to a phased retiree 
     serving in the United States Postal Service. Nothing in this 
     clause shall prevent the application of clause (i) or (ii) 
     with respect to a phased retiree serving in the Postal 
     Regulatory Commission.
       ``(3) A phased retiree--
       ``(A) may not be employed in more than one position at any 
     time; and
       ``(B) may transfer to another position in the same or a 
     different agency, only if the transfer does not result in a 
     change in the working percentage.
       ``(4) A retirement-eligible employee may make not more than 
     one election under this subsection during the retirement-
     eligible employee's lifetime.
       ``(5) A retirement-eligible employee who makes an election 
     under this subsection may not make an election under section 
     8343a.
       ``(c)(1) Except as otherwise provided under this 
     subsection, the phased retirement annuity for a phased 
     retiree is the product obtained by multiplying--
       ``(A) the amount of an annuity computed under section 8339 
     that would have been payable to the phased retiree if, on the 
     date on which the phased retiree enters phased retirement 
     status, the phased retiree had separated from service and 
     retired under section 8336(a) or (b); by
       ``(B) the phased retirement percentage for the phased 
     retiree.
       ``(2) A phased retirement annuity shall be paid in addition 
     to the basic pay for the position to which a phased retiree 
     is appointed during phased employment.
       ``(3) A phased retirement annuity shall be adjusted in 
     accordance with section 8340.
       ``(4)(A) A phased retirement annuity shall not be subject 
     to reduction for any form of survivor annuity, shall not 
     serve as the basis of the computation of any survivor 
     annuity, and shall not be subject to any court order 
     requiring a survivor annuity to be provided to any 
     individual.
       ``(B) A phased retirement annuity shall be subject to a 
     court order providing for division, allotment, assignment, 
     execution, levy, attachment, garnishment, or other legal 
     process on the same basis as other annuities.
       ``(5) Any reduction of a phased retirement annuity based on 
     an election under section 8334(d)(2) shall be applied to the 
     phased retirement annuity after computation under paragraph 
     (1).
       ``(6)(A) Any deposit, or election of an actuarial annuity 
     reduction in lieu of a deposit, for military service or for 
     creditable civilian service for which retirement deductions 
     were not made or refunded shall be made by a retirement-
     eligible employee at or before the time the retirement-
     eligible employee enters phased retirement status. No such 
     deposit may be made, or actuarial adjustment in lieu thereof 
     elected, at the time a phased retiree enters full retirement 
     status.
       ``(B) Notwithstanding subparagraph (A), if a phased retiree 
     does not make such a deposit and dies in service as a phased 
     retiree, a survivor of the phased retiree shall have the same 
     right to make such deposit as would have been available had 
     the employee not entered phased retirement status and died in 
     service.
       ``(C) If a phased retiree makes an election for an 
     actuarial annuity reduction under section 8334(d)(2) and dies 
     in service as a phased retiree, the amount of any deposit 
     upon which such actuarial reduction shall have been based 
     shall be deemed to have been fully paid.
       ``(7) A phased retirement annuity shall commence on the 
     date on which a phased retiree enters phased employment.
       ``(8) No unused sick leave credit may be used in the 
     computation of the phased retirement annuity.
       ``(d) All basic pay not in excess of the full-time rate of 
     pay for the position to which a phased retiree is appointed 
     shall be deemed to be basic pay for purposes of section 8334.
       ``(e) Under such procedures as the Director may prescribe, 
     a phased retiree may elect to enter full retirement status at 
     any time. Upon making such an election, a phased retiree 
     shall be entitled to a composite retirement annuity.
       ``(f)(1) Except as provided otherwise under this 
     subsection, a composite retirement annuity is a single 
     annuity computed under regulations prescribed by the 
     Director, equal to the sum of--
       ``(A) the amount of the phased retirement annuity as of the 
     date of full retirement, before any reduction based on an 
     election under section 8334(d)(2), and including any 
     adjustments made under section 8340; and
       ``(B) the product obtained by multiplying--
       ``(i) the amount of an annuity computed under section 8339 
     that would have been payable at the time of full retirement 
     if the individual had not elected a phased retirement and as 
     if the individual was employed on a full-time basis in the 
     position occupied during the phased retirement period and 
     before any reduction for survivor annuity or reduction based 
     on an election under section 8334(d)(2); by
       ``(ii) the working percentage.
       ``(2) After computing a composite retirement annuity under 
     paragraph (1), the Director shall adjust the amount of the 
     annuity for any applicable reductions for a survivor annuity 
     and any previously elected actuarial reduction under section 
     8334(d)(2).
       ``(3) A composite retirement annuity shall be adjusted in 
     accordance with section 8340, except that subsection (c)(1) 
     of that section shall not apply.
       ``(4) In computing a composite retirement annuity under 
     paragraph (1)(B)(i), the unused sick leave to the credit of a 
     phased retiree at the time of entry into full retirement 
     status shall be adjusted by dividing the number of hours of 
     unused sick leave by the working percentage.
       ``(g)(1) Under such procedures and conditions as the 
     Director may provide, and with the concurrence of the head of 
     the employing agency, a phased retiree may elect to terminate 
     phased retirement status and return to a full-time work 
     schedule.
       ``(2) Upon entering a full-time work schedule based upon an 
     election under paragraph (1), the phased retirement annuity 
     of a phased retiree shall terminate.
       ``(3) After the termination of a phased retirement annuity 
     under this subsection, the individual's rights under this 
     subchapter shall be determined based on the law in effect at 
     the time of any subsequent separation from service. For 
     purposes of this subchapter or chapter 84, at time of the 
     subsequent separation from service, the phased retirement 
     period shall be treated as if it had been a period of part-
     time employment with the work schedule described in 
     subsection (b)(2).

[[Page 10661]]

       ``(h) For purposes of section 8341--
       ``(1) the death of a phased retiree shall be deemed to be 
     the death in service of an employee; and
       ``(2) the phased retirement period shall be deemed to have 
     been a period of part-time employment with the work schedule 
     described in subsection (b)(2).
       ``(i) Employment of a phased retiree shall not be deemed to 
     be part-time career employment, as defined in section 
     3401(2).
       ``(j) A phased retiree is not eligible to apply for an 
     annuity under section 8337.
       ``(k) For purposes of section 8341(h)(4), retirement shall 
     be deemed to occur on the date on which a phased retiree 
     enters into full retirement status.
       ``(l) For purposes of sections 8343 and 8351, and 
     subchapter III of chapter 84, a phased retiree shall be 
     deemed to be an employee.
       ``(m) A phased retiree is not subject to section 8344.
       ``(n) For purposes of chapter 87, a phased retiree shall be 
     deemed to be receiving basic pay at the rate of a full-time 
     employee in the position to which the phased retiree is 
     appointed.''; and
       (3) in the table of sections by inserting after the item 
     relating to section 8336 the following:

``8336a. Phased retirement.''.
       (b) FERS.--Chapter 84 of title 5, United States Code, is 
     amended--
       (1) by inserting after section 8412 the following new 
     section:

     ``Sec. 8412a. Phased retirement

       ``(a) For the purposes of this section--
       ``(1) the term `composite retirement annuity' means the 
     annuity computed when a phased retiree attains full 
     retirement status;
       ``(2) the term `full retirement status' means that a phased 
     retiree has ceased employment and is entitled, upon 
     application, to a composite retirement annuity;
       ``(3) the term `phased employment' means the less-than-
     full-time employment of a phased retiree;
       ``(4) the term `phased retiree' means a retirement-eligible 
     employee who--
       ``(A) makes an election under subsection (b); and
       ``(B) has not entered full retirement status;
       ``(5) the term `phased retirement annuity' means the 
     annuity payable under this section before full retirement;
       ``(6) the term `phased retirement percentage' means the 
     percentage which, when added to the working percentage for a 
     phased retiree, produces a sum of 100 percent;
       ``(7) the term `phased retirement period' means the period 
     beginning on the date on which an individual becomes entitled 
     to receive a phased retirement annuity and ending on the date 
     on which the individual dies or separates from phased 
     employment;
       ``(8) the term `phased retirement status' means that a 
     phased retiree is concurrently employed in phased employment 
     and eligible to receive a phased retirement annuity;
       ``(9) the term `retirement-eligible employee'--
       ``(A) means an individual who, if the individual separated 
     from the service, would meet the requirements for retirement 
     under subsection (a) or (b) of section 8412; and
       ``(B) does not include--
       ``(i) an individual who, if the individual separated from 
     the service, would meet the requirements for retirement under 
     subsection (d) or (e) of section 8412; but
       ``(ii) does not include an employee described in section 
     8425 after the date on which the employee is required to be 
     separated from the service by reason of such section; and
       ``(10) the term `working percentage' means the percentage 
     of full-time employment equal to the quotient obtained by 
     dividing--
       ``(A) the number of hours per pay period to be worked by a 
     phased retiree, as scheduled in accordance with subsection 
     (b)(2); by
       ``(B) the number of hours per pay period to be worked by an 
     employee serving in a comparable position on a full-time 
     basis.
       ``(b)(1) With the concurrence of the head of the employing 
     agency, and under regulations promulgated by the Director, a 
     retirement-eligible employee who has been employed on a full-
     time basis for not less than the 3-year period ending on the 
     date on which the retirement-eligible employee makes an 
     election under this subsection may elect to enter phased 
     retirement status.
       ``(2)(A) Subject to subparagraph (B), at the time of 
     entering phased retirement status, a phased retiree shall be 
     appointed to a position for which the working percentage is 
     50 percent.
       ``(B) The Director may, by regulation, provide for working 
     percentages different from the percentage specified under 
     subparagraph (A), which shall be not less than 20 percent and 
     not more than 80 percent.
       ``(C) The working percentage for a phased retiree may not 
     be changed during the phased retiree's phased retirement 
     period.
       ``(D)(i) Not less than 20 percent of the hours to be worked 
     by a phased retiree shall consist of mentoring.
       ``(ii) The Director may, by regulation, provide for 
     exceptions to the requirement under clause (i).
       ``(iii) Clause (i) shall not apply to a phased retiree 
     serving in the United States Postal Service. Nothing in this 
     clause shall prevent the application of clause (i) or (ii) 
     with respect to a phased retiree serving in the Postal 
     Regulatory Commission.
       ``(3) A phased retiree--
       ``(A) may not be employed in more than one position at any 
     time; and
       ``(B) may transfer to another position in the same or a 
     different agency, only if the transfer does not result in a 
     change in the working percentage.
       ``(4) A retirement-eligible employee may make not more than 
     one election under this subsection during the retirement-
     eligible employee's lifetime.
       ``(5) A retirement-eligible employee who makes an election 
     under this subsection may not make an election under section 
     8420a.
       ``(c)(1) Except as otherwise provided under this 
     subsection, the phased retirement annuity for a phased 
     retiree is the product obtained by multiplying--
       ``(A) the amount of an annuity computed under section 8415 
     that would have been payable to the phased retiree if, on the 
     date on which the phased retiree enters phased retirement 
     status, the phased retiree had separated from service and 
     retired under section 8412 (a) or (b); by
       ``(B) the phased retirement percentage for the phased 
     retiree.
       ``(2) A phased retirement annuity shall be paid in addition 
     to the basic pay for the position to which a phased retiree 
     is appointed during the phased employment.
       ``(3) A phased retirement annuity shall be adjusted in 
     accordance with section 8462.
       ``(4)(A) A phased retirement annuity shall not be subject 
     to reduction for any form of survivor annuity, shall not 
     serve as the basis of the computation of any survivor 
     annuity, and shall not be subject to any court order 
     requiring a survivor annuity to be provided to any 
     individual.
       ``(B) A phased retirement annuity shall be subject to a 
     court order providing for division, allotment, assignment, 
     execution, levy, attachment, garnishment, or other legal 
     process on the same basis as other annuities.
       ``(5)(A) Any deposit, or election of an actuarial annuity 
     reduction in lieu of a deposit, for military service or for 
     creditable civilian service for which retirement deductions 
     were not made or refunded, shall be made by a retirement-
     eligible employee at or before the time the retirement-
     eligible employee enters phased retirement status. No such 
     deposit may be made, or actuarial adjustment in lieu thereof 
     elected, at the time a phased retiree enters full retirement 
     status.
       ``(B) Notwithstanding subparagraph (A), if a phased retiree 
     does not make such a deposit and dies in service as a phased 
     retiree, a survivor of the phased retiree shall have the same 
     right to make such deposit as would have been available had 
     the employee not entered phased retirement status and died in 
     service.
       ``(6) A phased retirement annuity shall commence on the 
     date on which a phased retiree enters phased employment.
       ``(7) No unused sick leave credit may be used in the 
     computation of the phased retirement annuity.
       ``(d) All basic pay not in excess of the full-time rate of 
     pay for the position to which a phased retiree is appointed 
     shall be deemed to be basic pay for purposes of sections 8422 
     and 8423.
       ``(e) Under such procedures as the Director may prescribe, 
     a phased retiree may elect to enter full retirement status at 
     any time. Upon making such an election, a phased retiree 
     shall be entitled to a composite retirement annuity.
       ``(f)(1) Except as provided otherwise under this 
     subsection, a composite retirement annuity is a single 
     annuity computed under regulations prescribed by the 
     Director, equal to the sum of--
       ``(A) the amount of the phased retirement annuity as of the 
     date of full retirement, including any adjustments made under 
     section 8462; and
       ``(B) the product obtained by multiplying--
       ``(i) the amount of an annuity computed under section 8412 
     that would have been payable at the time of full retirement 
     if the individual had not elected a phased retirement and as 
     if the individual was employed on a full-time basis in the 
     position occupied during the phased retirement period and 
     before any adjustment to provide for a survivor annuity; by
       ``(ii) the working percentage.
       ``(2) After computing a composite retirement annuity under 
     paragraph (1), the Director shall adjust the amount of the 
     annuity for any applicable reductions for a survivor annuity.
       ``(3) A composite retirement annuity shall be adjusted in 
     accordance with section 8462, except that subsection (c)(1) 
     of that section shall not apply.
       ``(4) In computing a composite retirement annuity under 
     paragraph (1)(B)(i), the unused sick leave to the credit of a 
     phased retiree at the time of entry into full retirement 
     status shall be adjusted by dividing the number of hours of 
     unused sick leave by the working percentage.
       ``(g)(1) Under such procedures and conditions as the 
     Director may provide, and with the concurrence of the head of 
     employing agency, a phased retiree may elect to terminate 
     phased retirement status and return to a full-time work 
     schedule.
       ``(2) Upon entering a full-time work schedule based on an 
     election under paragraph (1), the phased retirement annuity 
     of a phased retiree shall terminate.
       ``(3) After termination of the phased retirement annuity 
     under this subsection, the individual's rights under this 
     chapter shall be determined based on the law in effect at the 
     time of any subsequent separation from service. For purposes 
     of this chapter, at the time of the subsequent separation 
     from service, the phased retirement period shall be treated 
     as if it had been a period of part-time employment with the 
     work schedule described in subsection (b)(2).
       ``(h) For purposes of subchapter IV--
       ``(1) the death of a phased retiree shall be deemed to be 
     the death in service of an employee;

[[Page 10662]]

       ``(2) except for purposes of section 8442(b)(1)(A)(i), the 
     phased retirement period shall be deemed to have been a 
     period of part-time employment with the work schedule 
     described in subsection (b)(2) of this section; and
       ``(3) for purposes of section 8442(b)(1)(A)(i), the phased 
     retiree shall be deemed to have been at the full-time rate of 
     pay for the position occupied.
       ``(i) Employment of a phased retiree shall not be deemed to 
     be part-time career employment, as defined in section 
     3401(2).
       ``(j) A phased retiree is not eligible to receive an 
     annuity supplement under section 8421.
       ``(k) For purposes of subchapter III, a phased retiree 
     shall be deemed to be an employee.
       ``(l) For purposes of section 8445(d), retirement shall be 
     deemed to occur on the date on which a phased retiree enters 
     into full retirement status.
       ``(m) A phased retiree is not eligible to apply for an 
     annuity under subchapter V.
       ``(n) A phased retiree is not subject to section 8468.
       ``(o) For purposes of chapter 87, a phased retiree shall be 
     deemed to be receiving basic pay at the rate of a full-time 
     employee in the position to which the phased retiree is 
     appointed.''; and
       (2) in the table of sections by inserting after the item 
     relating to section 8412 the following:

``8412a. Phased retirement.''.

       (c) Exemption From 10-percent Additional Tax on Early 
     Distributions.--Section 72(t)(2)(A) of the Internal Revenue 
     Code of 1986 is amended by striking ``or'' at the end of 
     clause (vi), by striking the period at the end of clause 
     (vii) and inserting ``, or'', and by adding at the end the 
     following:
       ``(viii) payments under a phased retirement annuity under 
     section 8366a(a)(5) or 8412a(a)(5) of title 5, United States 
     Code, or a composite retirement annuity under section 
     8366a(a)(1) or 8412a(a)(1) of such title.''.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on the effective date of the 
     implementing regulations issued by the Director of the Office 
     of Personnel Management.

     SEC. 100122. ROLL-YOUR-OWN CIGARETTE MACHINES.

       (a) In General.--Subsection (d) of section 5702 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new flush sentence:

     ``Such term shall include any person who for commercial 
     purposes makes available for consumer use (including such 
     consumer's personal consumption or use under paragraph (1)) a 
     machine capable of making cigarettes, cigars, or other 
     tobacco products. A person making such a machine available 
     for consumer use shall be deemed the person making the 
     removal as defined by subsection (j) with respect to any 
     tobacco products manufactured by such machine. A person who 
     sells a machine directly to a consumer at retail for a 
     consumer's personal home use is not making a machine 
     available for commercial purposes if such machine is not used 
     at a retail premises and is designed to produce tobacco 
     products only in personal use quantities.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to articles removed after the date of the 
     enactment of this Act.

     SEC. 100123. CHANGE IN FMAP INCREASE FOR DISASTER RECOVERY 
                   STATES.

       (a) Accelerated Date for Prior Amendments.--Section 3204(b) 
     of the Middle Class Tax Relief and Job Creation Act of 2012 
     (Public Law 112-96) is amended by striking ``October 1, 
     2013'' and inserting ``October 1, 2012''.
       (b) Application of 50 Percent in Fiscal Year 2013.--
     Subparagraph (B) of section 1905(aa)(1) of the Social 
     Security Act (42 U.S.C. 1396d(aa)(1)), as amended by section 
     3204(a) of Public Law 112-96, is amended by striking ``25 
     percent'' and inserting ``25 percent (or 50 percent in the 
     case of fiscal year 2013)''.
       (c) Effective Date.--The amendments made by this section 
     shall be effective as if included in the enactment of section 
     3204 of Public Law 112-96.

     SEC. 100124. REPEALS.

       (a) Transportation Requirements for Certain Exports 
     Sponsored by the Secretary of Agriculture.--
       (1) Repeal.--Subsections (a) and (c) of section 55314 of 
     title 46, United States Code, are repealed.
       (2) Activities described.--Subsection (b) of section 55314 
     of title 46, United States Code, is amended by striking 
     ``This section applies to export activity'' and inserting 
     ``The activities specified in this subsection are export 
     activities''.
       (b) Financing the Transportation of Agricultural 
     Commodities.--Subsection (a) of section 55316 of title 46, 
     United States Code, is repealed.
       (c) Conforming Amendments.--
       (1) Minimum tonnage.--Section 55315(b) of title 46, United 
     States Code, is amended by striking ``subject to section 
     55314'' and inserting ``specified in section 55314(b)''.
       (2) Issuance and purchase of obligations and notification 
     to congress of insufficiency.--Section 55316 of title 46, 
     United States Code, is amended--
       (A) in subsection (c)(1) by striking ``under subsections 
     (a) and (b)'' and inserting ``under subsection (b)''; and
       (B) in subsection (f) by striking ``subsections (a) and (b) 
     and section 55314(a) of this title'' and inserting 
     ``subsection (b)''.
       (3) Termination of subchapter.--Section 55317 of title 46, 
     United States Code, is amended by striking ``sections 
     55314(a) and 55316(a) and (b)'' and inserting ``section 
     55316(b)''.

     SEC. 100125. LIMITATION ON PAYMENTS FROM THE ABANDONED MINE 
                   RECLAMATION FUND.

       Section 411(h) of the Surface Mining Control and 
     Reclamation Act of 1977 (30 U.S.C. 1240a(h)) is amended by 
     adding at the end the following:
       ``(5) Limitation on annual payments.--Notwithstanding any 
     other provision of this subsection, the total annual payment 
     to a certified State or Indian tribe under this subsection 
     shall be not more than $15,000,000.''.
                       TITLE II--FLOOD INSURANCE
          Subtitle A--Flood Insurance Reform and Modernization

     SEC. 100201. SHORT TITLE.

       This subtitle may be cited as the ``Biggert-Waters Flood 
     Insurance Reform Act of 2012''.

     SEC. 100202. DEFINITIONS.

       (a) In General.--In this subtitle, the following 
     definitions shall apply:
       (1) 100-year floodplain.--The term ``100-year floodplain'' 
     means that area which is subject to inundation from a flood 
     having a 1-percent chance of being equaled or exceeded in any 
     given year.
       (2) 500-year floodplain.--The term ``500-year floodplain'' 
     means that area which is subject to inundation from a flood 
     having a 0.2-percent chance of being equaled or exceeded in 
     any given year.
       (3) Administrator.--The term ``Administrator'' means the 
     Administrator of the Federal Emergency Management Agency.
       (4) National flood insurance program.--The term ``National 
     Flood Insurance Program'' means the program established under 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et 
     seq.).
       (5) Write your own.--The term ``Write Your Own'' means the 
     cooperative undertaking between the insurance industry and 
     the Federal Insurance Administration which allows 
     participating property and casualty insurance companies to 
     write and service standard flood insurance policies.
       (b) Common Terminology.--Except as otherwise provided in 
     this subtitle, any terms used in this subtitle shall have the 
     meaning given to such terms under section 1370 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4121).

     SEC. 100203. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

       (a) Financing.--Section 1309(a) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by 
     striking ``July 31, 2012'' and inserting ``September 30, 
     2017''.
       (b) Program Expiration.--Section 1319 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
     ``July 31, 2012'' and inserting ``September 30, 2017''.

     SEC. 100204. AVAILABILITY OF INSURANCE FOR MULTIFAMILY 
                   PROPERTIES.

       Section 1305 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4012) is amended--
       (1) in subsection (b)(2)(A), by inserting ``not described 
     in subsection (a) or (d)'' after ``properties''; and
       (2) by adding at the end the following:
       ``(d) Availability of Insurance for Multifamily 
     Properties.--
       ``(1) In general.--The Administrator shall make flood 
     insurance available to cover residential properties of 5 or 
     more residences. Notwithstanding any other provision of law, 
     the maximum coverage amount that the Administrator may make 
     available under this subsection to such residential 
     properties shall be equal to the coverage amount made 
     available to commercial properties.
       ``(2) Rule of construction.--Nothing in this subsection 
     shall be construed to limit the ability of individuals 
     residing in residential properties of 5 or more residences to 
     obtain insurance for the contents and personal articles 
     located in such residences.''.

     SEC. 100205. REFORM OF PREMIUM RATE STRUCTURE.

       (a) To Exclude Certain Properties From Receiving Subsidized 
     Premium Rates.--
       (1) In general.--Section 1307 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4014) is amended--
       (A) in subsection (a)(2), by striking ``for any residential 
     property which is not the primary residence of an individual; 
     and'' and inserting the following: ``for--
       ``(A) any residential property which is not the primary 
     residence of an individual;
       ``(B) any severe repetitive loss property;
       ``(C) any property that has incurred flood-related damage 
     in which the cumulative amounts of payments under this title 
     equaled or exceeded the fair market value of such property;
       ``(D) any business property; or
       ``(E) any property which on or after the date of enactment 
     of the Biggert-Waters Flood Insurance Reform Act of 2012 has 
     experienced or sustained--
       ``(i) substantial damage exceeding 50 percent of the fair 
     market value of such property; or
       ``(ii) substantial improvement exceeding 30 percent of the 
     fair market value of such property; and''; and
       (B) by adding at the end the following:
       ``(g) No Extension of Subsidy to New Policies or Lapsed 
     Policies.--The Administrator shall not provide flood 
     insurance to prospective insureds at rates less than those 
     estimated under subsection (a)(1), as required by paragraph 
     (2) of that subsection, for--
       ``(1) any property not insured by the flood insurance 
     program as of the date of enactment of

[[Page 10663]]

     the Biggert-Waters Flood Insurance Reform Act of 2012;
       ``(2) any property purchased after the date of enactment of 
     the Biggert-Waters Flood Insurance Reform Act of 2012;
       ``(3) any policy under the flood insurance program that has 
     lapsed in coverage, as a result of the deliberate choice of 
     the holder of such policy; or
       ``(4) any prospective insured who refuses to accept any 
     offer for mitigation assistance by the Administrator 
     (including an offer to relocate), including an offer of 
     mitigation assistance--
       ``(A) following a major disaster, as defined in section 102 
     of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5122); or
       ``(B) in connection with--
       ``(i) a repetitive loss property; or
       ``(ii) a severe repetitive loss property.
       ``(h) Definition.--In this section, the term `severe 
     repetitive loss property' has the following meaning:
       ``(1) Single-family properties.--In the case of a property 
     consisting of 1 to 4 residences, such term means a property 
     that--
       ``(A) is covered under a contract for flood insurance made 
     available under this title; and
       ``(B) has incurred flood-related damage--
       ``(i) for which 4 or more separate claims payments have 
     been made under flood insurance coverage under this chapter, 
     with the amount of each such claim exceeding $5,000, and with 
     the cumulative amount of such claims payments exceeding 
     $20,000; or
       ``(ii) for which at least 2 separate claims payments have 
     been made under such coverage, with the cumulative amount of 
     such claims exceeding the value of the property.
       ``(2) Multifamily properties.--In the case of a property 
     consisting of 5 or more residences, such term shall have such 
     meaning as the Director shall by regulation provide.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall become effective 90 days after the date of enactment of 
     this Act.
       (b) Estimates of Premium Rates.--Section 1307(a)(1)(B) of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 
     4014(a)(1)(B)) is amended--
       (1) in clause (ii), by striking ``and'' at the end;
       (2) in clause (iii), by adding ``and'' at the end; and
       (3) by inserting after clause (iii) the following:
       ``(iv) all costs, as prescribed by principles and standards 
     of practice in ratemaking adopted by the American Academy of 
     Actuaries and the Casualty Actuarial Society, including--

       ``(I) an estimate of the expected value of future costs,
       ``(II) all costs associated with the transfer of risk, and
       ``(III) the costs associated with an individual risk 
     transfer with respect to risk classes, as defined by the 
     Administrator,''.

       (c) Increase in Annual Limitation on Premium Increases.--
     Section 1308(e) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015(e)) is amended--
       (1) in the matter preceding paragraph (1)--
       (A) by striking ``or (3)''; and
       (B) by inserting ``any properties'' after ``under this 
     title for'';
       (2) in paragraph (1)--
       (A) by striking ``any properties within any single'' and 
     inserting ``within any single''; and
       (B) by striking ``10 percent'' and inserting ``20 
     percent''; and
       (3) by striking paragraph (2) and inserting the following:
       ``(2) described in subparagraphs (A) through (E) of section 
     1307(a)(2) shall be increased by 25 percent each year, until 
     the average risk premium rate for such properties is equal to 
     the average of the risk premium rates for properties 
     described under paragraph (1).''.
       (d) Premium Payment Flexibility for New and Existing 
     Policyholders.--Section 1308 of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4015) is amended by adding at the end 
     the following:
       ``(g) Frequency of Premium Collection.--With respect to any 
     chargeable premium rate prescribed under this section, the 
     Administrator shall provide policyholders that are not 
     required to escrow their premiums and fees for flood 
     insurance as set forth under section 102 of the Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4012a) with the 
     option of paying their premiums either annually or in more 
     frequent installments.''.
       (e) Rule of Construction.--Nothing in this section or the 
     amendments made by this section may be construed to affect 
     the requirement under section 2(c) of the Act entitled ``An 
     Act to extend the National Flood Insurance Program, and for 
     other purposes'', approved May 31, 2012 (Public Law 112-123), 
     that the first increase in chargeable risk premium rates for 
     residential properties which are not the primary residence of 
     an individual take effect on July 1, 2012.

     SEC. 100207. PREMIUM ADJUSTMENT.

       Section 1308 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015), as amended by section 100205, is further 
     amended by adding at the end the following:
       ``(h) Premium Adjustment To Reflect Current Risk of 
     Flood.--Notwithstanding subsection (f), upon the effective 
     date of any revised or updated flood insurance rate map under 
     this Act, the Flood Disaster Protection Act of 1973, or the 
     Biggert-Waters Flood Insurance Reform Act of 2012, any 
     property located in an area that is participating in the 
     national flood insurance program shall have the risk premium 
     rate charged for flood insurance on such property adjusted to 
     accurately reflect the current risk of flood to such 
     property, subject to any other provision of this Act. Any 
     increase in the risk premium rate charged for flood insurance 
     on any property that is covered by a flood insurance policy 
     on the effective date of such an update that is a result of 
     such updating shall be phased in over a 5-year period, at the 
     rate of 20 percent for each year following such effective 
     date. In the case of any area that was not previously 
     designated as an area having special flood hazards and that, 
     pursuant to any issuance, revision, updating, or other change 
     in a flood insurance map, becomes designated as such an area, 
     the chargeable risk premium rate for flood insurance under 
     this title that is purchased on or after the date of 
     enactment of this subsection with respect to any property 
     that is located within such area shall be phased in over a 5-
     year period, at the rate of 20 percent for each year 
     following the effective date of such issuance, revision, 
     updating, or change.''.

     SEC. 100208. ENFORCEMENT.

       Section 102(f)(5) of the Flood Disaster Protection Act of 
     1973 (42 U.S.C. 4012a(f)(5)) is amended--
       (1) in the first sentence, by striking ``$350'' and 
     inserting ``$2,000''; and
       (2) by striking the second sentence.

     SEC. 100209. ESCROW OF FLOOD INSURANCE PAYMENTS.

       (a) In General.--Paragraph (1) of section 102(d) of the 
     Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)) is 
     amended to read as follows:
       ``(1) Regulated lending institutions.--
       ``(A) Federal entities responsible for lending 
     regulations.--Each Federal entity for lending regulation 
     (after consultation and coordination with the Federal 
     Financial Institutions Examination Council) shall, by 
     regulation, direct that all premiums and fees for flood 
     insurance under the National Flood Insurance Act of 1968, for 
     improved real estate or a mobile home, shall be paid to the 
     regulated lending institution or servicer for any loan 
     secured by the improved real estate or mobile home, with the 
     same frequency as payments on the loan are made, for the 
     duration of the loan. Except as provided in subparagraph (C), 
     upon receipt of any premiums or fees, the regulated lending 
     institution or servicer shall deposit such premiums and fees 
     in an escrow account on behalf of the borrower. Upon receipt 
     of a notice from the Administrator or the provider of the 
     flood insurance that insurance premiums are due, the premiums 
     deposited in the escrow account shall be paid to the provider 
     of the flood insurance.
       ``(B) Limitation.--Except as may be required under 
     applicable State law, a Federal entity for lending regulation 
     may not direct or require a regulated lending institution to 
     deposit premiums or fees for flood insurance under the 
     National Flood Insurance Act of 1968 in an escrow account on 
     behalf of a borrower under subparagraph (A) or (B), if--
       ``(i) the regulated lending institution has total assets of 
     less than $1,000,000,000; and
       ``(ii) on or before the date of enactment of the Biggert-
     Waters Flood Insurance Reform Act of 2012, the regulated 
     lending institution--

       ``(I) in the case of a loan secured by residential improved 
     real estate or a mobile home, was not required under Federal 
     or State law to deposit taxes, insurance premiums, fees, or 
     any other charges in an escrow account for the entire term of 
     the loan; and
       ``(II) did not have a policy of consistently and uniformly 
     requiring the deposit of taxes, insurance premiums, fees, or 
     any other charges in an escrow account for loans secured by 
     residential improved real estate or a mobile home.''.

       (b) Applicability.--The amendment made by subsection (a) 
     shall apply to any mortgage outstanding or entered into on or 
     after the expiration of the 2-year period beginning on the 
     date of enactment of this Act.

     SEC. 100210. MINIMUM DEDUCTIBLES FOR CLAIMS UNDER THE 
                   NATIONAL FLOOD INSURANCE PROGRAM.

       Section 1312 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4019) is amended--
       (1) by striking ``The Director is'' and inserting the 
     following:
       ``(a) In General.--The Administrator is''; and
       (2) by adding at the end the following:
       ``(b) Minimum Annual Deductible.--
       ``(1) Pre-firm properties.--For any structure which is 
     covered by flood insurance under this title, and on which 
     construction or substantial improvement occurred on or before 
     December 31, 1974, or before the effective date of an initial 
     flood insurance rate map published by the Administrator under 
     section 1360 for the area in which such structure is located, 
     the minimum annual deductible for damage to such structure 
     shall be--
       ``(A) $1,500, if the flood insurance coverage for such 
     structure covers loss of, or physical damage to, such 
     structure in an amount equal to or less than $100,000; and
       ``(B) $2,000, if the flood insurance coverage for such 
     structure covers loss of, or physical damage to, such 
     structure in an amount greater than $100,000.
       ``(2) Post-firm properties.--For any structure which is 
     covered by flood insurance under this title, and on which 
     construction or substantial improvement occurred after 
     December 31, 1974, or after the effective date of an initial 
     flood insurance rate map published by the Administrator under 
     section 1360 for the area in which such structure is located, 
     the minimum annual deductible for damage to such structure 
     shall be--

[[Page 10664]]

       ``(A) $1,000, if the flood insurance coverage for such 
     structure covers loss of, or physical damage to, such 
     structure in an amount equal to or less than $100,000; and
       ``(B) $1,250, if the flood insurance coverage for such 
     structure covers loss of, or physical damage to, such 
     structure in an amount greater than $100,000.''.

     SEC. 100211. CONSIDERATIONS IN DETERMINING CHARGEABLE PREMIUM 
                   RATES.

       Section 1308 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015), as amended by this Act, is amended--
       (1) in subsection (a), by striking ``, after consultation 
     with'' and all that follows through ``by regulation'' and 
     inserting ``prescribe, after providing notice'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking the period at the end and 
     inserting a semicolon;
       (B) in paragraph (2), by striking the comma at the end and 
     inserting a semicolon;
       (C) in paragraph (3), by striking ``, and'' and inserting a 
     semicolon;
       (D) in paragraph (4), by striking the period at the end and 
     inserting ``; and''; and
       (E) by adding at the end the following:
       ``(5) adequate, on the basis of accepted actuarial 
     principles, to cover the average historical loss year 
     obligations incurred by the National Flood Insurance Fund.''; 
     and
       (3) by adding at the end the following:
       ``(i) Rule of Construction.--For purposes of this section, 
     the calculation of an `average historical loss year'--
       ``(1) includes catastrophic loss years; and
       ``(2) shall be computed in accordance with generally 
     accepted actuarial principles.''.

     SEC. 100212. RESERVE FUND.

       Chapter I of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4011 et seq.) is amended by inserting after section 
     1310 (42 U.S.C. 4017) the following:

     ``SEC. 1310A. RESERVE FUND.

       ``(a) Establishment of Reserve Fund.--In carrying out the 
     flood insurance program authorized by this chapter, the 
     Administrator shall establish in the Treasury of the United 
     States a National Flood Insurance Reserve Fund (in this 
     section referred to as the `Reserve Fund') which shall--
       ``(1) be an account separate from any other accounts or 
     funds available to the Administrator; and
       ``(2) be available for meeting the expected future 
     obligations of the flood insurance program, including--
       ``(A) the payment of claims;
       ``(B) claims adjustment expenses; and
       ``(C) the repayment of amounts outstanding under any note 
     or other obligation issued by the Administrator under section 
     1309(a).
       ``(b) Reserve Ratio.--Subject to the phase-in requirements 
     under subsection (d), the Reserve Fund shall maintain a 
     balance equal to--
       ``(1) 1 percent of the sum of the total potential loss 
     exposure of all outstanding flood insurance policies in force 
     in the prior fiscal year; or
       ``(2) such higher percentage as the Administrator 
     determines to be appropriate, taking into consideration any 
     circumstance that may raise a significant risk of substantial 
     future losses to the Reserve Fund.
       ``(c) Maintenance of Reserve Ratio.--
       ``(1) In general.--The Administrator shall have the 
     authority to establish, increase, or decrease the amount of 
     aggregate annual insurance premiums to be collected for any 
     fiscal year necessary--
       ``(A) to maintain the reserve ratio required under 
     subsection (b); and
       ``(B) to achieve such reserve ratio, if the actual balance 
     of such reserve is below the amount required under subsection 
     (b).
       ``(2) Considerations.--In exercising the authority granted 
     under paragraph (1), the Administrator shall consider--
       ``(A) the expected operating expenses of the Reserve Fund;
       ``(B) the insurance loss expenditures under the flood 
     insurance program;
       ``(C) any investment income generated under the flood 
     insurance program; and
       ``(D) any other factor that the Administrator determines 
     appropriate.
       ``(3) Limitations.--
       ``(A) Rates.--In exercising the authority granted under 
     paragraph (1), the Administrator shall be subject to all 
     other provisions of this Act, including any provisions 
     relating to chargeable premium rates or annual increases of 
     such rates.
       ``(B) Use of additional annual insurance premiums.--
     Notwithstanding any other provision of law or any agreement 
     entered into by the Administrator, the Administrator shall 
     ensure that all amounts attributable to the establishment or 
     increase of annual insurance premiums under paragraph (1) are 
     transferred to the Administrator for deposit into the Reserve 
     Fund, to be available for meeting the expected future 
     obligations of the flood insurance program as described in 
     subsection (a)(2).
       ``(d) Phase-in Requirements.--The phase-in requirements 
     under this subsection are as follows:
       ``(1) In general.--Beginning in fiscal year 2013 and not 
     ending until the fiscal year in which the ratio required 
     under subsection (b) is achieved, in each such fiscal year 
     the Administrator shall place in the Reserve Fund an amount 
     equal to not less than 7.5 percent of the reserve ratio 
     required under subsection (b).
       ``(2) Amount satisfied.--As soon as the ratio required 
     under subsection (b) is achieved, and except as provided in 
     paragraph (3), the Administrator shall not be required to set 
     aside any amounts for the Reserve Fund.
       ``(3) Exception.--If at any time after the ratio required 
     under subsection (b) is achieved, the Reserve Fund falls 
     below the required ratio under subsection (b), the 
     Administrator shall place in the Reserve Fund for that fiscal 
     year an amount equal to not less than 7.5 percent of the 
     reserve ratio required under subsection (b).
       ``(e) Limitation on Reserve Ratio.--In any given fiscal 
     year, if the Administrator determines that the reserve ratio 
     required under subsection (b) cannot be achieved, the 
     Administrator shall submit a report to Congress that--
       ``(1) describes and details the specific concerns of the 
     Administrator regarding the consequences of the reserve ratio 
     not being achieved;
       ``(2) demonstrates how such consequences would harm the 
     long-term financial soundness of the flood insurance program; 
     and
       ``(3) indicates the maximum attainable reserve ratio for 
     that particular fiscal year.
       ``(f) Investment.--The Secretary of the Treasury shall 
     invest such amounts of the Reserve Fund as the Secretary 
     determines advisable in obligations issued or guaranteed by 
     the United States.''.

     SEC. 100213. REPAYMENT PLAN FOR BORROWING AUTHORITY.

       (a) Repayment Plan Required.--Section 1309 of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4016) is amended by 
     adding at the end the following:
       ``(c) Upon the exercise of the authority established under 
     subsection (a), the Administrator shall transmit a schedule 
     for repayment of such amounts to--
       ``(1) the Secretary of the Treasury;
       ``(2) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate; and
       ``(3) the Committee on Financial Services of the House of 
     Representatives.
       ``(d) In connection with any funds borrowed by the 
     Administrator under the authority established in subsection 
     (a), the Administrator, beginning 6 months after the date on 
     which such funds are borrowed, and continuing every 6 months 
     thereafter until such borrowed funds are fully repaid, shall 
     submit a report on the progress of such repayment to--
       ``(1) the Secretary of the Treasury;
       ``(2) the Committee on Banking, Housing, and Urban Affairs 
     of the Senate; and
       ``(3) the Committee on Financial Services of the House of 
     Representatives.''.
       (b) Report.--Not later than the expiration of the 6-month 
     period beginning on the date of enactment of this Act, the 
     Administrator shall submit a report to the Congress setting 
     forth options for repaying within 10 years all amounts, 
     including any amounts previously borrowed but not yet repaid, 
     owed pursuant to clause (2) of subsection (a) of section 1309 
     of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4016(a)(2)).

     SEC. 100214. PAYMENT OF CONDOMINIUM CLAIMS.

       Section 1312 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4019), as amended by section 100210, is amended by 
     adding at the end the following:
       ``(c) Payment of Claims to Condominium Owners.--The 
     Administrator may not deny payment for any damage to or loss 
     of property which is covered by flood insurance to 
     condominium owners who purchased such flood insurance 
     separate and apart from the flood insurance purchased by the 
     condominium association in which such owner is a member, 
     based solely, or in any part, on the flood insurance coverage 
     of the condominium association or others on the overall 
     property owned by the condominium association.''.

     SEC. 100215. TECHNICAL MAPPING ADVISORY COUNCIL.

       (a) Establishment.--There is established a council to be 
     known as the Technical Mapping Advisory Council (in this 
     section referred to as the ``Council'').
       (b) Membership.--
       (1) In general.--The Council shall consist of--
       (A) the Administrator (or the designee thereof);
       (B) the Secretary of the Interior (or the designee 
     thereof);
       (C) the Secretary of Agriculture (or the designee thereof);
       (D) the Under Secretary of Commerce for Oceans and 
     Atmosphere (or the designee thereof); and
       (E) 16 additional members appointed by the Administrator or 
     the designee of the Administrator, who shall be--
       (i) a member of a recognized professional surveying 
     association or organization;
       (ii) a member of a recognized professional mapping 
     association or organization;
       (iii) a member of a recognized professional engineering 
     association or organization;
       (iv) a member of a recognized professional association or 
     organization representing flood hazard determination firms;
       (v) a representative of the United States Geological 
     Survey;
       (vi) a representative of a recognized professional 
     association or organization representing State geographic 
     information;
       (vii) a representative of State national flood insurance 
     coordination offices;
       (viii) a representative of the Corps of Engineers;
       (ix) a member of a recognized regional flood and storm 
     water management organization;
       (x) 2 representatives of different State government 
     agencies that have entered into cooperating technical 
     partnerships with the Administrator and have demonstrated the 
     capability to produce flood insurance rate maps;

[[Page 10665]]

       (xi) 2 representatives of different local government 
     agencies that have entered into cooperating technical 
     partnerships with the Administrator and have demonstrated the 
     capability to produce flood insurance maps;
       (xii) a member of a recognized floodplain management 
     association or organization;
       (xiii) a member of a recognized risk management association 
     or organization; and
       (xiv) a State mitigation officer.
       (2) Qualifications.--Members of the Council shall be 
     appointed based on their demonstrated knowledge and 
     competence regarding surveying, cartography, remote sensing, 
     geographic information systems, or the technical aspects of 
     preparing and using flood insurance rate maps. In appointing 
     members under paragraph (1)(E), the Administrator shall, to 
     the maximum extent practicable, ensure that the membership of 
     the Council has a balance of Federal, State, local, tribal, 
     and private members, and includes geographic diversity, 
     including representation from areas with coastline on the 
     Gulf of Mexico and other States containing areas identified 
     by the Administrator as at high risk for flooding or as areas 
     having special flood hazards.
       (c) Duties.--The Council shall--
       (1) recommend to the Administrator how to improve in a 
     cost-effective manner the--
       (A) accuracy, general quality, ease of use, and 
     distribution and dissemination of flood insurance rate maps 
     and risk data; and
       (B) performance metrics and milestones required to 
     effectively and efficiently map flood risk areas in the 
     United States;
       (2) recommend to the Administrator mapping standards and 
     guidelines for--
       (A) flood insurance rate maps; and
       (B) data accuracy, data quality, data currency, and data 
     eligibility;
       (3) recommend to the Administrator how to maintain, on an 
     ongoing basis, flood insurance rate maps and flood risk 
     identification;
       (4) recommend procedures for delegating mapping activities 
     to State and local mapping partners;
       (5) recommend to the Administrator and other Federal 
     agencies participating in the Council--
       (A) methods for improving interagency and intergovernmental 
     coordination on flood mapping and flood risk determination; 
     and
       (B) a funding strategy to leverage and coordinate budgets 
     and expenditures across Federal agencies; and
       (6) submit an annual report to the Administrator that 
     contains--
       (A) a description of the activities of the Council;
       (B) an evaluation of the status and performance of flood 
     insurance rate maps and mapping activities to revise and 
     update flood insurance rate maps, as required under section 
     100216; and
       (C) a summary of recommendations made by the Council to the 
     Administrator.
       (d) Future Conditions Risk Assessment and Modeling 
     Report.--
       (1) In general.--The Council shall consult with scientists 
     and technical experts, other Federal agencies, States, and 
     local communities to--
       (A) develop recommendations on how to--
       (i) ensure that flood insurance rate maps incorporate the 
     best available climate science to assess flood risks; and
       (ii) ensure that the Federal Emergency Management Agency 
     uses the best available methodology to consider the impact 
     of--

       (I) the rise in the sea level; and
       (II) future development on flood risk; and

       (B) not later than 1 year after the date of enactment of 
     this Act, prepare written recommendations in a future 
     conditions risk assessment and modeling report and to submit 
     such recommendations to the Administrator.
       (2) Responsibility of the administrator.--The 
     Administrator, as part of the ongoing program to review and 
     update National Flood Insurance Program rate maps under 
     section 100216, shall incorporate any future risk assessment 
     submitted under paragraph (1)(B) in any such revision or 
     update.
       (e) Chairperson.--The members of the Council shall elect 1 
     member to serve as the chairperson of the Council (in this 
     section referred to as the ``Chairperson'').
       (f) Coordination.--To ensure that the Council's 
     recommendations are consistent, to the maximum extent 
     practicable, with national digital spatial data collection 
     and management standards, the Chairperson shall consult with 
     the Chairperson of the Federal Geographic Data Committee 
     (established pursuant to Office of Management and Budget 
     Circular A-16).
       (g) Compensation.--Members of the Council shall receive no 
     additional compensation by reason of their service on the 
     Council.
       (h) Meetings and Actions.--
       (1) In general.--The Council shall meet not less frequently 
     than twice each year at the request of the Chairperson or a 
     majority of its members, and may take action by a vote of the 
     majority of the members.
       (2) Initial meeting.--The Administrator, or a person 
     designated by the Administrator, shall request and coordinate 
     the initial meeting of the Council.
       (i) Officers.--The Chairperson may appoint officers to 
     assist in carrying out the duties of the Council under 
     subsection (c).
       (j) Staff.--
       (1) Staff of fema.--Upon the request of the Chairperson, 
     the Administrator may detail, on a nonreimbursable basis, 
     personnel of the Federal Emergency Management Agency to 
     assist the Council in carrying out its duties.
       (2) Staff of other federal agencies.--Upon request of the 
     Chairperson, any other Federal agency that is a member of the 
     Council may detail, on a nonreimbursable basis, personnel to 
     assist the Council in carrying out its duties.
       (k) Powers.--In carrying out this section, the Council may 
     hold hearings, receive evidence and assistance, provide 
     information, and conduct research, as it considers 
     appropriate.
       (l) Report to Congress.--The Administrator, on an annual 
     basis, shall report to the Committee on Banking, Housing, and 
     Urban Affairs of the Senate, the Committee on Financial 
     Services of the House of Representatives, and the Office of 
     Management and Budget on the--
       (1) recommendations made by the Council;
       (2) actions taken by the Federal Emergency Management 
     Agency to address such recommendations to improve flood 
     insurance rate maps and flood risk data; and
       (3) any recommendations made by the Council that have been 
     deferred or not acted upon, together with an explanatory 
     statement.

     SEC. 100216. NATIONAL FLOOD MAPPING PROGRAM.

       (a) Reviewing, Updating, and Maintaining Maps.--The 
     Administrator, in coordination with the Technical Mapping 
     Advisory Council established under section 100215, shall 
     establish an ongoing program under which the Administrator 
     shall review, update, and maintain National Flood Insurance 
     Program rate maps in accordance with this section.
       (b) Mapping.--
       (1) In general.--In carrying out the program established 
     under subsection (a), the Administrator shall--
       (A) identify, review, update, maintain, and publish 
     National Flood Insurance Program rate maps with respect to--
       (i) all populated areas and areas of possible population 
     growth located within the 100-year floodplain;
       (ii) all populated areas and areas of possible population 
     growth located within the 500-year floodplain;
       (iii) areas of residual risk, including areas that are 
     protected by levees, dams, and other flood control 
     structures;
       (iv) areas that could be inundated as a result of the 
     failure of a levee, dam, or other flood control structure; 
     and
       (v) the level of protection provided by flood control 
     structures;
       (B) establish or update flood-risk zone data in all such 
     areas, and make estimates with respect to the rates of 
     probable flood caused loss for the various flood risk zones 
     for each such area; and
       (C) use, in identifying, reviewing, updating, maintaining, 
     or publishing any National Flood Insurance Program rate map 
     required under this section or under the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4011 et seq.), the most 
     accurate topography and elevation data available.
       (2) Mapping elements.--Each map updated under this section 
     shall--
       (A) assess the accuracy of current ground elevation data 
     used for hydrologic and hydraulic modeling of flooding 
     sources and mapping of the flood hazard and wherever 
     necessary acquire new ground elevation data utilizing the 
     most up-to-date geospatial technologies in accordance with 
     guidelines and specifications of the Federal Emergency 
     Management Agency; and
       (B) develop National Flood Insurance Program flood data on 
     a watershed basis--
       (i) to provide the most technically effective and efficient 
     studies and hydrologic and hydraulic modeling; and
       (ii) to eliminate, to the maximum extent possible, 
     discrepancies in base flood elevations between adjacent 
     political subdivisions.
       (3) Other inclusions.--In updating maps under this section, 
     the Administrator shall include--
       (A) any relevant information on coastal inundation from--
       (i) an applicable inundation map of the Corps of Engineers; 
     and
       (ii) data of the National Oceanic and Atmospheric 
     Administration relating to storm surge modeling;
       (B) any relevant information of the United States 
     Geological Survey on stream flows, watershed characteristics, 
     and topography that is useful in the identification of flood 
     hazard areas, as determined by the Administrator;
       (C) any relevant information on land subsidence, coastal 
     erosion areas, changing lake levels, and other flood-related 
     hazards;
       (D) any relevant information or data of the National 
     Oceanic and Atmospheric Administration and the United States 
     Geological Survey relating to the best available science 
     regarding future changes in sea levels, precipitation, and 
     intensity of hurricanes; and
       (E) any other relevant information as may be recommended by 
     the Technical Mapping Advisory Committee.
       (c) Standards.--In updating and maintaining maps under this 
     section, the Administrator shall--
       (1) establish standards to--
       (A) ensure that maps are adequate for--
       (i) flood risk determinations; and
       (ii) use by State and local governments in managing 
     development to reduce the risk of flooding; and
       (B) facilitate identification and use of consistent methods 
     of data collection and analysis by the Administrator, in 
     conjunction with State and local governments, in developing 
     maps for communities with similar flood risks, as determined 
     by the Administrator; and
       (2) publish maps in a format that is--
       (A) digital geospatial data compliant;
       (B) compliant with the open publishing and data exchange 
     standards established by the Open Geospatial Consortium; and
       (C) aligned with official data defined by the National 
     Geodetic Survey.

[[Page 10666]]

       (d) Communication and Outreach.--
       (1) In general.--The Administrator shall--
       (A) work to enhance communication and outreach to States, 
     local communities, and property owners about the effects--
       (i) of any potential changes to National Flood Insurance 
     Program rate maps that may result from the mapping program 
     required under this section; and
       (ii) that any such changes may have on flood insurance 
     purchase requirements;
       (B) engage with local communities to enhance communication 
     and outreach to the residents of such communities, including 
     tenants (with regard to contents insurance), on the matters 
     described under subparagraph (A); and
       (C) upon the issuance of any proposed map and any notice of 
     an opportunity to make an appeal relating to the proposed 
     map, notify the Senators for each State affected and each 
     Member of the House of Representatives for each congressional 
     district affected by the proposed map of any action taken by 
     the Administrator with respect to the proposed map or an 
     appeal relating to the proposed map.
       (2) Required activities.--The communication and outreach 
     activities required under paragraph (1) shall include--
       (A) notifying property owners when their properties become 
     included in, or when they are excluded from, an area covered 
     by the mandatory flood insurance purchase requirement under 
     section 102 of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a);
       (B) educating property owners regarding the flood risk and 
     reduction of this risk in their community, including the 
     continued flood risks to areas that are no longer subject to 
     the flood insurance mandatory purchase requirement;
       (C) educating property owners regarding the benefits and 
     costs of maintaining or acquiring flood insurance, including, 
     where applicable, lower-cost preferred risk policies under 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et 
     seq.) for such properties and the contents of such 
     properties;
       (D) educating property owners about flood map revisions and 
     the process available to such owners to appeal proposed 
     changes in flood elevations through their community, 
     including by notifying local radio and television stations; 
     and
       (E) encouraging property owners to maintain or acquire 
     flood insurance coverage.
       (e) Community Remapping Request.--Upon the adoption by the 
     Administrator of any recommendation by the Technical Mapping 
     Advisory Council for reviewing, updating, or maintaining 
     National Flood Insurance Program rate maps in accordance with 
     this section, a community that believes that its flood 
     insurance rates in effect prior to adoption would be affected 
     by the adoption of such recommendation may submit a request 
     for an update of its rate maps, which may be considered at 
     the Administrator's sole discretion. The Administrator shall 
     establish a protocol for the evaluation of such community map 
     update requests.
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Administrator to carry out this 
     section $400,000,000 for each of fiscal years 2013 through 
     2017.

     SEC. 100217. SCOPE OF APPEALS.

       Section 1363 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4104) is amended--
       (1) in subsection (a)--
       (A) by inserting ``and designating areas having special 
     flood hazards'' after ``flood elevations''; and
       (B) by striking ``such determinations'' and inserting 
     ``such determinations and designations''; and
       (2) in subsection (b)--
       (A) in the first sentence, by inserting ``and designations 
     of areas having special flood hazards'' after ``flood 
     elevation determinations''; and
       (B) by amending the third sentence to read as follows: 
     ``The sole grounds for appeal shall be the possession of 
     knowledge or information indicating that (1) the elevations 
     being proposed by the Administrator with respect to an 
     identified area having special flood hazards are 
     scientifically or technically incorrect, or (2) the 
     designation of an identified special flood hazard area is 
     scientifically or technically incorrect.''.

     SEC. 100218. SCIENTIFIC RESOLUTION PANEL.

       (a) Establishment.--Chapter III of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4101 et seq.) is amended by 
     inserting after section 1363 (42 U.S.C. 4104) the following:

     ``SEC. 1363A. SCIENTIFIC RESOLUTION PANEL.

       ``(a) Availability.--
       ``(1) In general.--Pursuant to the authority provided under 
     section 1363(e), the Administrator shall make available an 
     independent review panel, to be known as the Scientific 
     Resolution Panel, to any community--
       ``(A) that has--
       ``(i) filed a timely map appeal in accordance with section 
     1363;
       ``(ii) completed 60 days of consultation with the Federal 
     Emergency Management Agency on the appeal; and
       ``(iii) not allowed more than 120 days, or such longer 
     period as may be provided by the Administrator by waiver, to 
     pass since the end of the appeal period; or
       ``(B) that has received an unsatisfactory ruling under the 
     map revision process established pursuant to section 1360(f).
       ``(2) Appeals by owners and lessees.--If a community and an 
     owner or lessee of real property within the community appeal 
     a proposed determination of a flood elevation under section 
     1363(b), upon the request of the community--
       ``(A) the owner or lessee shall submit scientific and 
     technical data relating to the appeals to the Scientific 
     Resolution Panel; and
       ``(B) the Scientific Resolution Panel shall make a 
     determination with respect to the appeals in accordance with 
     subsection (c).
       ``(3) Definition.--For purposes of paragraph (1)(B), an 
     `unsatisfactory ruling' means that a community--
       ``(A) received a revised Flood Insurance Rate Map from the 
     Federal Emergency Management Agency, via a Letter of Final 
     Determination, after September 30, 2008, and prior to the 
     date of enactment of this section;
       ``(B) has subsequently applied for a Letter of Map Revision 
     or Physical Map Revision with the Federal Emergency 
     Management Agency; and
       ``(C) has received an unfavorable ruling on their request 
     for a map revision.
       ``(b) Membership.--The Scientific Resolution Panel made 
     available under subsection (a) shall consist of 5 members 
     with expertise that relates to the creation and study of 
     flood hazard maps and flood insurance. The Scientific 
     Resolution Panel may include representatives from Federal 
     agencies not involved in the mapping study in question and 
     from other impartial experts. Employees of the Federal 
     Emergency Management Agency may not serve on the Scientific 
     Resolution Panel.
       ``(c) Determination.--
       ``(1) In general.--Following deliberations, and not later 
     than 90 days after its formation, the Scientific Resolution 
     Panel shall issue a determination of resolution of the 
     dispute. Such determination shall set forth recommendations 
     for the base flood elevation determination or the designation 
     of an area having special flood hazards that shall be 
     reflected in the Flood Insurance Rate Maps.
       ``(2) Basis.--The determination of the Scientific 
     Resolution Panel shall be based on--
       ``(A) data previously provided to the Administrator by the 
     community, and, in the case of a dispute submitted under 
     subsection (a)(2), an owner or lessee of real property in the 
     community; and
       ``(B) data provided by the Administrator.
       ``(3) No alternative determinations permissible.--The 
     Scientific Resolution Panel--
       ``(A) shall provide a determination of resolution of a 
     dispute that--
       ``(i) is either in favor of the Administrator or in favor 
     of the community on each distinct element of the dispute; or
       ``(ii) in the case of a dispute submitted under subsection 
     (a)(2), is in favor of the Administrator, in favor of the 
     community, or in favor of the owner or lessee of real 
     property in the community on each distinct element of the 
     dispute; and
       ``(B) may not offer as a resolution any other alternative 
     determination.
       ``(4) Effect of determination.--
       ``(A) Binding.--The recommendations of the Scientific 
     Resolution Panel shall be binding on all appellants and not 
     subject to further judicial review unless the Administrator 
     determines that implementing the determination of the panel 
     would--
       ``(i) pose a significant threat due to failure to identify 
     a substantial risk of special flood hazards; or
       ``(ii) violate applicable law.
       ``(B) Written justification not to enforce.--If the 
     Administrator elects not to implement the determination of 
     the Scientific Resolution Panel pursuant to subparagraph (A), 
     then not later than 60 days after the issuance of the 
     determination, the Administrator shall issue a written 
     justification explaining such election.
       ``(C) Appeal of determination not to enforce.--If the 
     Administrator elects not to implement the determination of 
     the Scientific Resolution Panel pursuant to subparagraph (A), 
     the community may appeal the determination of the 
     Administrator as provided for under section 1363(g).
       ``(d) Maps Used for Insurance and Mandatory Purchase 
     Requirements.--With respect to any community that has a 
     dispute that is being considered by the Scientific Resolution 
     Panel formed pursuant to this subsection, the Federal 
     Emergency Management Agency shall ensure that for each such 
     community that--
       ``(1) the Flood Insurance Rate Map described in the most 
     recently issued Letter of Final Determination shall be in 
     force and effect with respect to such community; and
       ``(2) flood insurance shall continue to be made available 
     to the property owners and residents of the participating 
     community.''.
       (b) Conforming Amendments.--
       (1) Administrative review.--Section 1363(e) of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4104(e)) is amended, 
     in the second sentence, by striking ``an independent 
     scientific body or appropriate Federal agency for advice'' 
     and inserting ``the Scientific Resolution Panel provided for 
     in section 1363A''.
       (2) Judicial review.--The first sentence of section 1363(g) 
     of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4104(g)) is amended by striking ``Any appellant'' and 
     inserting ``Except as provided in section 1363A, any 
     appellant''.

     SEC. 100219. REMOVAL OF LIMITATION ON STATE CONTRIBUTIONS FOR 
                   UPDATING FLOOD MAPS.

       Section 1360(f)(2) of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4101(f)(2)) is amended by striking ``, but 
     which may not exceed 50 percent of the cost of carrying out 
     the requested revision or update''.

     SEC. 100220. COORDINATION.

       (a) Interagency Budget Crosscut and Coordination Report.--

[[Page 10667]]

       (1) In general.--The Secretary of Homeland Security, the 
     Administrator, the Director of the Office of Management and 
     Budget, and the heads of each Federal department or agency 
     carrying out activities under sections 100215 and 100216 
     shall work together to ensure that flood risk determination 
     data and geospatial data are shared among Federal agencies in 
     order to coordinate the efforts of the Nation to reduce its 
     vulnerability to flooding hazards.
       (2) Report.--Not later than 30 days after the submission of 
     the budget of the United States Government by the President 
     to Congress, the Director of the Office of Management and 
     Budget, in coordination with the Federal Emergency Management 
     Agency, the United States Geological Survey, the National 
     Oceanic and Atmospheric Administration, the Corps of 
     Engineers, and other Federal agencies, as appropriate, shall 
     submit to the appropriate authorizing and appropriating 
     committees of the Senate and the House of Representatives an 
     interagency budget crosscut and coordination report, 
     certified by the Secretary or head of each such agency, 
     that--
       (A) contains an interagency budget crosscut report that 
     displays relevant sections of the budget proposed for each of 
     the Federal agencies working on flood risk determination data 
     and digital elevation models, including any planned 
     interagency or intra-agency transfers; and
       (B) describes how the efforts aligned with such sections 
     complement one another.
       (b) Duties of the Administrator.--In carrying out sections 
     100215 and 100216, the Administrator shall--
       (1) participate, pursuant to section 216 of the E-
     Government Act of 2002 (44 U.S.C. 3501 note), in the 
     establishment of such standards and common protocols as are 
     necessary to assure the interoperability of geospatial data 
     for all users of such information;
       (2) coordinate with, seek assistance and cooperation of, 
     and provide a liaison to the Federal Geographic Data 
     Committee pursuant to the Office of Management and Budget 
     Circular A-16 and Executive Order 12906 (43 U.S.C. 1457 note; 
     relating to the National Spatial Data Infrastructure) for the 
     implementation of and compliance with such standards;
       (3) integrate with, leverage, and coordinate funding of, to 
     the maximum extent practicable, the current flood mapping 
     activities of each unit of State and local government;
       (4) integrate with, leverage, and coordinate, to the 
     maximum extent practicable, the current geospatial activities 
     of other Federal agencies and units of State and local 
     government; and
       (5) develop a funding strategy to leverage and coordinate 
     budgets and expenditures, and to maintain or establish joint 
     funding and other agreement mechanisms with other Federal 
     agencies and units of State and local government to share in 
     the collection and utilization of geospatial data among all 
     governmental users.

     SEC. 100221. INTERAGENCY COORDINATION STUDY.

       (a) In General.--The Administrator shall enter into a 
     contract with the National Academy of Public Administration 
     to conduct a study on how the Federal Emergency Management 
     Agency--
       (1) should improve interagency and intergovernmental 
     coordination on flood mapping, including a funding strategy 
     to leverage and coordinate budgets and expenditures; and
       (2) can establish joint funding mechanisms with other 
     Federal agencies and units of State and local government to 
     share the collection and utilization of data among all 
     governmental users.
       (b) Timing.--A contract entered into under subsection (a) 
     shall require that, not later than 180 days after the date of 
     enactment of this subtitle, the National Academy of Public 
     Administration shall report the findings of the study 
     required under subsection (a) to--
       (1) the Committee on Banking, Housing, and Urban Affairs of 
     the Senate;
       (2) the Committee on Financial Services of the House of 
     Representatives;
       (3) the Committee on Appropriations of the Senate; and
       (4) the Committee on Appropriations of the House of 
     Representatives.

     SEC. 100222. NOTICE OF FLOOD INSURANCE AVAILABILITY UNDER 
                   RESPA.

       Section 5(b) of the Real Estate Settlement Procedures Act 
     of 1974 (12 U.S.C. 2604(b)), as amended by section 1450 of 
     the Dodd-Frank Wall Street Reform and Consumer Protection Act 
     (Public Law 111-203; 124 Stat. 2174), is amended by adding at 
     the end the following:
       ``(14) An explanation of flood insurance and the 
     availability of flood insurance under the National Flood 
     Insurance Program or from a private insurance company, 
     whether or not the real estate is located in an area having 
     special flood hazards.''.

     SEC. 100223. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 
                   PROGRAMS.

       Chapter I of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4011 et seq.) is amended by inserting after section 
     1313 (42 U.S.C. 4020) the following:

     ``SEC. 1314. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 
                   PROGRAMS.

       ``(a) Requirement To Participate.--In the case of the 
     occurrence of a major disaster, as defined in section 102 of 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5122), that may have resulted in 
     flood damage covered under the national flood insurance 
     program established under this title and other personal lines 
     residential property insurance coverage offered by a State 
     regulated insurer, upon a request made by the insurance 
     commissioner of a State (or such other official responsible 
     for regulating the business of insurance in the State) for 
     the participation of representatives of the Administrator in 
     a program sponsored by such State for nonbinding mediation of 
     insurance claims resulting from a major disaster, the 
     Administrator shall cause representatives of the national 
     flood insurance program to participate in such a State 
     program where claims under the national flood insurance 
     program are involved to expedite settlement of flood damage 
     claims resulting from such disaster.
       ``(b) Extent of Participation.--In satisfying the 
     requirements of subsection (a), the Administrator shall 
     require that each representative of the Administrator--
       ``(1) be certified for purposes of the national flood 
     insurance program to settle claims against such program 
     resulting from such disaster in amounts up to the limits of 
     policies under such program;
       ``(2) attend State-sponsored mediation meetings regarding 
     flood insurance claims resulting from such disaster at such 
     times and places as may be arranged by the State;
       ``(3) participate in good-faith negotiations toward the 
     settlement of such claims with policyholders of coverage made 
     available under the national flood insurance program; and
       ``(4) finalize the settlement of such claims on behalf of 
     the national flood insurance program with such policyholders.
       ``(c) Coordination.--Representatives of the Administrator 
     shall at all times coordinate their activities with insurance 
     officials of the State and representatives of insurers for 
     the purposes of consolidating and expediting settlement of 
     claims under the national flood insurance program resulting 
     from such disaster.
       ``(d) Qualifications of Mediators.--Each State mediator 
     participating in State-sponsored mediation under this section 
     shall be--
       ``(1)(A) a member in good standing of the State bar in the 
     State in which the mediation is to occur with at least 2 
     years of practical experience; and
       ``(B) an active member of such bar for at least 1 year 
     prior to the year in which such mediator's participation is 
     sought; or
       ``(2) a retired trial judge from any United States 
     jurisdiction who was a member in good standing of the bar in 
     the State in which the judge presided for at least 5 years 
     prior to the year in which such mediator's participation is 
     sought.
       ``(e) Mediation Proceedings and Documents Privileged.--As a 
     condition of participation, all statements made and documents 
     produced pursuant to State-sponsored mediation involving 
     representatives of the Administrator shall be deemed 
     privileged and confidential settlement negotiations made in 
     anticipation of litigation.
       ``(f) Liability, Rights, or Obligations Not Affected.--
     Participation in State-sponsored mediation, as described in 
     this section does not--
       ``(1) affect or expand the liability of any party in 
     contract or in tort; or
       ``(2) affect the rights or obligations of the parties, as 
     established--
       ``(A) in any regulation issued by the Administrator, 
     including any regulation relating to a standard flood 
     insurance policy;
       ``(B) under this title; and
       ``(C) under any other provision of Federal law.
       ``(g) Exclusive Federal Jurisdiction.--Participation in 
     State-sponsored mediation shall not alter, change, or modify 
     the original exclusive jurisdiction of United States courts, 
     as set forth in this title.
       ``(h) Cost Limitation.--Nothing in this section shall be 
     construed to require the Administrator or a representative of 
     the Administrator to pay additional mediation fees relating 
     to flood insurance claims associated with a State-sponsored 
     mediation program in which such representative of the 
     Administrator participates.
       ``(i) Exception.--In the case of the occurrence of a major 
     disaster that results in flood damage claims under the 
     national flood insurance program and that does not result in 
     any loss covered by a personal lines residential property 
     insurance policy--
       ``(1) this section shall not apply; and
       ``(2) the provisions of the standard flood insurance policy 
     under the national flood insurance program and the appeals 
     process established under section 205 of the Bunning-
     Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 
     U.S.C. 4011 note) and the regulations issued pursuant to such 
     section shall apply exclusively.
       ``(j) Representatives of the Administrator.--For purposes 
     of this section, the term `representatives of the 
     Administrator' means representatives of the national flood 
     insurance program who participate in the appeals process 
     established under section 205 of the Bunning-Bereuter-
     Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 
     note).''.

     SEC. 100224. OVERSIGHT AND EXPENSE REIMBURSEMENTS OF 
                   INSURANCE COMPANIES.

       (a) Submission of Biennial Reports.--
       (1) To the administrator.--Not later than 20 days after the 
     date of enactment of this Act, each property and casualty 
     insurance company participating in the Write Your Own program 
     shall submit to the Administrator any biennial report 
     required by the Federal Emergency Management Agency to be 
     prepared in the prior 5 years by such company.

[[Page 10668]]

       (2) To gao.--Not later than 10 days after the submission of 
     the biennial reports under paragraph (1), the Administrator 
     shall submit all such reports to the Comptroller General of 
     the United States.
       (3) Notice to congress of failure to comply.--The 
     Administrator shall notify and report to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives on any property and casualty insurance 
     company participating in the Write Your Own program that 
     failed to submit its biennial reports as required under 
     paragraph (1).
       (4) Failure to comply.--A property and casualty insurance 
     company participating in the Write Your Own program which 
     fails to comply with the reporting requirement under this 
     subsection or the requirement under section 62.23(j)(1) of 
     title 44, Code of Federal Regulations (relating to biennial 
     audit of the flood insurance financial statements) shall be 
     subject to a civil penalty in an amount of not more than 
     $1,000 per day for each day that the company remains in 
     noncompliance with either such requirement.
       (b) Methodology To Determine Reimbursed Expenses.--Not 
     later than 180 days after the date of enactment of this Act, 
     the Administrator shall develop a methodology for determining 
     the appropriate amounts that property and casualty insurance 
     companies participating in the Write Your Own program should 
     be reimbursed for selling, writing, and servicing flood 
     insurance policies and adjusting flood insurance claims on 
     behalf of the National Flood Insurance Program. The 
     methodology shall be developed using actual expense data for 
     the flood insurance line and can be derived from--
       (1) flood insurance expense data produced by the property 
     and casualty insurance companies;
       (2) flood insurance expense data collected by the National 
     Association of Insurance Commissioners; or
       (3) a combination of the methodologies described in 
     paragraphs (1) and (2).
       (c) Submission of Expense Reports.--To develop the 
     methodology established under subsection (b), the 
     Administrator may require each property and casualty 
     insurance company participating in the Write Your Own program 
     to submit a report to the Administrator, in a format 
     determined by the Administrator and within 60 days of the 
     request, that details the expense levels of each such company 
     for selling, writing, and servicing standard flood insurance 
     policies and adjusting and servicing claims.
       (d) FEMA Rulemaking on Reimbursement of Expenses Under the 
     Write Your Own Program.--Not later than 12 months after the 
     date of enactment of this Act, the Administrator shall issue 
     a rule to formulate revised expense reimbursements to 
     property and casualty insurance companies participating in 
     the Write Your Own program for their expenses (including 
     their operating and administrative expenses for adjustment of 
     claims) in selling, writing, and servicing standard flood 
     insurance policies, including how such companies shall be 
     reimbursed in both catastrophic and noncatastrophic years. 
     Such reimbursements shall be structured to ensure 
     reimbursements track the actual expenses, including standard 
     business costs and operating expenses, of such companies as 
     closely as practicably possible.
       (e) Report of the Administrator.--Not later than 60 days 
     after the effective date of the final rule issued pursuant to 
     subsection (d), the Administrator shall submit to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives a report containing--
       (1) the specific rationale and purposes of such rule;
       (2) the reasons for the adoption of the policies contained 
     in such rule; and
       (3) the degree to which such rule accurately represents the 
     true operating costs and expenses of property and casualty 
     insurance companies participating in the Write Your Own 
     program.
       (f) GAO Study and Report on Expenses of Write Your Own 
     Program.--
       (1) Study.--Not later than 180 days after the effective 
     date of the final rule issued pursuant to subsection (d), the 
     Comptroller General of the United States shall--
       (A) conduct a study on the efficacy, adequacy, and 
     sufficiency of the final rules issued pursuant to subsection 
     (d); and
       (B) report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives on the findings of the study 
     conducted under subparagraph (A).
       (2) GAO authority.--In conducting the study and report 
     required under paragraph (1), the Comptroller General--
       (A) may use any previous findings, studies, or reports that 
     the Comptroller General previously completed on the Write 
     Your Own program;
       (B) shall determine if--
       (i) the final rule issued pursuant to subsection (d) allows 
     the Federal Emergency Management Agency to access adequate 
     information regarding the actual expenses of property and 
     casualty insurance companies participating in the Write Your 
     Own program; and
       (ii) the actual reimbursements paid out under the final 
     rule issued pursuant to subsection (d) accurately reflect the 
     expenses reported by property and casualty insurance 
     companies participating in the Write Your Own program, 
     including the standard business costs and operating expenses 
     of such companies; and
       (C) shall analyze the effect of the final rule issued 
     pursuant to subsection (d) on the level of participation of 
     property and casualty insurers in the Write Your Own program.

     SEC. 100225. MITIGATION.

       (a) Mitigation Assistance Grants.--Section 1366 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is 
     amended--
       (1) by striking subsections (b), (d), (f), (g), (h), (k), 
     and (m);
       (2) by redesignating subsections (c), (e), (i), and (j) as 
     subsections (b), (c), (e), and (f), respectively;
       (3) in subsection (a), by striking the last sentence and 
     inserting the following: ``Such financial assistance shall be 
     made available--
       ``(1) to States and communities in the form of grants under 
     this section for carrying out mitigation activities;
       ``(2) to States and communities in the form of grants under 
     this section for carrying out mitigation activities that 
     reduce flood damage to severe repetitive loss structures; and
       ``(3) to property owners in the form of direct grants under 
     this section for carrying out mitigation activities that 
     reduce flood damage to individual structures for which 2 or 
     more claim payments for losses have been made under flood 
     insurance coverage under this title if the Administrator, 
     after consultation with the State and community, determines 
     that neither the State nor community in which such a 
     structure is located has the capacity to manage such 
     grants.'';
       (4) in subsection (b), as so redesignated, in the first 
     sentence--
       (A) by striking ``and provides protection against'' and 
     inserting ``provides for reduction of''; and
       (B) by inserting before the period at the end the 
     following: ``, and may be included in a multihazard 
     mitigation plan'';
       (5) in subsection (c), as so redesignated--
       (A) in paragraph (1), by striking ``(1) Use of amounts.--'' 
     and all that follows through the end of the first sentence 
     and inserting the following:
       ``(1) Requirement of consistency with approved mitigation 
     plan.--Amounts provided under this section may be used only 
     for mitigation activities that are consistent with mitigation 
     plans that are approved by the Administrator and identified 
     under paragraph (4).'';
       (B) by striking paragraphs (2), (3), and (4) and inserting 
     the following new paragraphs:
       ``(2) Requirements of technical feasibility, cost 
     effectiveness, and interest of national flood insurance 
     fund.--
       ``(A) In general.--The Administrator may approve only 
     mitigation activities that the Administrator determines--
       ``(i) are technically feasible and cost-effective; or
       ``(ii) will eliminate future payments from the National 
     Flood Insurance Fund for severe repetitive loss structures 
     through an acquisition or relocation activity.
       ``(B) Considerations.--In making a determination under 
     subparagraph (A), the Administrator shall take into 
     consideration recognized ancillary benefits.'';
       (C) by redesignating paragraph (5) as paragraph (3);
       (D) in paragraph (3), as so redesignated--
       (i) in the matter preceding subparagraph (A), by striking 
     ``The Director'' and all that follows through ``Such 
     activities may'' and inserting ``Eligible activities under a 
     mitigation plan may'';
       (ii) by striking subparagraphs (E) and (H);
       (iii) by redesignating subparagraphs (D), (F), and (G) as 
     subparagraphs (E), (G), and (H), respectively;
       (iv) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) elevation, relocation, or floodproofing of utilities 
     (including equipment that serves structures);'';
       (v) by inserting after subparagraph (E), as so 
     redesignated, the following new subparagraph:
       ``(F) the development or update of mitigation plans by a 
     State or community which meet the planning criteria 
     established by the Administrator, except that the amount from 
     grants under this section that may be used under this 
     subparagraph may not exceed $50,000 for any mitigation plan 
     of a State or $25,000 for any mitigation plan of a 
     community;'';
       (vi) in subparagraph (H); as so redesignated, by striking 
     ``and'' at the end; and
       (vii) by adding at the end the following new subparagraphs:
       ``(I) other mitigation activities not described in 
     subparagraphs (A) through (G) or the regulations issued under 
     subparagraph (H), that are described in the mitigation plan 
     of a State or community; and
       ``(J) without regard to the requirements under paragraphs 
     (1) and (2) of subsection (d), and if the State applied for 
     and was awarded at least $1,000,000 in grants available under 
     this section in the prior fiscal year, technical assistance 
     to communities to identify eligible activities, to develop 
     grant applications, and to implement grants awarded under 
     this section, not to exceed $50,000 to any 1 State in any 
     fiscal year.''; and
       (E) by striking paragraph (6) and inserting the following:
       ``(4) Eligibility of demolition and rebuilding of 
     properties.--The Administrator shall consider as an eligible 
     activity the demolition and rebuilding of properties to at 
     least base flood elevation or greater, if required by the 
     Administrator or if required by any State regulation or local 
     ordinance, and in accordance with criteria established by the 
     Administrator.'';
       (6) by inserting after subsection (c), as so redesignated, 
     the following new subsection:
       ``(d) Matching Requirement.--The Administrator may provide 
     grants for eligible mitigation activities as follows:

[[Page 10669]]

       ``(1) Severe repetitive loss structures.--In the case of 
     mitigation activities to severe repetitive loss structures, 
     in an amount up to--
       ``(A) 100 percent of all eligible costs, if the activities 
     are approved under subsection (c)(2)(A)(i); or
       ``(B) the expected savings to the National Flood Insurance 
     Fund from expected avoided damages through acquisition or 
     relocation activities, if the activities are approved under 
     subsection (c)(2)(A)(ii).
       ``(2) Repetitive loss structures.--In the case of 
     mitigation activities to repetitive loss structures, in an 
     amount up to 90 percent of all eligible costs.
       ``(3) Other mitigation activities.--In the case of all 
     other mitigation activities, in an amount up to 75 percent of 
     all eligible costs.'';
       (7) in subsection (e)(2), as so redesignated--
       (A) by striking ``certified under subsection (g)'' and 
     inserting ``required under subsection (d)''; and
       (B) by striking ``3 times the amount'' and inserting ``the 
     amount'';
       (8) in subsection (f), as so redesignated, by striking 
     ``Riegle Community Development and Regulatory Improvement Act 
     of 1994'' and inserting ``Biggert-Waters Flood Insurance 
     Reform Act of 2012''; and
       (9) by adding at the end the following new subsections:
       ``(g) Failure To Make Grant Award Within 5 Years.--For any 
     application for a grant under this section for which the 
     Administrator fails to make a grant award within 5 years of 
     the date of the application, the grant application shall be 
     considered to be denied and any funding amounts allocated for 
     such grant applications shall remain in the National Flood 
     Mitigation Fund under section 1367 of this title and shall be 
     made available for grants under this section.
       ``(h) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Community.--The term `community' means--
       ``(A) a political subdivision that--
       ``(i) has zoning and building code jurisdiction over a 
     particular area having special flood hazards; and
       ``(ii) is participating in the national flood insurance 
     program; or
       ``(B) a political subdivision of a State, or other 
     authority, that is designated by political subdivisions, all 
     of which meet the requirements of subparagraph (A), to 
     administer grants for mitigation activities for such 
     political subdivisions.
       ``(2) Repetitive loss structure.--The term `repetitive loss 
     structure' has the meaning given such term in section 1370.
       ``(3) Severe repetitive loss structure.--The term `severe 
     repetitive loss structure' means a structure that--
       ``(A) is covered under a contract for flood insurance made 
     available under this title; and
       ``(B) has incurred flood-related damage--
       ``(i) for which 4 or more separate claims payments have 
     been made under flood insurance coverage under this title, 
     with the amount of each such claim exceeding $5,000, and with 
     the cumulative amount of such claims payments exceeding 
     $20,000; or
       ``(ii) for which at least 2 separate claims payments have 
     been made under such coverage, with the cumulative amount of 
     such claims exceeding the value of the insured structure.''.
       (b) Elimination of Grants Program for Repetitive Insurance 
     Claims Properties.--Chapter I of the National Flood Insurance 
     Act of 1968 is amended by striking section 1323 (42 U.S.C. 
     4030).
       (c) Elimination of Pilot Program for Mitigation of Severe 
     Repetitive Loss Properties.--Chapter III of the National 
     Flood Insurance Act of 1968 is amended by striking section 
     1361A (42 U.S.C. 4102a).
       (d) National Flood Insurance Fund.--Section 1310(a) of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is 
     amended--
       (1) in paragraph (6), by inserting ``and'' after the 
     semicolon;
       (2) in paragraph (7), by striking the semicolon and 
     inserting a period; and
       (3) by striking paragraphs (8) and (9).
       (e) National Flood Mitigation Fund.--Section 1367 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4104d) is 
     amended--
       (1) in subsection (b)--
       (A) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) in each fiscal year, amounts from the National Flood 
     Insurance Fund not to exceed $90,000,000 and to remain 
     available until expended, of which--
       ``(A) not more than $40,000,000 shall be available pursuant 
     to subsection (a) of this section for assistance described in 
     section 1366(a)(1);
       ``(B) not more than $40,000,000 shall be available pursuant 
     to subsection (a) of this section for assistance described in 
     section 1366(a)(2); and
       ``(C) not more than $10,000,000 shall be available pursuant 
     to subsection (a) of this section for assistance described in 
     section 1366(a)(3);''; and
       (B) in paragraph (3), by striking ``section 1366(i)'' and 
     inserting ``section 1366(e)'';
       (2) in subsection (c), by striking ``sections 1366 and 
     1323'' and inserting ``section 1366'';
       (3) by redesignating subsections (d) and (e) as subsections 
     (f) and (g), respectively; and
       (4) by inserting after subsection (c) the following new 
     subsections:
       ``(d) Prohibition on Offsetting Collections.--
     Notwithstanding any other provision of this title, amounts 
     made available pursuant to this section shall not be subject 
     to offsetting collections through premium rates for flood 
     insurance coverage under this title.
       ``(e) Continued Availability and Reallocation.--Any amounts 
     made available pursuant to subparagraph (A), (B), or (C) of 
     subsection (b)(1) that are not used in any fiscal year shall 
     continue to be available for the purposes specified in the 
     subparagraph of subsection (b)(1) pursuant to which such 
     amounts were made available, unless the Administrator 
     determines that reallocation of such unused amounts to meet 
     demonstrated need for other mitigation activities under 
     section 1366 is in the best interest of the National Flood 
     Insurance Fund.''.
       (f) Increased Cost of Compliance Coverage.--Section 
     1304(b)(4) of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4011(b)(4)) is amended--
       (1) by striking subparagraph (B); and
       (2) by redesignating subparagraphs (C), (D), and (E) as 
     subparagraphs (B), (C), and (D), respectively.

     SEC. 100226. FLOOD PROTECTION STRUCTURE ACCREDITATION TASK 
                   FORCE.

       (a) Definitions.--In this section--
       (1) the term ``flood protection structure accreditation 
     requirements'' means the requirements established under 
     section 65.10 of title 44, Code of Federal Regulations, for 
     levee systems to be recognized on maps created for purposes 
     of the National Flood Insurance Program;
       (2) the term ``National Committee on Levee Safety'' means 
     the Committee on Levee Safety established under section 9003 
     of the National Levee Safety Act of 2007 (33 U.S.C. 3302); 
     and
       (3) the term ``task force'' means the Flood Protection 
     Structure Accreditation Task Force established under 
     subsection (b).
       (b) Establishment.--
       (1) In general.--The Administrator and the Secretary of the 
     Army, acting through the Chief of Engineers, in cooperation 
     with the National Committee on Levee Safety, shall jointly 
     establish a Flood Protection Structure Accreditation Task 
     Force.
       (2) Duties.--
       (A) Developing process.--The task force shall develop a 
     process to better align the information and data collected by 
     or for the Corps of Engineers under the Inspection of 
     Completed Works Program with the flood protection structure 
     accreditation requirements so that--
       (i) information and data collected for either purpose can 
     be used interchangeably; and
       (ii) information and data collected by or for the Corps of 
     Engineers under the Inspection of Completed Works Program is 
     sufficient to satisfy the flood protection structure 
     accreditation requirements.
       (B) Gathering recommendations.--The task force shall 
     gather, and consider in the process developed under 
     subparagraph (A), recommendations from interested persons in 
     each region relating to the information, data, and 
     accreditation requirements described in subparagraph (A).
       (3) Considerations.--In developing the process under 
     paragraph (2), the task force shall consider changes to--
       (A) the information and data collected by or for the Corps 
     of Engineers under the Inspection of Completed Works Program; 
     and
       (B) the flood protection structure accreditation 
     requirements.
       (4) Rule of construction.--Nothing in this section shall be 
     construed to require a reduction in the level of public 
     safety and flood control provided by accredited levees, as 
     determined by the Administrator for purposes of this section.
       (c) Implementation.--The Administrator and the Secretary of 
     the Army, acting through the Chief of Engineers, shall 
     implement the process developed by the task force under 
     subsection (b) not later than 1 year after the date of 
     enactment of this Act and shall complete the process under 
     subsection (b) not later than 2 years after the date of 
     enactment of this Act.
       (d) Reports.--The Administrator and the Secretary of the 
     Army, acting through the Chief of Engineers, in cooperation 
     with the National Committee on Levee Safety, shall jointly 
     submit to the Committee on Banking, Housing, and Urban 
     Affairs and the Committee on Environment and Public Works of 
     the Senate and the Committee on Financial Services, the 
     Committee on Transportation and Infrastructure, and the 
     Committee on Natural Resources of the House of 
     Representatives reports concerning the activities of the task 
     force and the implementation of the process developed by the 
     task force under subsection (b), including--
       (1) an interim report, not later than 180 days after the 
     date of enactment of this Act; and
       (2) a final report, not later than 1 year after the date of 
     enactment of this Act.
       (e) Termination.--The task force shall terminate on the 
     date of submission of the report under subsection (d)(2).

     SEC. 100227. FLOOD IN PROGRESS DETERMINATIONS.

       (a) Report.--
       (1) Review.--The Administrator shall review--
       (A) the processes and procedures for determining that a 
     flood event has commenced or is in progress for purposes of 
     flood insurance coverage made available under the National 
     Flood Insurance Program;
       (B) the processes and procedures for providing public 
     notification that such a flood event has commenced or is in 
     progress;
       (C) the processes and procedures regarding the timing of 
     public notification of flood insurance requirements and 
     availability; and
       (D) the effects and implications that weather conditions, 
     including rainfall, snowfall, projected snowmelt, existing 
     water levels, and other

[[Page 10670]]

     conditions, have on the determination that a flood event has 
     commenced or is in progress.
       (2) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Administrator shall submit a 
     report to Congress that describes--
       (A) the results and conclusions of the review under 
     paragraph (1); and
       (B) any actions taken, or proposed actions to be taken, by 
     the Administrator to provide for more precise and technical 
     processes and procedures for determining that a flood event 
     has commenced or is in progress.
       (b) Effective Date of Policies Covering Properties Affected 
     by Flooding of the Missouri River in 2011.--
       (1) Eligible coverage.--For purposes of this subsection, 
     the term ``eligible coverage'' means coverage under a new 
     contract for flood insurance coverage under the National 
     Flood Insurance Program, or a modification to coverage under 
     an existing flood insurance contract, for property damaged by 
     the flooding of the Missouri River that commenced on June 1, 
     2011, that was purchased or made during the period beginning 
     May 1, 2011, and ending June 6, 2011.
       (2) Effective dates.--Notwithstanding section 1306(c) of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4013(c)), 
     or any other provision of law, any eligible coverage shall--
       (A) be deemed to take effect on the date that is 30 days 
     after the date on which all obligations for the eligible 
     coverage (including completion of the application and payment 
     of any initial premiums owed) are satisfactorily completed; 
     and
       (B) cover damage to property occurring after the effective 
     date described in subparagraph (A) that resulted from the 
     flooding of the Missouri River that commenced on June 1, 
     2011, if the property did not suffer damage or loss as a 
     result of such flooding before the effective date described 
     in subparagraph (A).
       (c) Timely Notification.--Not later than 90 days after the 
     date on which the Administrator submits the report required 
     under subsection (a)(2), the Administrator shall, taking into 
     consideration the results of the review under subsection 
     (a)(1)(B), develop procedures for providing timely 
     notification, to the extent practicable, to policyholders who 
     have purchased flood insurance coverage under the National 
     Flood Insurance Program within 30 days of a determination of 
     a flood in progress and who may be affected by the flood of 
     the determination and how the determination may affect their 
     coverage.

     SEC. 100228. CLARIFICATION OF RESIDENTIAL AND COMMERCIAL 
                   COVERAGE LIMITS.

       Section 1306(b) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4013(b)) is amended--
       (1) in paragraph (2)--
       (A) by striking ``in the case of any residential property'' 
     and inserting ``in the case of any residential building 
     designed for the occupancy of from 1 to 4 families''; and
       (B) by striking ``shall be made available to every insured 
     upon renewal and every applicant for insurance so as to 
     enable such insured or applicant to receive coverage up to a 
     total amount (including such limits specified in paragraph 
     (1)(A)(i)) of $250,000'' and inserting ``shall be made 
     available, with respect to any single such building, up to an 
     aggregate liability (including such limits specified in 
     paragraph (1)(A)(i)) of $250,000''; and
       (2) in paragraph (4)--
       (A) by striking ``in the case of any nonresidential 
     property, including churches,'' and inserting ``in the case 
     of any nonresidential building, including a church,''; and
       (B) by striking ``shall be made available to every insured 
     upon renewal and every applicant for insurance, in respect to 
     any single structure, up to a total amount (including such 
     limit specified in subparagraph (B) or (C) of paragraph (1), 
     as applicable) of $500,000 for each structure and $500,000 
     for any contents related to each structure'' and inserting 
     ``shall be made available with respect to any single such 
     building, up to an aggregate liability (including such limits 
     specified in subparagraph (B) or (C) of paragraph (1), as 
     applicable) of $500,000, and coverage shall be made available 
     up to a total of $500,000 aggregate liability for contents 
     owned by the building owner and $500,000 aggregate liability 
     for each unit within the building for contents owned by the 
     tenant''.

     SEC. 100229. LOCAL DATA REQUIREMENT.

       (a) In General.--Notwithstanding any other provision of 
     this subtitle, no area or community participating in the 
     National Flood Insurance Program that is or includes a 
     community that is identified by the Administrator as 
     Community Identification Number 360467 and impacted by the 
     Jamaica Bay flooding source or identified by the 
     Administrator as Community Identification Number 360495 may 
     be or become designated as an area having special flood 
     hazards for purposes of the National Flood Insurance Program, 
     unless the designation is made on the basis of--
       (1) flood hazard analyses of hydrologic, hydraulic, or 
     coastal flood hazards that have been properly calibrated and 
     validated, and are specific and directly relevant to the 
     geographic area being studied; and
       (2) ground elevation information of sufficient accuracy and 
     precision to meet the guidelines of the Administration for 
     accuracy at the 95 percent confidence level.
       (b) Remapping.--
       (1) Remapping required.--If the Administrator determines 
     that an area described in subsection (a) has been designated 
     as an area of special flood hazard on the basis of 
     information that does not comply with the requirements under 
     subsection (a), the Administrator shall revise and update any 
     National Flood Insurance Program rate map for the area--
       (A) using information that complies with the requirements 
     under subsection (a); and
       (B) in accordance with the procedures established under 
     section 1363 of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4104) for flood elevation determinations.
       (2) Interim period.--A National Flood Insurance Program 
     rate map in effect on the date of enactment of this Act for 
     an area for which the Administrator has made a determination 
     under paragraph (1) shall continue in effect with respect to 
     the area during the period--
       (A) beginning on the date of enactment of this Act; and
       (B) ending on the date on which the Administrator 
     determines that the requirements under section 1363 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4104) for 
     flood elevation determinations have been met with respect to 
     a revision and update under paragraph (1) of a National Flood 
     Insurance Program rate map for the area.
       (3) Deadline.--The Administrator shall issue a preliminary 
     National Flood Insurance Program rate map resulting from a 
     revision and update required under paragraph (1) not later 
     than 1 year after the date of enactment of this Act.
       (4) Risk premium rate clarification.--
       (A) In general.--If a revision and update required under 
     paragraph (1) results in a reduction in the risk premium rate 
     for a property in an area for which the Administrator has 
     made a determination under paragraph (1), the Administrator 
     shall--
       (i) calculate the difference between the reduced risk 
     premium rate and the risk premium rate paid by a policyholder 
     with respect to the property during the period--

       (I) beginning on the date on which the National Flood 
     Insurance Program rate map in effect for the area on the date 
     of enactment of this Act took effect; and
       (II) ending on the date on which the revised or updated 
     National Flood Insurance Program rate map takes effect; and

       (ii) reimburse the policyholder an amount equal to such 
     difference.
       (B) Funding.--Notwithstanding section 1310 of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4017), there shall be 
     available to the Administrator from premiums deposited in the 
     National Flood Insurance Fund pursuant to subsection (d) of 
     such section 1310, of amounts not otherwise obligated, the 
     amount necessary to carry out this paragraph.
       (c) Termination.--
       (1) In general.--Except as provided in paragraph (2), this 
     section shall cease to have effect on the effective date of a 
     National Flood Insurance Program rate map revised and updated 
     under subsection (b)(1).
       (2) Reimbursements.--Subsection (b)(4) shall cease to have 
     effect on the date on which the Administrator has made all 
     reimbursements required under subsection (b)(4).

     SEC. 100230. ELIGIBILITY FOR FLOOD INSURANCE FOR PERSONS 
                   RESIDING IN COMMUNITIES THAT HAVE MADE ADEQUATE 
                   PROGRESS ON THE RECONSTRUCTION OR IMPROVEMENT 
                   OF A FLOOD PROTECTION SYSTEM.

       (a) Eligibility for Flood Insurance Coverage.--
       (1) In general.--Notwithstanding any other provision of law 
     (including section 1307(e) of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4014(e))), a person residing in a 
     community that the Administrator determines has made adequate 
     progress on the reconstruction or improvement of a flood 
     protection system that will afford flood protection for a 
     100-year floodplain (without regard to the level of Federal 
     funding of or participation in the construction, 
     reconstruction, or improvement), shall be eligible for flood 
     insurance coverage under the National Flood Insurance 
     Program--
       (A) if the person resides in a community that is a 
     participant in the National Flood Insurance Program; and
       (B) at a risk premium rate that does not exceed the risk 
     premium rate that would be chargeable if the flood protection 
     system had been completed.
       (2) Adequate progress.--
       (A) Reconstruction or improvement.--For purposes of 
     paragraph (1), the Administrator shall determine that a 
     community has made adequate progress on the reconstruction or 
     improvement of a flood protection system if--
       (i) 100 percent of the project cost has been authorized;
       (ii) not less than 60 percent of the project cost has been 
     secured or appropriated;
       (iii) not less than 50 percent of the flood protection 
     system has been assessed as being without deficiencies; and
       (iv) the reconstruction or improvement has a project 
     schedule that does not exceed 5 years, beginning on the date 
     on which the reconstruction or construction of the 
     improvement commences.
       (B) Considerations.--In determining whether a flood 
     protection system has been assessed as being without 
     deficiencies, the Administrator shall consider the 
     requirements under section 65.10 of chapter 44, Code of 
     Federal Regulations, or any successor thereto.
       (C) Date of commencement.--For purposes of subparagraph 
     (A)(iv) of this paragraph and subsection (b)(2)(B), the date 
     of commencement of the reconstruction or improvement of a 
     flood protection system that is undergoing reconstruction or 
     improvement on the date of enactment of

[[Page 10671]]

     this Act shall be deemed to be the date on which the owner of 
     the flood protection system submits a request under paragraph 
     (3).
       (3) Request for determination.--The owner of a flood 
     protection system that is undergoing reconstruction or 
     improvement on the date of enactment of this Act may submit 
     to the Administrator a request for a determination under 
     paragraph (2) that the community in which the flood 
     protection system is located has made adequate progress on 
     the reconstruction or improvement of the flood protection 
     system.
       (4) Rule of construction.--Nothing in this subsection shall 
     be construed to prohibit the Administrator from making a 
     determination under paragraph (2) for any community in which 
     a flood protection system is not undergoing reconstruction or 
     improvement on the date of enactment of this Act.
       (b) Termination of Eligibility.--
       (1) Adequate continuing progress.--The Administrator shall 
     issue rules to establish a method of determining whether a 
     community has made adequate continuing progress on the 
     reconstruction or improvement of a flood protection system 
     that includes--
       (A) a requirement that the Administrator shall--
       (i) consult with the owner of the flood protection system--

       (I) 6 months after the date of a determination under 
     subsection (a);
       (II) 18 months after the date of a determination under 
     subsection (a); and
       (III) 36 months after the date of a determination under 
     subsection (a); and

       (ii) after each consultation under clause (i), determine 
     whether the reconstruction or improvement is reasonably 
     likely to be completed in accordance with the project 
     schedule described in subsection (a)(2)(A)(iv); and
       (B) a requirement that, if the Administrator makes a 
     determination under subparagraph (A)(ii) that reconstruction 
     or improvement is not reasonably likely to be completed in 
     accordance with the project schedule, the Administrator 
     shall--
       (i) not later than 30 days after the date of the 
     determination, notify the owner of the flood protection 
     system of the determination and provide the rationale and 
     evidence for the determination; and
       (ii) provide the owner of the flood protection system the 
     opportunity to appeal the determination.
       (2) Termination.--The Administrator shall terminate the 
     eligibility for flood insurance coverage under subsection (a) 
     for persons residing in a community with respect to which the 
     Administrator made a determination under subsection (a) if--
       (A) the Administrator determines that the community has not 
     made adequate continuing progress; or
       (B) on the date that is 5 years after the date on which the 
     reconstruction or construction of the improvement commences, 
     the project has not been completed.
       (3) Waiver.--A person whose eligibility would otherwise be 
     terminated under paragraph (2)(B) shall continue to be 
     eligible to purchase flood insurance coverage described in 
     subsection (a) if the Administrator determines--
       (A) the community has made adequate continuing progress on 
     the reconstruction or improvement of a flood protection 
     system; and
       (B) there is a reasonable expectation that the 
     reconstruction or improvement of the flood protection system 
     will be completed not later than 1 year after the date of the 
     determination under this paragraph.
       (4) Risk premium rate.--If the Administrator terminates the 
     eligibility of persons residing in a community to purchase 
     flood insurance coverage described in subsection (a), the 
     Administrator shall establish an appropriate risk premium 
     rate for flood insurance coverage under the National Flood 
     Insurance Program for persons residing in the community that 
     purchased flood insurance coverage before the date on which 
     the termination of eligibility takes effect, taking into 
     consideration the then-current state of the flood protection 
     system.
       (c) Additional Authority.--
       (1) Additional authority.--Notwithstanding subsection (a), 
     in exceptional and exigent circumstances, the Administrator 
     may, in the Administrator's sole discretion, determine that a 
     person residing in a community, which is a participant in the 
     National Flood Insurance Program, that has begun 
     reconstruction or improvement of a flood protection system 
     that will afford flood protection for a 100-year floodplain 
     (without regard to the level of Federal funding of or 
     participation in the reconstruction or improvement) shall be 
     eligible for flood insurance coverage under the National 
     Flood Insurance Program at a risk premium rate that does not 
     exceed the risk premium rate that would be chargeable if the 
     flood protection system had been completed, provided--
       (A) the community makes a written request for the 
     determination setting forth the exceptional and exigent 
     circumstances, including why the community cannot meet the 
     criteria for adequate progress set forth in under subsection 
     (a)(2)(A) and why immediate relief is necessary;
       (B) the Administrator submits a written report setting 
     forth findings of the exceptional and exigent circumstances 
     on which the Administrator based an affirmative determination 
     to the Committee on Banking, Housing, and Urban Affairs of 
     the Senate, and the Committee on Financial Services of the 
     House of Representatives not later than 15 days before making 
     the determination; and
       (C) the eligibility for flood insurance coverage at a risk 
     premium rate determined under this subsection terminates no 
     later than 1 year after the date on which the Administrator 
     makes the determination.
       (2) Limitation.--Upon termination of eligibility under 
     paragraph (1)(C), a community may submit another request 
     pursuant to paragraph (1)(A). The Administrator may make no 
     more than two determinations under paragraph (1) with respect 
     to persons residing within any single requesting community.
       (3) Termination.--The authority provided under paragraphs 
     (1) and (2) shall terminate two years after the enactment of 
     this Act.

     SEC. 100231. STUDIES AND REPORTS.

       (a) Report on Improving the National Flood Insurance 
     Program.--Not later than 1 year after the date of enactment 
     of this Act, the Comptroller General of the United States 
     shall conduct a study and submit a report to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives, on--
       (1) the number of flood insurance policy holders currently 
     insuring--
       (A) a residential structure up to the maximum available 
     coverage amount, as established in section 61.6 of title 44, 
     Code of Federal Regulations, of--
       (i) $250,000 for the structure; and
       (ii) $100,000 for the contents of such structure; or
       (B) a commercial structure up to the maximum available 
     coverage amount, as established in section 61.6 of title 44, 
     Code of Federal Regulations, of $500,000;
       (2) the increased losses the National Flood Insurance 
     Program would have sustained during the 2004 and 2005 
     hurricane season if the National Flood Insurance Program had 
     insured all policyholders up to the maximum conforming loan 
     limit for fiscal year 2006 of $417,000, as established under 
     section 302(b)(2) of the Federal National Mortgage 
     Association Charter Act (12 U.S.C. 1717(b)(2));
       (3) the availability in the private marketplace of flood 
     insurance coverage in amounts that exceed the current limits 
     of coverage amounts established in section 61.6 of title 44, 
     Code of Federal Regulations; and
       (4) what effect, if any--
       (A) raising the current limits of coverage amounts 
     established in section 61.6 of title 44, Code of Federal 
     Regulations, would have on the ability of private insurers to 
     continue providing flood insurance coverage; and
       (B) reducing the current limits of coverage amounts 
     established in section 61.6 of title 44, Code of Federal 
     Regulations, would have on the ability of private insurers to 
     provide sufficient flood insurance coverage to effectively 
     replace the current level of flood insurance coverage being 
     provided under the National Flood Insurance Program.
       (b) Report of the Administrator on Activities Under the 
     National Flood Insurance Program.--
       (1) In general.--The Administrator shall, on an annual 
     basis, submit a full report on the operations, activities, 
     budget, receipts, and expenditures of the National Flood 
     Insurance Program for the preceding 12-month period to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives.
       (2) Timing.--Each report required under paragraph (1) shall 
     be submitted to the committees described in paragraph (1) not 
     later than 3 months following the end of each fiscal year.
       (3) Contents.--Each report required under paragraph (1) 
     shall include--
       (A) the current financial condition and income statement of 
     the National Flood Insurance Fund established under section 
     1310 of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4017), including--
       (i) premiums paid into such Fund;
       (ii) policy claims against such Fund; and
       (iii) expenses in administering such Fund;
       (B) the number and face value of all policies issued under 
     the National Flood Insurance Program that are in force;
       (C) a description and summary of the losses attributable to 
     repetitive loss structures;
       (D) a description and summary of all losses incurred by the 
     National Flood Insurance Program due to--
       (i) hurricane related damage; and
       (ii) nonhurricane related damage;
       (E) the amounts made available by the Administrator for 
     mitigation assistance under section 1366(c)(4) of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4104c(c)(4)), 
     as so redesignated by this Act, for the purchase of 
     properties substantially damaged by flood for that fiscal 
     year, and the actual number of flood damaged properties 
     purchased and the total cost expended to purchase such 
     properties;
       (F) the estimate of the Administrator as to the average 
     historical loss year, and the basis for that estimate;
       (G) the estimate of the Administrator as to the maximum 
     amount of claims that the National Flood Insurance Program 
     would have to expend in the event of a catastrophic year;
       (H) the average--
       (i) amount of insurance carried per flood insurance policy;
       (ii) premium per flood insurance policy; and
       (iii) loss per flood insurance policy; and
       (I) the number of claims involving damages in excess of the 
     maximum amount of flood insurance available under the 
     National Flood Insurance Program and the sum of the amount of 
     all damages in excess of such amount.

[[Page 10672]]

       (c) GAO Study on Pre-FIRM Structures.--Not later than 1 
     year after the date of enactment of this Act, the Comptroller 
     General of the United States shall conduct a study and submit 
     a report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives, on the--
       (1) composition of the remaining pre-FIRM structures that 
     are explicitly receiving discounted premium rates under 
     section 1307 of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4014), including the historical basis for the receipt 
     of such subsidy and the extent to which pre-FIRM structures 
     are currently owned by the same owners of the property at the 
     time of the original National Flood Insurance Program rate 
     map;
       (2) number and fair market value of such structures;
       (3) respective income level of the owners of such 
     structures;
       (4) number of times each such structure has been sold since 
     1968, including specific dates, sales price, and any other 
     information the Secretary determines appropriate;
       (5) total losses incurred by such structures since the 
     establishment of the National Flood Insurance Program 
     compared to the total losses incurred by all structures that 
     are charged a nondiscounted premium rate;
       (6) total cost of foregone premiums since the establishment 
     of the National Flood Insurance Program, as a result of the 
     subsidies provided to such structures;
       (7) annual cost as a result of the subsidies provided to 
     such structures;
       (8) the premium income collected and the losses incurred by 
     the National Flood Insurance Program as a result of such 
     explicitly subsidized structures compared to the premium 
     income collected and the losses incurred by such Program as a 
     result of structures that are charged a nondiscounted premium 
     rate, on a State-by-State basis; and
       (9) the options for eliminating the subsidy to such 
     structures.
       (d) GAO Review of FEMA Contractors.--The Comptroller 
     General of the United States, in conjunction with the Office 
     of the Inspector General of the Department of Homeland 
     Security, shall--
       (1) conduct a review of the 3 largest contractors the 
     Administrator uses in administering the National Flood 
     Insurance Program; and
       (2) not later than 18 months after the date of enactment of 
     this Act, submit a report on the findings of such review to 
     the Administrator, the Committee on Banking, Housing, and 
     Urban Affairs of the Senate, and the Committee on Financial 
     Services of the House of Representatives.
       (e) Study and Report on Graduated Risk.--
       (1) Study.--
       (A) Study required.--The Administrator shall enter into a 
     contract under which the National Academy of Sciences shall 
     conduct a study exploring methods for understanding graduated 
     risk behind levees and the associated land development, 
     insurance, and risk communication dimensions.
       (B) Contents of study.--The study under this paragraph 
     shall--
       (i) research, review, and recommend current best practices 
     for estimating direct annualized flood losses behind levees 
     for residential and commercial structures;
       (ii) rank each best practice recommended under clause (i) 
     based on the best value, balancing cost, scientific 
     integrity, and the inherent uncertainties associated with all 
     aspects of the loss estimate, including geotechnical 
     engineering, flood frequency estimates, economic value, and 
     direct damages;
       (iii) research, review, and identify current best 
     floodplain management and land use practices behind levees 
     that effectively balance social, economic, and environmental 
     considerations as part of an overall flood risk management 
     strategy;
       (iv) identify areas in which the best floodplain management 
     and land use practices described in clause (iii) have proven 
     effective and recommend methods and processes by which such 
     practices could be applied more broadly across the United 
     States, given the variety of different flood risks, State and 
     local legal frameworks, and evolving judicial opinions;
       (v) research, review, and identify a variety of flood 
     insurance pricing options for flood hazards behind levees 
     that are actuarially sound and based on the flood risk data 
     developed using the 3 best practices recommended under clause 
     (i) that have the best value as determined under clause (ii);
       (vi) evaluate and recommend methods to reduce insurance 
     costs through creative arrangements between insureds and 
     insurers while keeping a clear accounting of how much 
     financial risk is being borne by various parties such that 
     the entire risk is accounted for, including establishment of 
     explicit limits on disaster aid or other assistance in the 
     event of a flood; and
       (vii) taking into consideration the recommendations under 
     clauses (i) through (iii), recommend approaches to 
     communicate the associated risks to community officials, 
     homeowners, and other residents of communities.
       (2) Report.--The contract under paragraph (1)(A) shall 
     provide that not later than 12 months after the date of 
     enactment of this Act, the National Academy of Sciences shall 
     submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     and the Committee on Science, Space, and Technology of the 
     House of Representatives a report on the study under 
     paragraph (1) that includes the information and 
     recommendations required under paragraph (1).

     SEC. 100232. REINSURANCE.

       (a) FEMA and GAO Reports on Privatization.--Not later than 
     18 months after the date of enactment of this Act, the 
     Administrator and the Comptroller General of the United 
     States shall each--
       (1) conduct a separate study to assess a broad range of 
     options, methods, and strategies for privatizing the National 
     Flood Insurance Program; and
       (2) submit a report to the Committee on Financial Services 
     of the House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate with recommendations 
     for the best manner to accomplish the privatization described 
     in paragraph (1).
       (b) Private Risk-management Initiatives.--The Administrator 
     may carry out such private risk-management initiatives as are 
     otherwise authorized under applicable law, as the 
     Administrator considers appropriate to determine the capacity 
     of private insurers, reinsurers, and financial markets to 
     assist communities, on a voluntary basis only, in managing 
     the full range of financial risks associated with flooding.
       (c) Reinsurance Assessment.--
       (1) Private market pricing assessment.--Not later than 12 
     months after the date of enactment of this Act, the 
     Administrator shall submit to Congress a report that--
       (A) assesses the capacity of the private reinsurance, 
     capital, and financial markets to assist communities, on a 
     voluntary basis, in managing the full range of financial 
     risks associated with flooding by requesting proposals to 
     assume a portion of the insurance risk of the National Flood 
     Insurance Program;
       (B) describes any responses to the request for proposals 
     under subparagraph (A);
       (C) assesses whether the rates and terms contained in any 
     proposals received by the Administrator are--
       (i) reasonable and appropriate; and
       (ii) in an amount sufficient to maintain the ability of the 
     National Flood Insurance Program to pay claims;
       (D) describes the extent to which carrying out the 
     proposals received by the Administrator would minimize the 
     likelihood that the Administrator would use the borrowing 
     authority under section 1309 of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4016);
       (E) describes fluctuations in historical reinsurance rates; 
     and
       (F) includes an economic cost-benefit analysis of the 
     impact on the National Flood Insurance Program if the 
     Administrator were to exercise the authority under section 
     1335(a)(2) of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4055(a)(2)), as added by this section, to secure 
     reinsurance of coverage provided by the National Flood 
     Insurance Program from the private market.
       (2) Protocol for release of data.--The Administrator shall 
     develop a protocol, including adequate privacy protections, 
     to provide for the release of data sufficient to conduct the 
     assessment required under paragraph (1).
       (d) Reinsurance.--The National Flood Insurance Act of 1968 
     (42 U.S.C. 4001 et seq.) is amended--
       (1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), by 
     inserting ``, including as reinsurance of coverage provided 
     by the flood insurance program'' before ``, on such terms'';
       (2) in section 1332(c)(2) (42 U.S.C. 4052(c)(2)), by 
     inserting ``or reinsurance'' after ``flood insurance 
     coverage'';
       (3) in section 1335(a) (42 U.S.C. 4055(a))--
       (A) by striking ``The Director'' and inserting the 
     following:
       ``(1) In general.--The Administrator''; and
       (B) by adding at the end the following:
       ``(2) Private reinsurance.--The Administrator is authorized 
     to secure reinsurance of coverage provided by the flood 
     insurance program from the private market at rates and on 
     terms determined by the Administrator to be reasonable and 
     appropriate, in an amount sufficient to maintain the ability 
     of the program to pay claims.'';
       (4) in section 1346(a) (42 U.S.C. 4082(a))--
       (A) in the matter preceding paragraph (1), by inserting 
     after ``for the purpose of'' the following: ``securing 
     reinsurance of insurance coverage provided by the program or 
     for the purpose of'';
       (B) in paragraph (1)--
       (i) by striking ``estimating'' and inserting 
     ``Estimating''; and
       (ii) by striking the semicolon at the end and inserting a 
     period;
       (C) in paragraph (2)--
       (i) by striking ``receiving'' and inserting ``Receiving''; 
     and
       (ii) by striking the semicolon at the end and inserting a 
     period;
       (D) in paragraph (3)--
       (i) by striking ``making'' and inserting ``Making''; and
       (ii) by striking ```; and''' and inserting a period;
       (E) by redesignating paragraph (4) as paragraph (5);
       (F) in paragraph (5), as so redesignated, by striking 
     ``otherwise'' and inserting ``Otherwise''; and
       (G) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Placing reinsurance coverage on insurance provided by 
     such program.''; and
       (5) in section 1370(a)(3) (42 U.S.C. 4121(a)(3)), by 
     striking ``include any'' and all that follows

[[Page 10673]]

     and inserting the following: ``include any organization or 
     person that is authorized to engage in the business of 
     insurance under the laws of any State, subject to the 
     reporting requirements of the Securities Exchange Act of 1934 
     pursuant to section 13(a) or 15(d) of such Act (15 U.S.C. 
     78m(a) and 78o(d)), or authorized by the Administrator to 
     assume reinsurance on risks insured by the flood insurance 
     program;''.
       (e) Assessment of Claims-paying Ability.--
       (1) Assessment.--
       (A) Assessment required.--
       (i) In general.--Not later than September 30 of each year, 
     the Administrator shall conduct an assessment of the ability 
     of the National Flood Insurance Program to pay claims.
       (ii) Private market reinsurance.--The assessment under this 
     paragraph for any year in which the Administrator exercises 
     the authority under section 1335(a)(2) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4055(a)(2)), as added by 
     this section, to secure reinsurance of coverage provided by 
     the National Flood Insurance Program from the private market 
     shall include information relating the use of private sector 
     reinsurance and reinsurance equivalents by the Administrator, 
     whether or not the Administrator used the borrowing authority 
     under section 1309 of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4016).
       (iii) First assessment.--The Administrator shall conduct 
     the first assessment required under this paragraph not later 
     than September 30, 2012.
       (B) Considerations.--In conducting an assessment under 
     subparagraph (A), the Administrator shall take into 
     consideration regional concentrations of coverage written by 
     the National Flood Insurance Program, peak flood zones, and 
     relevant mitigation measures.
       (2) Annual report of the administrator of activities under 
     the national flood insurance program.--The Administrator 
     shall--
       (A) include the results of each assessment in the report 
     required under section 100231(b); and
       (B) not later than 30 days after the date on which the 
     Administrator completes an assessment required under 
     paragraph (1), make the results of the assessment available 
     to the public.

     SEC. 100233. GAO STUDY ON BUSINESS INTERRUPTION AND 
                   ADDITIONAL LIVING EXPENSES COVERAGES.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study concerning--
       (1) the availability of additional living expenses and 
     business interruption coverage in the private marketplace for 
     flood insurance;
       (2) the feasibility of allowing the National Flood 
     Insurance Program to offer such coverage at the option of the 
     consumer;
       (3) the estimated cost to consumers if the National Flood 
     Insurance Program priced such optional coverage at true 
     actuarial rates;
       (4) the impact such optional coverage would have on 
     consumer participation in the National Flood Insurance 
     Program; and
       (5) the fiscal impact such optional coverage would have 
     upon the National Flood Insurance Fund if such optional 
     coverage were included in the National Flood Insurance 
     Program, as described in paragraph (2), at the price 
     described in paragraph (3).
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to the Committee on Banking, Housing, and Urban Affairs of 
     the Senate and the Committee on Financial Services of the 
     House of Representatives a report containing the results of 
     the study under subsection (a).

     SEC. 100234. POLICY DISCLOSURES.

       (a) In General.--Notwithstanding any other provision of 
     law, in addition to any other disclosures that may be 
     required, each policy under the National Flood Insurance 
     Program shall state all conditions, exclusions, and other 
     limitations pertaining to coverage under the subject policy, 
     regardless of the underlying insurance product, in plain 
     English, in boldface type, and in a font size that is twice 
     the size of the text of the body of the policy.
       (b) Violations.--The Administrator may impose a civil 
     penalty of not more than $50,000 on any person that fails to 
     comply with subsection (a).

     SEC. 100235. REPORT ON INCLUSION OF BUILDING CODES IN 
                   FLOODPLAIN MANAGEMENT CRITERIA.

       Not later than 6 months after the date of enactment of this 
     Act, the Administrator of the Federal Emergency Management 
     Agency shall conduct a study and submit a report to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives regarding the impact, effectiveness, and 
     feasibility of amending section 1361 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4102) to include widely used 
     and nationally recognized building codes as part of the 
     floodplain management criteria developed under such section, 
     and shall determine--
       (1) the regulatory, financial, and economic impacts of such 
     a building code requirement on homeowners, States and local 
     communities, local land use policies, and the Federal 
     Emergency Management Agency;
       (2) the resources required of State and local communities 
     to administer and enforce such a building code requirement;
       (3) the effectiveness of such a building code requirement 
     in reducing flood-related damage to buildings and contents;
       (4) the impact of such a building code requirement on the 
     actuarial soundness of the National Flood Insurance Program;
       (5) the effectiveness of nationally recognized codes in 
     allowing innovative materials and systems for flood-resistant 
     construction;
       (6) the feasibility and effectiveness of providing an 
     incentive in lower premium rates for flood insurance coverage 
     under such Act for structures meeting whichever of such 
     widely used and nationally recognized building codes or any 
     applicable local building codes provides greater protection 
     from flood damage;
       (7) the impact of such a building code requirement on rural 
     communities with different building code challenges than 
     urban communities; and
       (8) the impact of such a building code requirement on 
     Indian reservations.

     SEC. 100236. STUDY OF PARTICIPATION AND AFFORDABILITY FOR 
                   CERTAIN POLICYHOLDERS.

       (a) FEMA Study.--The Administrator shall conduct a study 
     of--
       (1) methods to encourage and maintain participation in the 
     National Flood Insurance Program;
       (2) methods to educate consumers about the National Flood 
     Insurance Program and the flood risk associated with their 
     property;
       (3) methods for establishing an affordability framework for 
     the National Flood Insurance Program, including methods to 
     aid individuals to afford risk-based premiums under the 
     National Flood Insurance Program through targeted assistance 
     rather than generally subsidized rates, including means-
     tested vouchers; and
       (4) the implications for the National Flood Insurance 
     Program and the Federal budget of using each such method.
       (b) National Academy of Sciences Economic Analysis.--To 
     inform the Administrator in the conduct of the study under 
     subsection (a), the Administrator shall enter into a contract 
     under which the National Academy of Sciences, in consultation 
     with the Comptroller General of the United States, shall 
     conduct and submit to the Administrator an economic analysis 
     of the costs and benefits to the Federal Government of a 
     flood insurance program with full risk-based premiums, 
     combined with means-tested Federal assistance to aid 
     individuals who cannot afford coverage, through an insurance 
     voucher program. The analysis shall compare the costs of a 
     program of risk-based rates and means-tested assistance to 
     the current system of subsidized flood insurance rates and 
     federally funded disaster relief for people without coverage.
       (c) Report.--Not later than 270 days after the date of 
     enactment of this Act, the Administrator shall submit to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives a report that contains the results of the 
     study and analysis under this section.
       (d) Funding.--Notwithstanding section 1310 of the National 
     Flood Insurance Act of 1968 (42 U.S.C. 4017), there shall be 
     available to the Administrator from the National Flood 
     Insurance Fund, of amounts not otherwise obligated, not more 
     than $750,000 to carry out this section.

     SEC. 100237. STUDY AND REPORT CONCERNING THE PARTICIPATION OF 
                   INDIAN TRIBES AND MEMBERS OF INDIAN TRIBES IN 
                   THE NATIONAL FLOOD INSURANCE PROGRAM.

       (a) Definition.--In this section, the term ``Indian tribe'' 
     has the meaning given that term in section 4 of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b).
       (b) Findings.--Congress finds that participation by Indian 
     tribes in the National Flood Insurance Program is low. Only 
     45 of 565 Indian tribes participate in the National Flood 
     Insurance Program.
       (c) Study.--The Comptroller General of the United States, 
     in coordination and consultation with Indian tribes and 
     members of Indian tribes throughout the United States, shall 
     carry out a study that examines--
       (1) the factors contributing to the current rates of 
     participation by Indian tribes and members of Indian tribes 
     in the National Flood Insurance Program; and
       (2) methods of encouraging participation by Indian tribes 
     and members of Indian tribes in the National Flood Insurance 
     Program.
       (d) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report that--
       (1) contains the results of the study carried out under 
     subsection (c);
       (2) describes the steps that the Administrator should take 
     to increase awareness and encourage participation by Indian 
     tribes and members of Indian tribes in the National Flood 
     Insurance Program; and
       (3) identifies any legislative changes that would encourage 
     participation by Indian tribes and members of Indian tribes 
     in the National Flood Insurance Program.

     SEC. 100238. TECHNICAL CORRECTIONS.

       (a) Flood Disaster Protection Act of 1973.--The Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4002 et seq.) is 
     amended--
       (1) by striking ``Director'' each place that term appears, 
     except in section 102(f)(3) (42 U.S.C. 4012a(f)(3)), and 
     inserting ``Administrator''; and
       (2) in section 201(b) (42 U.S.C. 4105(b)), by striking 
     ``Director's'' and inserting ``Administrator's''.
       (b) National Flood Insurance Act of 1968.--The National 
     Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is 
     amended--

[[Page 10674]]

       (1) by striking ``Director'' each place that term appears 
     and inserting ``Administrator'';
       (2) in section 1363 (42 U.S.C. 4104), by striking 
     ``Director's'' each place that term appears and inserting 
     ``Administrator's''; and
       (3) in section 1370(a)(9) (42 U.S.C. 4121(a)(9)), by 
     striking ``the Office of Thrift Supervision,''.
       (c) Federal Flood Insurance Act of 1956.--Section 15(e) of 
     the Federal Flood Insurance Act of 1956 (42 U.S.C. 2414(e)) 
     is amended by striking ``Director'' each place that term 
     appears and inserting ``Administrator''.

     SEC. 100239. USE OF PRIVATE INSURANCE TO SATISFY MANDATORY 
                   PURCHASE REQUIREMENT.

       (a) Amendments.--Section 102(b) of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a(b)) is amended--
       (1) in paragraph (1)--
       (A) by striking the period at the end and inserting ``; 
     and'';
       (B) by striking ``lending institutions not to make'' and 
     inserting ``lending institutions--
       ``(A) not to make''; and
       (C) by adding at the end the following:
       ``(B) to accept private flood insurance as satisfaction of 
     the flood insurance coverage requirement under subparagraph 
     (A) if the coverage provided by such private flood insurance 
     meets the requirements for coverage under such 
     subparagraph.'';
       (2) in paragraph (2)--
       (A) by striking ``paragraph (1)'' each place that term 
     appears and inserting ``paragraph (1)(A)''; and
       (B) by inserting after the first sentence the following: 
     ``Each Federal agency lender shall accept private flood 
     insurance as satisfaction of the flood insurance coverage 
     requirement under the preceding sentence if the flood 
     insurance coverage provided by such private flood insurance 
     meets the requirements for coverage under such sentence.'';
       (3) in paragraph (3), in the matter following subparagraph 
     (B), by striking ``paragraph (1).'' and inserting ``paragraph 
     (1)(A). The Federal National Mortgage Association and the 
     Federal Home Loan Mortgage Corporation shall accept private 
     flood insurance as satisfaction of the flood insurance 
     coverage requirement under paragraph (1)(A) if the flood 
     insurance coverage provided by such private flood insurance 
     meets the requirements for coverage under such paragraph and 
     any requirements established by the Federal National Mortgage 
     Association or the Federal Home Loan Mortgage Corporation, 
     respectively, relating to the financial solvency, strength, 
     or claims-paying ability of private insurance companies from 
     which the Federal National Mortgage Association or the 
     Federal Home Loan Mortgage Corporation will accept private 
     flood insurance.''; and
       (4) by adding at the end the following:
       ``(5) Rule of construction.--Nothing in this subsection 
     shall be construed to supersede or limit the authority of a 
     Federal entity for lending regulation, the Federal Housing 
     Finance Agency, a Federal agency lender, the Federal National 
     Mortgage Association, or the Federal Home Loan Mortgage 
     Corporation to establish requirements relating to the 
     financial solvency, strength, or claims-paying ability of 
     private insurance companies from which the entity or agency 
     will accept private flood insurance.
       ``(6) Notice.--
       ``(A) In general.--Each lender shall disclose to a borrower 
     that is subject to this subsection that--
       ``(i) flood insurance is available from private insurance 
     companies that issue standard flood insurance policies on 
     behalf of the national flood insurance program or directly 
     from the national flood insurance program;
       ``(ii) flood insurance that provides the same level of 
     coverage as a standard flood insurance policy under the 
     national flood insurance program may be available from a 
     private insurance company that issues policies on behalf of 
     the company; and
       ``(iii) the borrower is encouraged to compare the flood 
     insurance coverage, deductibles, exclusions, conditions and 
     premiums associated with flood insurance policies issued on 
     behalf of the national flood insurance program and policies 
     issued on behalf of private insurance companies and to direct 
     inquiries regarding the availability, cost, and comparisons 
     of flood insurance coverage to an insurance agent.
       ``(B) Rule of construction.--Nothing in this paragraph 
     shall be construed as affecting or otherwise limiting the 
     authority of a Federal entity for lending regulation to 
     approve any disclosure made by a regulated lending 
     institution for purposes of complying with subparagraph (A).
       ``(7) Private flood insurance defined.--In this subsection, 
     the term `private flood insurance' means an insurance policy 
     that--
       ``(A) is issued by an insurance company that is--
       ``(i) licensed, admitted, or otherwise approved to engage 
     in the business of insurance in the State or jurisdiction in 
     which the insured building is located, by the insurance 
     regulator of that State or jurisdiction; or
       ``(ii) in the case of a policy of difference in conditions, 
     multiple peril, all risk, or other blanket coverage insuring 
     nonresidential commercial property, is recognized, or not 
     disapproved, as a surplus lines insurer by the insurance 
     regulator of the State or jurisdiction where the property to 
     be insured is located;
       ``(B) provides flood insurance coverage which is at least 
     as broad as the coverage provided under a standard flood 
     insurance policy under the national flood insurance program, 
     including when considering deductibles, exclusions, and 
     conditions offered by the insurer;
       ``(C) includes--
       ``(i) a requirement for the insurer to give 45 days' 
     written notice of cancellation or non-renewal of flood 
     insurance coverage to--

       ``(I) the insured; and
       ``(II) the regulated lending institution or Federal agency 
     lender;

       ``(ii) information about the availability of flood 
     insurance coverage under the national flood insurance 
     program;
       ``(iii) a mortgage interest clause similar to the clause 
     contained in a standard flood insurance policy under the 
     national flood insurance program; and
       ``(iv) a provision requiring an insured to file suit not 
     later than 1 year after date of a written denial of all or 
     part of a claim under the policy; and
       ``(D) contains cancellation provisions that are as 
     restrictive as the provisions contained in a standard flood 
     insurance policy under the national flood insurance 
     program.''.
       (b) Technical and Conforming Amendment.--Section 
     1364(a)(3)(C) of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4104a(a)(3)(C)) is amended by inserting after 
     ``private insurers'' the following: ``, as required under 
     section 102(b)(6) of the Flood Disaster Protection Act of 
     1973 (42 U.S.C. 4012a(b)(6))''.

     SEC. 100240. LEVEES CONSTRUCTED ON CERTAIN PROPERTIES.

       (a) Definition.--In this section, the term ``covered hazard 
     mitigation land'' means land that--
       (1) was acquired and deed restricted under section 1366 of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) 
     during the period beginning on January 1, 1999, and ending 
     December 31, 2011;
       (2) is located at--
       (A) 1029 Oak Street, Fargo, North Dakota;
       (B) 27 South Terrace, Fargo, North Dakota;
       (C) 1033 Oak Street, Fargo, North Dakota;
       (D) 308 Schnell Drive, Oxbow, North Dakota; or
       (E) 306 Schnell Drive, Oxbow, North Dakota; and
       (3) is located in a community that--
       (A) is participating in the National Flood Insurance 
     Program on the date on which a State, local, or tribal 
     government submits an application requesting to construct a 
     permanent flood risk reduction levee under subsection (b); 
     and
       (B) certifies to the Administrator and the Chief of 
     Engineers that the community will continue to participate in 
     the National Flood Insurance Program.
       (b) Authority.--Notwithstanding any other prohibition on 
     construction on property acquired with funding from the 
     Federal Emergency Management Agency for conversion to open 
     space purposes, the Administrator shall allow the 
     construction of a permanent flood risk reduction levee by a 
     State, local, or tribal government on covered hazard 
     mitigation land if--
       (1) the Administrator and the Chief of Engineers make a 
     determination that--
       (A) construction of the proposed permanent flood risk 
     reduction levee would more effectively mitigate against 
     flooding risk than an open floodplain or other flood risk 
     reduction measures;
       (B) the proposed permanent flood risk reduction levee 
     complies with Federal, State, and local requirements, 
     including mitigation of adverse impacts and implementation of 
     floodplain management requirements, which shall include an 
     evaluation of whether the construction, operation, and 
     maintenance of the proposed levee--
       (i) would continue to meet best available industry 
     standards and practices;
       (ii) would be the most cost-effective measure to protect 
     against the assessed flood risk; and
       (iii) minimizes future costs to the Federal Government;
       (C) the State, local, or tribal government seeking to 
     construct the proposed permanent flood risk reduction levee 
     has provided an adequate maintenance plan that documents the 
     procedures the State, local, or tribal government will use to 
     ensure that the stability, height, and overall integrity of 
     the proposed levee and the structure and systems of the 
     proposed levee are maintained, including--
       (i) specifying the maintenance activities to be performed;
       (ii) specifying the frequency with which maintenance 
     activities will be performed;
       (iii) specifying the person responsible for performing each 
     maintenance activity (by name or title);
       (iv) detailing the plan for financing the maintenance of 
     the levee; and
       (v) documenting the ability of the State, local, or tribal 
     government to finance the maintenance of the levee; and
       (2) before the commencement of construction, the State, 
     local, or tribal government provides to the Administrator an 
     amount--
       (A) equal to the Federal share of all project costs 
     previously provided by the Administrator under the applicable 
     program for each deed restricted parcel of the covered hazard 
     mitigation land, which the Administrator shall deposit in the 
     National Flood Insurance Fund; and
       (B) that does not include any Federal funds.
       (c) Maintenance Certification.--
       (1) In general.--A State, local, or tribal government that 
     constructs a permanent flood risk reduction levee under 
     subsection (b) shall submit to the Administrator and the 
     Chief of Engineers an annual certification indicating whether 
     the State, local, or tribal government is in compliance with 
     the maintenance plan provided under subsection (b)(1)(C).

[[Page 10675]]

       (2) Review.--The Chief of Engineers shall review each 
     certification submitted under paragraph (1) and determine 
     whether the State, local, or tribal government has complied 
     with the maintenance plan.

     SEC. 100241. INSURANCE COVERAGE FOR PRIVATE PROPERTIES 
                   AFFECTED BY FLOODING FROM FEDERAL LANDS.

       Section 1306(c)(2) of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4013(c)(2)) is amended--
       (1) in subparagraph (A), by striking ``or'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(C) the initial purchase of flood insurance coverage for 
     private property if--
       ``(i) the Administrator determines that the property is 
     affected by flooding on Federal land that is a result of, or 
     is exacerbated by, post-wildfire conditions, after 
     consultation with an authorized employee of the Federal 
     agency that has jurisdiction of the land on which the 
     wildfire that caused the post-wildfire conditions occurred; 
     and
       ``(ii) the flood insurance coverage was purchased not later 
     than 60 days after the fire containment date, as determined 
     by the appropriate Federal employee, relating to the wildfire 
     that caused the post-wildfire conditions described in clause 
     (i).''.

     SEC. 100242. PERMISSIBLE LAND USE UNDER FEDERAL FLOOD 
                   INSURANCE PLAN.

       Chapter I of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4011 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 1325. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE OF 
                   HURRICANE SEASON.

       ``(a) In General.--Notwithstanding any other provision of 
     law, including the adequate land use and control measures 
     developed pursuant to section 1361 and applicable to non-one- 
     and two-family structures located within coastal areas, as 
     identified by the Administrator, the following may be 
     permitted:
       ``(1) Nonsupporting breakaway walls in the space below the 
     lowest elevated floor of a building, if the space is used 
     solely for a swimming pool between November 30 and June 1 of 
     any year, in an area designated as Zone V on a flood 
     insurance rate map.
       ``(2) Openings in walls in the space below the lowest 
     elevated floor of a building, if the space is used solely for 
     a swimming pool between November 30 and June 1 of any year, 
     in an area designated as Zone A on a flood insurance rate 
     map.
       ``(b) Rule of Construction.--Nothing in subsection (a) 
     shall be construed to alter the terms and conditions of 
     eligibility and insurability of coverage for a building under 
     the standard flood insurance policy under the national flood 
     insurance program.''.

     SEC. 100243. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUTREACH 
                   ACTIVITIES AND COMMUNITY BUILDING CODE 
                   ADMINISTRATION GRANTS.

       (a) Amendments.--Section 105(a) of the Housing and 
     Community Development Act of 1974 (42 U.S.C. 5305(a)) is 
     amended--
       (1) by redesignating paragraph (25) as paragraph (26);
       (2) by redesignating the second paragraph designated as 
     paragraph (24) (relating to tornado-safe shelters) as 
     paragraph (25);
       (3) in paragraph (24) (relating to homeownership among 
     persons with low and moderate income), by striking ``and'' at 
     the end;
       (4) in paragraph (25), as so redesignated, by striking 
     ``and'' at the end;
       (5) in paragraph (26), as so redesignated, by striking the 
     period at the end and inserting a semicolon; and
       (6) by adding at the end the following new paragraphs:
       ``(27) supplementing existing State or local funding for 
     administration of building code enforcement by local building 
     code enforcement departments, including for increasing 
     staffing, providing staff training, increasing staff 
     competence and professional qualifications, and supporting 
     individual certification or departmental accreditation, and 
     for capital expenditures specifically dedicated to the 
     administration of the building code enforcement department, 
     except that, to be eligible to use amounts as provided in 
     this paragraph--
       ``(A) a building code enforcement department shall provide 
     matching, non-Federal funds to be used in conjunction with 
     amounts used under this paragraph in an amount--
       ``(i) in the case of a building code enforcement department 
     serving an area with a population of more than 50,000, equal 
     to not less than 50 percent of the total amount of any funds 
     made available under this title that are used under this 
     paragraph;
       ``(ii) in the case of a building code enforcement 
     department serving an area with a population of between 
     20,001 and 50,000, equal to not less than 25 percent of the 
     total amount of any funds made available under this title 
     that are used under this paragraph; and
       ``(iii) in the case of a building code enforcement 
     department serving an area with a population of less than 
     20,000, equal to not less than 12.5 percent of the total 
     amount of any funds made available under this title that are 
     used under this paragraph,

     except that the Secretary may waive the matching fund 
     requirements under this subparagraph, in whole or in part, 
     based upon the level of economic distress of the jurisdiction 
     in which is located the local building code enforcement 
     department that is using amounts for purposes under this 
     paragraph, and shall waive such matching fund requirements in 
     whole for any recipient jurisdiction that has dedicated all 
     building code permitting fees to the conduct of local 
     building code enforcement; and
       ``(B) any building code enforcement department using funds 
     made available under this title for purposes under this 
     paragraph shall empanel a code administration and enforcement 
     team consisting of at least 1 full-time building code 
     enforcement officer, a city planner, and a health planner or 
     similar officer; and
       ``(28) provision of assistance to local governmental 
     agencies responsible for floodplain management activities 
     (including such agencies of Indians tribes, as such term is 
     defined in section 4 of the Native American Housing 
     Assistance and Self-Determination Act of 1996 (25 U.S.C. 
     4103)) in communities that participate in the national flood 
     insurance program under the National Flood Insurance Act of 
     1968 (42 U.S.C. 4001 et seq.), only for carrying out outreach 
     activities to encourage and facilitate the purchase of flood 
     insurance protection under such Act by owners and renters of 
     properties in such communities and to promote educational 
     activities that increase awareness of flood risk reduction; 
     except that--
       ``(A) amounts used as provided under this paragraph shall 
     be used only for activities designed to--
       ``(i) identify owners and renters of properties in 
     communities that participate in the national flood insurance 
     program, including owners of residential and commercial 
     properties;
       ``(ii) notify such owners and renters when their properties 
     become included in, or when they are excluded from, an area 
     having special flood hazards and the effect of such inclusion 
     or exclusion on the applicability of the mandatory flood 
     insurance purchase requirement under section 102 of the Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4012a) to such 
     properties;
       ``(iii) educate such owners and renters regarding the flood 
     risk and reduction of this risk in their community, including 
     the continued flood risks to areas that are no longer subject 
     to the flood insurance mandatory purchase requirement;
       ``(iv) educate such owners and renters regarding the 
     benefits and costs of maintaining or acquiring flood 
     insurance, including, where applicable, lower-cost preferred 
     risk policies under this title for such properties and the 
     contents of such properties;
       ``(v) encourage such owners and renters to maintain or 
     acquire such coverage;
       ``(vi) notify such owners of where to obtain information 
     regarding how to obtain such coverage, including a telephone 
     number, mailing address, and Internet site of the 
     Administrator of the Federal Emergency Management Agency (in 
     this paragraph referred to as the `Administrator') where such 
     information is available; and
       ``(vii) educate local real estate agents in communities 
     participating in the national flood insurance program 
     regarding the program and the availability of coverage under 
     the program for owners and renters of properties in such 
     communities, and establish coordination and liaisons with 
     such real estate agents to facilitate purchase of coverage 
     under the National Flood Insurance Act of 1968 and increase 
     awareness of flood risk reduction;
       ``(B) in any fiscal year, a local governmental agency may 
     not use an amount under this paragraph that exceeds 3 times 
     the amount that the agency certifies, as the Secretary, in 
     consultation with the Administrator, shall require, that the 
     agency will contribute from non-Federal funds to be used with 
     such amounts used under this paragraph only for carrying out 
     activities described in subparagraph (A); and for purposes of 
     this subparagraph, the term `non-Federal funds' includes 
     State or local government agency amounts, in-kind 
     contributions, any salary paid to staff to carry out the 
     eligible activities of the local governmental agency 
     involved, the value of the time and services contributed by 
     volunteers to carry out such services (at a rate determined 
     by the Secretary), and the value of any donated material or 
     building and the value of any lease on a building;
       ``(C) a local governmental agency that uses amounts as 
     provided under this paragraph may coordinate or contract with 
     other agencies and entities having particular capacities, 
     specialties, or experience with respect to certain 
     populations or constituencies, including elderly or disabled 
     families or persons, to carry out activities described in 
     subparagraph (A) with respect to such populations or 
     constituencies; and
       ``(D) each local government agency that uses amounts as 
     provided under this paragraph shall submit a report to the 
     Secretary and the Administrator, not later than 12 months 
     after such amounts are first received, which shall include 
     such information as the Secretary and the Administrator 
     jointly consider appropriate to describe the activities 
     conducted using such amounts and the effect of such 
     activities on the retention or acquisition of flood insurance 
     coverage.''.
       (b) Sunset.--Effective on the date that is 2 years after 
     the date of enactment of this Act, section 105(a) of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 
     5305(a)) is amended--
       (1) in paragraph (25), as so redesignated by subsection (a) 
     of this subsection, by adding ``and'' at the end;
       (2) in paragraph (26), as so redesignated by subsection (a) 
     of this subsection, by striking the semicolon at the end and 
     inserting a period; and
       (3) by striking paragraphs (27) and (28), as added by 
     subsection (a) of this subsection.

[[Page 10676]]



     SEC. 100244. TERMINATION OF FORCE-PLACED INSURANCE.

       (a) In General.--Section 102(e) of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a(e)) is amended--
       (1) in paragraph (2), by striking ``purchasing the 
     insurance'' and inserting ``purchasing the insurance, 
     including premiums or fees incurred for coverage beginning on 
     the date on which flood insurance coverage lapsed or did not 
     provide a sufficient coverage amount'';
       (2) by redesignating paragraphs (3) and (4) as paragraphs 
     (5) and (6), respectively; and
       (3) by inserting after paragraph (2) the following new 
     paragraphs:
       ``(3) Termination of force-placed insurance.--Within 30 
     days of receipt by the lender or servicer of a confirmation 
     of a borrower's existing flood insurance coverage, the lender 
     or servicer shall--
       ``(A) terminate any insurance purchased by the lender or 
     servicer under paragraph (2); and
       ``(B) refund to the borrower all premiums paid by the 
     borrower for any insurance purchased by the lender or 
     servicer under paragraph (2) during any period during which 
     the borrower's flood insurance coverage and the insurance 
     coverage purchased by the lender or servicer were each in 
     effect, and any related fees charged to the borrower with 
     respect to the insurance purchased by the lender or servicer 
     during such period.
       ``(4) Sufficiency of demonstration.--For purposes of 
     confirming a borrower's existing flood insurance coverage, a 
     lender or servicer for a loan shall accept from the borrower 
     an insurance policy declarations page that includes the 
     existing flood insurance policy number and the identity of, 
     and contact information for, the insurance company or 
     agent.''.

     SEC. 100245. FEMA AUTHORITY ON TRANSFER OF POLICIES.

       Section 1345 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4081) is amended by adding at the end the 
     following new subsection:
       ``(d) FEMA Authority on Transfer of Policies.--
     Notwithstanding any other provision of this title, the 
     Administrator may, at the discretion of the Administrator, 
     refuse to accept the transfer of the administration of 
     policies for coverage under the flood insurance program under 
     this title that are written and administered by any insurance 
     company or other insurer, or any insurance agent or 
     broker.''.

     SEC. 100246. REIMBURSEMENT OF CERTAIN EXPENSES.

       Section 1363 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4104) is amended by striking subsection (f) and 
     inserting the following:
       ``(f) Reimbursement of Certain Expenses.--When, incident to 
     any appeal under subsection (b) or (c) of this section, the 
     owner or lessee of real property or the community, as the 
     case may be, incurs expense in connection with the services 
     of surveyors, engineers, or similar services, but not 
     including legal services, in the effecting of an appeal based 
     on a scientific or technical error on the part of the Federal 
     Emergency Management Agency, which is successful in whole or 
     part, the Administrator shall reimburse such individual or 
     community to an extent measured by the ratio of the 
     successful portion of the appeal as compared to the entire 
     appeal and applying such ratio to the reasonable value of all 
     such services, but no reimbursement shall be made by the 
     Administrator in respect to any fee or expense payment, the 
     payment of which was agreed to be contingent upon the result 
     of the appeal. The amounts available for implementing this 
     subsection shall not exceed $250,000. The Administrator shall 
     promulgate regulations to carry out this subsection.''.

     SEC. 100247. FIO STUDY ON RISKS, HAZARDS, AND INSURANCE.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Director of the Federal Insurance 
     Office shall conduct a study and submit to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives a report providing an assessment of the 
     current state of the market for natural catastrophe insurance 
     in the United States.
       (b) Factors.--The study and report required under 
     subsection (a) shall assess--
       (1) the current condition of, as well as the outlook for, 
     the availability and affordability of insurance for natural 
     catastrophe perils in all regions of the United States;
       (2) the current ability of States, communities, and 
     individuals to mitigate their natural catastrophe risks, 
     including the affordability and feasibility of such 
     mitigation activities;
       (3) the current state of catastrophic insurance and 
     reinsurance markets and the current approaches in providing 
     insurance protection to different sectors of the population 
     of the United States;
       (4) the current financial condition of State residual 
     markets and catastrophe funds in high-risk regions, including 
     the likelihood of insolvency following a natural catastrophe, 
     the concentration of risks within such funds, the reliance on 
     post-event assessments and State funding, and the adequacy of 
     rates; and
       (5) the current role of the Federal Government and State 
     and local governments in providing incentives for feasible 
     risk mitigation efforts and the cost of providing post-
     natural catastrophe aid in the absence of insurance.
       (c) Additional Factors.--The study and report required 
     under subsection (a) shall also contain an assessment of 
     current approaches to insuring natural catastrophe risks in 
     the United States and such other information as the Director 
     of the Federal Insurance Office determines necessary or 
     appropriate.
       (d) Consultation.--In carrying out the study and report 
     under subsection (a), the Director of the Federal Insurance 
     Office shall consult with the National Academy of Sciences, 
     State insurance regulators, consumer organizations, 
     representatives of the insurance and reinsurance industry, 
     policyholders, and other organizations and experts, as 
     appropriate.

     SEC. 100248. FLOOD PROTECTION IMPROVEMENTS CONSTRUCTED ON 
                   CERTAIN PROPERTIES.

       (a) Definition.--In this section, the term ``covered hazard 
     mitigation land'' means land that--
       (1) was acquired and deed restricted under section 1366 of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) 
     during the period beginning on March 1, 2008, and ending on 
     December 31, 2008;
       (2) is located at--
       (A) 809 East Main Cross Street, Findlay, Ohio, 45840;
       (B) 801 East Main Cross Street, Findlay, Ohio, 45840;
       (C) 725 East Main Cross Street, Findlay, Ohio, 45840; or
       (D) 631 East Main Cross Street, Findlay, Ohio, 45840; and
       (3) is located in a community that--
       (A) is participating in the National Flood Insurance 
     Program on the date on which a State, local, or tribal 
     government submits an application requesting to construct a 
     flood protection improvement under subsection (b); and
       (B) certifies to the Administrator and the Chief of 
     Engineers that the community will continue to participate in 
     the National Flood Insurance Program.
       (b) Authority.--Notwithstanding any other prohibition on 
     construction on property acquired with funding from the 
     Federal Emergency Management Agency for conversion to open 
     space purposes, the Administrator shall allow the 
     construction of a flood protection improvement by a State, 
     local, or tribal government on covered hazard mitigation land 
     if--
       (1) the Administrator and the Chief of Engineers make a 
     determination that--
       (A) construction of the proposed flood protection 
     improvement would more effectively mitigate against flooding 
     risk than an open floodplain or other flood risk reduction 
     measures;
       (B) the proposed flood protection improvement complies with 
     Federal, State, and local requirements, including mitigation 
     of adverse impacts and implementation of floodplain 
     management requirements, which shall include an evaluation of 
     whether the construction, operation, and maintenance of the 
     proposed flood protection improvement--
       (i) would continue to meet best available industry 
     standards and practices;
       (ii) would be the most cost-effective measure to protect 
     against the assessed flood risk; and
       (iii) minimizes future costs to the Federal Government;
       (C) the State, local, or tribal government seeking to 
     construct the flood protection improvement has provided an 
     adequate maintenance plan that documents the procedures the 
     State, local, or tribal government will use to ensure that 
     the stability, height, and overall integrity of the proposed 
     flood protection improvement and the structure and systems of 
     the proposed flood protection improvement are maintained, 
     including--
       (i) specifying the maintenance activities to be performed;
       (ii) specifying the frequency with which maintenance 
     activities will be performed;
       (iii) specifying the person responsible for performing each 
     maintenance activity (by name or title);
       (iv) detailing the plan for financing the maintenance of 
     the flood protection improvement; and
       (v) documenting the ability of the State, local, or tribal 
     government to finance the maintenance of the flood protection 
     improvement; and
       (2) before the commencement of construction, the State, 
     local, or tribal government provides to the Administrator an 
     amount--
       (A) equal to the Federal share of all project costs 
     previously provided by the Administrator under the applicable 
     program for each deed restricted parcel of the covered hazard 
     mitigation land, which the Administrator shall deposit in the 
     National Flood Insurance Fund; and
       (B) that does not include any Federal funds.
       (c) Maintenance Certification.--
       (1) In general.--A State, local, or tribal government that 
     constructs a flood protection improvement under subsection 
     (b) shall submit to the Administrator and the Chief of 
     Engineers an annual certification indicating whether the 
     State, local, or tribal government is in compliance with the 
     maintenance plan provided under subsection (b)(1)(C).
       (2) Review.--The Chief of Engineers shall review each 
     certification submitted under paragraph (1) and determine 
     whether the State, local, or tribal government has complied 
     with the maintenance plan.

     SEC. 100249. NO CAUSE OF ACTION.

       No cause of action shall exist and no claim may be brought 
     against the United States for violation of any notification 
     requirement imposed upon the United States by this subtitle 
     or any amendment made by this subtitle.
                Subtitle B--Alternative Loss Allocation

     SEC. 100251. SHORT TITLE.

       This subtitle may be cited as the ``Consumer Option for an 
     Alternative System to Allocate Losses Act of 2012'' or the 
     ``COASTAL Act of 2012''.

[[Page 10677]]



     SEC. 100252. ASSESSING AND MODELING NAMED STORMS OVER COASTAL 
                   STATES.

       Subtitle C of title XII of the Omnibus Public Land 
     Management Act of 2009 (33 U.S.C. 3601 et seq.) (also known 
     as the ``Integrated Coastal and Ocean Observation System Act 
     of 2009'') is amended by adding at the end the following:

     ``SEC. 12312. ASSESSING AND MODELING NAMED STORMS OVER 
                   COASTAL STATES.

       ``(a) Definitions.--In this section:
       ``(1) COASTAL formula.--The term `COASTAL Formula' has the 
     meaning given the term in section 1337(a) of the National 
     Flood Insurance Act of 1968.
       ``(2) Coastal state.--The term `coastal State' has the 
     meaning given the term `coastal state' in section 304 of the 
     Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
       ``(3) Coastal waters.--The term `coastal waters' has the 
     meaning given the term in such section.
       ``(4) Covered data.--The term `covered data' means, with 
     respect to a named storm identified by the Administrator 
     under subsection (b)(2)(A), empirical data that are--
       ``(A) collected before, during, or after such storm; and
       ``(B) necessary to determine magnitude and timing of wind 
     speeds, rainfall, the barometric pressure, river flows, the 
     extent, height, and timing of storm surge, topographic and 
     bathymetric data, and other measures required to accurately 
     model and assess damage from such storm.
       ``(5) Indeterminate loss.--The term `indeterminate loss' 
     has the meaning given the term in section 1337(a) of the 
     National Flood Insurance Act of 1968.
       ``(6) Named storm.--The term `named storm' means any 
     organized weather system with a defined surface circulation 
     and maximum winds of at least 39 miles per hour which the 
     National Hurricane Center of the United States National 
     Weather Service names as a tropical storm or a hurricane.
       ``(7) Named storm event model.--The term `Named Storm Event 
     Model' means the official meteorological and oceanographic 
     computerized model, developed by the Administrator under 
     subsection (b)(1)(A), which utilizes covered data to 
     replicate the magnitude, timing, and spatial variations of 
     winds, rainfall, and storm surges associated with named 
     storms that threaten any portion of a coastal State.
       ``(8) Participant.--The term `participant' means a Federal, 
     State, or private entity that chooses to cooperate with the 
     Administrator in carrying out the provisions of this section 
     by collecting, contributing, and maintaining covered data.
       ``(9) Post-storm assessment.--The term `post-storm 
     assessment' means a scientific assessment produced and 
     certified by the Administrator to determine the magnitude, 
     timing, and spatial variations of winds, rainfall, and storm 
     surges associated with a specific named storm to be used in 
     the COASTAL Formula.
       ``(10) State.--The term `State' means a State of the United 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, and any other territory or possession of the United 
     States.
       ``(b) Named Storm Event Model and Post-storm Assessment.--
       ``(1) Establishment of named storm event model.--
       ``(A) In general.--Not later than 540 days after the date 
     of the enactment of the Consumer Option for an Alternative 
     System to Allocate Losses Act of 2012, the Administrator 
     shall develop by regulation the Named Storm Event Model.
       ``(B) Accuracy.--The Named Storm Event Model shall be 
     designed to generate post-storm assessments, as provided in 
     paragraph (2), that have a degree of accuracy of not less 
     than 90 percent for every indeterminate loss for which a 
     post-storm assessment is utilized.
       ``(2) Post-storm assessment.--
       ``(A) Identification of named storms threatening coastal 
     states.--After the establishment of the COASTAL Formula, the 
     Administrator shall, in consultation with the Secretary of 
     Homeland Security, identify named storms that may reasonably 
     constitute a threat to any portion of a coastal State.
       ``(B) Post-storm assessment required.--Upon identification 
     of a named storm under subparagraph (A), the Administrator 
     shall develop a post-storm assessment for such named storm 
     using the Named Storm Event Model and covered data collected 
     for such named storm pursuant to the protocol established 
     under subsection (c)(1).
       ``(C) Submittal of post-storm assessment.--Not later than 
     90 days after an identification of a named storm is made 
     under subparagraph (A), the Administrator shall submit to the 
     Secretary of Homeland Security the post-storm assessment 
     developed for such storm under subparagraph (B).
       ``(3) Accuracy.--The Administrator shall ensure, to the 
     greatest extent practicable, that each post-storm assessment 
     developed under paragraph (2) has a degree of accuracy of not 
     less than 90 percent.
       ``(4) Certification.--For each post-storm assessment 
     carried out under paragraph (2), the Administrator shall--
       ``(A) certify the degree of accuracy for such assessment, 
     including specific reference to any segments or geographic 
     areas for which the assessment is less than 90 percent 
     accurate; and
       ``(B) report such certification to the Secretary of 
     Homeland Security for the purposes of use with indeterminate 
     loss claims under section 1337 of the National Flood 
     Insurance Act of 1968.
       ``(5) Finality of determinations.--A certification of the 
     degree of accuracy of a post-storm assessment under this 
     subsection by the Administrator shall be final and shall not 
     be subject to judicial review.
       ``(6) Availability.--The Administrator shall make available 
     to the public the Named Storm Event Model and any post-storm 
     assessment developed under this subsection.
       ``(c) Establishment of a Protocol for Post-storm 
     Assessment.--
       ``(1) In general.--Not later than 540 days after the date 
     of the enactment of the Consumer Option for an Alternative 
     System to Allocate Losses Act of 2012, the Administrator 
     shall establish a protocol, based on the plan submitted under 
     subsection (d)(3), to collect and assemble all covered data 
     required by the Administrator to produce post-storm 
     assessments required by subsection (b), including assembling 
     data collected by participants and stored in the database 
     established under subsection (f) and from such other sources 
     as the Administrator considers appropriate.
       ``(2) Acquisition of sensors and structures.--If the 
     Administrator is unable to use a public or private asset to 
     obtain covered data as part of the protocol established under 
     paragraph (1), the Administrator may acquire such sensors and 
     structures for the placement of sensors as may be necessary 
     to obtain such data.
       ``(3) Use of federal assets.--If the protocol requires 
     placement of a sensor to develop assessments pursuant to 
     subsection (b), the Administrator shall, to the extent 
     practicable, use Federal assets for the placement of such 
     sensors.
       ``(4) Use of acquired structures.--
       ``(A) In general.--If the Administrator acquires a 
     structure for the placement of a sensor for purposes of such 
     protocol, the Administrator shall to the extent practical 
     permit other public and private entities to place sensors on 
     such structure to collect--
       ``(i) meteorological data;
       ``(ii) national security-related data;
       ``(iii) navigation-related data;
       ``(iv) hydrographic data; or
       ``(v) such other data as the Administrator considers 
     appropriate.
       ``(B) Receipt of consideration.--The Administrator may 
     receive consideration for the placement of a sensor on a 
     structure under subparagraph (A).
       ``(C) In-kind consideration.--Consideration received under 
     subparagraph (B) may be received in-kind.
       ``(D) Use of consideration.--To the extent practicable, 
     consideration received under subparagraph (B) shall be used 
     for the maintenance of sensors used to collect covered data.
       ``(5) Coordinated deployments and data collection 
     practices.--The Administrator shall, in consultation with the 
     Office of the Federal Coordinator for Meteorology, coordinate 
     the deployment of sensors as part of the protocol established 
     under paragraph (1) and related data collection carried out 
     by Federal, State, academic, and private entities who choose 
     to cooperate with the Administrator in carrying out this 
     subsection.
       ``(6) Priority acquisition and deployment.--The 
     Administrator shall give priority in the acquisition for and 
     deployment of sensors under the protocol required by 
     paragraph (1) to areas of coastal States that have the 
     highest risk of being harmed by named storms.
       ``(d) Assessment of Systems and Efforts to Collect Covered 
     Data.--
       ``(1) Identification of systems and efforts to collect 
     covered data.--Not later than 180 days after the date of the 
     enactment of the Consumer Option for an Alternative System to 
     Allocate Losses Act of 2012, the Administrator shall, in 
     consultation with the Office of the Federal Coordinator for 
     Meteorology--
       ``(A) carry out a survey to identify all Federal and State 
     efforts and systems that are capable of collecting covered 
     data; and
       ``(B) consult with private and academic sector entities to 
     identify domestic private and academic systems that are 
     capable of collecting covered data.
       ``(2) Identification of gaps.--The Administrator shall, in 
     consultation with the Office of the Federal Coordinator for 
     Meteorology and individuals and entities consulted under 
     subsection (e)(3), assess the systems identified under 
     paragraph (1) and identify which systems meet the needs of 
     the National Oceanic and Atmospheric Administration for the 
     collection of covered data, including with respect to the 
     accuracy requirement for post-storm assessment under 
     subsection (b)(3).
       ``(3) Plan.--Not later than 270 days after the date of the 
     enactment of the Consumer Option for an Alternative System to 
     Allocate Losses Act of 2012, the Administrator shall, in 
     consultation with the Office of the Federal Coordinator for 
     Meteorology, submit to Congress a plan for the collection of 
     covered data necessary to develop the Named Storm Event Model 
     and post-storm assessment required by subsection (b) that 
     addresses any gaps identified in paragraph (2).
       ``(e) Coordination of Covered Data Collection and 
     Maintenance by Participants.--
       ``(1) In general.--The Administrator shall, in consultation 
     with the Office of the Federal Coordinator for Meteorology, 
     coordinate the collection and maintenance of covered data by 
     participants under this section--
       ``(A) to streamline the process of collecting covered data 
     in accordance with the protocol established under subsection 
     (c)(1); and
       ``(B) to maintain transparency of such process and the 
     database established under subsection (f).

[[Page 10678]]

       ``(2) Sharing information.--The Administrator shall 
     establish a process for sharing among participants 
     information relevant to collecting and using covered data 
     for--
       ``(A) academic research;
       ``(B) private sector use;
       ``(C) public outreach; and
       ``(D) such other purposes as the Administrator considers 
     appropriate.
       ``(3) Consultation.--In carrying out paragraphs (1) and 
     (2), the Administrator shall consult with the following:
       ``(A) The Commanding General of the Corps of Engineers.
       ``(B) The Administrator of the Federal Emergency Management 
     Agency.
       ``(C) The Commandant of the Coast Guard.
       ``(D) The Director of the United States Geological Survey.
       ``(E) The Office of the Federal Coordinator for 
     Meteorology.
       ``(F) The Director of the National Science Foundation.
       ``(G) The Administrator of the National Aeronautics and 
     Space Administration.
       ``(H) Such public, private, and academic sector entities as 
     the Administrator considers appropriate for purposes of 
     carrying out the provisions of this section.
       ``(f) Establishment of Coastal Wind and Water Event 
     Database.--
       ``(1) In general.--Not later than 1 year after the date of 
     the enactment of the Consumer Option for an Alternative 
     System to Allocate Losses Act of 2012, the Administrator 
     shall establish a database for the collection and compilation 
     of covered data--
       ``(A) to support the protocol established under subsection 
     (c)(1); and
       ``(B) for the purposes listed in subsection (e)(2).
       ``(2) Designation.--The database established under 
     paragraph (1) shall be known as the `Coastal Wind and Water 
     Event Database'.
       ``(g) Comptroller General Study.--Not later than 1 year 
     after the date of the enactment of the Consumer Option for an 
     Alternative System to Allocate Losses Act of 2012, the 
     Comptroller General of the United States shall--
       ``(1) complete an audit of Federal efforts to collect 
     covered data for purposes of the Consumer Option for an 
     Alternative System to Allocate Losses Act of 2012, which 
     audit shall--
       ``(A) examine duplicated Federal efforts to collect covered 
     data; and
       ``(B) determine the cost effectiveness of such efforts; and
       ``(2) submit to the Committee on Banking, Housing, and 
     Urban Affairs and the Commerce, Science, and Transportation 
     of the Senate and the Committee on Financial Services and the 
     Committee on Science, Space, and Technology of the House of 
     Representatives a report on the findings of the Comptroller 
     General with respect to the audit completed under paragraph 
     (1).''.

     SEC. 100253. ALTERNATIVE LOSS ALLOCATION SYSTEM FOR 
                   INDETERMINATE CLAIMS.

       Part A of chapter II of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4051 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 1337. ALTERNATIVE LOSS ALLOCATION SYSTEM FOR 
                   INDETERMINATE CLAIMS.

       ``(a) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Federal Emergency Management Agency.
       ``(2) COASTAL formula.--The term `COASTAL Formula' means 
     the formula established under subsection (b).
       ``(3) Coastal state.--The term `coastal State' has the 
     meaning given the term `coastal state' in section 304 of the 
     Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
       ``(4) Indeterminate loss.--
       ``(A) In general.--The term `indeterminate loss' means, as 
     determined by an insurance claims adjuster certified under 
     the national flood insurance program and in consultation with 
     an engineer as appropriate, a loss resulting from physical 
     damage to, or loss of, property located in any coastal State 
     arising from the combined perils of flood and wind associated 
     with a named storm.
       ``(B) Requirements.--An insurance claims adjuster certified 
     under the national flood insurance program shall only 
     determine that a loss is an indeterminate loss if the claims 
     adjuster determines that--
       ``(i) no material remnant of physical buildings or man-made 
     structures remain except building foundations for the 
     specific property for which the claim is made; and
       ``(ii) there is insufficient or no tangible evidence 
     created, yielded, or otherwise left behind of the specific 
     property for which the claim is made as a result of the named 
     storm.
       ``(5) Named storm.--The term `named storm' means any 
     organized weather system with a defined surface circulation 
     and maximum winds of not less than 39 miles per hour which 
     the National Hurricane Center of the United States National 
     Weather Service names as a tropical storm or a hurricane.
       ``(6) Post-storm assessment.--The term `post-storm 
     assessment' means the post-storm assessment developed under 
     section 12312(b) of the Omnibus Public Land Management Act of 
     2009.
       ``(7) State.--The term `State' means a State of the United 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, and any other territory or possession of the United 
     States.
       ``(8) Secretary.--The term `Secretary' means the Secretary 
     of Homeland Security.
       ``(9) Standard insurance policy.--The term `standard 
     insurance policy' means any insurance policy issued under the 
     national flood insurance program that covers loss or damage 
     to property resulting from water peril.
       ``(10) Property.--The term `property' means real or 
     personal property that is insured under a standard insurance 
     policy for loss or damage to structure or contents.
       ``(11) Under secretary.--The term `Under Secretary' means 
     the Under Secretary of Commerce for Oceans and Atmosphere, in 
     the Under Secretary's capacity as Administrator of the 
     National Oceanic and Atmospheric Administration.
       ``(b) Establishment of Flood Loss Allocation Formula for 
     Indeterminate Claims.--
       ``(1) In general.--Not later than 180 days after the date 
     on which the protocol is established under section 
     12312(c)(1) of the Omnibus Public Land Management Act of 
     2009, the Secretary, acting through the Administrator and in 
     consultation with the Under Secretary, shall establish by 
     rule a standard formula to determine and allocate wind losses 
     and flood losses for claims involving indeterminate losses.
       ``(2) Contents.--The standard formula established under 
     paragraph (1) shall--
       ``(A) incorporate data available from the Coastal Wind and 
     Water Event Database established under section 12312(f) of 
     the Omnibus Public Land Management Act of 2009;
       ``(B) use relevant data provided on the National Flood 
     Insurance Program Elevation Certificate for each 
     indeterminate loss for which the formula is used;
       ``(C) consider any sufficient and credible evidence, 
     approved by the Administrator, of the pre-event condition of 
     a specific property, including the findings of any 
     policyholder or insurance claims adjuster in connection with 
     the indeterminate loss to that specific property;
       ``(D) include other measures, as the Administrator 
     considers appropriate, required to determine and allocate by 
     mathematical formula the property damage caused by flood or 
     storm surge associated with a named storm; and
       ``(E) subject to paragraph (3), for each indeterminate 
     loss, use the post-storm assessment to allocate water damage 
     (flood or storm surge) associated with a named storm.
       ``(3) Degree of accuracy required.--The standard formula 
     established under paragraph (1) shall specify that the 
     Administrator may only use the post-storm assessment for 
     purposes of the formula if the Under Secretary certifies that 
     the post-storm assessment has a degree of accuracy of not 
     less than 90 percent in connection with the specific 
     indeterminate loss for which the assessment and formula are 
     used.
       ``(c) Authorized Use of Post-storm Assessment and COASTAL 
     Formula.--
       ``(1) In general.--Subject to paragraph (3), the 
     Administrator may use the post-storm assessment and the 
     COASTAL Formula to--
       ``(A) review flood loss payments for indeterminate losses, 
     including as part of the quality assurance reinspection 
     program of the Federal Emergency Management Agency for claims 
     under the national flood insurance program and any other 
     process approved by the Administrator to review and validate 
     payments under the national flood insurance program for 
     indeterminate losses following a named storm; and
       ``(B) assist the national flood insurance program to--
       ``(i) properly cover qualified flood loss for claims for 
     indeterminate losses; and
       ``(ii) avoid paying for any loss or damage to property 
     caused by any peril (including wind), other than flood or 
     storm surge, that is not covered under a standard policy 
     under the national flood insurance program.
       ``(2) Federal disaster declaration.--Subject to paragraph 
     (3), in order to expedite claims and reduce costs to the 
     national flood insurance program, following any major 
     disaster declared by the President under section 401 of the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5170) relating to a named storm in a coastal 
     State, the Administrator may use the COASTAL Formula to 
     determine and pay for any flood loss covered under a standard 
     insurance policy under the national flood insurance program, 
     if the loss is an indeterminate loss.
       ``(3) National academy of sciences evaluation.--
       ``(A) Evaluation required.--
       ``(i) Evaluation.--Upon the issuance of the rule 
     establishing the COASTAL Formula, and each time the 
     Administrator modifies the COASTAL Formula, the National 
     Academy of Sciences shall--

       ``(I) evaluate the expected financial impact on the 
     national flood insurance program of the use of the COASTAL 
     Formula as so established or modified; and
       ``(II) evaluate the validity of the scientific assumptions 
     upon which the formula is based and determine whether the 
     COASTAL formula can achieve a degree of accuracy of not less 
     than 90 percent in allocating flood losses for indeterminate 
     losses.

       ``(ii) Report.--The National Academy of Sciences shall 
     submit a report containing the results of each evaluation 
     under clause (i) to the Administrator, the Committee on 
     Banking, Housing, and Urban Affairs and the Committee on 
     Commerce, Science, and Transportation of the Senate, and the 
     Committee on Financial Services and the Committee on Science, 
     Space, and Technology of the House of Representatives.
       ``(B) Effective date and applicability.--
       ``(i) Effective date.--Paragraphs (1) and (2) of this 
     subsection shall not take effect unless the report under 
     subparagraph (A) relating to the establishment of the COASTAL 
     Formula concludes that the use of the COASTAL Formula

[[Page 10679]]

     for purposes of paragraph (1) and (2) would not have an 
     adverse financial impact on the national flood insurance 
     program and that the COASTAL Formula is based on valid 
     scientific assumptions that would allow a degree of accuracy 
     of not less than 90 percent to be achieved in allocating 
     flood losses for indeterminate losses.
       ``(ii) Effect of modifications.--Unless the report under 
     subparagraph (A) relating to a modification of the COASTAL 
     Formula concludes that the use of the COASTAL Formula, as so 
     modified, for purposes of paragraphs (1) and (2) would not 
     have an adverse financial impact on the national flood 
     insurance program and that the COASTAL Formula is based on 
     valid scientific assumptions that would allow a degree of 
     accuracy of not less than 90 percent to be achieved in 
     allocating flood losses for indeterminate losses the 
     Administrator may not use the COASTAL Formula, as so 
     modified, for purposes of paragraphs (1) and (2).
       ``(C) Funding.--Notwithstanding section 1310 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4017), there 
     shall be available to the Administrator from the National 
     Flood Insurance Fund, of amounts not otherwise obligated, not 
     more than $750,000 to carry out this paragraph.
       ``(d) Disclosure of COASTAL Formula.--Not later than 30 
     days after the date on which a post-storm assessment is 
     submitted to the Secretary under section 12312(b)(2)(C) of 
     the Omnibus Public Land Management Act of 2009, for each 
     indeterminate loss for which the COASTAL Formula is used 
     pursuant to subsection (c)(2), the Administrator shall 
     disclose to the policyholder that makes a claim relating to 
     the indeterminate loss--
       ``(1) that the Administrator used the COASTAL Formula with 
     respect to the indeterminate loss; and
       ``(2) a summary of the results of the use of the COASTAL 
     Formula.
       ``(e) Consultation.--In carrying out subsections (b) and 
     (c), the Secretary shall consult with--
       ``(1) the Under Secretary for Oceans and Atmosphere;
       ``(2) the Director of the National Institute of Standards 
     and Technology;
       ``(3) the Chief of Engineers of the Corps of Engineers;
       ``(4) the Director of the United States Geological Survey;
       ``(5) the Office of the Federal Coordinator for 
     Meteorology;
       ``(6) State insurance regulators of coastal States; and
       ``(7) such public, private, and academic sector entities as 
     the Secretary considers appropriate for purposes of carrying 
     out such subsections.
       ``(f) Recordkeeping.--Each consideration and measure the 
     Administrator determines necessary to carry out subsection 
     (b) may be required, with advanced approval of the 
     Administrator, to be provided for on the National Flood 
     Insurance Program Elevation Certificate, or maintained 
     otherwise on record if approved by the Administrator, for any 
     property that qualifies for the COASTAL Formula under 
     subsection (c).
       ``(g) Civil Penalty.--
       ``(1) In general.--If an insurance claims adjuster 
     knowingly and willfully makes a false or inaccurate 
     determination relating to an indeterminate loss, the 
     Administrator may, after notice and opportunity for hearing, 
     impose on the insurance claims adjuster a civil penalty of 
     not more than $1,000.
       ``(2) Deposit.--Notwithstanding section 3302 of title 31, 
     United States Code, or any other law relating to the 
     crediting of money, the Administrator shall deposit in the 
     National Flood Insurance Fund any amounts received under this 
     subsection, which shall remain available until expended and 
     be available to the Administrator for purposes authorized for 
     the National Flood Insurance Fund without further 
     appropriation.
       ``(h) Rule of Construction.--Nothing in this subsection 
     shall be construed to require the Administrator to make any 
     payment under the national flood insurance program, or an 
     insurance company to make any payment, for an indeterminate 
     loss based upon post-storm assessment or the COASTAL Formula.
       ``(i) Applicability.--Subsection (c) shall apply with 
     respect to an indeterminate loss associated with a named 
     storm that occurs after the date on which the Administrator 
     issues the rule establishing the COASTAL Formula under 
     subsection (b).
       ``(j) Rule of Construction.--Nothing in this subsection 
     shall be construed to negate, set aside, or void any policy 
     limit, including any loss limitation, set forth in a standard 
     insurance policy.''.
                    Subtitle C--HEARTH Act Amendment

     SEC. 100261. HEARTH ACT TECHNICAL CORRECTIONS.

       For purposes of title IV of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11360 et seq.)--
       (1) the term ``local government'' includes an 
     instrumentality of a unit of general purpose local government 
     other than a public housing agency that is established 
     pursuant to legislation and designated by the chief executive 
     to act on behalf of the local government with regard to 
     activities funded under such title IV and includes a 
     combination of general purpose local governments, such as an 
     association of governments, that is recognized by the 
     Secretary of Housing and Urban Development;
       (2) the term ``State'' includes any instrumentality of any 
     of the several States designated by the Governor to act on 
     behalf of the State and does not include the District of 
     Columbia;
       (3) for purposes of environmental review, the Secretary of 
     Housing and Urban Development shall continue to permit 
     assistance and projects to be treated as assistance for 
     special projects that are subject to section 305(c) of the 
     Multifamily Housing Property Disposition Reform Act of 1994 
     (42 U.S.C. 3547), and subject to the regulations issued by 
     the Secretary of Housing and Urban Development to implement 
     such section; and
       (4) a metropolitan city and an urban county that each 
     receive an allocation under such title IV and are located 
     within a geographic area that is covered by a single 
     continuum of care may jointly request the Secretary of 
     Housing and Urban Development to permit the urban county or 
     the metropolitan city, as agreed to by such county and city, 
     to receive and administer their combined allocations under a 
     single grant.
            TITLE III--STUDENT LOAN INTEREST RATE EXTENSION

     SEC. 100301. FEDERAL DIRECT STAFFORD LOAN INTEREST RATE 
                   EXTENSION.

       Section 455(b)(7)(D) of the Higher Education Act of 1965 
     (20 U.S.C. 1087e(b)(7)(D)) is amended--
       (1) in the matter preceding clause (i), by striking ``and 
     before July 1, 2012,'' and inserting ``and before July 1, 
     2013,''; and
       (2) in clause (v), by striking ``and before July 1, 2012,'' 
     and inserting ``and before July 1, 2013,''.

     SEC. 100302. ELIGIBILITY FOR, AND INTEREST CHARGES ON, 
                   FEDERAL DIRECT STAFFORD LOANS FOR NEW BORROWERS 
                   ON OR AFTER JULY 1, 2013.

       (a) In General.--Section 455 of the Higher Education Act of 
     1965 (20 U.S.C. 1087e) is amended by adding at the end the 
     following:
       ``(q) Eligibility for, and Interest Charges on, Federal 
     Direct Stafford Loans for New Borrowers on or After July 1, 
     2013.--
       ``(1) In general.--Notwithstanding subsection (a) or any 
     other provision of this title, any borrower who was a new 
     borrower on or after July 1, 2013, shall not be eligible for 
     a Federal Direct Stafford Loan if the period of time for 
     which the borrower has received Federal Direct Stafford 
     Loans, in the aggregate, exceeds the period of enrollment 
     described in paragraph (3). Such borrower may still receive 
     any Federal Direct Unsubsidized Stafford Loan for which such 
     borrower is otherwise eligible.
       ``(2) Accrual of interest on federal direct stafford 
     loans.--Notwithstanding subsection (f)(1)(A) or any other 
     provision of this title and beginning on the date upon which 
     a borrower who is enrolled in a program of education or 
     training (including a course of study or program described in 
     paragraph (3)(B) or (4)(B) of section 484(b)) for which 
     borrowers are otherwise eligible to receive Federal Direct 
     Stafford Loans, becomes ineligible for such loan as a result 
     of paragraph (1), interest on all Federal Direct Stafford 
     Loans that were disbursed to such borrower on or after July 
     1, 2013, shall accrue. Such interest shall be paid or 
     capitalized in the same manner as interest on a Federal 
     Direct Unsubsidized Stafford Loan is paid or capitalized 
     under section 428H(e)(2).
       ``(3) Period of enrollment.--
       ``(A) In general.--The aggregate period of enrollment 
     referred to in paragraph (1) shall not exceed the lesser of--
       ``(i) a period equal to 150 percent of the published length 
     of the educational program in which the student is enrolled; 
     or
       ``(ii) in the case of a borrower who was previously 
     enrolled in one or more other educational programs that began 
     on or after July 1, 2013, and subject to subparagraph (B), a 
     period of time equal to the difference between--

       ``(I) 150 percent of the published length of the longest 
     educational program in which the borrower was, or is, 
     enrolled; and
       ``(II) any periods of enrollment in which the borrower 
     received a Federal Direct Stafford Loan.

       ``(B) Regulations.--The Secretary shall specify in 
     regulation--
       ``(i) how the aggregate period described in subparagraph 
     (A) shall be calculated with respect to a borrower who was or 
     is enrolled on less than a full-time basis; and
       ``(ii) how such aggregate period shall be calculated to 
     include a course of study or program described in paragraph 
     (3)(B) or (4)(B) of section 484(b), respectively.''.
       (b) Inapplicability of Title IV Negotiated Rulemaking 
     Requirement and Master Calendar Exception.--Sections 482(c) 
     and 492 of the Higher Education Act of 1965 (20 U.S.C. 
     1089(c), 1098a) shall not apply to the amendment made by 
     subsection (a), or to any regulations promulgated under such 
     amendment.
              DIVISION G--SURFACE TRANSPORTATION EXTENSION

     SEC. 110001. SHORT TITLE.

       This division may be cited as the ``Surface Transportation 
     Extension Act of 2012, Part II''.
                     TITLE I--FEDERAL-AID HIGHWAYS

     SEC. 111001. EXTENSION OF FEDERAL-AID HIGHWAY PROGRAMS.

       (a) In General.--Section 111 of the Surface Transportation 
     Extension Act of 2011, Part II (Public Law 112-30; 125 Stat. 
     343; 126 Stat. 272) is amended--
       (1) by striking ``the period beginning on October 1, 2011, 
     and ending on June 30, 2012,'' each place it appears and 
     inserting ``fiscal year 2012'';
       (2) by striking ``\3/4\ of'' each place it appears; and
       (3) in subsection (a) by striking ``June 30, 2012'' and 
     inserting ``September 30, 2012''.

[[Page 10680]]

       (b) Use of Funds.--Section 111(c) of the Surface 
     Transportation Extension Act of 2011, Part II (125 Stat. 343; 
     126 Stat. 272) is amended--
       (1) in paragraph (3)--
       (A) in subparagraph (A) by striking ``, except that during 
     such period'' and all that follows before the period at the 
     end; and
       (B) in subparagraph (B)(ii) by striking ``$479,250,000'' 
     and inserting ``$639,000,000''; and
       (2) by striking paragraph (4).
       (c) Extension of Authorizations Under Title V of SAFETEA-
     LU.--Section 111(e)(2) of the Surface Transportation 
     Extension Act of 2011, Part II (125 Stat. 346; 126 Stat. 272) 
     is amended by striking ``the period beginning on October 1, 
     2011, and ending on June 30, 2012.'' and inserting ``fiscal 
     year 2012.''.
       (d) Administrative Expenses.--Section 112(a) of the Surface 
     Transportation Extension Act of 2011, Part II (125 Stat. 346; 
     126 Stat. 272) is amended by striking ``$294,641,438 for the 
     period beginning on October 1, 2011, and ending on June 30, 
     2012.'' and inserting ``$392,855,250 for fiscal year 2012.''.
             TITLE II--EXTENSION OF HIGHWAY SAFETY PROGRAMS

     SEC. 112001. EXTENSION OF NATIONAL HIGHWAY TRAFFIC SAFETY 
                   ADMINISTRATION HIGHWAY SAFETY PROGRAMS.

       (a) Chapter 4 Highway Safety Programs.--Section 2001(a)(1) 
     of SAFETEA-LU (119 Stat. 1519) is amended by striking 
     ``$235,000,000 for each of fiscal years 2009 through 2011'' 
     and all that follows through the period at the end and 
     inserting ``and $235,000,000 for each of fiscal years 2009 
     through 2012.''.
       (b) Highway Safety Research and Development.--Section 
     2001(a)(2) of SAFETEA-LU (119 Stat. 1519) is amended by 
     striking ``and $81,183,000 for the period beginning on 
     October 1, 2011, and ending on June 30, 2012.'' and inserting 
     ``and $108,244,000 for fiscal year 2012.''.
       (c) Occupant Protection Incentive Grants.--Section 
     2001(a)(3) of SAFETEA-LU (119 Stat. 1519) is amended by 
     striking ``$25,000,000 for each of fiscal years 2006 through 
     2011'' and all that follows through the period at the end and 
     inserting ``and $25,000,000 for each of fiscal years 2006 
     through 2012.''.
       (d) Safety Belt Performance Grants.--Section 2001(a)(4) of 
     SAFETEA-LU (119 Stat. 1519) is amended by striking ``and 
     $36,375,000 for the period beginning on October 1, 2011, and 
     ending on June 30, 2012.'' and inserting ``and $48,500,000 
     for fiscal year 2012.''.
       (e) State Traffic Safety Information System Improvements.--
     Section 2001(a)(5) of SAFETEA-LU (119 Stat. 1519) is amended 
     by striking ``for each of fiscal years 2006 through 2011'' 
     and all that follows through the period at the end and 
     inserting ``for each of fiscal years 2006 through 2012.''.
       (f) Alcohol-impaired Driving Countermeasures Incentive 
     Grant Program.--Section 2001(a)(6) of SAFETEA-LU (119 Stat. 
     1519) is amended by striking ``$139,000,000 for each of 
     fiscal years fiscal years 2009 through 2011'' and all that 
     follows through the period at the end and inserting ``and 
     $139,000,000 for each of fiscal years 2009 through 2012.''.
       (g) National Driver Register.--Section 2001(a)(7) of 
     SAFETEA-LU (119 Stat. 1520) is amended by striking ``and 
     $3,087,000 for the period beginning on October 1, 2011, and 
     ending on June 30, 2012.'' and inserting ``and $4,116,000 for 
     fiscal year 2012.''.
       (h) High Visibility Enforcement Program.--Section 
     2001(a)(8) of SAFETEA-LU (119 Stat. 1520) is amended by 
     striking ``for each of fiscal years 2006 through 2011'' and 
     all that follows through the period at the end and inserting 
     ``for each of fiscal years 2006 through 2012.''.
       (i) Motorcyclist Safety.--Section 2001(a)(9) of SAFETEA-LU 
     (119 Stat. 1520) is amended by striking ``$7,000,000 for each 
     of fiscal years 2009 through 2011'' and all that follows 
     through the period at the end and inserting ``and $7,000,000 
     for each of fiscal years 2009 through 2012.''.
       (j) Child Safety and Child Booster Seat Safety Incentive 
     Grants.--Section 2001(a)(10) of SAFETEA-LU (119 Stat. 1520) 
     is amended by striking ``$7,000,000 for each of fiscal years 
     2009 through 2011'' and all that follows through the period 
     at the end and inserting ``and $7,000,000 for each of fiscal 
     years 2009 through 2012.''.
       (k) Administrative Expenses.--Section 2001(a)(11) of 
     SAFETEA-LU (119 Stat. 1520) is amended by striking 
     ``$25,328,000 for fiscal year 2011'' and all that follows 
     through the period at the end and inserting ``and $25,328,000 
     for each of fiscal years 2011 and 2012.''.

     SEC. 112002. EXTENSION OF FEDERAL MOTOR CARRIER SAFETY 
                   ADMINISTRATION PROGRAMS.

       (a) Federal Motor Carrier Safety Administration Grants.--
     Section 31104(a)(8) of title 49, United States Code, is 
     amended to read as follows:
       ``(8) $212,000,000 for fiscal year 2012.''.
       (b) Administrative Expenses.--
       (1) In general.--Section 31104(i)(1)(H) of title 49, United 
     States Code, is amended to read as follows:
       ``(H) $244,144,000 for fiscal year 2012.''.
       (2) Technical correction.--Section 31104(i)(1)(F) of title 
     49, United States Code, is amended to read as follows:
       ``(F) $239,828,000 for fiscal year 2010;''.
       (c) Grant Programs.--Section 4101(c) of SAFETEA-LU (119 
     Stat. 1715) is amended--
       (1) in paragraph (1) by striking ``and $22,500,000 for the 
     period beginning on October 1, 2011, and ending on June 30, 
     2012.'' and inserting ``and $30,000,000 for fiscal year 
     2012.'';
       (2) in paragraph (2) by striking ``2011 and $24,000,000 for 
     the period beginning on October 1, 2011, and ending on June 
     30, 2012.'' and inserting ``2012.'';
       (3) in paragraph (3) by striking ``2011 and $3,750,000 for 
     the period beginning on October 1, 2011, and ending on June 
     30, 2012.'' and inserting ``2012.'';
       (4) in paragraph (4) by striking ``2011 and $18,750,000 for 
     the period beginning on October 1, 2011, and ending on June 
     30, 2012.'' and inserting ``2012.''; and
       (5) in paragraph (5) by striking ``2011 and $2,250,000 for 
     the period beginning on October 1, 2011, and ending on June 
     30, 2012.'' and inserting ``2012.''.
       (d) New Entrant Audits.--Section 31144(g)(5)(B) of title 
     49, United States Code, is amended by striking ``and up to 
     $21,750,000 for the period beginning on October 1, 2011, and 
     ending on June 30, 2012,''.
       (e) Outreach and Education.--Section 4127(e) of SAFETEA-LU 
     (119 Stat. 1741) is amended by striking ``and 2011 (and 
     $750,000 to the Federal Motor Carrier Safety Administration, 
     and $2,250,000 to the National Highway Traffic Safety 
     Administration, for the period beginning on October 1, 2011, 
     and ending on June 30, 2012)'' and inserting ``2011, and 
     2012''.
       (f) Working Group for Development of Practices and 
     Procedures to Enhance Federal-State Relations.--Section 
     4213(d) of SAFETEA-LU (49 U.S.C. 14710 note; 119 Stat. 1759) 
     is amended by striking ``June 30, 2012'' and inserting 
     ``September 30, 2012''.

     SEC. 112003. ADDITIONAL PROGRAMS.

       Section 7131(c) of SAFETEA-LU (119 Stat. 1910) is amended 
     by striking ``and $870,000 for the period beginning on 
     October 1, 2011, and ending on June 30, 2012,'' and inserting 
     ``and $1,160,000 for fiscal year 2012''.
               TITLE III--PUBLIC TRANSPORTATION PROGRAMS

     SEC. 113001. ALLOCATION OF FUNDS FOR PLANNING PROGRAMS.

       Section 5305(g) of title 49, United States Code, is amended 
     by striking ``2011 and for the period beginning on October 1, 
     2011, and ending on June 30, 2012'' and inserting ``2012''.

     SEC. 113002. SPECIAL RULE FOR URBANIZED AREA FORMULA GRANTS.

       Section 5307(b)(2) of title 49, United States Code, is 
     amended--
       (1) by striking the paragraph heading and inserting 
     ``special rule for fiscal years 2005 through 2012.--'' ;
       (2) in subparagraph (A) by striking ``2011 and the period 
     beginning on October 1, 2011, and ending on June 30, 2012,'' 
     and inserting ``2012,''; and
       (3) in subparagraph (E)--
       (A) by striking the subparagraph heading and inserting 
     ``maximum amounts in fiscal years 2008 through 2012 .--''; 
     and
       (B) in the matter preceding clause (i) by striking ``2011 
     and during the period beginning on October 1, 2011, and 
     ending on June 30, 2012'' and inserting ``2012''.

     SEC. 113003. ALLOCATING AMOUNTS FOR CAPITAL INVESTMENT 
                   GRANTS.

       Section 5309(m) of title 49, United States Code, is 
     amended--
       (1) in paragraph (2)--
       (A) by striking the paragraph heading and inserting 
     ``fiscal years 2006 through 2012.--'';
       (B) in the matter preceding subparagraph (A) by striking 
     ``2011 and the period beginning on October 1, 2011, and 
     ending on June 30, 2012,'' and inserting ``2012''; and
       (C) in subparagraph (A)(i) by striking ``2011 and 
     $150,000,000 for the period beginning on October 1, 2011, and 
     ending on June 30, 2012,'' and inserting ``2012'';
       (2) in paragraph (6)--
       (A) in subparagraph (B) by striking ``2011 and $11,250,000 
     shall be available for the period beginning on October 1, 
     2011, and ending on June 30, 2012,'' and inserting ``2012''; 
     and
       (B) in subparagraph (C) by striking ``though 2011 and 
     $3,750,000 shall be available for the period beginning on 
     October 1, 2011, and ending on June 30, 2012,'' and inserting 
     ``through 2012''; and
       (3) in paragraph (7)--
       (A) in subparagraph (A)--
       (i) in the matter preceding clause (i)--

       (I) in the first sentence by striking ``2011 and $7,500,000 
     shall be available for the period beginning on October 1, 
     2011, and ending on June 30, 2012,'' and inserting ``2012''; 
     and
       (II) in the second sentence by inserting ``each fiscal 
     year'' before the colon;

       (ii) in clause (i) by striking ``for each fiscal year and 
     $1,875,000 for the period beginning on October 1, 2011, and 
     ending on June 30, 2012,'';
       (iii) in clause (ii) by striking ``for each fiscal year and 
     $1,875,000 for the period beginning on October 1, 2011, and 
     ending on June 30, 2012,'';
       (iv) in clause (iii) by striking ``for each fiscal year and 
     $750,000 for the period beginning on October 1, 2011, and 
     ending on June 30, 2012,'';
       (v) in clause (iv) by striking ``for each fiscal year and 
     $750,000 for the period beginning on October 1, 2011, and 
     ending on June 30, 2012,'';
       (vi) in clause (v) by striking ``for each fiscal year and 
     $750,000 for the period beginning on October 1, 2011, and 
     ending on June 30, 2012,'';
       (vii) in clause (vi) by striking ``for each fiscal year and 
     $750,000 for the period beginning on October 1, 2011, and 
     ending on June 30, 2012,'';
       (viii) in clause (vii) by striking ``for each fiscal year 
     and $487,500 for the period beginning on October 1, 2011, and 
     ending on June 30, 2012,''; and
       (ix) in clause (viii) by striking ``for each fiscal year 
     and $262,500 for the period beginning on October 1, 2011, and 
     ending on June 30, 2012,'';

[[Page 10681]]

       (B) in subparagraph (B) by striking clause (vii) and 
     inserting the following:
       ``(vii) $13,500,000 for fiscal year 2012.'';
       (C) in subparagraph (C) by striking ``and during the period 
     beginning on October 1, 2011, and ending on June 30, 2012,'';
       (D) in subparagraph (D) by striking ``and not less than 
     $26,250,000 shall be available for the period beginning on 
     October 1, 2011, and ending on June 30, 2012,''; and
       (E) in subparagraph (E) by striking ``and $2,250,000 shall 
     be available for the period beginning on October 1, 2011, and 
     ending on June 30, 2012,''.

     SEC. 113004. APPORTIONMENT OF FORMULA GRANTS FOR OTHER THAN 
                   URBANIZED AREAS.

       Section 5311(c)(1)(G) of title 49, United States Code, is 
     amended to read as follows:
       ``(G) $15,000,000 for fiscal year 2012.''.

     SEC. 113005. APPORTIONMENT BASED ON FIXED GUIDEWAY FACTORS.

       Section 5337 of title 49, United States Code, is amended by 
     striking subsection (g).

     SEC. 113006. AUTHORIZATIONS FOR PUBLIC TRANSPORTATION.

       (a) Formula and Bus Grants.--Section 5338(b) of title 49, 
     United States Code, is amended--
       (1) in paragraph (1) by striking subparagraph (G) and 
     inserting the following:
       ``(G) $8,360,565,000 for fiscal year 2012.''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A) by striking ``$113,500,000 for each 
     of fiscal years 2009 through 2011, and $85,125,000 for the 
     period beginning on October 1, 2011, and ending on June 30, 
     2012,'' and inserting ``and $113,500,000 for each of fiscal 
     years 2009 through 2012'';
       (B) in subparagraph (B) by striking ``$4,160,365,000 for 
     each of fiscal years 2009 through 2011, and $3,120,273,750 
     for the period beginning on October 1, 2011, and ending on 
     June 30, 2012,'' and inserting ``and $4,160,365,000 for each 
     of fiscal years 2009 through 2012'';
       (C) in subparagraph (C) by striking ``$51,500,000 for each 
     of fiscal years 2009 through 2011, and $38,625,000 for the 
     period beginning on October 1, 2011, and ending on June 30, 
     2012,'' and inserting ``and $51,500,000 for each of fiscal 
     years 2009 through 2012'';
       (D) in subparagraph (D) by striking ``$1,666,500,000 for 
     each of fiscal years 2009 through 2011, and $1,249,875,000 
     for the period beginning on October 1, 2011, and ending on 
     June 30, 2012,'' and inserting ``and $1,666,500,000 for each 
     of fiscal years 2009 through 2012'';
       (E) in subparagraph (E) by striking ``$984,000,000 for each 
     of fiscal years 2009 through 2011, and $738,000,000 for the 
     period beginning on October 1, 2011, and ending on June 30, 
     2012,'' and inserting ``and $984,000,000 for each of fiscal 
     years 2009 through 2012'';
       (F) in subparagraph (F) by striking ``$133,500,000 for each 
     of fiscal years 2009 through 2011, and $100,125,000 for the 
     period beginning on October 1, 2011, and ending on June 30, 
     2012,'' and inserting ``and $133,500,000 for each of fiscal 
     years 2009 through 2012'';
       (G) in subparagraph (G) by striking ``$465,000,000 for each 
     of fiscal years 2009 through 2011, and $348,750,000 for the 
     period beginning on October 1, 2011, and ending on June 30, 
     2012,'' and inserting ``and $465,000,000 for each of fiscal 
     years 2009 through 2012'';
       (H) in subparagraph (H) by striking ``$164,500,000 for each 
     of fiscal years 2009 through 2011, and $123,375,000 for the 
     period beginning on October 1, 2011, and ending on June 30, 
     2012,'' and inserting ``and $164,500,000 for each of fiscal 
     years 2009 through 2012'';
       (I) in subparagraph (I) by striking ``$92,500,000 for each 
     of fiscal years 2009 through 2011, and $69,375,000 for the 
     period beginning on October 1, 2011, and ending on June 30, 
     2012,'' and inserting ``and $92,500,000 for each of fiscal 
     years 2009 through 2012'';
       (J) in subparagraph (J) by striking ``$26,900,000 for each 
     of fiscal years 2009 through 2011, and $20,175,000 for the 
     period beginning on October 1, 2011, and ending on June 30, 
     2012,'' and inserting ``and $26,900,000 for each of fiscal 
     years 2009 through 2012'';
       (K) in subparagraph (K) by striking ``for each of fiscal 
     years 2006 through 2011 and $2,625,000 for the period 
     beginning on October 1, 2011, and ending on June 30, 2012,'' 
     and inserting ``for each of fiscal years 2006 through 2012'';
       (L) in subparagraph (L) by striking ``for each of fiscal 
     years 2006 through 2011 and $18,750,000 for the period 
     beginning on October 1, 2011, and ending on June 30, 2012,'' 
     and inserting ``for each of fiscal years 2006 through 2012'';
       (M) in subparagraph (M) by striking ``$465,000,000 for each 
     of fiscal years 2009 through 2011, and $348,750,000 for the 
     period beginning on October 1, 2011, and ending on June 30, 
     2012,'' and inserting ``and $465,000,000 for each of fiscal 
     years 2009 through 2012''; and
       (N) in subparagraph (N) by striking ``$8,800,000 for each 
     of fiscal years 2009 through 2011, and $6,600,000 for the 
     period beginning on October 1, 2011, and ending on June 30, 
     2012,'' and inserting ``and $8,800,000 for each of fiscal 
     years 2009 through 2012''.
       (b) Capital Investment Grants.--Section 5338(c)(7) of title 
     49, United States Code, is amended to read as follows:
       ``(7) $1,955,000,000 for fiscal year 2012.''.
       (c) Research and University Research Centers.--Section 
     5338(d) of title 49, United States Code, is amended--
       (1) in paragraph (1), in the matter preceding subparagraph 
     (A), by striking ``through 2011, and $33,000,000 for the 
     period beginning on October 1, 2011, and ending on June 30, 
     2012,'' and inserting ``through 2011, and $44,000,000 for 
     fiscal year 2012,''; and
       (2) by striking paragraph (3) and inserting the following:
       ``(3) Additional authorizations.--
       ``(A) Research.--Of amounts authorized to be appropriated 
     under paragraph (1) for fiscal year 2012, the Secretary shall 
     allocate for each of the activities and projects described in 
     subparagraphs (A) through (F) of paragraph (1) an amount 
     equal to 63 percent of the amount allocated for fiscal year 
     2009 under each such subparagraph.
       ``(B) University centers program.--
       ``(i) Fiscal year 2012.--Of the amounts allocated under 
     paragraph (1)(C) for the university centers program under 
     section 5506 for fiscal year 2012, the Secretary shall 
     allocate for each program described in clauses (i) through 
     (iii) and (v) through (viii) of paragraph (2)(A) an amount 
     equal to 63 percent of the amount allocated for fiscal year 
     2009 under each such clause.
       ``(ii) Funding.--If the Secretary determines that a project 
     or activity described in paragraph (2) received sufficient 
     funds in fiscal year 2011, or a previous fiscal year, to 
     carry out the purpose for which the project or activity was 
     authorized, the Secretary may not allocate any amounts under 
     clause (i) for the project or activity for fiscal year 2012 
     or any subsequent fiscal year.''.
       (d) Administration.--Section 5338(e)(7) of title 49, United 
     States Code, is amended to read as follows:
       ``(7) $98,713,000 for fiscal year 2012.''.

     SEC. 113007. AMENDMENTS TO SAFETEA-LU.

       (a) Contracted Paratransit Pilot.--Section 3009(i)(1) of 
     SAFETEA-LU (119 Stat. 1572) is amended by striking ``2011 and 
     the period beginning on October 1, 2011, and ending on June 
     30, 2012,'' and inserting ``2012,''.
       (b) Public-private Partnership Pilot Program.--Section 3011 
     of SAFETEA-LU (49 U.S.C. 5309 note; 119 Stat. 1588) is 
     amended--
       (1) in subsection (c)(5) by striking ``2011 and the period 
     beginning on October 1, 2011, and ending on June 30, 2012'' 
     and inserting ``2012''; and
       (2) in the second sentence of subsection (d) by striking 
     ``2011 and the period beginning on October 1, 2011, and 
     ending on June 30, 2012,'' and inserting ``2012''.
       (c) Elderly Individuals and Individuals With Disabilities 
     Pilot Program.--Section 3012(b)(8) of SAFETEA-LU (49 U.S.C. 
     5310 note; 119 Stat. 1593) is amended by striking ``June 30, 
     2012'' and inserting ``September 30, 2012''.
       (d) Obligation Ceiling.--Section 3040(8) of SAFETEA-LU (119 
     Stat. 1639) is amended to read as follows:
       ``(8) $10,458,278,000 for fiscal year 2012, of which not 
     more than $8,360,565,000 shall be from the Mass Transit 
     Account.''.
       (e) Project Authorizations for New Fixed Guideway Capital 
     Projects.--Section 3043 of SAFETEA-LU (119 Stat. 1640) is 
     amended--
       (1) in subsection (b), in the matter preceding paragraph 
     (1), by striking ``2011 and the period beginning on October 
     1, 2011, and ending on June 30, 2012,'' and inserting 
     ``2012''; and
       (2) in subsection (c), in the matter preceding paragraph 
     (1), by striking ``2011 and the period beginning on October 
     1, 2011, and ending on June 30, 2012,'' and inserting 
     ``2012''.
       (f) Allocations for National Research and Technology 
     Programs.--Section 3046 of SAFETEA-LU (49 U.S.C. 5338 note; 
     119 Stat. 1706) is amended--
       (1) in subsection (b) by striking ``fiscal year or period'' 
     and inserting ``fiscal year''; and
       (2) by striking subsection (c)(2) and inserting the 
     following:
       ``(2) for fiscal year 2012, in amounts equal to 63 percent 
     of the amounts allocated for fiscal year 2009 under each of 
     paragraphs (2), (3), (5), and (8) through (25) of subsection 
     (a).''.
                        TITLE IV--EFFECTIVE DATE

     SEC. 114001. EFFECTIVE DATE.

       This division and the amendments made by this division 
     shall take effect on July 1, 2012.
                     DIVISION H--BUDGETARY EFFECTS

     SEC. 120001. BUDGETARY EFFECTS.

       (a) PAYGO Scorecard.--The budgetary effects of this Act 
     shall not be entered on either PAYGO scorecard maintained 
     pursuant to section 4(d) of the Statutory Pay-As-You-Go Act 
     of 2010.
       (b) Senate PAYGO Scorecard.--The budgetary effects of this 
     Act shall not be recorded on any PAYGO scorecard maintained 
     for purposes of section 201 of S. Con. Res. 21 (110th 
     Congress).
       Amend the title so as to read: ``An Act to authorize funds 
     for Federal-aid highways, highway safety programs, and 
     transit programs, and for other purposes.''.
       And the Senate agree to the same.
     From the Committee on Transportation and Infrastructure, for 
     consideration of the House bill (except section 141) and the 
     Senate amendment (except secs. 1801, 40102, 40201, 40202, 
     40204, 40205, 40305, 40307, 40309-40312, 100112-100114, and 
     100116), and modifications committed to conference:
     John L. Mica,
     Don Young,
     John J. Duncan, Jr.,
     Bill Shuster,
     Shelley Moore Capito,
     Eric A. ``Rick'' Crawford,
     Jaime Herrera Beutler,
     Larry Bucshon,
     Richard L. Hanna,
     Steve Southerland, II,

[[Page 10682]]

     James Lankford,
     Reid J. Ribble,
     From the Committee on Energy and Commerce, for consideration 
     of sec. 142 and titles II and V of the House bill, and secs. 
     1113, 1201, 1202, subtitles B, C, D, and E of title I of 
     Division C, secs, 32701-32705, 32710, 32713, 40101, and 40301 
     of the Senate amendment, and modifications committed to 
     conference:
     Fred Upton,
     Ed Whitfield,
     Henry A. Waxman,
     From the Committee on Natural Resources, for consideration of 
     secs. 123, 142, 204, and titles III and VI of the House bill, 
     and sec. 1116, subtitles C, F, and G of title I of Division 
     A, sec. 33009, titles VI and VII of Division C, sec. 40101, 
     subtitles A and B of title I of Division F, and sec. 100301 
     of the Senate amendment, and modifications committed to 
     converence:
     Doc Hastings,
     Rob Bishop,
     From the Committee on Science, Space, and Technology for 
     consideration of secs. 121, 123, 136, and 137 of the House 
     bill, and sec. 1534, subtitle F of title I of Division A, 
     secs. 20013, 20014, 20029, 31101, 31103, 31111, 31204, 31504, 
     32705, 33009, 34008, and Division E of the Senate amendment, 
     and modifications committed to conference:
     Ralph M. Hall,
     Chip Cravaack,
     From the Committee on Ways and Means, for consideration of 
     secs. 141 and 142 of the House bill, and secs. 1801, 40101, 
     40102, 40201, 40202, 40204, 40205, 40301-40307, 40309-40314, 
     100112-100114, and 100116 of the Senate amendment, and 
     modifications committed to conference:
     Dave Camp,
     Patrick J. Tiberi,
                                Managers on the Part of the House.

     Barabara Boxer,
     Max Baucus,
     John D. Rockefeller, IV,
     Richard J. Durbin, (With the exception of: Div. A, Title I, 
     Sec. 1538 Asian Carp and Div. F, Title II, Sec. 100206--
     Residual Risk)
     Tim Johnson,
     Charles E. Schumer,
     Bill Nelson,
     Robert Menendez,
     James M. Inhofe,
     David Vitter,
     Richard C. Shelby,
     Kay Bailey Hutchison,
                               Managers on the Part of the Senate.

     JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF THE CONFERENCE

       The managers on the part of the Senate and the House at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill ( H.R. 4348), to provide 
     an extension of Federal-aid highway, highway safety, motor 
     carrier safety, transit, and other programs funded out of the 
     Highway Trust Fund pending enactment of a multiyear law 
     reauthorizing such programs, and for other purposes, submit 
     the following joint statement to the House and the Senate in 
     explanation of the effect of the action agreed upon by the 
     managers and recommended in the accompanying conference 
     report:
       The House recedes from its disagreement to the amendment of 
     the Senate to the text of the bill and agrees to the same 
     with an amendment.
       A summary of the bill agreed to in conference is set forth 
     below:
       Moving Ahead for Progress in the 21st Century (MAP-21) 
     replaces the previous authorization, the Safe, Accountable, 
     Flexible, Efficient Transportation Equity Act: A Legacy for 
     Users (SAFETEA-LU), that expired on September 30, 2009 and 
     which has been continued with a series of short-term 
     extensions. MAP-21 will modernize and reform our current 
     transportation system to help create jobs, accelerate 
     economic recovery, and build the foundation for long-term 
     prosperity. This conference report makes a number of 
     necessary changes in the Federal-aid highway program 
     structure to increase State flexibility and better serve the 
     American people.

   DIVISION A--FEDERAL-AID HIGHWAYS AND HIGHWAY SAFETY CONSTRUCTION 
                                PROGRAMS

     Highway funding levels
       The conference report provides funding for the federal-aid 
     highway program through fiscal 2014 at current funding levels 
     with a small inflationary adjustment.
     Program consolidation
       The Senate and the House both sought to consolidate the 
     number of programs in the federal-aid highway program to 
     focus priorities and resources on key national goals. The 
     conference report consolidates the number of highway programs 
     by two-thirds. The elimination of dozens of programs makes 
     more resources available to States and metropolitan areas to 
     invest in their most critical needs to improve the condition 
     and performance of their transportation system.
     Project delivery
       The conference report combined provisions from the House 
     and Senate bills focusing on the shared priority of 
     accelerating project delivery. It maintains the vast majority 
     of project acceleration provisions from S. 1813 and 
     provisions from the House bill in addition to new provisions 
     that will maintain substantive environment and public health 
     protections while streamlining the creation and use of 
     documents and environmental reviews, enhancing efficiency and 
     accountability in the project delivery process.
       The conference report adopts and modifies provisions from 
     the House bill directing the Secretary to designate, through 
     rulemaking, certain activities as categorical exclusions 
     under the National Environmental Policy Act. The Secretary is 
     directed to designate the repair or reconstruction of a road, 
     highway, or bridge damaged by a declared emergency or 
     disaster as a categorical exclusion, if the repair or 
     reconstruction project is in the same location and with the 
     same specifications as the original project and is commenced 
     within two years of the declaration of emergency or disaster. 
     The Secretary is also directed to designate any project 
     within the existing operational right-of-way as a categorical 
     exclusion and defines the term ``operational right-of-way''. 
     Additionally, the Secretary is directed to designate projects 
     receiving limited Federal assistance as a categorical 
     exclusion. The categorical exclusion applies to any project 
     that receives less than $5,000,000 in Federal funds and any 
     project with a total estimated cost of not more than 
     $30,000,000 receiving Federal funds comprising less than 15 
     percent of the total estimated project costs.
     Performance measures
       The nation's surface transportation programs have not 
     provided sufficient accountability for how tax dollars are 
     being spent on transportation projects and would benefit from 
     a greater focus on key national priorities. The conference 
     report focuses the highway program on key outcomes, such as 
     reducing fatalities, improving road and bridge conditions, 
     reducing congestion, increasing system reliability, and 
     improving freight movement and economic vitality.
     Focus on the National Highway System
       The conference report combines the old interstate 
     maintenance program into a new program called the National 
     Highway Performance Program to address both the interstate 
     system as well as an extended National Highway System. It is 
     these roads that are most critical to our economic vitality, 
     and the conference report ensures the roads and bridges that 
     make up this system will be better maintained.
     Freight policy
       A top priority of the nation's transportation system should 
     be the safe and efficient movement of goods. The nation's 
     economic health is reliant upon a transportation system that 
     provides for reliable and timely goods movement.
       This conference report establishes policies to improve 
     freight movement. It calls for the development of a National 
     Freight Strategic Plan, encourages state freight plans and 
     advisory committees, and provides incentives for states that 
     fund projects to improve freight movement.
     America fast forward
       Given our massive investment needs and the limited funding 
     available, we need to find ways to better leverage Federal 
     dollars by encouraging additional non-Federal investment and 
     helping to accelerate the benefits of State and locally 
     funded transportation projects.
       This conference report builds upon the success of the TIFIA 
     program to help communities leverage their transportation 
     resources and stretch Federal dollars further than they have 
     been stretched before. The conference report modifies the 
     TIFIA program by increasing funding for the program to $1 
     billion per year, by increasing the maximum share of project 
     costs from 33 percent to 49 percent, by allowing TIFIA to be 
     used to support a related set of projects, and by setting 
     aside funding for projects in rural areas at more favorable 
     terms.
     Gulf Coast restoration
       The conference report modifies a Senate provision related 
     to Gulf Coast restoration known as the Resources and 
     Ecosystems Sustainability, Tourism Opportunities and Revived 
     Economies of the Gulf Coast States Act of 2012 (RESTORE Act). 
     The provision establishes the Gulf Coast Restoration Trust 
     Fund and places in the Trust Fund 80% of all civil penalties 
     paid by responsible parties in connection with the Deepwater 
     Horizon oil spill. Funding may be used to invest in projects 
     and activities to restore the long-term health of the coastal 
     ecosystem and local economies in the Gulf Coast Region, which 
     includes the states of Mississippi, Louisiana, Alabama, 
     Florida, and Texas. A portion of the funds will be allocated 
     directly and equally to the five Gulf Coast states for 
     ecological and economic recovery along the coast. A portion 
     will be provided to the Gulf Coast Ecosystem Restoration 
     Council established by the bill to develop and fund a 
     comprehensive plan for the restoration of Gulf Coast 
     ecosystems. A portion will be allocated among the states 
     using an impact-based formula to implement state plans that 
     have been approved by the Council. Finally, a portion of the 
     fines will be allocated to a Gulf Coast ecosystem 
     restoration, science, observation, monitoring and technology 
     program and for grants to nongovernmental entities for the 
     establishment of Gulf Coast centers of excellence.

[[Page 10683]]


     Harbor maintenance
       The Conference report modifies a Senate provision 
     highlighting the significance of the nation's ports for 
     efficient movement of goods and products and the need for 
     increased investment in the maintenance of these ports to 
     promote the economic competiveness of the United States. The 
     provision states the Sense of Congress that the 
     Administration should request and the Congress should fully 
     expend each year all of the revenues collected in the Harbor 
     Maintenance Trust Fund (HMTF) for the operation and 
     maintenance of the nation's federally maintained ports. The 
     provision also expresses the importance of protecting other 
     critical Army Corps programs, including inland navigation, 
     flood and coastal storm protection, and ecosystem 
     restoration, from funding reductions.
       Finally, the provision directs the Administration to 
     provide an annual estimate of national harbor maintenance 
     needs, including an estimate of the percentage of waterways 
     that will be available for use based on the annual budget 
     request as well as how much funding would be needed to 
     achieve 95 percent availability of the nation's ports and 
     waterways within 3 years

         DIVISION B--FEDERAL PUBLIC TRANSPORTATION ACT OF 2012

       The Federal Public Transportation Act of 2012 contains 
     historic improvements in safety oversight, streamlined review 
     of new capital projects, program consolidation, and a shift 
     from earmarks and discretionary programs to robust formula 
     programs that public transportation systems can rely on to 
     upgrade and improve aging infrastructure and vehicles. The 
     Act provides increased funding levels for fiscal years 2013 
     and 2014 based on expected inflation, giving public 
     transportation providers the stable funding needed to make 
     essential investments.
     Secs. 20005 and 20006, 49 U.S.C. 5303/5304, metropolitan and 
         statewide transportation planning
       The Conference report improves metropolitan and statewide 
     planning processes to incorporate a more comprehensive 
     performance-based approach. The conference committee requires 
     the structure of all Metropolitan Planning Organizations 
     include officials of public agencies that administer or 
     operate public transportation systems within two years of 
     enactment.
       The conference report creates a pilot program for transit-
     oriented development planning to advance planning efforts 
     that support transit-oriented development around fixed 
     guideway capital investment projects. Grants for planning 
     will help communities develop strategies to facilitate 
     transit-oriented development.
     Secs. 20007 and 20026, 49 U.S.C. 5307 and 5336, urbanized 
         area formula grants
       Maintains the basic structure for urbanized area grants 
     under Section 5307. The program continues to be the largest 
     program for federal investment in public transportation. The 
     ``Job Access and Reverse Commute'' program (JARC) has been 
     moved to Section 5307 and the conferees have removed the 
     Senate bill set-aside for JARC activities.
       Maintains the existing criteria for use of 5307 funds for 
     capital projects (operating expenses continue to be 
     ineligible) in urban areas with a population greater than 
     200,000. In addition, the bill maintains language allowing 
     small urbanized areas with populations under 200,000 to use 
     up to 100 percent of their 5307 funding for operating 
     expenses. A modified ``100 bus rule'' has been included, 
     allowing systems with 76-100 buses operating in peak service 
     to use up to 50% of their 5307 funding for operating expenses 
     and those operating 75 or fewer buses to use up to 75% for 
     operating expenses.
       The Senate receded to the House request to remove a 
     provision in the Senate bill establishing a program to allow 
     public transportation providers temporary flexibility during 
     periods of high unemployment to use a limited portion of 
     their 5307 funds for up to two years for operating expenses.
     Sec. 20008, 49 U.S.C. 5309, Fixed Guideway Capital Investment 
         Grants (new starts)
       Reforms and streamlines the ``Fixed Guideway Capital 
     Investment Grant'' program (previously the ``Major Capital 
     Investment Grant'' or ``New Starts'' program). Based on 
     extensive feedback from project sponsors and other 
     stakeholders, the bill streamlines the New Starts process to 
     accelerate project delivery by eliminating duplicative steps 
     in project development and instituting a modified program 
     structure that will allow the Federal Transit Administration 
     to review proposals quickly, without sacrificing effective 
     project oversight.
       Projects under $100 million can utilize an expedited review 
     process if they meet standards of similar highly qualified 
     projects. The bill also creates a category of demonstration 
     projects for sponsors that propose a significant amount of 
     local and/or private funding and reduce the federal 
     commitment required for the projects.
       Establishes a new category for capital investment projects 
     by authorizing core capacity projects, which will undergo the 
     same process as other ``new starts'' projects but provide an 
     opportunity for existing systems to make necessary but 
     significant investments that were not previously eligible for 
     funding. The conference report requires that eligible 
     activities under a core capacity project achieve at least a 
     10% increase in capacity along a corridor.
       The Senate agreed to a House request to modify the 
     definition of Bus Rapid Transit projects in the Senate bill 
     to allow broader use of the program. The conference report 
     also includes incentives for the development of bus rapid 
     transit projects that incorporate elements of fixed-guideway 
     transit like light rail.
     Sec. 20009, 49 U.S.C. 5310, formula grants for the enhanced 
         mobility of seniors and individuals with disabilities
       Consolidates the existing ``Elderly and Disabled'' (Sec. 
     5310) and ``New Freedom'' (Sec. 5317) programs into a single 
     program that increases the level of resources available 
     beyond the level of funding available under existing 
     programs. The consolidated program will continue to ensure 
     support for non-profit providers of transportation, and it 
     will continue to make available funds for public 
     transportation services that exceed the requirements of the 
     Americans with Disabilities Act, as previously provided under 
     the ``New Freedom'' program.
     Sec. 20010, 49 U.S.C. 5311, formula grants for rural areas
       Maintains the existing structure providing funding to 
     states for public transportation in rural areas. The 5311 
     formula is expanded to include the rural component of the 
     ``Job Access and Reverse Commute'' program, and the level of 
     public transportation service that is provided within a 
     state's rural areas is considered in the distribution of new 
     funds.
       Funding for the ``Public Transportation on Indian 
     Reservations'' program is increased to $30 million. The 
     Secretary will distribute $5 million competitively each 
     fiscal year, and $25 million will be available to Indian 
     Tribes as formula grants to continue and expand public 
     transportation services.
       The conference report also establishes a new ``Appalachian 
     Development Public Transportation Program'' to distribute $20 
     million to states within the Appalachian region with a goal 
     of providing greater public transportation opportunities to 
     residents in these challenged areas.
     Sec. 20011, 49 U.S.C. 5312, research, development, 
         demonstration, and deployment projects
       Modifies the existing research program by eliminating 
     earmarks and reforming the program to provide research 
     focused on public transportation with a goal of providing 
     meaningful results.
       Creates a clearly delineated pipeline with criteria for 
     continued progress with a goal of taking an idea from the 
     research phase through to demonstration and deployment in the 
     field. For the first time, the program specifically provides 
     funding for demonstration and deployment of products and 
     services that may benefit public transportation; a major 
     impediment to putting new technology to use in the field 
     often cited by public transportation providers.
       Creates a section of the deployment program dedicated to 
     low or no emission public transportation vehicles. Grants 
     will be available for the acquisition of low or no emission 
     vehicles and related equipment, the construction of 
     facilities for low or no emission vehicles, and the 
     rehabilitation of existing facilities to accommodate the use 
     of low or no emission vehicles.
     Sec. 20012, 49 U.S.C. 5314, technical assistance and 
         standards development
       Provides grants for activities that help public 
     transportation systems more effectively and efficiently 
     provide public transportation service and helps grant 
     recipients administer funds received under this chapter. 
     Authorizes the Federal Transit Administration to continue 
     making grants for the development of voluntary standards by 
     the public transportation industry related to procurement, 
     safety and other subjects and authorizes the Secretary to 
     fund technical assistance centers to assist grant recipients 
     following a competitive process.
     Sec. 20014, 49 U.S.C. 5318, bus testing facilities
       Instructs the Secretary to certify one facility for testing 
     new bus models. Requires the Secretary to work with the bus 
     industry to develop a mutually agreed upon pass/fail test for 
     vehicles to ensure the safety and reliability of buses 
     purchased with federal funds.
     Sec. 20015, 49 U.S.C. 5322, public transportation workforce 
         development and human resource programs
       Authorizes the Secretary to make grants, or enter into 
     contracts for, activities that address human resource and 
     workforce needs as they apply to public transportation 
     activities. Creates the Innovative Public Transportation 
     Workforce Development Program, a competitive grant program to 
     promote and assist the development of innovative workforce 
     development and human resource activities within the public 
     transportation industry.
     Sec. 20017, 49 U.S.C. 5324, public transportation emergency 
         relief program
       Establishes a program to assist States and public 
     transportation systems pay for protecting, repairing, or 
     replacing equipment

[[Page 10684]]

     and facilities that are in danger of suffering serious damage 
     or have suffered serious damage as a result of an emergency.
     Sec. 20019, 49 U.S.C. 5326, transit asset management
       Establishes a system to monitor and manage public 
     transportation assets to improve safety and increase 
     reliability and performance. Recipients are required to 
     establish and use an asset management system to develop 
     capital asset inventories and condition assessments, and 
     report on the condition of their system as a whole, including 
     a description of the change in overall condition since the 
     last report. The Secretary of Transportation is also required 
     to define the term `state of good repair,' including 
     objective standards for measuring the condition of capital 
     assets.
     Sec. 20021, 49 U.S.C. 5329, public transportation safety 
         program
       Establishes a National Public Transportation Safety Plan to 
     improve the safety of all public transportation systems that 
     receive Federal funding. The Secretary will develop minimum 
     performance standards for vehicles used in public 
     transportation and establish a training program for Federal 
     and State employees who conduct safety audits and 
     examinations of public transportation systems.
       Requires public transportation agencies to establish 
     comprehensive safety plans, thus encouraging a ``culture of 
     safety'' in which each employee completes a safety training 
     program that includes continuing safety education and 
     training. The Senate receded to a House request to give 
     smaller systems the option to rely on states to prepare these 
     plans.
       Improves the effectiveness of State Safety Oversight 
     Agencies and increases federal funding for safety. States 
     will submit proposals for state safety oversight programs for 
     rail fixed guideway public transportation systems to the 
     Secretary, and upon approval, receive funding at an 80 
     percent Federal share. The Act builds on the existence of 
     State safety oversight agencies and requires them to be 
     legally and financially independent from the rail fixed 
     guideway systems they oversee, and have the authority, staff 
     training and expertise to enforce Federal and state safety 
     laws.
       At the request of the House the conference changes the 
     nature of the enforcement powers contained in the Senate 
     bill. Instead of direct oversight of public transportation 
     agencies, the program relies on State Safety Oversight 
     Agencies to provide direct oversight of rail fixed guideway 
     public transportation providers.
     Sec. 20027, 49 U.S.C. 5337, state of good repair grant 
         program
       Modernizes, renames, and provides historic levels of 
     funding for the old ``Rail Modernization'' program by 
     establishing a program structure and defining eligible 
     expenses under the program with a goal of moving all systems 
     towards a state of good repair and enabling systems to 
     maintain a state of good repair.
       The program has two major components: a rail fixed guideway 
     state of good repair formula program and a high intensity bus 
     state of good repair formula program. Funding tiers and 
     earmarks in the old rail modernization program have been 
     eliminated and replaced with a new structure that focuses on 
     the age of the system, revenue vehicle miles and directional 
     route miles.

  DIVISION C--TRANSPORTATION SAFETY AND SURFACE TRANSPORTATION POLICY

       Title I--Motor Vehicle and Highway Safety Improvement Act

       Highway Safety Grant Programs. The conference report 
     includes provisions that restructure the existing highway 
     safety grant programs administered by the National Highway 
     Traffic Safety Administration (NHTSA). The conference report 
     largely reflects the Senate approach on modifications to the 
     existing formula grant programs, including the establishment 
     of a single grant application and reporting process for all 
     grants received under this title, the adoption of performance 
     measures, and the establishment of planning and reporting 
     requirements for the states. In addition, the conference 
     report inserts a prohibition on state use of these formula 
     grant funds to pay for red light or speed cameras. The report 
     moves a provision establishing a cooperative research and 
     evaluation program into a different section, but continues to 
     fund it from the funds provided for the formula grant 
     program.
       The conference report accepts the Senate approach on 
     incentive grants, but consolidates all of those grants into a 
     single section in Code. The new Section 405 of Title 23, 
     ``National Priority Safety Programs,'' allocates funds across 
     six incentive grant programs and allows such funds to be used 
     for a research program on technology to prevent impaired 
     driving. The conference report retains the Senate language 
     with respect to state traffic safety information system 
     improvement grants, the motorcycle safety grant program, and 
     the high visibility enforcement program.
       The conference report retains the Senate language with 
     respect to an occupant protection incentive grant with two 
     modifications. First, the report provides the highest 
     performing states with additional flexibility in spending 
     grant funds. Second, the report does not specifically state 
     that education to the public concerning the dangers of 
     children left unattended in vehicles is an allowable use of 
     these funds, however the conferees agree that such education 
     efforts could be carried out under other allowable uses, 
     including education to the public concerning the proper use 
     of child restraints.
       The conference report reflects the Senate approach with 
     regard to the impaired driving countermeasures and teen 
     driver safety grants with one modification made to each that 
     allows states additional flexibility in spending a percentage 
     of funds received through these programs. The report also 
     accepts the Senate approach on distracted driving incentive 
     grants, with one change to the eligibility requirements for 
     the grants.
       Highway Safety Research. The conference report accepts the 
     Senate approach to modifying the highway safety research 
     authorities provided to NHTSA. The report strikes provisions 
     in the Senate bill that authorized additional collaborative 
     research and development with non-federal entities, allowed 
     the Secretary to establish an international highway safety 
     information and cooperation program, funded training for 
     highway safety personnel, and created a clearinghouse for 
     information about best practices for driver's licensing 
     concerning drivers with medical issues. The report removes 
     language in the Senate bill that allowed NHTSA to develop 
     model specifications for devices. The conferees understand 
     the removal of this language does not alter the current 
     authority of NHTSA in this area.
       The conference report modifies Senate language providing 
     NHTSA with the authority to conduct research into advanced 
     technology to prevent impaired driving, and allows the 
     Secretary to use funds from the National Priority Safety 
     Programs to fund this research.
       Enhanced Safety Authorities. The conference report includes 
     several provisions intended to enhance NHTSA's safety 
     authorities. The conference report revises the Senate 
     language on civil penalties and sets the maximum penalty at 
     $35 million for a related series of violations. The increase 
     will take effect one year after enactment or when NHTSA 
     issues a rule interpreting the new civil penalty factors, 
     whichever is earlier, and the conferees agree that the new 
     penalty amount will only be subject to adjustment for 
     inflation occurring thereafter. The conference report 
     maintains the Senate approach on motor vehicle safety 
     research and development with modification, including to 
     NHTSA's authority to plan, design, or build facilities. The 
     conference report largely maintains the Senate approach 
     providing NHTSA additional authority over imported motor 
     vehicles and motor vehicle equipment, though it strikes a 
     provision related to financial responsibility requirements 
     for importers and modifies a provision relating to conditions 
     of importation.
       Transparency and Accountability. The conference report 
     contains several provisions designed to increase transparency 
     and accountability at NHTSA and in the auto industry. The 
     conference report adopts a modified Senate approach on 
     establishing public accessibility to vehicle recall 
     information and further modifies Senate provisions addressing 
     the set of communications with dealers that must be made 
     available to the public. The report strikes the provision 
     regarding public availability of early warning reporting 
     data. The report strikes a provision imposing new post-
     employment restrictions for vehicle safety officials at 
     NHTSA, but retains language calling on the inspector general 
     to report on the issue. The report slightly modifies the 
     whistleblower protection provision and calls on the 
     Government Accountability Office to examine this and other 
     such provisions. The report slightly modifies the provision 
     directing NHTSA to study crash data collection. And the 
     report makes slight modifications to NHTSA's authority to 
     require additional recall notifications.
       Vehicle Electronics and Safety Standards. The conference 
     report maintains a Senate provision that establishes a 
     Council for Vehicle Electronics, Vehicle Software, and 
     Emerging Technologies to build, implement, and aggregate 
     NHTSA's expertise in passenger motor vehicle electronics and 
     other new and emerging technologies. The conference report 
     includes a provision calling on NHTSA to evaluate vehicle 
     electronic systems and report to Congress on highest priority 
     areas for safety. The conference report strikes all other 
     safety mandates contained in Subtitle D of the Senate bill.
       Child Safety Standards. The conference report maintains the 
     Senate approach with regard to child safety. The report 
     strikes mandates for new safety standards for booster seats 
     and child restraint anchorage systems because conferees 
     understand that NHTSA has completed a rulemaking that 
     achieves these goals. The report modifies the mandate that 
     NHTSA update its frontal impact test parameters for child 
     safety seats to clarify that the mandate only applies to the 
     seat assembly specifications. The report revises the 
     provision relating to unattended passengers to a 
     discretionary research effort without

[[Page 10685]]

     any mandate for NHTSA to begin a rulemaking process.
       Improved Daytime and Nighttime Visibility of Agricultural 
     Equipment. The Conference report accepts the Senate language.

   Title II--Commercial Motor Vehicle Safety Enhancement Act of 2012

       Commercial Motor Vehicle Registration requirements. The 
     conference report includes several provisions amending 
     registration requirements under federal law for commercial 
     motor vehicles (CMV), freight forwarders, and brokers. The 
     conference report largely adopts the Senate registration 
     provisions. The provisions include new requirements, such as 
     completing a written examination and applying for a US DOT 
     number, as a precondition for being registered. The included 
     provisions amend safety fitness requirements and require 
     license holders to provide registration updates. The 
     conference report also includes Senate provisions for 
     registering household goods motor carriers, but removes 
     provisions directing the Secretary to establish education and 
     assistance programs to address the problems of household 
     property being held hostage.
       The conference report makes changes to some Senate 
     registration provisions. It retains the current presumption 
     in favor of registration, removes a management plan 
     requirement, and changes written examination provisions. For 
     providers of motorcoach services, the conference report also 
     replaces a pre-authorization audit requirement with a 
     requirement that new operators undergo a safety review within 
     120 days of beginning operations. The conference report also 
     removes requirements to periodically update registration 
     information when no changes have been made.
       The conference report includes a number of Senate 
     provisions to address motor carrier companies that mask prior 
     noncompliance and adverse safety history. The provisions 
     authorize the Secretary to withhold, suspend, amend, or 
     revoke a motor carrier's registration if the carrier failed 
     to disclose an adverse safety history or other facts relevant 
     to its past regulatory compliance. The provisions authorize 
     similar action where the Secretary finds that within the 
     previous 3 years the carrier: (1) was closely related to 
     another motor carrier with a poor compliance history; and (2) 
     did not disclose this relationship in its application. The 
     Secretary is granted authority to refuse or revoke a USDOT 
     number to an applicant that is unfit, unwilling or unable to 
     comply with the safety regulations. The conference report 
     amends some of the Senate provisions to limit the unintended 
     results of punishing individuals who were not guilty parties 
     in previous companies.
       The conference report adopts several Senate penalty 
     provisions for operations in violation of registration 
     requirements. The conference report includes civil penalties 
     and revocation authority for operating without registration, 
     operating as imminent hazard, and transporting hazardous 
     wastes without necessary registration. Provisions increase 
     the civil penalties for motor carriers, motor carriers of 
     migrant workers and private motor carriers that disobey a 
     subpoena or a requirement of the Secretary to produce 
     witnesses or records. Other provisions included authorize the 
     Secretary to suspend, amend or revoke the registration of a 
     motor carrier, broker or freight forwarder for failing to 
     obey an administrative subpoena. Another provision authorizes 
     the Secretary to place out of service the operations of a 
     motor carrier discovered to be operating vehicles without the 
     required registration, or operating beyond the scope of the 
     registration granted. The conference report amends the Senate 
     provision for hazardous waste transportation penalties and 
     sets the penalty range at not less than $20,000 but not to 
     exceed $40,000.
       Electronic logging devices. The conference report includes 
     provisions directing the Secretary to issue regulations 
     requiring electronic logging devices for recording hours of 
     service in commercial motor vehicles and sets basic 
     performance standards for the device. The conference report 
     adopted the Senate approach with some amendments. The 
     conference report adds an hours of service field study to 
     expand on a previous Federal Motor Carrier Safety 
     Administration (FMCSA) report on driver fatigue and maximum 
     driving time requirements focusing on the 34-hour restart 
     rule. The conference report directs the Secretary, in 
     prescribing regulations, to consider how the rule may reduce 
     or eliminate requirements for drivers and motor carriers to 
     retain supporting documentation associated with paper-based 
     records. The conference report changes the name of the device 
     and adds other language to make clear that the devices are to 
     be used only to enforce federal regulations. The report also 
     includes a definition of ``tamper resistant'' and provisions 
     to ensure that appropriate measures are taken to protect the 
     privacy of individuals and the confidentiality of the data.
       Commercial motor vehicle driver safety. The conference 
     report includes several Senate provisions to address 
     commercial driver safety: driver medical qualifications, 
     operator training, driver's license program, driver's 
     requirements and driver information systems. The conference 
     report removes a Senate provision that would have directed 
     the development of driver safety fitness ratings. The report 
     also removes a study and report to Congress examining the 
     extent to which detention time contributes to drivers 
     violating hours of service requirements and driver fatigue. 
     The conference report removes a Senate provision that would 
     have amended the membership of the Motor Carrier Safety 
     Advisory Committee to specifically include non-profit 
     employee organization representation.
       The provisions included direct the Secretary to establish a 
     national registry of medical examiners, issue regulations to 
     establish minimum entry-level training requirements for all 
     CMV operators, require States to modernize commercial 
     driver's license (CDL) information systems, and add 
     disqualification standards for drivers. The conference report 
     includes Senate provisions for the commercial driver's 
     license program, but removes language for federal guidance on 
     critical requirements for effective State CDL programs. The 
     conference report includes alternate language directing 
     states to prioritize areas that the Secretary has identified 
     as critical in the most recent audit of their programs.
       The conference report also includes language for 
     streamlining the process by which military members and 
     veterans who operate heavy trucks during duty are able to 
     obtain commercial driver's licenses. The conference provision 
     includes Senate language directing the Secretary to complete 
     a study and report to Congress on what can be done to 
     streamline the process. The report adds new language 
     requiring the Secretary, based on recommendations of the 
     report, to establish accelerated licensing procedures within 
     1 year of enactment.
       Drug and Alcohol Clearinghouse. The conference report 
     includes Senate provisions directing the Secretary to 
     establish a national repository for records relating to 
     alcohol and controlled substances testing of CMV drivers. The 
     records will be used to determine the qualifications for 
     operating a CMV. The clearinghouse will include safeguards to 
     protect the privacy of individuals to whom the information 
     pertains and ensure that the information is not divulged to 
     anyone not directly involved in evaluating the individual's 
     qualifications to drive a CMV. The conference report also 
     includes Senate provisions for prohibiting an employer from 
     hiring a driver unless he or she has determined that during 
     the preceding three years that such driver: did not test 
     positive in violation of the regulations at title 49, Code of 
     Federal Regulations; and did not refuse a test under these 
     regulations. Other included provisions grant preemption 
     authority to the Secretary in regard to the reporting of 
     valid positive results or refusals to take alcohol screening 
     and drug tests, and apply civil penalties to any violators of 
     privacy and reporting requirements.
       The conference report amends Senate provisions for 
     archiving personal records to ensure further individual 
     privacy protections. The conference report also includes 
     amendments to the National Transportation Safety Board's 
     access to clearinghouse records. The conference report makes 
     amendments to clarify that the clearinghouse will be used to 
     determine whether individuals have existing employment 
     prohibitions at the time of making hiring decisions.
       Motor Carrier Grant programs. The conference report does 
     not include Senate provisions updating and consolidating 
     grant programs and processes. While the conference believes 
     that reducing administrative burdens on the states and local 
     governments by streamlining grants processes is beneficial, 
     the short time frame of the legislation does not allow for 
     these changes. In that regard, the conference agrees to 
     retain existing grant programs and authorizes them for FY 
     2013 and FY 2014 at current funding levels. The conference 
     report adds language allowing the Secretary to examine 
     methods and approaches for streamlining grants administration 
     and processes to reduce burdens for the states and local 
     governments. The conference report makes some administrative 
     amendments to the existing commercial driver license program 
     improvement grant that was included in the Senate bill. The 
     conference also retains the Senate provision requiring a 
     report to Congress on resuming the commercial vehicle 
     information systems and networks program.
       Motorcoach Safety. The conference report includes 
     provisions addressing the safety of motorcoach operations. 
     The conference adopts the Senate approach, but modifies some 
     rulemaking and research requirements and removes registration 
     provisions. The conference report consolidates several 
     research and rulemakings related to fire prevention and 
     mitigation. The report amends language on assessing the 
     feasibility of retrofitting existing motorcoaches with safety 
     requirements. The report makes conforming definition changes 
     regarding the registration of motorcoaches. The registration 
     provisions were not included in the conference report because 
     they are largely redundant to the provisions in the report 
     updating registration requirements for all motor carriers.
       The conference report also includes a Senate provision for 
     oversight of motorcoaches. The provision directs the 
     Secretary to establish a safety fitness system to rate motor 
     coaches, determine and assign a fitness rating for each motor 
     coach, periodically review

[[Page 10686]]

     the safety ratings and make public the fitness ratings of 
     each motorcoach.
       The conference report includes a new provision that directs 
     the Secretary, to the extent feasible, to ensure that 
     motorcoach research programs and rulemaking are carried out 
     concurrently. The report also includes a provision requiring 
     the Secretary to review and report to Congress on the current 
     knowledge and skill testing requirements for a commercial 
     driver's license passenger endorsement. The conference 
     agreement removes a Senate rulemaking requirement on 
     distracted driving because FMCSA has already addressed this 
     issue.
       Truck, Size and Weight. The conference report includes 
     provisions directing the Secretary to study the effects of 
     truck, size and weight on highway safety and infrastructure 
     and compile a list of existing state truck size and weight 
     laws. The conference report amends the Senate study 
     provisions. The conference report includes language directing 
     the Secretary to consider the effects of trucks operating in 
     excess of federal law and regulations in comparison to those 
     trucks that do not operate in excess of federal law and 
     regulations, when assessing accident frequency and impacts to 
     highway and bridge infrastructure. The conference report 
     adopts the Senate requirement that the report must be 
     submitted to Congress not later than 2 years after enactment.
       Financial responsibility requirements. The conference 
     report includes provisions addressing the financial 
     responsibility of freight-forwarders and brokers. These 
     provisions direct rulemakings to establish minimum financial 
     solvency and bonding requirements for these entities. The 
     conference agreement includes exemptions for air carrier and 
     customs brokers who are already subject to financial 
     responsibility requirements under federal law.
       Enforcement. The Senate bill included several provisions 
     amending and updating FMCSA's enforcement authorities. The 
     conference report includes nine of the Senate provisions. 
     Five of the Senate enforcement provisions were not included 
     in the conference report: minimum prohibition on operation of 
     unfit carriers, minimum out of service penalties, failure to 
     pay civil penalty as a disqualifying offense, intrastate 
     operations of interstate motor carriers and enforcement of 
     safety laws and regulations.
       Exemptions. The conference report amends an exemption for 
     the transportation of agricultural commodities by increasing 
     the permitted travel radius from 100 air-miles to 150 air-
     miles. The conference report includes Senate language for a 
     narrow exemption from federal requirements for covered farm 
     vehicles. This conference report adopts the Senate language 
     directing the Secretary to study and report to Congress on 
     the safety impacts of the covered farm vehicle exemption.

    Title III--Surface Transportation and Freight Policy Act of 2012

       The Senate legislation included provisions establishing a 
     comprehensive national surface transportation system and 
     freight transportation policy. The policy would have provided 
     certainty to states and localities by requiring the 
     development of long term, strategic plans and directing 
     transportation investment data collection and evaluation 
     efforts. This Senate title had included provisions for safety 
     standards to ensure that the design of federal transportation 
     projects provides for adequate consideration of non-motorized 
     users. The conference report does not include this title.

Title IV--Hazardous Materials Transportation Safety Improvement Act of 
                                  2012

       Training Programs. There is currently no uniform training 
     standard for hazardous materials (``hazmat'') inspectors and 
     investigators. The conference bill requires the Secretary to 
     establish standards for training these inspectors and 
     investigators. The conference report modifies the Senate bill 
     to require that the standards be developed not later than 18 
     months after enactment, and to clarify that the standards are 
     established as guidelines.
       The conference report includes Senate provisions that amend 
     training requirements for emergency responders of hazardous 
     materials. These provisions direct that organizations 
     receiving grant funding to train emergency responders have 
     the ability to protect against accidents or incidents 
     involving the transportation of hazardous material in 
     accordance with existing regulations and standards.
       The conference report adds language to permit ``portable 
     training'' which can be offered in any suitable setting 
     rather than specific, designated facilities. This provision 
     is included to allow training at locations and times 
     convenient to students and instructors. The conference report 
     also adds requirements to ensure that the emergency responder 
     and hazmat employee training grants be awarded through a 
     competitive process.
       Data Collection and Research. The Senate bill recognized 
     the need for increased research and data collection on 
     hazardous materials programs and included a new pilot program 
     for paperless hazard communications. The program would permit 
     the Secretary to conduct pilot projects to evaluate the 
     feasibility and effectiveness of using paperless hazard 
     communications systems. The conference report includes these 
     provisions and adds a requirement to conduct a cost-benefit 
     analysis of the pilot projects and submit recommendations on 
     the analysis and other findings in the report to Congress.
       The conference report includes Senate provisions requiring 
     an assessment of the Pipeline and Hazardous Materials Safety 
     Administration's (PHMSA) hazmat data collection, analysis and 
     reporting. These provisions require PHMSA to develop an 
     action plan and timeline to make improvements to its systems. 
     The conference report directs PHMSA to conduct the assessment 
     in consultation with Commandant of the Coast Guard, in lieu 
     of in coordination with the Secretary of Homeland Security. 
     This amendment was included because the Coast Guard is more 
     specifically involved in handling accidents and 
     investigations in the transportation of hazardous materials.
       Hazmat Transportation. The conference report includes a new 
     requirement for the Secretary to study the safety of 
     transporting flammable liquids in the external pipes of cargo 
     tanks, ``wetlines.'' The report specifies that the Secretary 
     may not issue a rulemaking on ``wetlines'' until the study is 
     complete, but no later than two years after the date of 
     enactment. The conference report also modifies Senate 
     provisions that direct the Secretary to address 
     transportation of perishable material after inspection, 
     training for inspectors and the proper closing of packaging 
     after inspections, by requiring that these regulations be 
     issued within a year after enactment.
       The Senate bill included a provision that requires uniform 
     regulations for the safe loading and unloading of hazardous 
     materials on and off tank cars and cargo tank trucks. The 
     provision was not included in the conference report due to an 
     ongoing rulemaking addressing the matter.
       The conference report includes a Senate provision that 
     ensures States update the hazardous materials route registry 
     kept by the Department of Transportation.
       Special permitting. The conference report amends provisions 
     included in the Senate bill on special permits. The 
     conference report removes some language regarding criteria 
     for special permits but includes the rulemaking provision for 
     special permit and approvals procedures. It directs a review 
     and analysis of special permits that have been in continuous 
     effect for a 10-year period to determine which permits can be 
     converted into the hazardous materials regulations (HMR). It 
     includes factors that the Secretary may consider in reviewing 
     special permits. After the analysis is complete, but no later 
     than 3 years after enactment, the report authorizes the 
     Secretary to issue regulations for incorporating special 
     permits into the HMR. The amended language also directs the 
     Secretary to publish in the Federal Register justification in 
     the case of special permits that are not appropriate for 
     incorporation into the HMR. Similarly, the amended language 
     includes a process to review a special permit for 
     incorporation into the regulations once that permit has been 
     in effect for 10 years.
       Motor carrier safety permits. The conference report 
     includes a provision directing the Secretary to conduct a 
     review of the implementation of the hazardous material safety 
     permit program. The conference report directs the Secretary 
     to consider factors, including the list of hazardous 
     materials requiring a safety permit, the criteria used by 
     PHMSA to determine whether a hazardous material safety permit 
     issued by a State is equivalent to the Federal permit, and 
     actions to improve the program including an additional level 
     of fitness review. Based on the findings of the review, the 
     Secretary may either issue a rulemaking to make any necessary 
     improvements to the program, or publish in the Federal 
     Register justification for why a rulemaking is not necessary.
       Civil penalties. The conference report adds new language 
     amending civil penalties by removing the minimum penalty 
     amount for violations of hazardous materials laws and 
     regulations. The conference report also adds language 
     amending penalties for training violations. It includes a 
     definition of ``obstruct'' regarding penalties for 
     obstruction of inspections and investigations.

 Title V--National Rail System Preservation, Expansion and Development 
                              Act of 2012

       The Senate legislation included provisions that would 
     direct the Secretary, in collaboration with stakeholders, to 
     develop a long-range, national rail plan. Other provisions in 
     this title would amend statutory requirements for 
     implementation of positive train control, refine Surface 
     Transportation Board authorities and amend and update 
     Amtrak's environmental review, capital planning and 
     financing, and inspector general authorities. The conference 
     report does not include any of the provisions in this title.

Title VI--Sport Fish Restoration and Recreational Boating Safety Act of 
                                  2012

       Sport Fish Restoration and Boating Trust Fund. The 
     conference report adopts Senate provisions to authorize 
     appropriations and amounts for administrative costs through 
     FY 2013 for the Sport Fish Restoration and Boating Trust 
     Fund. The Trust Fund, often referred to as Wallop-Breaux, is 
     the mainstay of funding for State and Federal sport

[[Page 10687]]

     fish conservation and recreational boating safety programs. 
     Funds go to projects that support sport fish conservation and 
     habitat conservation in the States, and to assist States in 
     establishing and maintaining recreational boating safety and 
     boater education programs. The Trust Fund receives income 
     from the following five sources: (1) motorboat fuel taxes; 
     (2) annual tax receipts from small engine fuel used for 
     outdoor power equipment; (3) a manufacturers' excise tax on 
     sport fishing equipment; (4) import duties on fishing tackle 
     and on yachts and pleasure craft; and (5) interest on funds 
     invested prior to disbursal. All moneys received in a given 
     fiscal year are apportioned to the States in the following 
     fiscal year.

                        Title VII--Miscellaneous

       Overflights in Grand Canyon National Park. The conference 
     report makes amendments to a Senate provision on aircraft 
     noise abatement at Grand Canyon National Park (GCNP). The 
     provision establishes standards to be used by the National 
     Park Service (NPS) in restoring natural quiet at GCNP, 
     defines the term ``substantial restoration of natural quiet'' 
     for the park, and directs the NPS to take measures that 
     promote adoption of quiet technology aircraft at GCNP.
       Commercial air tour operations. The conference report 
     amends a Senate provision for commercial air tour operations 
     at national parks. The report modifies existing statutory 
     authority to clarify the conditions under which the Director 
     of the NPS may deny an application to begin or expand 
     commercial air tour operations without developing an air tour 
     management plan at Crater Lake National Park and Great Smoky 
     Mountains National Park only.

   PART I--EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND 
                             RELATED TAXES

A. Extension of Highway Trust Fund Expenditure Authority and Extension 
                        of Highway-Related Taxes

  (secs. 141 and 142 of the House bill, secs. 40101 and 40102 of the 
 Senate amendment, secs. 40101 and 40102 of the conference agreement, 
 and secs. 4041, 4051, 4071, 4081, 4221, 4481 4483, 6412, 9503, 9504, 
                        and 9508 of the Code)\1\
---------------------------------------------------------------------------

     \1\Except where otherwise stated, all section references are 
     to the Internal Revenue Code of 1986, as amended (the 
     ``Code'').
---------------------------------------------------------------------------


              Present Law Highway Trust Fund Excise Taxes

     In general
       Six separate excise taxes are imposed to finance the 
     Federal Highway Trust Fund program. Three of these taxes are 
     imposed on highway motor fuels. The remaining three are a 
     retail sales tax on heavy highway vehicles, a manufacturers' 
     excise tax on heavy vehicle tires, and an annual use tax on 
     heavy vehicles. A substantial majority of the revenues 
     produced by the Highway Trust Fund excise taxes are derived 
     from the taxes on motor fuels. The annual use tax on heavy 
     vehicles expires October 1, 2013. Except for 4.3 cents per 
     gallon of the Highway Trust Fund fuels tax rates, the 
     remaining taxes are scheduled to expire after June 30, 2012. 
     The 4.3-cents-per-gallon portion of the fuels tax rates is 
     permanent.\2\ The six taxes are summarized below.
---------------------------------------------------------------------------
     \2\This portion of the tax rates was enacted as a deficit 
     reduction measure in 1993. Receipts from it were retained in 
     the General Fund until 1997 legislation provided for their 
     transfer to the Highway Trust Fund.
---------------------------------------------------------------------------
     Highway motor fuels taxes
       The Highway Trust Fund motor fuels tax rates are as 
     follows:\3\
---------------------------------------------------------------------------
     \3\Secs. 4081(a)(2)(A)(i), 4081(a)(2)(A)(iii), 4041(a)(2), 
     4041(a)(3), and 4041(m). Some of these fuels also are subject 
     to an additional 0.1-cent-per-gallon excise tax to fund the 
     Leaking Underground Storage Tank Trust Fund (secs. 4041(d) 
     and 4081(a)(2)(B)).

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Gasoline..................................  18.3 cents per gallon
Diesel fuel and kerosene..................  24.3 cents per gallon
Alternative fuels.........................  18.3 or 24.3 cents per
                                             gallon generally\4\
------------------------------------------------------------------------
\4\See secs. 4041(a)(2), 4041(a)(3), and 4041(m).

     Non-fuel highway trust fund excise taxes
       In addition to the highway motor fuels excise tax revenues, 
     the Highway Trust Fund receives revenues produced by three 
     excise taxes imposed exclusively on heavy highway vehicles or 
     tires. These taxes are:
       1. A 12-percent excise tax imposed on the first retail sale 
     of heavy highway vehicles, tractors, and trailers (generally, 
     trucks having a gross vehicle weight in excess of 33,000 
     pounds and trailers having such a weight in excess of 26,000 
     pounds);\5\
---------------------------------------------------------------------------
     \5\Sec. 4051.
---------------------------------------------------------------------------
       2. An excise tax imposed on highway tires with a rated load 
     capacity exceeding 3,500 pounds, generally at a rate of 0.945 
     cents per 10 pounds of excess;\6\ and
---------------------------------------------------------------------------
     \6\Sec. 4071.
---------------------------------------------------------------------------
       3. An annual use tax imposed on highway vehicles having a 
     taxable gross weight of 55,000 pounds or more.\7\ (The 
     maximum rate for this tax is $550 per year, imposed on 
     vehicles having a taxable gross weight over 75,000 pounds.)
---------------------------------------------------------------------------
     \7\Sec. 4481.
---------------------------------------------------------------------------
       The taxable year for the annual use tax is from July 1st 
     through June 30th of the following year. For the period July 
     1, 2013, through September 30, 2013, the amount of the annual 
     use tax is reduced by 75 percent.\8\
---------------------------------------------------------------------------
     \8\Sec. 4482(c)(4) and (d).
---------------------------------------------------------------------------


         Present Law Highway Trust Fund Expenditure Provisions

     In general
       Under present law, revenues from the highway excise taxes, 
     as imposed through June 30, 2012, generally are dedicated to 
     the Highway Trust Fund. Dedication of excise tax revenues to 
     the Highway Trust Fund and expenditures from the Highway 
     Trust Fund are governed by the Code.\9\ The Code authorizes 
     expenditures (subject to appropriations) from the Highway 
     Trust Fund through June 30, 2012, for the purposes provided 
     in authorizing legislation, as such legislation was in effect 
     on the date of enactment of the Surface Transportation 
     Extension Act of 2012.
---------------------------------------------------------------------------
     \9\Sec. 9503. The Highway Trust Fund statutory provisions 
     were placed in the Internal Revenue Code in 1982.
---------------------------------------------------------------------------
     Highway Trust Fund expenditure purposes
       The Highway Trust Fund has a separate account for mass 
     transit, the Mass Transit Account.\10\ The Highway Trust Fund 
     and the Mass Transit Account are funding sources for specific 
     programs.
---------------------------------------------------------------------------
     \10\Sec. 9503(e)(1).
---------------------------------------------------------------------------
       Highway Trust Fund expenditure purposes have been revised 
     with each authorization Act enacted since establishment of 
     the Highway Trust Fund in 1956. In general, expenditures 
     authorized under those Acts (as the Acts were in effect on 
     the date of enactment of the most recent such authorizing 
     Act) are specified by the Code as Highway Trust Fund 
     expenditure purposes.\11\ The Code provides that the 
     authority to make expenditures from the Highway Trust Fund 
     expires after June 30, 2012. Thus, no Highway Trust Fund 
     expenditures may occur after June 30, 2012, without an 
     amendment to the Code.
---------------------------------------------------------------------------
     \11\The authorizing Acts that currently are referenced in the 
     Highway Trust Fund provisions of the Code are: the Highway 
     Revenue Act of 1956; Titles I and II of the Surface 
     Transportation Assistance Act of 1982; the Surface 
     Transportation and Uniform Relocation Act of 1987; the 
     Intermodal Surface Transportation Efficiency Act of 1991; the 
     Transportation Equity Act for the 21st Century, the Surface 
     Transportation Extension Act of 2003, the Surface 
     Transportation Extension Act of 2004; the Surface 
     Transportation Extension Act of 2004, Part II; the Surface 
     Transportation Extension Act of 2004, Part III; the Surface 
     Transportation Extension Act of 2004, Part IV; the Surface 
     Transportation Extension Act of 2004, Part V; the Safe, 
     Accountable, Flexible, Efficient Transportation Equity Act: A 
     Legacy for Users; the SAFETEA-LU Technical Corrections Act of 
     2008; the Surface Transportation Extension Act of 2010; the 
     Surface Transportation Extension Act of 2010, Part II; the 
     Surface Transportation Extension Act of 2011; the Surface 
     Transportation Extension Act of 2011, Part II, and the 
     Surface Transportation Extension Act of 2012.
---------------------------------------------------------------------------
       As noted above, section 9503 appropriates to the Highway 
     Trust Fund amounts equivalent to the taxes received from the 
     following: the taxes on diesel, gasoline, kerosene and 
     special motor fuel, the tax on tires, the annual heavy 
     vehicle use tax, and the tax on the retail sale of heavy 
     trucks and trailers.\12\ Section 9601 provides that amounts 
     appropriated to a trust fund pursuant to sections 9501 
     through 9511, are to be transferred at least monthly from the 
     General Fund of the Treasury to such trust fund on the basis 
     of estimates made by the Secretary of the Treasury of the 
     amounts referred to in the Code section appropriating the 
     amounts to such trust fund. The Code requires that proper 
     adjustments be made in amounts subsequently transferred to 
     the extent prior estimates were in excess of, or less than, 
     the amounts required to be transferred.
---------------------------------------------------------------------------
     \12\Sec. 9503(b)(1).
---------------------------------------------------------------------------


                               House Bill

       Present-law expenditure authority and taxes are extended 
     for an additional three months, through September 30, 2012.
       Effective date.--The provision is effective July 1, 2012.


                            Senate Amendment

       The expenditure authority for the Highway Trust Fund is 
     extended through September 30, 2013. The Code provisions 
     governing the purposes for which monies in the Highway Trust 
     Fund may be spent are updated to include the reauthorization 
     bill, Moving Ahead for Progress for the 21st Century (MAP-
     21).\13\
---------------------------------------------------------------------------
     \13\The provision also replaces cross-references to the 
     Surface Transportation Extension Act of 2011, Part II, with 
     MAP-21, and replaces April 1, 2012 references with October 1, 
     2013 in the Code provisions governing the Leaking Underground 
     Storage Tank Trust Fund, and the Sport Fish Restoration and 
     Boating Trust Fund.
---------------------------------------------------------------------------
       The provision extends the motor fuel taxes, and all three 
     non-fuel excise taxes at their current rates through 
     September 30, 2015.\14\ The provision resolves the projected 
     deficit in the Highway Trust Fund, assures a cushion of $2.8 
     billion in each account of the Highway Trust Fund, and 
     creates a solvency account available for use by either 
     highways or mass transit. Specifically, the Secretary of the 
     Treasury is to transfer the excess of (1) any amount 
     appropriated to the Highway Trust Fund before October 1, 
     2013, by reason of the provisions of this bill, over (2) the 
     amount necessary to meet the required expenditures from the 
     Highway Trust Fund as authorized in section 9503(c) of the 
     Code (which provides expenditure authority from

[[Page 10688]]

     the Highway Trust Fund) for the period ending before October 
     1, 2013. Amounts in the solvency account are available for 
     transfers to the Highway Account and the Mass Transit Account 
     in such amounts as determined necessary by the Secretary to 
     ensure that each account has a surplus balance of $2.8 
     billion on September 30, 2013. The solvency account 
     terminates on September 30, 2013 and any remainder in the 
     solvency account remains in the Highway Trust Fund. The 
     Committee expects that the Secretary of the Treasury will 
     consult with the Secretary of Transportation in making 
     determinations concerning amounts necessary to meet required 
     expenditures and amounts necessary to ensure the cushion of 
     $2.8 billion.
---------------------------------------------------------------------------
     \14\The Leaking Underground Storage Tank Trust Fund financing 
     rate of 0.1 cent per gallon also is extended through 
     September 30, 2015.
---------------------------------------------------------------------------
       Effective date.--The provision is effective on April 1, 
     2012.


                          Conference Agreement

       The conference agreement provides for expenditure authority 
     through September 30, 2014. The Code provisions governing the 
     purposes for which monies in the Highway Trust Fund may be 
     spent are updated to include the conference agreement bill, 
     MAP-21. Cross-references to the reauthorization bill in the 
     Code provisions governing the Sport Fish Restoration and 
     Boating Trust Fund are also updated to include the conference 
     agreement bill. In general, the provision extends the taxes 
     dedicated to the Highway Trust Fund at their present law 
     rates through September 30, 2016, and for the heavy vehicle 
     use tax, through September 30, 2017.\15\
---------------------------------------------------------------------------
     \15\The Leaking Underground Storage Tank Trust Fund financing 
     rate also is extended through September 30, 2016. The 
     provision also corrects a potential drafting ambiguity 
     regarding the taxable period as reflected in prior 
     legislation. The provision is effective as if included in 
     section 142 of the Surface Transportation Extension Act of 
     2011, Part II.
---------------------------------------------------------------------------
       Effective date.--The provision is effective July 1, 2012.

                      PART II--REVENUE PROVISIONS

             A. Leaking Underground Storage Tank Trust Fund

   (secs. 40301 and 40302 of the Senate amendment, sec. 40201 of the 
       conference agreement and secs. 9503 and 9508 of the Code)


                              Present Law

     Leaking Underground Storage Tank Trust Fund financing rate
       Fuels of a type subject to other trust fund excise taxes 
     generally are subject to an add-on excise tax of 0.1-cent-
     per-gallon to fund the Leaking Underground Storage Tank 
     (``LUST'') Trust Fund.\16\ For example, the LUST excise tax 
     applies to gasoline, diesel fuel, kerosene, and most 
     alternative fuels subject to highway and aviation fuels 
     excise taxes, and to fuels subject to the inland waterways 
     fuel excise tax. This excise tax is imposed on both uses and 
     parties subject to the other taxes, and to situations (other 
     than export) in which the fuel otherwise is tax-exempt. For 
     example, off-highway business use of gasoline and off-highway 
     use of diesel fuel and kerosene generally are exempt from 
     highway motor fuels excise tax. Similarly, States and local 
     governments and certain other parties are exempt from such 
     tax. Nonetheless, all such uses and parties are subject to 
     the 0.1-cent-per-gallon LUST excise tax.
---------------------------------------------------------------------------
     \16\Secs. 4041, 4042, and 4081.
---------------------------------------------------------------------------
       Liquefied natural gas, compressed natural gas, and 
     liquefied petroleum gas are exempt from the LUST tax. 
     Additionally, methanol and ethanol fuels produced from coal 
     (including peat) are taxed at a reduced rate of 0.05 cents 
     per gallon.
       The LUST tax is scheduled to expire after June 30, 
     2012.\17\
---------------------------------------------------------------------------
     \17\For Federal budget scorekeeping purposes, the LUST Trust 
     Fund tax, like other excise taxes dedicated to trust funds, 
     is assumed to be permanent.
---------------------------------------------------------------------------
     Overview of Leaking Underground Storage Tank Trust Fund 
         expenditure provisions
       Amounts in the LUST Trust Fund are available, as provided 
     in appropriations Acts, for purposes of making expenditures 
     to carry out sections 9003(h)-(j), 9004(f), 9005(c), and 
     9010-9013 of the Solid Waste Disposal Act as in effect on the 
     date of enactment of Public Law 109-168. Any claim filed 
     against the LUST Trust Fund may be paid only out of such 
     fund, and the liability of the United States for claims is 
     limited to the amount in the fund.
       The monies in the LUST Trust Fund are used to pay expenses 
     incurred by the Environmental Protection Agency (the ``EPA'') 
     and the States for preventing, detecting, and cleaning up 
     leaks from petroleum underground storage tanks, as well as 
     programs to evaluate the compatibility of fuel storage tanks 
     with alternative fuels, MTBE additives, and ethanol and 
     biodiesel blends.
       The EPA makes grants to States to implement the program, 
     and States use cleanup funds primarily to oversee and enforce 
     corrective actions by responsible parties. States and EPA 
     also use cleanup funds to conduct corrective actions where no 
     responsible party has been identified, where a responsible 
     party fails to comply with a cleanup order, in the event of 
     an emergency, and to take cost recovery actions against 
     parties. In 2005, Congress authorized the EPA and States to 
     use trust fund monies for non-cleanup purposes as well, 
     specifically for administration and enforcement of the leak 
     prevention requirements of the UST program.\18\
---------------------------------------------------------------------------
     \18\Pub. L. No. 109-58.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The provision transfers $3 billion from the LUST Trust Fund 
     to the Highway Trust Fund. The provision also provides that 
     0.033 cent of the 0.1 cent LUST Trust Fund financing rate is 
     dedicated to the Highway Trust Fund.\19\
---------------------------------------------------------------------------
     \19\As noted above, the Leaking Underground Storage Tank 
     Trust Fund financing rate of 0.1 cent per gallon is also 
     extended through September 30, 2015.
---------------------------------------------------------------------------
       Effective date.--The provision is effective on the date of 
     enactment.


                          Conference Agreement

       The conference agreement transfers $2.4 billion from the 
     LUST Trust Fund to the Highway Account of the Highway Trust 
     Fund.
       The conference agreement does not include the Senate 
     amendment provision to transfer 0.033 cent of the 0.1 cent 
     LUST Trust Fund financing rate to the Highway Trust Fund.
       Effective date.--The provision is effective on the date of 
     enactment.

                    B. Pension Funding Stabilization

   (sec. 40312 of the Senate amendment, sec. 40211 of the conference 
       agreement, Code sec. 430, and ERISA secs. 101(f) and 303)


                              Present Law

     Minimum funding rules
       Defined benefit plans generally are subject to minimum 
     funding rules that require the sponsoring employer generally 
     to make a contribution for each plan year to fund plan 
     benefits.\20\ Parallel rules apply under the Employee 
     Retirement Income Security Act of 1974 (``ERISA''), which is 
     generally in the jurisdiction of the Department of Labor.\21\ 
     The minimum funding rules for single-employer defined benefit 
     plans were substantially revised by the Pension Protection 
     Act of 2006 (``PPA'').\22\
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     \20\Sec. 412. A number of exceptions to the minimum funding 
     rules apply. For example, governmental plans (within the 
     meaning of section 414(d) and church plans (within the 
     meaning of section 414(e)) are generally not subject to the 
     minimum funding rules. Under section 4971, an excise tax 
     applies to an employer maintaining a single-employer plan if 
     the minimum funding requirements are not satisfied.
     \21\Sec. 302 of ERISA.
     \22\Pub. L. No. 109-280. The PPA minimum funding rules for 
     single-employer plans are generally effective for plan years 
     beginning after December 31, 2007. Delayed effective dates 
     apply to single-employer plans sponsored by certain large 
     defense contractors, multiple-employer plans of some rural 
     cooperatives, eligible charity plans, and single-employer 
     plans affected by settlement agreements with the Pension 
     Benefit Guaranty Corporation. Subsequent changes to the 
     single-employer plan and multiemployer plan funding rules 
     (including temporary funding relief) were made by the Worker, 
     Retiree, and Employer Recovery Act of 2008 (``WRERA''), Pub. 
     L. No. 110-458, and the Preservation of Access to Care for 
     Medicare Beneficiaries and Pension Relief Act of 2010 (``PRA 
     2010''), Public Law 111-192.
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     Minimum required contributions
       In general
       The minimum required contribution for a plan year for a 
     single-employer defined benefit plan generally depends on a 
     comparison of the value of the plan's assets, reduced by any 
     prefunding balance or funding standard carryover balance 
     (``net value of plan assets''),\23\ with the plan's funding 
     target and target normal cost. The plan's funding target for 
     a plan year is the present value of all benefits accrued or 
     earned as of the beginning of the plan year. A plan's target 
     normal cost for a plan year is generally the present value of 
     benefits expected to accrue or to be earned during the plan 
     year.
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     \23\The value of plan assets is generally reduced by any 
     prefunding balance or funding standard carryover balance in 
     determining minimum required contributions, including for 
     this purpose. A prefunding balance results from contributions 
     to a plan that exceed the minimum required contributions. A 
     funding standard carryover balance results from a positive 
     balance in the funding standard account that applied under 
     the funding requirements in effect before PPA. Subject to 
     certain conditions, a prefunding balance or funding standard 
     carryover balance may be credited against the minimum 
     required contribution for a year, reducing the amount that 
     must be contributed.
---------------------------------------------------------------------------
       If the net value of plan assets is less than the plan's 
     funding target, so that the plan has a funding shortfall 
     (discussed further below), the minimum required contribution 
     is the sum of the plan's target normal cost and the shortfall 
     amortization charge for the plan year (determined as 
     described below).\24\ If the net value of plan assets is 
     equal to or exceeds the plan's funding target, the minimum 
     required contribution is the plan's target normal cost, 
     reduced by the amount, if any, by which the net value of plan 
     assets exceeds the plan's funding target.
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     \24\If the plan has obtained a waiver of the minimum required 
     contribution (a funding waiver) within the past five years, 
     the minimum required contribution also includes the related 
     waiver amortization charge, that is, the annual installment 
     needed to amortize the waived amount in level installments 
     over the five years following the year of the waiver.
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       Shortfall amortization charge
       The shortfall amortization charge for a plan year is the 
     sum of the annual shortfall amortization installments 
     attributable to the shortfall bases for that plan year and 
     the six previous plan years. Generally, if a plan

[[Page 10689]]

     has a funding shortfall for the plan year, a shortfall 
     amortization base must be established for the plan year.\25\ 
     A plan's funding shortfall is the amount by which the plan's 
     funding target exceeds the net value of plan assets. The 
     shortfall amortization base for a plan year is: (1) the 
     plan's funding shortfall, minus (2) the present value, 
     determined using the segment interest rates (discussed 
     below), of the aggregate total of the shortfall amortization 
     installments that have been determined for the plan year and 
     any succeeding plan year with respect to any shortfall 
     amortization bases for the six previous plan years. The 
     shortfall amortization base is amortized in level annual 
     installments (``shortfall amortization installments'') over a 
     seven-year period beginning with the current plan year and 
     using the segment interest rates (discussed below).\26\
---------------------------------------------------------------------------
     \25\If the value of plan assets, reduced only by any 
     prefunding balance if the employer elects to apply the 
     prefunding balance against the required contribution for the 
     plan year, is at least equal to the plan's funding target, no 
     shortfall amortization base is established for the year.
     \26\Under PRA 2010, employers were permitted to elect to use 
     one of two alternative extended amortization schedules for up 
     to two ``eligible'' plan years during the period 2008-2011. 
     The use of an extended amortization schedule has the effect 
     of reducing the amount of the shortfall amortization 
     installments attributable to the shortfall amortization base 
     for the eligible plan year. However, the shortfall 
     amortization installments attributable to an eligible plan 
     year may be increased by an additional amount, an 
     ``installment acceleration amount,'' in the case of employee 
     compensation exceeding $1 million, extraordinary dividends, 
     or stock redemptions within a certain period of the eligible 
     plan year.
---------------------------------------------------------------------------
       The shortfall amortization base for a plan year may be 
     positive or negative, depending on whether the present value 
     of remaining installments with respect to amortization bases 
     for previous years is more or less than the plan's funding 
     shortfall. If the shortfall amortization base is positive 
     (that is, the funding shortfall exceeds the present value of 
     the remaining installments), the related shortfall 
     amortization installments are positive. If the shortfall 
     amortization base is negative, the related shortfall 
     amortization installments are negative. The positive and 
     negative shortfall amortization installments for a particular 
     plan year are netted when adding them up in determining the 
     shortfall amortization charge for the plan year, but the 
     resulting shortfall amortization charge cannot be less than 
     zero (i.e., negative amortization installments may not offset 
     normal cost).
       If the net value of plan assets for a plan year is at least 
     equal to the plan's funding target for the year, so the plan 
     has no funding shortfall, any shortfall amortization bases 
     and related shortfall amortization installments are 
     eliminated.\27\ As indicated above, if the net value of plan 
     assets exceeds the plan's funding target, the excess is 
     applied against target normal cost in determining the minimum 
     required contribution.
---------------------------------------------------------------------------
     \27\Any amortization base relating to a funding waiver for a 
     previous year is also eliminated.
---------------------------------------------------------------------------
     Interest rate used to determine target normal cost and 
         funding target
       The minimum funding rules for single-employer plans specify 
     the interest rates and other actuarial assumptions that must 
     be used in determining the present value of benefits for 
     purposes of a plan's target normal cost and funding target.
       Present value is determined using three interest rates 
     (``segment'' rates), each of which applies to benefit 
     payments expected to be made from the plan during a certain 
     period. The first segment rate applies to benefits reasonably 
     determined to be payable during the five-year period 
     beginning on the first day of the plan year; the second 
     segment rate applies to benefits reasonably determined to be 
     payable during the 15-year period following the initial five-
     year period; and the third segment rate applies to benefits 
     reasonably determined to be payable at the end of the 15-year 
     period. Each segment rate is a single interest rate 
     determined monthly by the Secretary of the Treasury 
     (``Secretary'') on the basis of a corporate bond yield curve, 
     taking into account only the portion of the yield curve based 
     on corporate bonds maturing during the particular segment 
     rate period. The corporate bond yield curve used for this 
     purpose reflects the average, for the 24-month period ending 
     with the preceding month, of yields on investment grade 
     corporate bonds with varying maturities and that are in the 
     top three quality levels available. The Internal Revenue 
     Service (IRS) publishes the segment rates each month.
       The present value of liabilities under a plan is determined 
     using the segment rates for the ``applicable month'' for the 
     plan year. The applicable month is the month that includes 
     the plan's valuation date for the plan year, or, at the 
     election of the employer, any of the four months preceding 
     the month that includes the valuation date.
       Solely for purposes of determining minimum required 
     contributions, in lieu of the segment rates described above, 
     an employer may elect to use interest rates on a yield curve 
     based on the yields on investment grade corporate bonds for 
     the month preceding the month in which the plan year begins 
     (i.e., without regard to the 24-month averaging described 
     above) (``monthly yield curve''). If an election to use a 
     monthly yield curve is made, it cannot be revoked without IRS 
     approval.
     Use of segment rates for other purposes
       In general
       In addition to being used to determine a plan's funding 
     target and target normal cost, the segment rates are used 
     also for other purposes, either directly because the segment 
     rates themselves are specifically cross-referenced or 
     indirectly because funding target, target normal cost, or 
     some other concept, such as funding target attainment 
     percentage (discussed below) in which funding target or 
     target normal cost is an element, is cross-referenced 
     elsewhere.
       Funding target attainment percentage
       A plan's funding target attainment percentage for a plan 
     year is the ratio, expressed as a percentage, that the net 
     value of plan assets bears to the plan's funding target for 
     the year. Special rules may apply to a plan if its funding 
     target attainment percentage is below a certain level. For 
     example, funding target attainment percentage is used to 
     determine whether a plan is in ``at-risk'' status, so that 
     special actuarial assumptions (``at-risk assumptions'') must 
     be used in determining the plan's funding target and target 
     normal cost.\28\ A plan is in at risk status for a plan year 
     if, for the preceding year: (1) the plan's funding target 
     attainment percentage, determined without regard to the at-
     risk assumptions, was less than 80 percent, and (2) the 
     plan's funding target attainment percentage, determined using 
     the at-risk assumptions (without regard to whether the plan 
     was in at-risk status for the preceding year), was less than 
     70 percent.\29\ In addition, special reporting to the Pension 
     Benefit Guaranty Corporation (``PBGC'') may be required if a 
     plan's funding target attainment percentage is less than 80 
     percent.\30\
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     \28\If a plan is in at-risk status, under section 409A(b)(3), 
     limitations apply on the employer's ability to set aside 
     assets to provide benefits under a nonqualified deferred 
     compensation plan.
     \29\A similar test applies in order for an employer to be 
     permitted to apply a prefunding balance against its required 
     contribution, that is, for the preceding year, the ratio of 
     the value of plan assets (reduced by any prefunding balance) 
     must be at least 80 percent of the plan's funding target 
     (determined without regard to the at-risk rules).
     \30\ERISA sec. 4010.
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       Restrictions on benefit increases, certain types of 
     benefits and benefit accruals (collectively referred to as 
     ``benefit restrictions'') may apply to a plan if the plan's 
     adjusted funding target attainment percentage is below a 
     certain level.\31\ Adjusted funding target attainment 
     percentage is determined in the same way as funding target 
     attainment percentage, except that the net value of plan 
     assets and the plan's funding target are both increased by 
     the aggregate amount of purchases of annuities for employees, 
     other than highly compensated employees, made by the plan 
     during the two preceding plan years. Although anti-cutback 
     rules generally prohibit reductions in benefits that have 
     already been earned under a plan,\32\ reductions required to 
     comply with the benefit restrictions are permitted.
---------------------------------------------------------------------------
     \31\Code sec. 436 and ERISA sec. 206(g).
     \32\Code sec. 411(d)(6) and ERISA sec. 204(g).
---------------------------------------------------------------------------
       Minimum and maximum lump sums, limits on deductible 
           contributions, retiree health
       Defined benefit plans commonly allow a participant to 
     choose among various forms of benefit offered under the plan, 
     such as a lump-sum distribution. These optional forms of 
     benefit generally must be actuarially equivalent to the life 
     annuity benefit payable to the participant at normal 
     retirement age. For certain forms of benefit, such as lump 
     sums, the benefit amount cannot be less than the amount 
     determined using the segment rates and a specified mortality 
     table.\33\ For this purpose, however, the segment rates are 
     determined on a monthly basis, rather than using a 24-month 
     average of corporate bond rates.
---------------------------------------------------------------------------
     \33\Code sec. 417(e) and ERISA sec. 205(g).
---------------------------------------------------------------------------
       The amount of benefits under a defined benefit plan are 
     subject to certain limits.\34\ The segment rates used in 
     determining minimum lump sums (and certain other forms of 
     benefit) are also used in applying the benefit limits to lump 
     sums (and the certain other forms of benefit).
---------------------------------------------------------------------------
     \34\Sec. 415(b).
---------------------------------------------------------------------------
       Limits apply to the amount of plan contributions that may 
     be deducted by an employer.\35\ In the case of a single-
     employer defined benefit plan, the plan's funding target and 
     target normal cost, determined using the segment rates that 
     apply for funding purposes, are taken into account in 
     calculating the limit on deductible contributions.
---------------------------------------------------------------------------
     \35\Sec. 404.
---------------------------------------------------------------------------
       Subject to various conditions, a qualified transfer of 
     excess assets of a single-employer defined benefit plan to a 
     retiree medical account within the plan may be made in order 
     to fund retiree health benefits.\36\ For this purpose, excess 
     assets generally means the excess, if any, of the value of 
     the plan's assets over 125 percent of the sum of the plan's 
     funding target and target normal cost for the plan year.
---------------------------------------------------------------------------
     \36\Sec. 420. Under present law, a qualified transfer is not 
     permitted after December 31, 2013.

[[Page 10690]]


       PBGC premiums and 4010 reporting
       PBGC premiums apply with respect to defined benefit plans 
     covered by ERISA.\37\ In the case of a single-employer 
     defined benefit plan, flat-rate premiums apply at a rate of 
     $35.00 per participant for 2012.\38\ If a single-employer 
     defined benefit plan has unfunded vested benefits, variable-
     rate premiums also apply at a rate of $9 per $1,000 of 
     unfunded vested benefits divided by the number of 
     participants. For purposes of determining variable-rate 
     premiums, unfunded vested benefits are equal to the excess 
     (if any) of (1) the plan's funding target for the year 
     determined as under the minimum funding rules, but taking 
     into account only vested benefits, over (2) the fair market 
     value of plan assets. In determining the plan's funding 
     target for this purpose, the interest rates used are segment 
     rates determined as under the minimum funding rules, but 
     determined on a monthly basis, rather than using a 24-month 
     average of corporate bond rates.
---------------------------------------------------------------------------
     \37\ERISA sec. 4006.
     \38\Flat-rate premiums apply also to multiemployer defined 
     benefit plans at a rate of $9.00 per participant. Single-
     employer and multiemployer flat-rate premium rates are 
     indexed for inflation. The rate of variable-rate premiums is 
     not indexed.
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       In certain circumstances, the contributing sponsor of a 
     single-employer plan defined benefit pension plan covered by 
     the PBGC (and members of the contributing sponsor's 
     controlled group) must provide certain information to the 
     PBGC (referred to as ``section 4010 reporting'').\39\ This 
     information includes actuarial information with respect to 
     single-employer plans maintained by the contributing sponsor 
     (and controlled group members). Section 4010 reporting is 
     required if: (1) the funding target attainment percentage at 
     the end of the preceding plan year of a plan maintained by 
     the contributing sponsor or any member of its controlled 
     group is less than 80 percent; (2) the conditions for 
     imposition of a lien (i.e., required contributions totaling 
     more than $1 million have not been made) have occurred with 
     respect to a plan maintained by the contributing sponsor or 
     any member of its controlled group; or (3) minimum funding 
     waivers in excess of $1 million have been granted with 
     respect to a plan maintained by the contributing sponsor or 
     any member of its controlled group and any portion of the 
     waived amount is still outstanding.
---------------------------------------------------------------------------
     \39\ERISA sec. 4010.
---------------------------------------------------------------------------
     Annual funding notice
       The plan administrator of a defined benefit plan must 
     provide an annual funding notice to: (1) each participant and 
     beneficiary; (2) each labor organization representing such 
     participants or beneficiaries; and (4) the PBGC.\40\
---------------------------------------------------------------------------
     \40\ERISA sec. 101(f). In the case of a multiemployer plan, 
     the notice must also be sent to each employer that has an 
     obligation to contribute under the plan;
---------------------------------------------------------------------------
       In addition to the information required to be provided in 
     all funding notices, certain information must be provided in 
     the case of a single-employer defined benefit plan, 
     including:
       a statement as to whether the plan's funding target 
     attainment percentage (as defined under the minimum funding 
     rules) for the plan year to which the notice relates and the 
     two preceding plan years, is at least 100 percent (and, if 
     not, the actual percentages); and
       a statement of (a) the total assets (separately stating any 
     funding standard carryover or prefunding balance) and the 
     plan's liabilities for the plan year and the two preceding 
     years, determined in the same manner as under the funding 
     rules, and (b) the value of the plan's assets and liabilities 
     as of the last day of the plan year to which the notice 
     relates, determined using fair market value and the interest 
     rate used in determining variable rate premiums.
       A funding notice may also include any additional 
     information that the plan administrator elects to include to 
     the extent not inconsistent with regulations. The notice must 
     be written so as to be understood by the average plan 
     participant. As required under PPA, the Secretary of Labor 
     has issued a model funding notice that can be used to satisfy 
     the notice requirement.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment revises the rules for determining the 
     segment rates under the single-employer plan funding rules by 
     adjusting a segment rate if the rate determined under the 
     regular rules is outside a specified range of the average of 
     the segment rates for the preceding 25-year period 
     (``average'' segment rates). In particular, if a segment rate 
     determined for an applicable month under the regular rules is 
     less than the applicable minimum percentage, the segment rate 
     is adjusted upward to match that percentage. If a segment 
     rate determined for an applicable month under the regular 
     rules is more than the applicable maximum percentage, the 
     segment rate is adjusted downward to match that percentage. 
     For this purpose, the average segment rate is the average of 
     the segment rates determined under the regular rules for the 
     25-year period ending September 30 of the calendar year 
     preceding the calendar year in which the plan year begins. 
     The Secretary is to determine average segment rates on an 
     annual basis and may prescribe equivalent rates for any years 
     in the 25-year period for which segment rates determined 
     under the regular rules are not available. The Secretary is 
     directed to publish the average segment rates each month.
       The applicable minimum percentage and the applicable 
     maximum percentage depend on the calendar year in which the 
     plan year begins as shown by the following table:

------------------------------------------------------------------------
                                    The applicable      The applicable
    If the calendar year is:            minimum             maximum
                                    percentage is:      percentage is:
------------------------------------------------------------------------
2012............................  90 percent........  110 percent
2013............................  85 percent........  115 percent
2014............................  80 percent........  120 percent
2015............................  75 percent........  125 percent
2016 or later...................  70 percent........  130 percent
------------------------------------------------------------------------

       Thus, for example, if the first segment rate determined for 
     an applicable month under the regular rules for a plan year 
     beginning in 2012 is less than 90 percent of the average of 
     the first segment rates determined under the regular rules 
     for the 25-year period ending September 30, 2011, the segment 
     rate is adjusted to 90 percent of the 25-year average.
       The change in the method of determining segment rates 
     generally applies for the purposes for which segment rates 
     are used under present law, except for purposes of 
     determining minimum and maximum lump-sum benefits,\41\ limits 
     on deductible contributions to single-employer defined 
     benefit plans, and PBGC variable-rate premiums.
---------------------------------------------------------------------------
     \41\The provision does not provide a specific exception for 
     determining maximum lump sum benefits. However, the exception 
     for minimum lump sum benefits applies by cross-reference.
---------------------------------------------------------------------------
       Effective date.--The provision in the Senate Amendment is 
     generally effective for plan years beginning after December 
     31, 2011. Under a special rule, an employer may elect, for 
     any plan year beginning on or before the date of enactment 
     and solely for purposes of determining the plan's adjusted 
     funding target attainment percentage (used in applying the 
     benefit restrictions) for that year, not to have the 
     provision apply. A plan is not treated as failing to meet the 
     requirements of the anti-cutback rules solely by reason of an 
     election under the special rule.


                          Conference Agreement

       The conference agreement follows the Senate amendment with 
     several modifications.
     Average segment rates
       The change in the method of determining segment rates 
     generally applies for the purposes for which segment rates 
     are used under present law, except for purposes of minimum 
     and maximum lump-sum benefits,\42\ limits on deductible 
     contributions to single-employer defined benefit plans, 
     qualified transfers of excess pension assets to retiree 
     medical accounts,\43\ PBGC variable-rate premiums,\44\ and 
     4010 reporting to the PBGC.
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     \42\The provision does not provide a specific exception for 
     determining maximum lump sum benefits. However, the exception 
     for minimum lump sum benefits applies by cross-reference.
     \43\Another provision of the conference agreement extends to 
     December 31, 2021, the ability to make a qualified transfer. 
     In addition, another provision of the conference agreement 
     allows qualified transfers to be made to provide group-term 
     life insurance benefits.
     \44\Another provision of the conference agreement increases 
     PBGC flat-rate and variable-rate premiums.
---------------------------------------------------------------------------
       The special effective date rule is modified under the 
     conference agreement so that an employer may elect, for any 
     plan year beginning before January 1, 2013, not to have the 
     provision apply either (1) for all purposes for which the 
     provision would otherwise apply, or (2) solely for purposes 
     of determining the plan's adjusted funding target attainment 
     percentage (used in applying the benefit restrictions) for 
     that year. A plan is not treated as failing to meet the 
     requirements of the anti-cutback rules solely by reason of an 
     election under the special rule.
       Under the conference agreement, if, as of the date of 
     enactment, an employer election is in effect to use a monthly 
     yield curve in determining minimum required contributions, 
     rather than segment rates, the employer may revoke the 
     election (and use segment rates, as modified by the 
     conference agreement provision) without obtaining IRS 
     approval. The revocation must be made at any time before the 
     date that is one year after the date of enactment, and the 
     revocation will be effective for the first plan year to which 
     the amendments made by the provision apply and all subsequent 
     plan years. The employer is not precluded from making a 
     subsequent election to use a monthly yield curve in 
     determining minimum required contributions in accordance with 
     present law.
     Annual funding notice
       The conference agreement requires additional information to 
     be included in the annual funding notice in the case of an 
     applicable plan year. For this purpose, an applicable plan 
     year is any plan year beginning after December 31, 2011, and 
     before January 1, 2015, for which (1) the plan's funding 
     target, determined using segment rates as adjusted to reflect 
     average segment rates (``adjusted'' segment rates), is less 
     than 95 percent of the funding target determined without 
     regard to adjusted segment rates (that is, determined as 
     under present law), (2) the plan has a funding shortfall, 
     determined without regard

[[Page 10691]]

     to adjusted segment rates, greater than $500,000 and (3) the 
     plan had 50 or more participants on any day during the 
     preceding plan year.
       The additional information that must be provided is:
       a statement that MAP-21 modified the method for determining 
     the interest rates used to determine the actuarial value of 
     benefits earned under the plan, providing for a 25-year 
     average of interest rates to be taken into account in 
     addition to a 2-year average;
       a statement that, as a result of MAP-21, the plan sponsor 
     may contribute less money to the plan when interest rates are 
     at historical lows, and
       a table showing, for the applicable plan year and each of 
     the two preceding plan years, the plan's funding target 
     attainment percentage, funding shortfall, and the employer's 
     minimum required contribution, each determined both using 
     adjusted segment rates and without regard to adjusted segment 
     rates (that is, as under present law). In the case of a 
     preceding plan year beginning before January 1, 2012, the 
     plan's funding target attainment percentage, funding 
     shortfall, and the employer's minimum required contribution 
     provided are determined only without regard to adjusted 
     segment rates (that is, as under present law).
       As under present law, a funding notice may also include any 
     additional information that the plan administrator elects to 
     include to the extent not inconsistent with regulations. For 
     example, a funding notice may include a statement of the 
     amount of the employer's actual or planned contributions to 
     the plan.
       The Secretary of Labor is directed to modify the model 
     funding notice required so that the model includes the 
     additional information in a prominent manner, for example, on 
     a separate first page before the remainder of the notice.

                  C. Transfer of Excess Pension Assets

 (secs. 40310 and 40311 of the Senate amendment, secs. 40241 and 40242 
         of the conference agreement, and sec. 420 of the Code)


                              Present Law

     Defined benefit pension plan reversions
       Defined benefit plan assets generally may not revert to an 
     employer prior to termination of the plan and satisfaction of 
     all plan liabilities.\45\ Upon plan termination, the accrued 
     benefits of all plan participants are required to be 100-
     percent vested. A reversion prior to plan termination may 
     constitute a prohibited transaction and may result in plan 
     disqualification. Any assets that revert to the employer upon 
     plan termination are includible in the gross income of the 
     employer and subject to an excise tax. The excise tax rate is 
     20 percent if the employer maintains a replacement plan or 
     makes certain benefit increases in connection with the 
     termination; if not, the excise tax rate is 50 percent. 
     Medical benefits and life insurance benefits provided under a 
     pension plan
---------------------------------------------------------------------------
     \45\In addition, a reversion may occur only if the terms of 
     the plan so provide.
---------------------------------------------------------------------------
     Retiree medical accounts
       A pension plan may provide medical benefits to retired 
     employees through a separate account that is part of a 
     defined benefit plan (``retiree medical accounts'').\46\ 
     Medical benefits provided through a retiree medical account 
     are generally not includible in the retired employee's gross 
     income.\47\
---------------------------------------------------------------------------
     \46\Sec 401(h) and Treas. Reg. sec. 1.401-1(b).
     \47\Treas. Reg. sec. 1.72-15(h).
---------------------------------------------------------------------------
     Transfers of excess pension assets
       In general
       A qualified transfer of excess assets of a defined benefit 
     plan, including a multiemployer plan,\48\ to a retiree 
     medical account within the plan may be made in order to fund 
     retiree health benefits.\49\ A qualified transfer does not 
     result in plan disqualification, is not a prohibited 
     transaction, and is not treated as a reversion. Thus, 
     transferred assets are not includible in the gross income of 
     the employer and are not subject to the excise tax on 
     reversions. No more than one qualified transfer may be made 
     in any taxable year. No qualified transfer may be made after 
     December 31, 2013.
---------------------------------------------------------------------------
     \48\The Pension Protection Act of 2006 (``PPA''), Pub. L. No. 
     109-280, extended the application of the rules for qualified 
     transfers to multiemployer plans with respect to transfers 
     made in taxable years beginning after December 31, 2006. 
     However, the rules for qualified future transfers and 
     collectively bargained transfers do not apply to 
     multiemployer plans.
     \49\Sec. 420.
---------------------------------------------------------------------------
       Excess assets generally means the excess, if any, of the 
     value of the plan's assets\50\ over 125 percent of the sum of 
     the plan's funding target and target normal cost for the plan 
     year. In addition, excess assets transferred in a qualified 
     transfer may not exceed the amount reasonably estimated to be 
     the amount that the employer will pay out of such account 
     during the taxable year of the transfer for qualified current 
     retiree health liabilities. No deduction is allowed to the 
     employer for (1) a qualified transfer, or (2) the payment of 
     qualified current retiree health liabilities out of 
     transferred funds (and any income thereon). In addition, no 
     deduction is allowed for amounts paid other than from 
     transferred funds for qualified current retiree health 
     liabilities to the extent such amounts are not greater than 
     the excess of (1) the amount transferred (and any income 
     thereon), over (2) qualified current retiree health 
     liabilities paid out of transferred assets (and any income 
     thereon). An employer may not contribute any amount to a 
     health benefits account or welfare benefit fund with respect 
     to qualified current retiree health liabilities for which 
     transferred assets are required to be used.
---------------------------------------------------------------------------
     \50\The value of plan assets for this purpose is the lesser 
     of fair market value or actuarial value.
---------------------------------------------------------------------------
       Transferred assets (and any income thereon) must be used to 
     pay qualified current retiree health liabilities for the 
     taxable year of the transfer. Transferred amounts generally 
     must benefit pension plan participants, other than key 
     employees, who are entitled upon retirement to receive 
     retiree medical benefits through the separate account. 
     Retiree health benefits of key employees may not be paid out 
     of transferred assets.
       Amounts not used to pay qualified current retiree health 
     liabilities for the taxable year of the transfer are to be 
     returned to the general assets of the plan. These amounts are 
     not includible in the gross income of the employer, but are 
     treated as an employer reversion and are subject to a 20-
     percent excise tax.
       In order for the transfer to be qualified, accrued 
     retirement benefits under the pension plan generally must be 
     100-percent vested as if the plan terminated immediately 
     before the transfer (or in the case of a participant who 
     separated in the one-year period ending on the date of the 
     transfer, immediately before the separation).
       In order for a transfer to be qualified, there is 
     maintenance of effort requirement under which, the employer 
     generally must maintain retiree health benefits at the same 
     level for the taxable year of the transfer and the following 
     four years.
       In addition, the Employee Retirement Income Security Act of 
     1974 (``ERISA'')\51\ provides that, at least 60 days before 
     the date of a qualified transfer, the employer must notify 
     the Secretary of Labor, the Secretary of the Treasury, 
     employee representatives, and the plan administrator of the 
     transfer, and the plan administrator must notify each plan 
     participant and beneficiary of the transfer.\52\
---------------------------------------------------------------------------
     \51\Pub. L. No. 93-406.
     \52\ERISA sec. 101(e). ERISA also provides that a qualified 
     transfer is not a prohibited transaction under ERISA or a 
     prohibited reversion.
---------------------------------------------------------------------------
       Qualified future transfers and collectively bargained 
           transfers
       If certain requirements are satisfied, transfers of excess 
     pension assets under a single-employer plan to retiree 
     medical accounts to fund the expected cost of retiree medical 
     benefits are permitted for the current and future years (a 
     ``qualified future transfer'') and such transfers are also 
     allowed in the case of benefits provided under a collective 
     bargaining agreement (a ``collectively bargained 
     transfer'').\53\ Transfers must be made for at least a two-
     year period. An employer can elect to make a qualified future 
     transfer or a collectively bargained transfer rather than a 
     qualified transfer. A qualified future transfer or 
     collectively bargained transfer must meet the requirements 
     applicable to qualified transfers, except that the provision 
     modifies the rules relating to: (1) the determination of 
     excess pension assets; (2) the limitation on the amount 
     transferred; and (3) the maintenance of effort requirement. 
     The general sunset applicable to qualified transfer applies 
     (i.e., no transfers can be made after December 31, 2013).
---------------------------------------------------------------------------
     \53\The rules for qualified transfers and collectively 
     bargained transfers were added by the PPA and apply to 
     transfers after the date of enactment (August 17, 2006).
---------------------------------------------------------------------------
       Qualified future transfers and collectively bargained 
     transfers can be made to the extent that plan assets exceed 
     120 percent of the sum of the plan's funding target and the 
     normal cost for the plan year. During the transfer period, 
     the plan's funded status must be maintained at the minimum 
     level required to make transfers. If the minimum level is not 
     maintained, the employer must make contributions to the plan 
     to meet the minimum level or an amount required to meet the 
     minimum level must be transferred from the health benefits 
     account. The transfer period is the period not to exceed a 
     total of ten consecutive taxable years beginning with the 
     taxable year of the transfer. As previously discussed, the 
     period must be not less than two consecutive years.
     Employer provided group-term life insurance
       Group-term life insurance coverage provided under a policy 
     carried by an employer is includible in the gross income of 
     an employee (including a former employee) but only to the 
     extent that the cost exceeds the sum of the cost of $50,000 
     of such insurance plus the amount, if any, paid by the 
     employee toward the purchase of such insurance.\54\ Special 
     rules apply for determining the cost of group-term life 
     insurance that is includible in gross income under a 
     discriminatory group-term life insurance plan.
---------------------------------------------------------------------------
     \54\Sec. 79.
---------------------------------------------------------------------------
       A pension plan may provide life insurance benefits for 
     employees (including retirees) but only to the extent that 
     the benefits are

[[Page 10692]]

     incidental to the retirement benefits provided under the 
     plan.\55\ The cost of term life insurance provided through a 
     pension plan is includible in the employee's gross 
     income.\56\
---------------------------------------------------------------------------
     \55\Treas. Reg. sec. 1.401-1(b).
     \56\Secs. 72(m)(3) and 79(b)(3).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

     Extension of existing provisions
       The provision allows qualified transfers, qualified future 
     transfers, and collectively bargained transfers to retiree 
     medical accounts to be made through December 31, 2021. No 
     transfers are permitted after that date.
     Transfers to fund retiree group-term life insurance permitted
       The provision allows qualified transfers, qualified future 
     transfers, and collectively bargained transfers to be made to 
     fund the purchase of retiree group-term life insurance. The 
     assets transferred for the purchase of group-term life 
     insurance must be maintained in a separate account within the 
     plan (``retiree life insurance account''), which must be 
     separate both from the assets in the retiree medical account 
     and from the other assets in the defined benefit plan.
       Under the provision, the general rule that the cost of 
     group-term life insurance coverage provided under a defined 
     benefit plan is includable in gross income of the participant 
     does not apply to group-term life insurance provided through 
     a retiree life insurance account. Instead, the general rule 
     for determining the amount of employer-provided group-term 
     life insurance that is includible in gross income applies. 
     However, group-term life insurance coverage is permitted to 
     be provided through a retiree life insurance account only to 
     the extent that it is not includible in gross income. Thus, 
     generally, only group-term life insurance not in excess of 
     $50,000 may be purchased with such transferred assets.
       Generally, the present law rules for transfers of excess 
     pension assets to retiree medical accounts to fund retiree 
     health benefits also apply to transfers to retiree life 
     insurance accounts to fund retiree group-term life. However, 
     generally, the rules are applied separately. Thus, for 
     example, the one-transfer-a-year rule generally applies 
     separately to transfers to retiree life insurance accounts 
     and transfers to retiree medical accounts. Further, the 
     maintenance of effort requirement for qualified transfers 
     applies separately to life insurance benefits and health 
     benefits. Similarly, for qualified future transfers and 
     collectively bargained transfers for retiree group-term life 
     insurance, the maintenance of effort and other special rules 
     are applied separately to transfers to retiree life insurance 
     accounts and retiree medical accounts.
       Reflecting the inherent differences between life insurance 
     coverage and health coverage, certain rules are not applied 
     to transfers to retiree life insurance accounts, such as the 
     special rules allowing the employer to elect to determine the 
     applicable employer cost for health coverage during the cost 
     maintenance period separately for retirees eligible for 
     Medicare and retirees not eligible for Medicare. However, a 
     separate test is allowed for the cost of retiree group-term 
     life insurance for retirees under age 65 and those retirees 
     who have reached age 65.
       The provision makes other technical and conforming changes 
     to the rules for transfers to fund retiree health benefits 
     and removes certain obsolete (``deadwood'') rules.
       The same sunset applicable to qualified transfers, 
     qualified future transfers, and collectively bargained 
     transfers to retiree medical accounts applies to transfers to 
     retiree life insurance accounts (i.e., no transfers can be 
     made after December 31, 2021).
       Effective date.--The provision applies to transfers made 
     after the date of enactment.


                          Conference Agreement

       The conference agreement includes the Senate amendment 
     provision.

  D. Exception from Early Distribution Tax for Annuities Under Phased 
                           Retirement Program

    (sec. 100111 of conference agreement and sec. 72(t) of the Code)


                              Present Law

       The Code imposes an early distribution tax on distributions 
     made from qualified retirement plans before an employee 
     attains age 59\1/2\.\57\ The tax is equal to 10 percent of 
     the amount of the distribution that is includible in gross 
     income. The 10-percent tax is in addition to the taxes that 
     would otherwise be due on distribution. Certain exceptions to 
     the early distribution tax apply including an exception for 
     distributions after separation from service with the employer 
     after attaining age 55, or in the form of substantially equal 
     periodic payments from the qualified retirement plan 
     commencing after separation from service at any age. However, 
     there is no exception for annuity payments that commence 
     before separating from service with the employer.
---------------------------------------------------------------------------
     \57\Sec. 72(t). The early distribution tax also applies to 
     distributions from section 403(b) plans and IRAs but does not 
     apply to distributions from governmental section 457(b) 
     plans.
---------------------------------------------------------------------------


                               House bill

       No provision.


                            Senate Amendment

       No provision.


                          Conference Agreement

       The Senate amendment and the Conference agreement include a 
     new Federal Phased Retirement Program under which a Federal 
     agency may allow a full-time retirement eligible employee to 
     elect to enter phased retirement status in accordance with 
     regulations issued by the Office of Personnel Management 
     (OPM).\58\ During that status, generally, the employee's work 
     schedule is a percentage of a full time work schedule, and 
     the employee receives a phased retirement annuity. At full-
     time retirement, the phased retiree is entitled to a 
     composite retirement annuity that also includes the portion 
     of the employee's retirement annuity attributable to the 
     reduced work schedule. The Conference agreement includes an 
     exception to the early distribution tax for payments under a 
     phased retirement annuity and a composite retirement annuity 
     received by an employee participating in this new Federal 
     Phased Retirement Program.
---------------------------------------------------------------------------
     \58\See the explanation for section 100111 of the Conference 
     agreement for a description of the new Federal Phased 
     Retirement Program.
---------------------------------------------------------------------------
       Effective date.--The provision is effective on the 
     effective date of implementing regulations issued by OPM 
     implementing the Federal Phased Retirement Program.

           E. Additional Transfers to the Highway Trust Fund

   (sec. 40313 of the Senate amendment, sec. 40251 of the conference 
                 agreement, and sec. 9503 of the Code)


                              Present Law

       Public Law No. 111-46, an Act to restore funds to the 
     Highway Trust Fund, provided that out of money in the 
     Treasury not otherwise appropriated, $7 billion was 
     appropriated to the Highway Trust Fund effective August 7, 
     2009. The Hiring Incentives to Restore Employment Act (the 
     ``HIRE Act'') provided that out of money in the Treasury not 
     otherwise appropriated, $14,700,000,000 is appropriated to 
     the Highway Trust Fund and $4,800,000,000 is appropriated to 
     the Mass Transit Account in the Highway Trust Fund.


                               House Bill

       No provision.


                            Senate Amendment

       The provision provides that out of money in the Treasury 
     not otherwise appropriated, the following transfers are to be 
     made from the General Fund to the Highway Trust Fund: $2,183 
     million in FY 2012, $2,277 million in FY 2013, and $510 
     million in FY 2014.
       Effective date.--The provision is effective on the date of 
     enactment.


                          Conference Agreement

       The conference agreement provides that out of money in the 
     Treasury not otherwise appropriated, the following transfers 
     are to be made from the General Fund to the Highway Trust 
     Fund:

------------------------------------------------------------------------
                                              FY 2013         FY 2014
------------------------------------------------------------------------
Highway Account.........................    $6.2 billion   $10.4 billion
Mass Transit Account....................  ..............    $2.2 billion
------------------------------------------------------------------------

       Effective date.--The provision is effective on the date of 
     enactment.
       F. Expand the Definition of a Tobacco Manufacturer to 
     Include Businesses Making Available Roll-Your-Own Cigarette 
     Machines for Consumer Use

(sec. 100116 of the Senate amendment, section 100112 of the conference 
                agreement, and sec. 5702(d) of the Code)


                              Present Law

       Tobacco products and cigarette papers and tubes 
     manufactured in the United States or imported into the United 
     States are subject to Federal excise tax at the following 
     rates:\59\
---------------------------------------------------------------------------
     \59\Sec. 5701.
---------------------------------------------------------------------------
       Cigars weighing not more than three pounds per thousand 
     (``small cigars'') are taxed at the rate of $50.33 per 
     thousand;
       Cigars weighing more than three pounds per thousand 
     (``large cigars'') are taxed at the rate equal to 52.75 
     percent of the manufacturer's or importer's sales price but 
     not more than 40.26 cents per cigar;
       Cigarettes weighing not more than three pounds per thousand 
     (``small cigarettes'') are taxed at the rate of $50.33 per 
     thousand ($1.0066 per pack);
       Cigarettes weighing more than three pounds per thousand 
     (``large cigarettes'') are taxed at the rate of $105.69 per 
     thousand, except that, if they measure more than six and one-
     half inches in length, they are taxed at the rate applicable 
     to small cigarettes, counting each two and three-quarter 
     inches (or fraction thereof) of the length of each as one 
     cigarette;
       Cigarette papers are taxed at the rate of 3.15 cents for 
     each 50 papers or fractional part thereof, except that, if 
     they measure more than six and one-half inches in length, 
     they are taxable by counting each two and three-quarter 
     inches (or fraction thereof) of the length of each as one 
     cigarette paper;
       Cigarette tubes are taxed at the rate of 6.30 cents for 
     each 50 tubes or fractional part thereof, except that, if 
     they measure more than six and one-half inches in length, 
     they are taxable by counting each two and three-

[[Page 10693]]

     quarter inches (or fraction thereof) of the length of each as 
     one cigarette tube;
       Snuff is taxed at the rate of $1.51 per pound, and 
     proportionately at that rate on all fractional parts of a 
     pound;
       Chewing tobacco is taxed at the rate of 50.33 cents per 
     pound, and proportionately at that rate on all fractional 
     parts of a pound;
       Pipe tobacco is taxed at the rate of $2.8311 per pound, and 
     proportionately at that rate on all fractional parts of a 
     pound; and
       Roll-your-own tobacco is taxed at the rate of $24.78 per 
     pound, and proportionately at that rate on all fractional 
     parts of a pound.
       In general, the excise tax on tobacco products and 
     cigarette papers and tubes manufactured in the United States 
     comes into existence when the products are manufactured and 
     is determined and payable when the tobacco products or 
     cigarette papers and tubes are removed from the bonded 
     premises of the manufacturer. ``Tobacco products'' means 
     cigars, cigarettes, smokeless tobacco (snuff and chewing 
     tobacco), pipe tobacco, and roll your own tobacco. Processed 
     tobacco is regulated under the internal revenue laws but no 
     excise tax is imposed. Tobacco products and cigarette papers 
     and tubes may be exported from the United States without 
     payment of tax.
       Manufacturers and importers of tobacco products or 
     processed tobacco are subject to certain permitting, bonding, 
     reporting, and record keeping requirements. ``Manufacturer of 
     tobacco products'' means any person who manufactures cigars, 
     cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own 
     tobacco. There is an exception for a person who produces 
     these products for their own personal consumption or use.


                               House Bill

       No provision.


                            Senate Amendment

       The provision amends the definition of manufacturer of 
     tobacco products to include any person who for commercial 
     purposes makes available machines capable of making tobacco 
     products for consumer use. This includes making a machine 
     available for consumers to produce tobacco products for 
     personal consumption or use. The addition of this provision 
     is not intended to change the treatment of such machines 
     under present law, or to make taxable the sale, at retail, 
     for a consumer's personal home use, a machine designed to 
     produce tobacco only in personal use quantities, where the 
     machine is not used on the retail premises.
       For purposes of imposing the tax liability, the person 
     making the machine available for consumer use is deemed to be 
     the person making the removal with respect to any tobacco 
     products manufactured by the machine.
       Effective date.--The provision is effective for articles 
     removed after the date of enactment.


                          Conference Agreement

       The conference agreement includes the Senate amendment with 
     the following modification. The provision is modified to 
     clarify that a person who sells a machine directly to a 
     consumer at retail for the consumer's personal home use is 
     not a manufacturer of tobacco products under the provision if 
     the machine is not used at a retail establishment and is 
     designed to produce only personal use quantities.

                         PART III--OTHER ITEMS

  A. Small Issuer Exception to Tax-Exempt Interest Expense Allocation 
 Rules for Financial Institutions (sec. 40201 of the Senate amendment 
                       and sec. 265 of the Code)


                              Present Law

       Present law disallows a deduction for interest on 
     indebtedness incurred or continued to purchase or carry 
     obligations the interest on which is exempt from tax.\60\ In 
     general, an interest deduction is disallowed only if the 
     taxpayer has a purpose of using borrowed funds to purchase or 
     carry tax-exempt obligations; a determination of the 
     taxpayer's purpose in borrowing funds is made based on all of 
     the facts and circumstances.\61\
---------------------------------------------------------------------------
     \60\Sec. 265(a).
     \61\See Rev. Proc. 72-18, 1972-1 C.B. 740.
---------------------------------------------------------------------------
       Financial institutions
       In the case of a financial institution, the Code generally 
     disallows that portion of the taxpayer's interest expense 
     that is allocable to tax-exempt interest.\62\ The amount of 
     interest that is disallowed is an amount which bears the same 
     ratio to such interest expense as the taxpayer's average 
     adjusted bases of tax-exempt obligations acquired after 
     August 7, 1986, bears to the average adjusted bases for all 
     assets of the taxpayer.
---------------------------------------------------------------------------
     \62\Sec. 265(b)(1). A ``financial institution'' is any person 
     that (1) accepts deposits from the public in the ordinary 
     course of such person's trade or business and is subject to 
     Federal or State supervision as a financial institution or 
     (2) is a corporation described by section 585(a)(2). Sec. 
     265(b)(5).
---------------------------------------------------------------------------
       Exception for certain obligations of qualified small 
           issuers
       The general rule in section 265(b), denying financial 
     institutions' interest expense deductions allocable to tax-
     exempt obligations, does not apply to ``qualified tax-exempt 
     obligations.''\63\ Instead, as discussed in the next section, 
     only 20 percent of the interest expense allocable to 
     ``qualified tax-exempt obligations'' is disallowed.\64\ A 
     ``qualified tax-exempt obligation'' is a tax-exempt 
     obligation that is (1) issued after August 7, 1986, by a 
     qualified small issuer, (2) not a private activity bond, and 
     (3) designated by the issuer as qualifying for the exception 
     from the general rule of section 265(b).
---------------------------------------------------------------------------
     \63\Sec. 265(b)(3).
     \64\Secs. 265(b)(3)(A), 291(a)(3) and 291(e)(1).
---------------------------------------------------------------------------
       A ``qualified small issuer'' is an issuer that reasonably 
     anticipates that the amount of tax-exempt obligations that it 
     will issue during the calendar year will be $10 million or 
     less.\65\ The Code specifies the circumstances under which an 
     issuer and all subordinate entities are aggregated.\66\ For 
     purposes of the $10 million limitation, an issuer and all 
     entities that issue obligations on behalf of such issuer are 
     treated as one issuer. All obligations issued by a 
     subordinate entity are treated as being issued by the entity 
     to which it is subordinate. An entity formed (or availed of) 
     to avoid the $10 million limitation and all entities 
     benefiting from the device are treated as one issuer.
---------------------------------------------------------------------------
     \65\Sec. 265(b)(3)(C).
     \66\Sec. 265(b)(3)(E).
---------------------------------------------------------------------------
       Composite issues (i.e., combined issues of bonds for 
     different entities) qualify for the ``qualified tax-exempt 
     obligation'' exception only if the requirements of the 
     exception are met with respect to (1) the composite issue as 
     a whole (determined by treating the composite issue as a 
     single issue) and (2) each separate lot of obligations that 
     is part of the issue (determined by treating each separate 
     lot of obligations as a separate issue).\67\ Thus a composite 
     issue may qualify for the exception only if the composite 
     issue itself does not exceed $10 million, and if each issuer 
     benefitting from the composite issue reasonably anticipates 
     that it will not issue more than $10 million of tax-exempt 
     obligations during the calendar year, including through the 
     composite arrangement.
---------------------------------------------------------------------------
     \67\Sec. 265(b)(3)(F).
---------------------------------------------------------------------------
       Special rules providing modifications to qualified small 
           issuer exception for certain issues in 2009 and 2010
       With respect to tax-exempt obligations issued during 2009 
     and 2010, the special rules increased from $10 million to $30 
     million the annual limit for qualified small issuers.
       In addition, in the case of a ``qualified financing issue'' 
     issued in 2009 or 2010, the special rules applied the $30 
     million annual volume limitation at the borrower level 
     (rather than at the level of the pooled financing issuer). 
     Thus, for the purpose of applying the requirements of the 
     section 265(b)(3) qualified small issuer exception, the 
     portion of the proceeds of a qualified financing issue that 
     are loaned to a ``qualified borrower'' that participates in 
     the issue were treated as a separate issue with respect to 
     which the qualified borrower is deemed to be the issuer.
       A ``qualified financing issue'' was any composite, pooled, 
     or other conduit financing issue the proceeds of which were 
     used directly or indirectly to make or finance loans to one 
     or more ultimate borrowers all of whom are qualified 
     borrowers. A ``qualified borrower'' meant (1) a State or 
     political subdivision of a State or (2) an organization 
     described in section 501(c)(3) and exempt from tax under 
     section 501(a). Thus, for example, a $100 million pooled 
     financing issue that was issued in 2009 would qualify for the 
     section 265(b)(3) exception if the proceeds of such issue 
     were used to make four equal loans of $25 million to four 
     qualified borrowers. However, if (1) more than $30 million 
     were loaned to any qualified borrower, (2) any borrower were 
     not a qualified borrower, or (3) any borrower would, if it 
     were the issuer of a separate issue in an amount equal to the 
     amount loaned to such borrower, fail to meet any of the other 
     requirements of section 265(b)(3), the entire $100 million 
     pooled financing issue failed to qualify for the exception.
       For purposes of determining whether an issuer meets the 
     requirements of the small issuer exception, under the special 
     rules, qualified 501(c)(3) bonds issued in 2009 or 2010 were 
     treated as if they were issued by the 501(c)(3) organization 
     for whose benefit they were issued (and not by the actual 
     issuer of such bonds). In addition, in the case of an 
     organization described in section 501(c)(3) and exempt from 
     taxation under section 501(a), requirements for ``qualified 
     financing issues'' were applied as if the section 501(c)(3) 
     organization were the issuer. Thus, in any event, an 
     organization described in section 501(c)(3) and exempt from 
     taxation under section 501(a) was limited to the $30 million 
     per issuer cap for qualified tax exempt obligations described 
     in section 265(b)(3).


                               House Bill

       No provision.


                            Senate Amendment

       The provision extends the special rules providing 
     modifications to the qualified small issuer exception to 
     bonds issued after June 30, 2012 and before July 1, 2013.
       Effective date.--The provision is effective for obligations 
     issued after June 30, 2012.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

[[Page 10694]]



  B. Temporary Modification of Alternative Minimum Tax Limitations on 
 Tax-Exempt Bonds (sec. 40202 of the Senate amendment and secs. 56 and 
                            57 of the Code)


                              Present Law

       Present law imposes an alternative minimum tax (``AMT'') on 
     individuals and corporations. AMT is the amount by which the 
     tentative minimum tax exceeds the regular income tax. The 
     tentative minimum tax is computed based upon a taxpayer's 
     alternative minimum taxable income (``AMTI''). AMTI is the 
     taxpayer's taxable income modified to take into account 
     certain preferences and adjustments. One of the preference 
     items is tax-exempt interest on certain tax-exempt bonds 
     issued for private activities.\68\ Also, in the case of a 
     corporation, an adjustment based on current earnings is 
     determined, in part, by taking into account 75 percent of 
     certain items, including tax-exempt interest, excluded from 
     taxable income but included in the corporation's earnings and 
     profits.\69\
---------------------------------------------------------------------------
     \68\Sec. 57(a)(5).
     \69\Sec. 56(g)(4)(B).
---------------------------------------------------------------------------
       The American Recovery and Reinvestment Act of 2009 (``2009 
     Act'') provided that tax-exempt interest on private activity 
     bonds issued in 2009 and 2010 is not an item of tax 
     preference for purposes of the AMTI and interest on tax 
     exempt bonds issued in 2009 and 2010 is not included in the 
     corporate adjustment based on current earnings.
       For these purposes, a refunding bond generally is treated 
     as issued on the date of the issuance of the refunded bond 
     (or in the case of a series of refundings, the original 
     bond). However, the 2009 Act provided that tax-exempt 
     interest on bonds issued in 2009 and 2010 to currently refund 
     a bond issued after December 31, 2003, and before January 1, 
     2009, is not an item of tax preference for purposes of the 
     AMT and is not included in the corporate adjustment based on 
     current earnings.


                               House Bill

       No provision.


                            Senate Amendment

       The provision provides that tax-exempt interest on private 
     activity bonds issued after the date of enactment and before 
     January 1, 2013, is not an item of tax preference for 
     purposes of the AMT and interest on tax exempt bonds issued 
     during this period is not included in the corporate 
     adjustment based on current earnings. For these purposes, a 
     refunding bond is treated as issued on the date of the 
     issuance of the refunded bond (or in the case of a series of 
     refundings, the original bond).
       Effective date.--The provision applies to interest on bonds 
     issued after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

C. Issuance of TRIP Bonds by State Infrastructure Banks (sec. 40203 of 
                         the Senate amendment)


                              Present Law

       There are no Code provisions for the issuance of 
     transportation and regional infrastructure project (``TRIP'') 
     bonds.


                               House Bill

       No provision.


                            Senate Amendment

       The provision amends Title 23 to provide that a State, 
     through a State infrastructure bank, may issue TRIP bonds and 
     deposit the proceeds from such bonds into a TRIP bond account 
     of the bank. A ``TRIP bond'' means any bond issued as part of 
     an issue if (1) 100 percent of the available project proceeds 
     of such issue are to be used for expenditures incurred after 
     the date of enactment for one or more qualified projects 
     pursuant to an allocation of such proceeds to such project or 
     projects by a State infrastructure bank, (2) the bond is 
     issued by a State infrastructure bank and is in registered 
     form (within the meaning of section 149 of the Internal 
     Revenue Code), (3) the State infrastructure bank designates 
     such bond for purposes of the provision and (4) the term of 
     each bond that is part of such issue does not exceed 30 
     years. A ``qualified project'' means the capital improvements 
     to any transportation infrastructure project of any 
     governmental unit or other person, including roads, bridges, 
     rail and transit systems, ports and, inland waterways 
     proposed and approved by a State infrastructure bank, but 
     does not include costs of operations or maintenance with 
     respect to such project.
       The provision requires a State to develop a transparent and 
     competitive process for the award of funds deposited into the 
     TRIP bond account that considers the impact of qualified 
     projects on the economy, the environment, state of good 
     repair, and equity. The requirements of any Federal law, 
     including Title 23 and Titles 40 and 49, 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 shall apply to (1) funds made 
     available under the TRIP bond account for similar qualified 
     projects and (2) similar qualified projects assisted through 
     the use of such funds.
       Effective date.--The provision is effective on the date of 
     enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

    D. Mass Transit and Parking Benefits (sec. 40204 of the Senate 
                amendment, and sec. 132(f) of the Code)


                              Present Law

       Qualified transportation fringe benefits provided by an 
     employer are excluded from an employee's gross income for 
     income tax purposes and from an employee's wages for payroll 
     tax purposes.\70\ Qualified transportation fringe benefits 
     include parking, transit passes, vanpool benefits, and 
     qualified bicycle commuting reimbursements. No amount is 
     includible in the income of an employee merely because the 
     employer offers the employee a choice between cash and 
     qualified transportation fringe benefits (other than a 
     qualified bicycle commuting reimbursement). Qualified 
     transportation fringe benefits also include a cash 
     reimbursement by an employer to an employee. In the case of 
     transit passes, however, a cash reimbursement is considered a 
     qualified transportation fringe benefit only if a voucher or 
     similar item which may be exchanged only for a transit pass 
     is not readily available for direct distribution by the 
     employer to the employee.
---------------------------------------------------------------------------
     \70\Secs. 132(f), 3121(b)(2), and 3306(b)(16) and 
     3401(a)(19).
---------------------------------------------------------------------------
       Prior to February 17, 2009, the amount that could be 
     excluded as qualified transportation fringe benefits was 
     limited to $100 per month in combined vanpooling and transit 
     pass benefits and $175 per month in qualified parking 
     benefits. All limits are adjusted annually for inflation, 
     using 1998 as the base year (for 2012 the limits are $125 and 
     $240, respectively). The American Recovery and Reinvestment 
     Act of 2009\71\ provided parity in qualified transportation 
     fringe benefits by temporarily increasing the monthly 
     exclusion for employer-provided vanpool and transit pass 
     benefits to the same level as the exclusion for employer-
     provided parking, effective for months beginning on or after 
     the date of enactment (February 17, 2009) and before January 
     1, 2011. The Tax Relief, Unemployment Insurance 
     Reauthorization, and Job Creation Act of 2010\72\ extended 
     the parity in qualified transportation fringe benefits 
     through December 31, 2011.
---------------------------------------------------------------------------
     \71\Pub. L. No. 111-5.
     \72\Pub. L. No. 111-312.
---------------------------------------------------------------------------
       Effective January 1, 2012, the amount that could be 
     excluded as qualified transportation fringe benefits is 
     limited to $125 per month in combined vanpooling and transit 
     pass benefits and $240 per month in qualified parking 
     benefits.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment extends the parity in qualified 
     transportation fringe benefits for the entirety of 2012. In 
     order for the extension to be effective retroactive to 
     January 1, 2012, it is intended that expenses incurred prior 
     to enactment by an employee for employer-provided vanpool and 
     transit benefits may be reimbursed by employers on a tax free 
     basis to the extent they exceed $125 per month and are less 
     than $240 per month, but only to the extent that such amount 
     has not already been excluded from such employee's taxable 
     compensation.
       Effective date.--The provision in the Senate amendment is 
     effective for months after December 31, 2011.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

E. Private Activity Volume Cap Exemption for Sewage and Water Facility 
 Bonds (sec. 40205 of the Senate amendment and sec. 146(g) of the Code)

     In general
       Subject to certain Code restrictions, interest on bonds 
     issued by State and local government generally is excluded 
     from gross income for Federal income tax purposes. Bonds 
     issued by State and local governments may be classified as 
     either governmental bonds or private activity bonds. 
     Governmental bonds are bonds the proceeds of which are 
     primarily used to finance governmental functions or which are 
     repaid with governmental funds. Private activity bonds are 
     bonds in which the State or local government serves as a 
     conduit providing financing to nongovernmental persons. For 
     this purpose, the term ``nongovernmental person'' generally 
     includes the Federal Government and all other individuals and 
     entities other than State or local governments. The exclusion 
     from income for interest on State and local bonds does not 
     apply to private activity bonds, unless the bonds are issued 
     for certain permitted purposes (``qualified private activity 
     bonds'') and other Code requirements are met.
     Qualified private activity bonds
       Interest on private activity bonds is taxable unless the 
     bonds meet the requirements for qualified private activity 
     bonds. Qualified private activity bonds permit States or 
     local governments to act as conduits providing tax-exempt 
     financing for certain private activities. The definition of 
     qualified private activity bonds includes an exempt facility 
     bond, or qualified mortgage, veterans'

[[Page 10695]]

     mortgage, small issue, redevelopment, qualified 501(c)(3), or 
     student loan bond.\73\ The definition of exempt facility bond 
     includes bonds issued to finance certain transportation 
     facilities (airports, ports, mass commuting, and high-speed 
     intercity rail facilities); qualified residential rental 
     projects; privately owned and/or operated utility facilities 
     (sewage, water, solid waste disposal, and local district 
     heating and cooling facilities, certain private electric and 
     gas facilities, and hydroelectric dam enhancements); public/
     private educational facilities; qualified green building and 
     sustainable design projects; and qualified highway or surface 
     freight transfer facilities.\74\
---------------------------------------------------------------------------
     \73\Sec. 141(e).
     \74\Sec. 142(a).
---------------------------------------------------------------------------
       In most cases, the aggregate volume of these tax-exempt 
     private activity bonds is restricted by annual aggregate 
     volume limits imposed on bonds issued by issuers within each 
     State. Certain types of private activity bonds are exempted 
     from the annual volume limits.
       For calendar year 2012, the State volume cap, which is 
     indexed for inflation, equals $95 per resident of the State, 
     or $284,560,000, whichever is greater.


                               House Bill

       No provision.


                            Senate Amendment

       The provision exempts two types of exempt facility bonds 
     from the annual private activity volume limits. The newly-
     exempted bonds are exempt facility bonds for sewage and water 
     facilities.
       The provision only applies to bonds issued before January 
     1, 2018.
       Effective date.--The provision is effective for bonds 
     issued after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

F. Dedication of Gas Guzzler Tax to the Highway Trust Fund (sec. 40303 
           of the Senate amendment and sec. 9503 of the Code)


                              Present Law

       Under present law, the Code imposes a tax (``the gas 
     guzzler tax'') on automobiles that are manufactured primarily 
     for use on public streets, roads, and highways and that are 
     rated at 6,000 pounds unloaded gross vehicle weight or 
     less.\75\ The tax is imposed on the sale by the manufacturer 
     of each automobile of a model type with a fuel economy of 
     22.5 miles per gallon or less. The tax range begins at $1,000 
     and increases to $7,700 for models with a fuel economy less 
     than 12.5 miles per gallon.
---------------------------------------------------------------------------
     \75\Sec. 4064.
---------------------------------------------------------------------------
       Emergency vehicles and non-passenger automobiles are exempt 
     from the tax. The tax also does not apply to non-passenger 
     automobiles. The Secretary of Transportation determines which 
     vehicles are ``non-passenger'' automobiles, thereby exempting 
     these vehicles from the gas guzzler tax based on regulations 
     in effect on the date of enactment of the gas guzzler 
     tax.\76\ Hence, vehicles defined in Title 49 C.F.R. sec. 
     523.5 (relating to light trucks) are exempt. These vehicles 
     include those designed to transport property on an open bed 
     (e.g., pick-up trucks) or provide greater cargo-carrying than 
     passenger carrying volume including the expanded cargo-
     carrying space created through the removal of readily 
     detachable seats (e.g., pick-up trucks, vans, and most 
     minivans, sports utility vehicles, and station wagons). 
     Additional vehicles that meet the ``non-passenger'' 
     requirements are those with at least four of the following 
     characteristics: (1) an angle of approach of not less than 28 
     degrees; (2) a breakover angle of not less than 14 degrees; 
     (3) a departure angle of not less than 20 degrees; (4) a 
     running clearance of not less than 20 centimeters; and (5) 
     front and rear axle clearances of not less than 18 
     centimeters each. These vehicles would include many sports 
     utility vehicles.
---------------------------------------------------------------------------
     \76\Sec. 4064(b)(1)(A).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The provision requires that amounts equivalent to the gas 
     guzzler taxes received in the Treasury be transferred to the 
     Highway Trust Fund.
       Effective date.--The provision is effective on the date of 
     enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

  G. Revocation or Denial of Passport in Case of Certain Unpaid Taxes 
(sec. 40304 of the Senate amendment and new secs. 7345 and 6103(l)(23) 
                              of the Code)


                              Present Law

       The administration of passports is the responsibility of 
     the Department of State.\77\ State may refuse to issue or 
     renew a passport if the applicant owes child support in 
     excess of $2,500 or owes certain types of Federal debts, such 
     as expenses incurred in providing assistance to an applicant 
     to return to the United States. The scope of this authority 
     does not extend to rejection or revocation of a passport on 
     the basis of delinquent Federal taxes. Issuance of a passport 
     does not require the applicant to provide a social security 
     number or taxpayer identification number.
---------------------------------------------------------------------------
     \77\``Passport Act of 1926,'' 22 U.S.C. sec. 211a, et seq.
---------------------------------------------------------------------------
       Returns and return information are confidential and may not 
     be disclosed by the IRS, other Federal employees, State 
     employees, and certain others having access to such 
     information except as provided in the Internal Revenue 
     Code.\78\ There are a number of exceptions to the general 
     rule of nondisclosure that authorize disclosure in 
     specifically identified circumstances, including disclosure 
     of information about federal tax debts for purposes of 
     reviewing an application for a Federal loan\79\ and for 
     purposes of enhancing the integrity of the Medicare 
     program.\80\
---------------------------------------------------------------------------
     \78\Sec. 6103.
     \79\Sec. 6103(l)(3).
     \80\Sec. 6103(l)(22).
---------------------------------------------------------------------------


                            House Provision

       No provision.


                            Senate Amendment

       If the Commissioner of Internal Revenue certifies to the 
     Secretary of the Treasury the identity of persons who have 
     seriously delinquent Federal taxes, the Secretary of Treasury 
     or his delegate is authorized to transmit such certification 
     to the Secretary of State for use in determining whether to 
     issue, renew, or revoke a passport. Applicants whose names 
     are included on the certifications provided to the Secretary 
     of State are ineligible for a passport. The provision bars 
     the Secretary of State from issuing a passport to any 
     individual who has a seriously delinquent tax debt. It also 
     requires revocation of a passport previously issued to any 
     such individual. Exceptions are permitted for emergency or 
     humanitarian circumstances, as well as short term use of a 
     passport for return travel to the United States by the 
     delinquent taxpayer.
       A seriously delinquent tax debt generally includes any 
     outstanding debt for Federal tax in excess of $50,000, 
     including interest and any penalties, for which a notice of 
     lien or a notice of levy has been filed. This amount is to be 
     adjusted for inflation annually, using calendar year 2011, 
     and a cost-of-living adjustment. Even if a tax debt otherwise 
     meets the statutory threshold, it may not be considered 
     seriously delinquent if (1) the debt is being paid in a 
     timely manner pursuant to an installment agreement or offer-
     in-compromise, or (2) collection action with respect to the 
     debt is suspended because a collection due process hearing or 
     innocent spouse relief has been requested or is pending.
       Effective date.--The provision is effective on January 1, 
     2013.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

 H. 100 Percent Continuous Levy on Payments to Medicare Providers and 
 Suppliers (sec. 40305 of the Senate amendment and sec. 6331(h) of the 
                                 Code)


                              Present Law

     In general
       Levy is the administrative authority of the IRS to seize a 
     taxpayer's property, or rights to property, to pay the 
     taxpayer's tax liability.\81\ Generally, the IRS is entitled 
     to seize a taxpayer's property by levy if a Federal tax lien 
     has attached to such property,\82\ the property is not exempt 
     from levy,\83\ and the IRS has provided both notice of 
     intention to levy\84\ and notice of the right to an 
     administrative hearing (the notice is referred to as a 
     ``collections due process notice'' or ``CDP notice'' and the 
     hearing is referred to as the ``CDP hearing'')\85\ at least 
     30 days before the levy is made. A levy on salary or wages 
     generally is continuously in effect until released.\86\ A 
     Federal tax lien arises automatically when: (1) a tax 
     assessment has been made; (2) the taxpayer has been given 
     notice of the assessment stating the amount and demanding 
     payment; and (3) the taxpayer has failed to pay the amount 
     assessed within 10 days after the notice and demand.\87\
---------------------------------------------------------------------------
     \81\Sec. 6331(a). Levy specifically refers to the legal 
     process by which the IRS orders a third party to turn over 
     property in its possession that belongs to the delinquent 
     taxpayer named in a notice of levy.
     \82\Ibid.
     \83\Sec. 6334.
     \84\Sec. 6331(d).
     \85\Sec. 6330. The notice and the hearing are referred to 
     collectively as the CDP requirements.
     \86\Secs. 6331(e) and 6343.
     \87\Sec. 6321.
---------------------------------------------------------------------------
       The notice of intent to levy is not required if the 
     Secretary finds that collection would be jeopardized by 
     delay. The standard for determining whether jeopardy exists 
     is similar to the standard applicable when determining 
     whether assessment of tax without following the normal 
     deficiency procedures is permitted.\88\
---------------------------------------------------------------------------
     \88\Secs. 6331(d)(3), 6861.
---------------------------------------------------------------------------
       The CDP notice (and pre-levy CDP hearing) is not required 
     if: (1) the Secretary finds that collection would be 
     jeopardized by delay; (2) the Secretary has served a levy on 
     a State to collect a Federal tax liability from a State tax 
     refund; (3) the taxpayer subject to the levy requested a CDP 
     hearing with respect to unpaid employment taxes arising in 
     the two-year period before the beginning of the taxable 
     period with respect to which the employment tax levy is 
     served; or (4) the Secretary has served a Federal contractor 
     levy.

[[Page 10696]]

     In each of these four cases, however, the taxpayer is 
     provided an opportunity for a hearing within a reasonable 
     period of time after the levy.\89\
---------------------------------------------------------------------------
     \89\Sec. 6330(f).
---------------------------------------------------------------------------
     Federal payment levy program
       To help the IRS collect taxes more effectively, the 
     Taxpayer Relief Act of 1997\90\ authorized the establishment 
     of the Federal Payment Levy Program (``FPLP''), which allows 
     the IRS to continuously levy up to 15 percent of certain 
     ``specified payments'' by the Federal government if the 
     payees are delinquent on their tax obligations. With respect 
     to payments to vendors of goods, services, or property sold 
     or leased to the Federal government, the continuous levy may 
     be up to 100 percent of each payment.\91\ The levy (either up 
     to 15 percent or up to 100 percent) generally continues in 
     effect until the liability is paid or the IRS releases the 
     levy.
---------------------------------------------------------------------------
     \90\Pub. L. No. 105-34.
     \91\Sec. 6331(h)(3). The word ``property'' was added to 
     ``goods or services'' in section 301 of the ``3% Withholding 
     Repeal and Job Creation Act,'' Pub. L. No. 112-56.
---------------------------------------------------------------------------
       Under FPLP, the IRS matches its accounts receivable records 
     with Federal payment records maintained by the Department of 
     the Treasury's Financial Management Service (``FMS''), such 
     as certain Social Security benefit and Federal wage records. 
     When these records match, the delinquent taxpayer is provided 
     both the notice of intention to levy and the CDP notice. If 
     the taxpayer does not respond after 30 days, the IRS can 
     instruct FMS to levy the taxpayer's Federal payments. 
     Subsequent payments are continuously levied until such time 
     that the tax debt is paid or the IRS releases the levy.
     Payments to Medicare Providers
       In 2008, the Government Accountability Office (``GAO'') 
     found that over 27,000 Medicare providers (i.e., about six 
     percent of all such providers) owed more than $2 billion of 
     tax debt, consisting largely of individual income and payroll 
     taxes.\92\ In one case, a home health company received over 
     $15 million in Medicare payments but did not pay $7 million 
     in federal taxes.\93\ As of 2008, the Centers for Medicare & 
     Medicaid Services (``CMS'') had not incorporated most of its 
     Medicare payments into the continuous levy program, despite 
     the IRS authority to continuously levy up to 15 percent of 
     these payments. Thus, for calendar year 2006, the government 
     lost the chance to possibly collect over $140 million in 
     unpaid Federal taxes.\94\ The GAO noted that CMS officials 
     promised to incorporate about 60 percent of all Medicare fee-
     for-service payments into the levy program by October 2008 
     and the remaining 40 percent in the next several years.
---------------------------------------------------------------------------
     \92\Government Accountability Office, Medicare: Thousands of 
     Medicare Providers Abuse the Federal Tax System (GAO-08-618), 
     June 13, 2008.
     \93\Ibid., p. 4.
     \94\Ibid.
---------------------------------------------------------------------------
       Following the GAO study, Congress directed CMS to 
     participate in the FPLP and ensure that all Medicare provider 
     and supplier payments are processed through it, in specified 
     graduated percentages, by the end of fiscal year 2011.\95\
---------------------------------------------------------------------------
     \95\Medicare Improvement for Patients and Providers Act of 
     2008, Pub. L. No. 110-275, sec. 189.
---------------------------------------------------------------------------


                            House Provision

       No provision.


                            Senate Amendment

       The provision allows Treasury to levy up to 100 percent of 
     a payment to a Medicare provider to collect unpaid taxes.
       Effective date.--The provision is effective for payments 
     made after the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

 I. Appropriation to the Highway Trust Fund of Amounts Attributable to 
     Certain Duties on Imported Vehicles (sec. 40306 of the Senate 
                               amendment)


                              Present Law

       Customs duties are deposited into the general fund of the 
     Treasury of the United States. This includes customs duties 
     collected on imported vehicles classified under Chapter 87 of 
     the Harmonized Tariff Schedule of the United States.


                               House Bill

       No provision.


                            Senate Amendment

       The provision would appropriate from the General Fund and 
     deposit into the Highway Trust Fund amounts equivalent to 
     amounts received in the General Fund, for FY 2012 through FY 
     2016, on articles classified under subheadings 8703.22.00 and 
     8703.24.00 of Chapter 87.
       Effective date.--The provision is effective on the date of 
     enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

 J. Treatment of Securities of a Controlled Corporation Exchanged for 
 Assets in Certain Reorganizations (sec. 40307 of the Senate amendment 
                       and sec. 361 of the Code)


                              Present Law

       The transfer of assets by a transferor corporation to 
     another corporation, controlled (immediately after the 
     transfer) by the transferor or one or more of its 
     shareholders, qualifies as a tax-free reorganization if the 
     transfer is made by one corporation (``distributing'') to a 
     controlled subsidiary corporation (``controlled''), followed 
     by the distribution of the stock and securities of the 
     controlled subsidiary in a divisive spin-off, split-off, or 
     split-up which meets the requirements of section 355, 
     including an active business requirement and a requirement 
     that the transaction is not used principally as a device for 
     the distribution of earnings and profits (``divisive D 
     reorganization'').\96\
---------------------------------------------------------------------------
     \96\Secs. 355 and 368(a)(1)(D). Section 355 imposes 
     requirements for a qualified spin-off, split-off, or split-
     up. Among other requirements, in order for a transaction to 
     qualify under section 355, the distributing corporation must 
     either (i) distribute all of the stock and securities of the 
     controlled corporation that it holds, or (ii) distribute at 
     least an amount of stock constituting control under section 
     368(c) and establish to the satisfaction of the Secretary of 
     the Treasury that the retention of stock (or stock and 
     securities) was not in pursuance of a plan having as one of 
     its principal purposes the avoidance of Federal income tax. 
     Sec. 355(a)(1)(D). Section 355 imposes other requirements to 
     avoid gain recognition at the corporate level with respect to 
     the spin-off, split-up, or split-off, e.g., secs. 355(d) and 
     (e).
---------------------------------------------------------------------------
       No gain or loss is recognized to a corporation if the 
     corporation is a party to a reorganization and exchanges 
     property, in pursuance of the plan of reorganization, solely 
     for stock or securities in another corporation that is a 
     party to the reorganization.\97\ If property other than stock 
     or securities is received (``other property''), the 
     transferor corporation recognizes gain (if any) to the extent 
     the other property is not distributed.\98\
---------------------------------------------------------------------------
     \97\Sec. 361(a).
     \98\Sec. 361(b).
---------------------------------------------------------------------------
       In addition, in a divisive D reorganization, if there is a 
     transfer to the transferor corporation's creditors of money 
     or other property received from the controlled corporation in 
     the exchange in connection with the reorganization, the 
     transferor distributing corporation recognizes gain to the 
     extent the sum of the money and the fair market value of the 
     other property exceeds the adjusted bases of the assets 
     transferred (reduced by the amount of liabilities assumed by 
     the transferee under section 357(c)).\99\ Thus, such a 
     transfer to creditors is aggregated with other assumptions of 
     the transferor corporation's liabilities by the transferee, 
     and the transferor corporation recognizes gain to the extent 
     this aggregate amount exceeds the adjusted basis of assets 
     transferred.\100\
---------------------------------------------------------------------------
     \99\The last sentence of sec. 361(b)(3).
     \100\Sec. 357(c) and the last sentence of sec. 361(b)(3).
---------------------------------------------------------------------------
       For example, if in a divisive D reorganization the 
     controlled corporation either (1) directly assumes the debt 
     of the distributing corporation, or (2) borrows and 
     distributes cash to the distributing corporation to pay the 
     distributing corporation's creditors, such debt assumption or 
     cash distribution is treated as money received by the 
     distributing corporation, and the aggregate amount of such 
     debt assumptions and distributions is taxable to the extent 
     it exceeds the distributing corporation's basis in the assets 
     transferred to the controlled corporation. However, if the 
     controlled corporation issues its own debt securities and 
     such securities are distributed to the creditors of the 
     distributing corporation, the controlled corporation's debt 
     securities are not treated as money or other property 
     received by the distributing corporation. Thus, the 
     distributing corporation could use the controlled 
     corporation's securities to retire the distributing 
     corporation's own debt, recognize no gain, and be in the same 
     economic position as if its debt had been directly assumed by 
     the controlled corporation or as if it had retired its debt 
     with cash received from the controlled corporation. In 
     addition, to the extent that such debt securities of the 
     controlled corporation are permitted to be retained by the 
     distributing corporation, such securities are not treated as 
     taxable property.


                               House Bill

       No provision.


                            Senate Amendment

       Under the Senate amendment, in the case of a divisive D 
     reorganization, no gain or loss is recognized to a 
     corporation if the corporation is a party to a reorganization 
     and exchanges property, in pursuance of the plan of 
     reorganization, solely for stock other than nonqualified 
     preferred stock (as defined in section 351(g)(2)).\101\ Thus, 
     under the provision, securities and nonqualified preferred 
     stock are treated as ``other property.''
---------------------------------------------------------------------------
     \101\Section 351(g)(2) defines nonqualified preferred stock 
     as preferred stock if (i) the holder has a right to require 
     the issuer or a related person to redeem or purchase the 
     stock, which right may be exercised within the 20 year period 
     beginning on the issue date and is not subject to a 
     contingency which, as of the issue date, makes remote the 
     likelihood of redemption or purchase; (ii) the issuer or a 
     related person is required to redeem or purchase the stock 
     (within such 20 year period and not subject to such a 
     contingency); (iii) the issuer or a related person has the 
     right to redeem or purchase the stock (which right is 
     exercisable within such 20 year period and not subject to 
     such a contingency) and as of the issue date, it is more 
     likely than not that such right will be exercised, or (iv) 
     the dividend on such stock varies in whole or in part 
     (directly or indirectly) with reference to interest rates, 
     commodity prices, or other similar indices. There are 
     exceptions for certain rights that are exercisable only on 
     the death, disability or mental incompetency of the holder, 
     or only upon the separation from service of a service 
     provider who received the right as reasonable compensation 
     for services, and for certain situations involving publicly 
     traded stock. Nonqualified preferred stock is treated in the 
     same manner as securities under section 351 and thus is not 
     qualified consideration that may be received tax free by a 
     contributing shareholder. Sections 354(a)(2)(C) and 356(e) 
     treat nonqualified preferred stock as taxable consideration 
     if received in exchange for stock by shareholders of a 
     corporation that itself is a party to a reorganization 
     (except to the extent received in exchange for other 
     nonqualified preferred stock); and section 355 contains a 
     similar rule (sec. 355(a)(3)(D)).

---------------------------------------------------------------------------

[[Page 10697]]

       The transferor corporation's gain on the exchange is 
     recognized to the extent of the sum of money and the value of 
     other property, including securities and nonqualified 
     preferred stock, not distributed in pursuance of the plan of 
     reorganization. A distribution to creditors of the transferor 
     corporation is not treated as a distribution for this 
     purpose.
       The value of controlled corporation securities or 
     nonqualified preferred stock transferred to creditors of the 
     distributing corporation is treated in the same manner as a 
     direct assumption of distributing corporation's debt by the 
     controlled corporation, or as a distribution of cash (or 
     other nonqualified property) from the controlled corporation 
     that is paid to the distributing corporation's creditors, so 
     that the distributing corporation recognizes gain on the 
     exchange to the extent that the sum of such amounts exceeds 
     the adjusted bases of the assets transferred
       Effective date.--The provision generally applies to 
     exchanges occurring after the date of enactment.
       However, the provision does not apply to any exchange in 
     connection with a transaction which is (1) made pursuant to a 
     written agreement which was binding on February 6, 2012 and 
     at all times thereafter, (2) described in a ruling request 
     submitted to the IRS on or before such date, or (3) described 
     on or before such date in a public announcement or in a 
     filing with the Securities and Exchange Commission.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

  K. Internal Revenue Service Levies and Thrift Savings Plan Accounts 
                  (sec. 40308 of the Senate amendment)


                              Present Law

     In general
       Levy is the IRS's administrative authority to seize a 
     taxpayer's property, or rights to property, to pay the 
     taxpayer's tax liability.\102\ Generally, the IRS is entitled 
     to seize a taxpayer's property by levy if a Federal tax lien 
     has attached to such property,\103\ the property is not 
     exempt from levy,\104\ and the IRS has provided both notice 
     of intention to levy\105\ and notice of the right to an 
     administrative hearing (the notice is referred to as a 
     ``collections due process notice'' or ``CDP notice'' and the 
     hearing is referred to as the ``CDP hearing'')\106\ at least 
     30 days before the levy is made. A levy on salary or wages is 
     generally continuously in effect until released.\107\ A 
     Federal tax lien arises automatically when: (1) a tax 
     assessment has been made; (2) the taxpayer has been given 
     notice of the assessment stating the amount and demanding 
     payment; and (3) the taxpayer has failed to pay the amount 
     assessed within 10 days after the notice and demand.\108\
---------------------------------------------------------------------------
     \102\Sec. 6331(a). Levy specifically refers to the legal 
     process by which the IRS orders a third party to turn over 
     property in its possession that belongs to the delinquent 
     taxpayer named in a notice of levy.
     \103\Ibid.
     \104\Sec. 6334.
     \105\Sec. 6331(d).
     \106\Sec. 6330. The notice and the hearing are referred to 
     collectively as the CDP requirements.
     \107\Secs. 6331(e) and 6343.
     \108\Sec. 6321.
---------------------------------------------------------------------------
       The notice of intent to levy is not required if the 
     Secretary finds that collection would be jeopardized by 
     delay. The standard for determining whether jeopardy exists 
     is similar to the standard applicable when determining 
     whether assessment of tax without following the normal 
     deficiency procedures is permitted.\109\
---------------------------------------------------------------------------
     \109\Secs. 6331(d)(3) and 6861.
---------------------------------------------------------------------------
       The CDP notice (and pre-levy CDP hearing) is not required 
     if: (1) the Secretary finds that collection would be 
     jeopardized by delay; (2) the Secretary has served a levy on 
     a State to collect a Federal tax liability from a State tax 
     refund; (3) the taxpayer subject to the levy requested a CDP 
     hearing with respect to unpaid employment taxes arising in 
     the two-year period before the beginning of the taxable 
     period with respect to which the employment tax levy is 
     served; or (4) the Secretary has served a Federal contractor 
     levy. In each of these four cases, however, the taxpayer is 
     provided an opportunity for a hearing within a reasonable 
     period of time after the levy.\110\
---------------------------------------------------------------------------
     \110\Sec. 6330(f).
---------------------------------------------------------------------------
     Thrift Savings Plan
       Present law includes an anti-alienation rule that provides 
     that the balance of an employee's Thrift Savings Plan 
     (``TSP'') Account is subject to taking only for the 
     enforcement of one's obligations to provide for child support 
     or alimony payments, restitution orders, certain forfeitures, 
     or certain obligations of the Executive Director.\111\ The 
     authority for the IRS to levy an employee's TSP Account to 
     satisfy tax liabilities is not mentioned in the anti-
     alienation rule; TSP Accounts are not specifically enumerated 
     in the Code provisions identifying property that is exempt 
     from levy.
---------------------------------------------------------------------------
     \111\5 U.S.C. sec. 8437(e)(3).
---------------------------------------------------------------------------


                            House Provision

       No provision.

                            senate amendment

       The provision amends the statutory provisions governing the 
     TSP to clarify that the anti-alienation provisions therein do 
     not bar the IRS from issuing a notice of levy on a TSP 
     Account.
       Effective date.--The provision is effective upon date of 
     enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

L. Depreciation and Amortization Rules for Highway and Related Property 
  Subject to Long-Term Leases (sec. 40309 of the Senate amendment and 
                  secs. 168, 197, and 147 of the Code)


                              Present Law

     Depreciation and amortization for highways and related 
         property
       A taxpayer generally must capitalize the cost of property 
     used in a trade or business and recover such cost over time 
     through annual deductions for depreciation or amortization. 
     Tangible property generally is depreciated under the modified 
     accelerated cost recovery system (``MACRS''), which 
     determines depreciation by applying specific recovery 
     periods, placed-in-service conventions, and depreciation 
     methods to the cost of various types of depreciable 
     property.\112\ The alternative depreciation system (``ADS'') 
     applies with respect to tangible property used predominantly 
     outside the United States during the taxable year, tax-exempt 
     use property, tax-exempt bond financed property, and certain 
     other property. ADS generally requires the use of the 
     straight-line method without regard to salvage value, and 
     requires longer recovery periods than MACRS.
---------------------------------------------------------------------------
     \112\Sec. 168.
---------------------------------------------------------------------------
       Under MACRS, the cost of land improvements (such as roads 
     and fences) is recovered over 15 years.\113\ Land 
     improvements subject to ADS are recovered over 20 years using 
     the straight-line method.\114\
---------------------------------------------------------------------------
     \113\Rev. Proc. 87-56, 1987-42 I.R.B. 4.
     \114\Ibid. The longest MACRS recovery period is 50 years and 
     applies to railroad gradings and tunnel bores. Sec. 168(c).
---------------------------------------------------------------------------
     Amortization of intangible property
       The cost recovery of many intangible assets is governed by 
     the rules of section 197. In particular, section 197 provides 
     that any amortizable section 197 intangible, including rights 
     granted by a governmental unit and franchise rights, is 
     amortized over a 15-year period.\115\
---------------------------------------------------------------------------
     \115\Secs. 197(d)(1)(D) and (F). The 15-year amortization 
     provision does not apply to various types of rights, 
     including any interest in land. Sec. 197(e)(2).
---------------------------------------------------------------------------
     Private activity bond financing for highways
       In general, interest on a private activity bond that is a 
     qualified bond is excludable from taxable income.\116\ Under 
     present law, a private activity bond is not a qualified bond, 
     interest on which is tax-exempt, if any portion of the 
     proceeds of the issue of which the bond is a part is used to 
     provide any airplane, skybox, or other private luxury box, 
     health club facility, facility primarily used for gambling, 
     or store the principal business of which is the sale of 
     alcoholic beverages for consumption off premises.\117\
---------------------------------------------------------------------------
     \116\Sec. 141.
     \117\Sec. 147(e).
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       Under this provision, the depreciation for applicable 
     leased highway property is determined under ADS with a 
     statutory 45-year recovery period and requirement to use the 
     straight-line method. Further, this provision requires that 
     any amortizable section 197 intangible acquired in connection 
     with an applicable lease must be recovered over a period not 
     less than the term of the applicable lease.
       Under this provision, private activity bonds are not 
     qualified bonds, interest on which is tax-exempt, if the 
     bonds are part of an issue, any portion of the proceeds of 
     which is used to finance any applicable leased highway 
     property.
       For purposes of this provision, applicable leased highway 
     property is defined as property subject to an applicable 
     lease and placed in service before the date of such lease. An 
     applicable lease is defined as an arrangement between the 
     taxpayer and a State or political subdivision thereof, or any 
     agency or instrumentality of either, under which the taxpayer 
     leases a highway and associated improvements, receives a 
     right-of-way on the public lands underlying such highway and 
     improvements, and receives a grant of a franchise or other 
     intangible right permitting the taxpayer to receive funds 
     relating to the operation of such highway. As under present 
     law, a contract that purports to be a service contract or 
     other arrangement (including a partnership or other 
     passthrough

[[Page 10698]]

     entity) is treated as a lease if the contract or arrangement 
     is properly treated as a lease.\118\
---------------------------------------------------------------------------
     \118\Sec. 7701(e).
---------------------------------------------------------------------------
       Effective date.--The provision is effective for leases 
     entered into, and private activity bonds issued, after the 
     date of enactment.


                          conference agreement

       The conference agreement does not include the Senate 
     amendment provision.

M. Transfers to Federal Old-Age and Survivors Insurance Trust Fund and 
   Federal Disability Insurance Trust Fund (sec. 40314 of the Senate 
                               amendment)


                              Present Law

       To finance Social Security and Medicare benefits, taxes 
     under the Federal Insurance Contributions Act (``FICA'') are 
     imposed on employers and employees with respect to employee 
     wages.\119\ Similar taxes are imposed under the Self-
     Employment Contributions Act (``SECA'') on self-employed 
     individuals with respect to their self-employment 
     income.\120\ These taxes consist of two parts: (1) old-age, 
     survivors, and disability insurance (``OASDI''), which 
     correlates to the Social Security program that provides 
     monthly benefits after retirement, death or disability; and 
     (2) Medicare hospital insurance (``HI'').
---------------------------------------------------------------------------
     \119\Secs. 3101 and 3111.
     \120\Sec. 1401.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       Under the Senate amendment, the following amounts are 
     transferred from the General Fund to the OASDI Trust Funds: 
     $27 million in fiscal year 2012, and $82 million in fiscal 
     year 2014.
       Effective date.--The Senate amendment provision is 
     effective on the date of enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

N. Modify Rules that Apply to Sales of Life Insurance Contracts (secs. 
    100112-4 of the Senate amendment and new sec. 6050X of the Code)


                              Present Law

       An exclusion from Federal income tax is provided for 
     amounts received under a life insurance contract paid by 
     reason of the death of the insured.\121\
---------------------------------------------------------------------------
     \121\Sec. 101(a)(1). In the case of certain accelerated death 
     benefits and viatical settlements, special rules treat 
     certain amounts as amounts paid by reason of the death of an 
     insured (that is, generally, excludable from income). Sec. 
     101(g). The rules relating to accelerated death benefits 
     provide that amounts treated as paid by reason of the death 
     of the insured include any amount received under a life 
     insurance contract on the life of an insured who is a 
     terminally ill individual, or who is a chronically ill 
     individual (provided certain requirements are met). For this 
     purpose, a terminally ill individual is one who has been 
     certified by a physician as having an illness or physical 
     condition which can reasonably be expected to result in death 
     in 24 months or less after the date of the certification. A 
     chronically ill individual is one who has been certified by a 
     licensed health care practitioner within the preceding 12-
     month period as meeting certain ability-related requirements. 
     In the case of a viatical settlement, if any portion of the 
     death benefit under a life insurance contract on the life of 
     an insured who is terminally ill or chronically ill is sold 
     to a viatical settlement provider, the amount paid for the 
     sale or assignment of that portion is treated as an amount 
     paid under the life insurance contract by reason of the death 
     of the insured (that is, generally, excludable from income). 
     For this purpose, a viatical settlement provider is a person 
     regularly engaged in the trade or business of purchasing, or 
     taking assignments of, life insurance contracts on the lives 
     of terminally ill or chronically ill individuals (provided 
     certain requirements are met).
---------------------------------------------------------------------------
       Under rules known as the transfer for value rules, if a 
     life insurance contract is sold or otherwise transferred for 
     valuable consideration, the amount paid by reason of the 
     death of the insured that is excludable generally is 
     limited.\122\ Under the limitation, the excludable amount may 
     not exceed the sum of (1) the actual value of the 
     consideration, and (2) the premiums or other amounts 
     subsequently paid by the transferee of the contract. Thus, 
     for example, if a person buys a life insurance contract, and 
     the consideration he pays combined with his subsequent 
     premium payments on the contract are less than the amount of 
     the death benefit he later receives under the contract, then 
     the difference is includable in the buyer's income.
---------------------------------------------------------------------------
     \122\Sec. 101(a)(2).
---------------------------------------------------------------------------
       Exceptions are provided to the limitation on the excludable 
     amount. The limitation on the excludable amount does not 
     apply if (1) the transferee's basis in the contract is 
     determined in whole or in part by reference to the 
     transferor's basis in the contract,\123\ or (2) the transfer 
     is to the insured, to a partner of the insured, to a 
     partnership in which the insured is a partner, or to a 
     corporation in which the insured is a shareholder or 
     officer.\124\
---------------------------------------------------------------------------
     \123\Sec. 101(a)(2)(A).
     \124\Sec. 101(a)(2)(B).
---------------------------------------------------------------------------
       IRS guidance sets forth more details of the tax treatment 
     of a life insurance policyholder who sells or surrenders the 
     life insurance contract and the tax treatment of other 
     sellers and of buyers of life insurance contracts. The 
     guidance relates to the character of taxable amounts 
     (ordinary or capital) and to the taxpayer's basis in the life 
     insurance contract.
       In Revenue Ruling 2009-13,\125\ the IRS ruled that income 
     recognized under section 72(e) on surrender to the life 
     insurance company of a life insurance contract with cash 
     value is ordinary income. In the case of sale of a cash value 
     life insurance contract, the IRS ruled that the insured's 
     (seller's) basis is reduced by the cost of insurance, and the 
     gain on sale of the contract is ordinary income to the extent 
     of the amount that would be recognized as ordinary income if 
     the contract were surrendered (the ``inside buildup''), and 
     any excess is long-term capital gain. Gain on the sale of a 
     term life insurance contract (without cash surrender value) 
     is long-term capital gain under the ruling.
---------------------------------------------------------------------------
     \125\2009-21 I.R.B. 1029.
---------------------------------------------------------------------------
       In Revenue Ruling 2009-14,\126\ the IRS ruled that under 
     the transfer for value rules, a portion of the death benefit 
     received by a buyer of a life insurance contract on the death 
     of the insured is includable as ordinary income. The portion 
     is the excess of the death benefit over the consideration and 
     other amounts (e.g., premiums) paid for the contract. Upon 
     sale of the contract by the purchaser of the contract, the 
     ruling concludes that the gain is long-term capital gain, and 
     in determining the gain, the basis of the contract is not 
     reduced by the cost of insurance.
---------------------------------------------------------------------------
     \126\2009-21 I.R.B. 1031.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

     In general
       The provision imposes reporting requirements in the case of 
     the purchase of an existing life insurance contract in a 
     reportable policy sale and imposes reporting requirements on 
     the payor in the case of the payment of reportable death 
     benefits. The provision sets forth rules for determining the 
     basis of a life insurance or annuity contract. Lastly, the 
     provision modifies the transfer for value rules in a transfer 
     of an interest in a life insurance contract that is a 
     reportable policy sale.
     Reporting requirements for acquisitions of life insurance 
         contracts
       Reporting upon acquisition of life insurance contract
       The reporting requirement applies to every person who 
     acquires a life insurance contract, or any interest in a life 
     insurance contract, in a reportable policy sale during the 
     taxable year. A reportable policy sale means the acquisition 
     of an interest in a life insurance contract, directly or 
     indirectly, if the acquirer has no substantial family, 
     business, or financial relationship with the insured (apart 
     from the acquirer's interest in the life insurance contract). 
     An indirect acquisition includes the acquisition of an 
     interest in a partnership, trust, or other entity that holds 
     an interest in the life insurance contract.
       Under the reporting requirement, the acquiror of the 
     contract reports information about the acquisition to the 
     IRS, to the insurance company that issued the contract, and 
     to the person or persons receiving a payment. The information 
     reported by the acquiror about the acquisition of the 
     contract is (1) the acquiror's name, address, and taxpayer 
     identification number (``TIN''), (2) the name, address, and 
     TIN of each recipient of payment in the reportable policy 
     sale, (3) the date of the reportable policy sale, (4) the 
     name of the issuer and the policy number of the life 
     insurance contract, and (5) the amount of each payment.
       The statement the acquiror provides to any issuer of a life 
     insurance contract is not required to include the amount of 
     the payment or payments for the acquisition of the contract. 
     The statement the acquiror provides to any issuer of a life 
     insurance contract or recipient of a payment in the 
     reportable policy sale also includes the name, address, and 
     phone number of the acquiror's information contact.
       Reporting of seller's basis in the life insurance contract
       On receipt of a report described above, or on any notice of 
     the transfer of a life insurance contract to a foreign 
     person, each issuer is required to report to the IRS and to 
     the seller or transferor (1) the basis of the contract (i.e., 
     the investment in the contract within the meaning of section 
     72(e)(6)), (2) the name, address, and TIN of the seller or 
     the transferor to a foreign person, and (3) the policy number 
     of the contract. Notice of the transfer of a life insurance 
     contract to a foreign person is intended to include any sort 
     of notice, including information provided for nontax purposes 
     such as change of address notices for purposes of sending 
     statements or for other purposes, or information relating to 
     loans, premiums, or death benefits with respect to the 
     contract.
       The statement the issuer provides to any seller or 
     transferor to a foreign person also includes the name, 
     address, and phone number of the issuer's information 
     contact.
       Reporting with respect to reportable death benefits
       When a reportable death benefit is paid under a life 
     insurance contract, the payor insurance company is required 
     to report information about the payment to the IRS and to the 
     payee. Under this reporting requirement, the payor reports 
     (1) the payor's name, address, and TIN; (2) the name, 
     address, and

[[Page 10699]]

     TIN of each recipient of payment; (3) the date of each 
     payment; and (4) the amount of each payment. A reportable 
     death benefit means an amount paid by reason of the death of 
     the insured under a life insurance contract that has been 
     transferred in a reportable policy sale.
       The statement the payor provides to any payee also includes 
     the name, address, and phone number of the payor's 
     information contact.
       Payment
       For purposes of these reporting requirements, payment means 
     the amount of cash and the fair market value of any 
     consideration transferred in a reportable policy sale.
     Determination of basis
       The provision provides that in determining the basis of a 
     life insurance or annuity contract, no adjustment is made for 
     mortality, expense, or other reasonable charges incurred 
     under the contract (known as ``cost of insurance''). This 
     reverses the position of the IRS in Revenue Ruling 2009-13 
     that on sale of a cash value life insurance contract, the 
     insured's (seller's) basis is reduced by the cost of 
     insurance.
     Scope of transfer for value rules
       The provision provides that the exceptions to the transfer 
     for value rules do not apply in the case of a transfer of a 
     life insurance contract, or any interest in a life insurance 
     contract, in a reportable policy sale. Thus, some portion of 
     the death benefit ultimately payable under such a contract 
     may be includable in income.
     Effective date
       Under the provision, the reporting requirement is effective 
     for reportable policy sales occurring after December 31, 
     2012, and reportable death benefits paid after December 31, 
     2012. The clarification of the basis rules for life insurance 
     and annuity contracts is effective for transactions entered 
     into after August 25, 2009. The modification of exception to 
     the transfer for value rules is effective for transfers 
     occurring after December 31, 2012.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

    O. Authorizing Special Measures Against Foreign Jurisdictions, 
 Financial Institutions, and Others that Significantly Impede U.S. Tax 
  Enforcement (sec. 100201 of the Senate amendment and 31 U.S.C. sec. 
                                 5138A)


                              Present Law

       Cross-border transfers of assets to, and interests held in, 
     foreign bank accounts or foreign entities are subject to 
     reporting requirements under Title 31 (the Bank Secrecy Act) 
     of the United States Code. The Bank Secrecy Act requires both 
     financial institutions and account holders to report 
     information that has ``a high degree of usefulness in 
     criminal, tax, or regulatory investigations or 
     proceedings.''\127\ Citizens and residents of the United 
     States as well as persons doing business in the United States 
     are required to keep records and file reports that contain 
     the following information ``in the way and to the extent the 
     Secretary prescribes'' if they enter into a transaction or 
     maintain an account with a foreign financial agency: (1) the 
     identity and address of participants in a transaction or 
     relationship; (2) the legal capacity in which a participant 
     is acting; (3) the identity of real parties in interest; and 
     (4) a description of the transaction, as specified by the 
     Secretary.\128\ Regulations promulgated pursuant to broad 
     regulatory authority granted to the Secretary in the Bank 
     Secrecy Act\129\ provide additional guidance regarding the 
     disclosure obligation with respect to foreign accounts.
---------------------------------------------------------------------------
     \127\31 U.S.C. sec. 5311.
     \128\31 U.S.C. sec. 5314. The term ``agency'' in the Bank 
     Secrecy Act includes financial institutions.
     \129\31 U.S.C. sec. 5314(a) provides: ``Considering the need 
     to avoid impeding or controlling the export or import of 
     monetary instruments and the need to avoid burdening 
     unreasonably a person making a transaction with a foreign 
     financial agency, the Secretary of the Treasury shall require 
     a resident or citizen of the United States or a person in, 
     and doing business in, the United States, to keep records, 
     file reports, or keep records and file reports, when the 
     resident, citizen, or person makes a transaction or maintains 
     a relation for any person with a foreign financial agency.''
---------------------------------------------------------------------------
       As part of a series of reforms directed at international 
     financing of terrorism,\130\ the Bank Secrecy Act authorizes 
     the Secretary of Treasury to impose special measures on 
     certain domestic institutions or agencies if, after 
     consultation with the Secretary of State and the Attorney 
     General, the Secretary of Treasury determines that there are 
     reasonable grounds to conclude that a jurisdiction or 
     institution operating outside the United States, or accounts 
     or transactions involving such jurisdictions or institutions, 
     are of primary money laundering concern.\131\
---------------------------------------------------------------------------
     \130\See, e.g., Title III of the USA PATRIOT Act, Pub. L. No. 
     107-56 (October 26, 2001) (sections 351 through 366).
     \131\31 U.S.C. sec. 5318A.
---------------------------------------------------------------------------
       In determining whether a particular jurisdiction is of 
     primary money laundering concern, the Secretary considers 
     multiple factors that may evidence that the jurisdiction 
     lacks adequate transparency and may be a haven for criminal 
     activities. Evidence that groups involved in organized crime, 
     international terrorism or proliferation of weapons of mass 
     destruction have transacted business in that jurisdiction as 
     well as the degree of corruption among high-level officials 
     must be considered. With respect to assessing the fiscal 
     transparency of the jurisdiction, factors include the 
     domestic laws of that jurisdiction and their administration; 
     the reputation of the jurisdiction as an offshore banking 
     haven by credible international organizations; the extent to 
     which the jurisdiction offers regulatory advantages to 
     nonresidents; and whether the United States has a Mutual 
     Legal Assistance Treaty (``MLAT'') with the jurisdiction, and 
     if so, experience of U.S. officials in obtaining information 
     under that agreement.
       In determining whether to apply one or more special measure 
     to a particular institution, or with respect to a type of 
     account or transaction, the Secretary considers whether the 
     transactions, accounts or institutions facilitate money 
     laundering through a particular jurisdiction. The Secretary 
     also looks at evidence that organized criminal groups or 
     terrorists have been able to avail themselves of such 
     institution, accounts or transactions. The extent to which 
     legitimate business is conducted through the accounts or 
     institutions is also considered.
       The selection of the specific measures is made after 
     consultation with other financial regulatory agencies and the 
     Secretary of State.\132\ The factors that must be considered 
     in selecting which of the measures to invoke are enumerated 
     and include U.S. national security and foreign policy; the 
     cost and burden of compliance with the measures; whether U.S. 
     financial institutions will be placed at a competitive 
     disadvantages as a result; the impact of the measure on the 
     international payment, clearance and settlement system; and 
     whether any similar sanction has been imposed by another 
     nation or multilateral group. Increased reporting obligations 
     with respect to types of transactions or accounts involving a 
     foreign jurisdiction, mandatory collection of information 
     about beneficial ownership of certain types of accounts, and 
     prohibitions against opening or maintaining payable-through 
     or correspondent accounts with a nexus to foreign 
     jurisdictions are among the measures permitted. These 
     measures may be imposed separately or in combination.
---------------------------------------------------------------------------
     \132\Section 5318A(4)(A) requires consultation with Board of 
     the Governors of the Federal Reserve System, the Securities 
     and Exchange Commission, the Commodity Futures Trading 
     Commission, the National Credit Union Administration Board, 
     any other appropriate Federal banking agency and any other 
     interested party identified by the Secretary.
---------------------------------------------------------------------------
       Cross-border payment flows are also subject to reporting 
     obligations for tax purposes.\133\ Those reporting 
     obligations and related provisions are commonly referred to 
     as FATCA,\134\ which added new Chapter 4, a reporting and 
     withholding regime, to Subtitle A of the Code. Chapter 4 
     requires reporting of specific information by third parties 
     for certain U.S. accounts held in foreign financial 
     institutions (``FFIs'').\135\ Information reporting is 
     encouraged through the withholding of tax on payments to FFIs 
     unless the FFI enters into and complies with an information 
     reporting agreement with the Secretary of the Treasury.\136\
---------------------------------------------------------------------------
     \133\Hiring Incentives to Restore Employment Act (``HIRE''), 
     Pub. L. No. 111-147 (2010).
     \134\Subtitle A of Title V of the HIRE Act, entitled 
     ``Foreign Account Tax Compliance,'' was based on legislative 
     proposals in the Foreign Account Tax Compliance Act 
     (``FATCA''), a bill introduced in both the House and Senate 
     on October 27, 2009. See H.R. 3933 and S. 1934, respectively.
     \135\Under section 1471(c), an FFI must report (1) the name, 
     address, and taxpayer identification number of each U.S. 
     person or a foreign entity with one or more substantial U.S. 
     owners holding an account, (2) the account number, (3) the 
     account balance or value, and (4) except as provided by the 
     Secretary, the gross receipts and gross withdrawals or 
     payments from the account.
     \136\The information reporting requirement under the HIRE Act 
     generally applies to payments made after December 31, 2012.
---------------------------------------------------------------------------
       Access to the foreign-based documents necessary to combat 
     money laundering and tax evasion is secured through 
     information exchanges with foreign jurisdictions under the 
     terms of various treaties and international agreements, such 
     as MLAT, tax treaties, or tax information exchange agreements 
     (``TIEA'').\137\ International norms regarding fiscal 
     transparency and exchange of information for tax 
     administration purposes are reflected in the standards 
     developed by the Organization for Economic Cooperation and 
     Development (``OECD''). The OECD Standards have been endorsed 
     by the G-20 Ministers of Finance. Whether by tax treaty or 
     TIEA, the OECD Standards require that a jurisdiction (1) 
     exchange information where it is ``foreseeably relevant'' to 
     the administration and enforcement of the domestic laws of a 
     requesting State; (2) not restrict exchanges on the basis of 
     bank secrecy or domestic tax

[[Page 10700]]

     interest requirements; (3) have powers to enforce access to 
     reliable information; (4) respect taxpayer rights; and (5) 
     maintain strict confidentiality of information 
     exchanged.\138\
---------------------------------------------------------------------------
     \137\TIEAs are entered into by the Administration, without 
     the advice and consent of the Senate. In contrast to the 
     bilateral tax treaties, TIEAs are generally limited in scope 
     to mutual exchange of information. Since the 1980s, the 
     United States has entered into over 20 such agreements.
     \138\Overview of the OECD's Work on International Tax Evasion 
     (A note by the OECD Secretariat), p. 3, March 23, 2009.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The provision expands the special measures powers under the 
     Bank Secrecy Act by authorizing use of the powers based on a 
     finding, made in consultation with the Commissioner of the 
     IRS, the Secretary of State and the Attorney General, that an 
     institution, jurisdiction or international transaction is 
     significantly impeding tax enforcement. In making such a 
     finding, cooperation of an institution or jurisdiction with 
     the implementation of FATCA may be favorably considered. The 
     information and consultations to be considered in making a 
     finding to support use of the special measures on the basis 
     of either money-laundering or tax enforcement concerns are 
     expanded to require consideration of U.S. experience with 
     administrative assistance requests under a tax treaty or tax 
     information exchange agreement. Furthermore, a number of 
     conforming changes are made to the enumeration of 
     considerations to ensure that factors relevant to tax 
     enforcement are considered.
       The process for selection of special measures to be taken 
     and the considerations for their selection remain the same as 
     under present law, except for the identity of the persons or 
     agencies to be consulted in the process when the use of 
     special measures is based on a finding that U.S. tax 
     enforcement is being significantly impeded. In that case, the 
     Secretary of Treasury is required to consult only with the 
     Commissioner of IRS, the Secretary of State and the Attorney 
     General. The Secretary of Treasury has sole discretion 
     whether to consult any other agencies.
       All special measures under present law are available for 
     both anti-money-laundering and tax enforcement-based 
     findings. The ability to prohibit or impose conditions on the 
     use of correspondent or payable-through accounts is expanded 
     to include the authorization, approval or use in the United 
     States of a credit card, charge card, debit card or other 
     similar financial instrument.
       Effective date.--The provision is effective upon date of 
     enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

P. Delay in Application of Worldwide Interest (sec. 1801 of the Senate 
                 amendment and sec. 864(f) of the Code)


                              Present Law

     In general
       To compute the foreign tax credit limitation, a taxpayer 
     must determine the amount of its taxable income from foreign 
     sources. Thus, the taxpayer must allocate and apportion 
     deductions between items of U.S.-source gross income, on the 
     one hand, and items of foreign-source gross income, on the 
     other.
       In the case of interest expense, the rules generally are 
     based on the approach that money is fungible and that 
     interest expense is properly attributable to all business 
     activities and property of a taxpayer, regardless of any 
     specific purpose for incurring an obligation on which 
     interest is paid.\139\ For interest allocation purposes, all 
     members of an affiliated group of corporations generally are 
     treated as a single corporation (the so-called ``one-taxpayer 
     rule'') and allocation must be made on the basis of assets 
     rather than gross income. The term ``affiliated group'' in 
     this context generally is defined by reference to the rules 
     for determining whether corporations are eligible to file 
     consolidated returns.
---------------------------------------------------------------------------
     \139\However, exceptions to the fungibility principle are 
     provided in particular cases, some of which are described 
     below.
---------------------------------------------------------------------------
       For consolidation purposes, the term ``affiliated group'' 
     means one or more chains of includible corporations connected 
     through stock ownership with a common parent corporation that 
     is an includible corporation, but only if: (1) the common 
     parent owns directly stock possessing at least 80 percent of 
     the total voting power and at least 80 percent of the total 
     value of at least one other includible corporation; and (2) 
     stock meeting the same voting power and value standards with 
     respect to each includible corporation (excluding the common 
     parent) is directly owned by one or more other includible 
     corporations.
       Generally, the term ``includible corporation'' means any 
     domestic corporation except certain corporations exempt from 
     tax under section 501 (for example, corporations organized 
     and operated exclusively for charitable or educational 
     purposes), certain life insurance companies, corporations 
     electing application of the possession tax credit, regulated 
     investment companies, real estate investment trusts, and 
     domestic international sales corporations. A foreign 
     corporation generally is not an includible corporation.
       Subject to exceptions, the consolidated return and interest 
     allocation definitions of affiliation generally are 
     consistent with each other. For example, both definitions 
     generally exclude all foreign corporations from the 
     affiliated group. Thus, while debt generally is considered 
     fungible among the assets of a group of domestic affiliated 
     corporations, the same rules do not apply as between the 
     domestic and foreign members of a group with the same degree 
     of common control as the domestic affiliated group.
       Banks, savings institutions, and other financial affiliates
       The affiliated group for interest allocation purposes 
     generally excludes what are referred to in the Treasury 
     regulations as ``financial corporations.''\140\ A financial 
     corporation includes any corporation, otherwise a member of 
     the affiliated group for consolidation purposes, that is a 
     financial institution (described in section 581 or section 
     591), the business of which is predominantly with persons 
     other than related persons or their customers, and which is 
     required by State or Federal law to be operated separately 
     from any other entity that is not a financial 
     institution.\141\ The category of financial corporations also 
     includes, to the extent provided in regulations, bank holding 
     companies (including financial holding companies), 
     subsidiaries of banks and bank holding companies (including 
     financial holding companies), and savings institutions 
     predominantly engaged in the active conduct of a banking, 
     financing, or similar business.\142\
---------------------------------------------------------------------------
     \140\Temp. Treas. Reg. sec. 1.861-11T(d)(4).
     \141\Sec. 864(e)(5)(C).
     \142\Sec. 864(e)(5)(D).
---------------------------------------------------------------------------
       A financial corporation is not treated as a member of the 
     regular affiliated group for purposes of applying the one-
     taxpayer rule to other nonfinancial members of that group. 
     Instead, all such financial corporations that would be so 
     affiliated are treated as a separate single corporation for 
     interest allocation purposes.
     Worldwide interest allocation
       In general
       The American Jobs Creation Act of 2004 (``AJCA'')\143\ 
     modified the interest expense allocation rules described 
     above (which generally apply for purposes of computing the 
     foreign tax credit limitation) by providing a one-time 
     election (the ``worldwide affiliated group election'') under 
     which the taxable income of the domestic members of an 
     affiliated group from sources outside the United States 
     generally is determined by allocating and apportioning 
     interest expense of the domestic members of a worldwide 
     affiliated group on a worldwide-group basis (i.e., as if all 
     members of the worldwide group were a single corporation). If 
     a group makes this election, the taxable income of the 
     domestic members of a worldwide affiliated group from sources 
     outside the United States is determined by allocating and 
     apportioning the third-party interest expense of those 
     domestic members to foreign-source income in an amount equal 
     to the excess (if any) of (1) the worldwide affiliated 
     group's worldwide third-party interest expense multiplied by 
     the ratio that the foreign assets of the worldwide affiliated 
     group bears to the total assets of the worldwide affiliated 
     group,\144\ over (2) the third-party interest expense 
     incurred by foreign members of the group to the extent such 
     interest would be allocated to foreign sources if the 
     principles of worldwide interest allocation were applied 
     separately to the foreign members of the group.\145\
---------------------------------------------------------------------------
     \143\Pub. L. No. 108-357, sec. 401.
     \144\For purposes of determining the assets of the worldwide 
     affiliated group, neither stock in corporations within the 
     group nor indebtedness (including receivables) between 
     members of the group is taken into account.
     \145\Although the interest expense of a foreign subsidiary is 
     taken into account for purposes of allocating the interest 
     expense of the domestic members of the electing worldwide 
     affiliated group for foreign tax credit limitation purposes, 
     the interest expense incurred by a foreign subsidiary is not 
     deductible on a U.S. return.
---------------------------------------------------------------------------
       For purposes of the new elective rules based on worldwide 
     fungibility, the worldwide affiliated group means all 
     corporations in an affiliated group as well as all controlled 
     foreign corporations that, in the aggregate, either directly 
     or indirectly,\146\ would be members of such an affiliated 
     group if section 1504(b)(3) did not apply (i.e., in which at 
     least 80 percent of the vote and value of the stock of such 
     corporations is owned by one or more other corporations 
     included in the affiliated group). Thus, if an affiliated 
     group makes this election, the taxable income from sources 
     outside the United States of domestic group members generally 
     is determined by allocating and apportioning interest expense 
     of the domestic members of the worldwide affiliated group as 
     if all of the interest expense and assets of 80-percent or 
     greater owned domestic corporations (i.e., corporations that 
     are part of the affiliated group, as modified to include 
     insurance companies) and certain controlled foreign 
     corporations were attributable to a single corporation.
---------------------------------------------------------------------------
     \146\Indirect ownership is determined under the rules of 
     section 958(a)(2) or through applying rules similar to those 
     of section 958(a)(2) to stock owned directly or indirectly by 
     domestic partnerships, trusts, or estates.
---------------------------------------------------------------------------
       Financial institution group election
       Taxpayers are allowed to apply the bank group rules to 
     exclude certain financial institutions from the affiliated 
     group for interest allocation purposes under the worldwide 
     fungibility approach. The rules also provide

[[Page 10701]]

     a one-time ``financial institution group'' election that 
     expands the bank group. At the election of the common parent 
     of the pre-election worldwide affiliated group, the interest 
     expense allocation rules are applied separately to a subgroup 
     of the worldwide affiliated group that consists of (1) all 
     corporations that are part of the bank group, and (2) all 
     ``financial corporations.'' For this purpose, a corporation 
     is a financial corporation if at least 80 percent of its 
     gross income is financial services income (as described in 
     section 904(d)(2)(D)(ii) and the regulations thereunder) that 
     is derived from transactions with unrelated persons.\147\ For 
     these purposes, items of income or gain from a transaction or 
     series of transactions are disregarded if a principal purpose 
     for the transaction or transactions is to qualify any 
     corporation as a financial corporation.
---------------------------------------------------------------------------
     \147\See Treas. Reg. sec. 1.904-4(e)(2).
---------------------------------------------------------------------------
       In addition, anti-abuse rules are provided under which 
     certain transfers from one member of a financial institution 
     group to a member of the worldwide affiliated group outside 
     of the financial institution group are treated as reducing 
     the amount of indebtedness of the separate financial 
     institution group. Regulatory authority is provided with 
     respect to the election to provide for the direct allocation 
     of interest expense in circumstances in which such allocation 
     is appropriate to carry out the purposes of these rules, to 
     prevent assets or interest expense from being taken into 
     account more than once, or to address changes in members of 
     any group (through acquisitions or otherwise) treated as 
     affiliated under these rules.
       Effective date of worldwide interest allocation
       The common parent of the domestic affiliated group must 
     make the worldwide affiliated group election. It must be made 
     for the first taxable year beginning after December 31, 2020, 
     in which a worldwide affiliated group exists that includes at 
     least one foreign corporation that meets the requirements for 
     inclusion in a worldwide affiliated group.\148\ The common 
     parent of the pre-election worldwide affiliated group must 
     make the election for the first taxable year beginning after 
     December 31, 2020, in which a worldwide affiliated group 
     includes a financial corporation. Once either election is 
     made, it applies to the common parent and all other members 
     of the worldwide affiliated group or to all members of the 
     financial institution group, as applicable, for the taxable 
     year for which the election is made and all subsequent 
     taxable years, unless revoked with the consent of the 
     Secretary of the Treasury.
---------------------------------------------------------------------------
     \148\As originally enacted under AJCA, the worldwide interest 
     allocation rules were effective for taxable years beginning 
     after December 31, 2008. However, section 3093 of the Housing 
     and Economic Recovery Act of 2008, Pub. L. No. 110-289, 
     delayed the implementation of the worldwide interest 
     allocation rules for two years, until taxable years beginning 
     after December 31, 2010; section 15 of the Worker, 
     Homeownership, and Business Assistance Act of 2009, Pub. L. 
     No. 111-92, delayed the implementation of the worldwide 
     interest allocation rules for seven years, until taxable 
     years beginning after December 31, 2017; and section 551 of 
     the Hiring Incentives to Restore Employment Act, Pub. L. No. 
     111-126, further delayed implementation of the worldwide 
     interest allocation rules for three years, until taxable 
     years beginning after December 31, 2020.
---------------------------------------------------------------------------


                               House Bill

       No provision.


                            Senate Amendment

       The provision delays the effective date of the worldwide 
     interest allocation rules for one year, until taxable years 
     beginning after December 31, 2021. The required dates for 
     making the worldwide affiliated group election and the 
     financial institution group election are changed accordingly.
       Effective date.--The provision is effective on the date of 
     enactment.


                          Conference Agreement

       The conference agreement does not include the Senate 
     amendment provision.

                    PART IV--TAX COMPLEXITY ANALYSIS

       Section 4022(b) of the Internal Revenue Service Reform and 
     Restructuring Act of 1998 (the ``IRS Reform Act'') requires 
     the Joint Committee on Taxation (in consultation with the 
     Internal Revenue Service and the Department of the Treasury) 
     to provide a tax complexity analysis. The complexity analysis 
     is required for all legislation reported by the Senate 
     Committee on Finance, the House Committee on Ways and Means, 
     or any committee of conference if the legislation includes a 
     provision that directly or indirectly amends the Internal 
     Revenue Code (the ``Code'') and has widespread applicability 
     to individuals or small businesses.
       The staff of the Joint Committee on Taxation has determined 
     that a complexity analysis is not required under section 
     4022(b) of the IRS Reform Act because the bill contains no 
     provisions that have ``widespread applicability'' to 
     individuals or small businesses.

  A. PBGC Premiums (secs. 40221-40222 of the conference agreement and 
                            ERISA sec. 4006)


                              Present Law

       Defined benefit plans subject to ERISA are covered by the 
     Pension Benefit Guaranty Corporation (``PBGC'') insurance 
     program and related premium requirements.
       In the case of a single-employer defined benefit plan, 
     flat-rate premiums apply at a rate of $35.00 per participant 
     for 2012. Single-employer flat-rate premium rates are indexed 
     for inflation.
       If a single-employer defined benefit plan has unfunded 
     vested benefits, variable-rate premiums also apply at a rate 
     of $9 per $1,000 of unfunded vested benefits divided by the 
     number of participants. Variable-rate premiums are not 
     indexed for inflation. For purposes of determining variable-
     rate premiums, unfunded vested benefits are equal to the 
     excess (if any) of (1) the plan's funding target for the 
     year, as determined under the minimum funding rules, but 
     taking into account only vested benefits, over (2) the fair 
     market value of plan assets. In determining the plan's 
     funding target for this purpose, the interest rates used are 
     segment rates determined as under the minimum funding rules, 
     but determined on a monthly basis, rather than using a 24-
     month average of corporate bond rates.
       In the case of a multiemployer defined benefit plan, flat-
     rate premiums apply at a rate of $9.00 per participant for 
     2012. Multiemployer flat-rate premium rates are indexed for 
     inflation and are expected to increase to $10 for 2013.


                               House Bill

       No provision.


                            Senate Amendment

       No provision.


                          Conference Agreement

       The conference agreement increases PBGC premiums for 
     single-employer plans and multiemployer plans.
       Single-employer plan flat-rate premiums are increased to 
     $42 per participant for 2013 and $49 per participant for 2014 
     with indexing thereafter.
       For plan years beginning after 2012, the rate for variable-
     rate premiums ($9 per $1,000 of unfunded vested benefits) is 
     indexed and the per-participant variable-rate premium is 
     subject to a limit. The limit is $400 for 2013 with indexing 
     thereafter. In addition, the rate for variable-rate premiums 
     per $1,000 of unfunded vested benefits is increased by $4 for 
     2014 and another $5 for 2015. These increases are applied to 
     the rate applicable for the preceding year (that is, $9 as 
     indexed for the preceding year per $1,000 of unfunded vested 
     benefits) and indexing continues to apply thereafter.
       Multiemployer plan flat-rate premiums are increased by $2 
     per participant for 2013.

B. Improvements of PBGC (secs. 40231-40234 of the conference agreement 
 and ERISA sec. 4002, new sec. 4004 and sec. 4005)--Draft of 6/27/12, 
                                9:00 PM


                              Present Law

       The Pension Benefit Guaranty Corporation (``PBGC''), which 
     was created by the Employee Retirement Income Security Act of 
     1974 (``ERISA''), insures benefits provided under defined 
     benefit plans covered by ERISA, collects premiums with 
     respect to such plans, and manages assets and pays benefits 
     with respect to certain terminated plans. PBGC's purposes are 
     to encourage the continuation and maintenance of voluntary 
     private defined benefit plans, provide timely and 
     uninterrupted payment of pension benefits to participants and 
     beneficiaries, and maintain premiums at the lowest level 
     consistent with carrying out its obligations under 
     ERISA.\149\
---------------------------------------------------------------------------
     \149\ERISA sec. 4002(a).
---------------------------------------------------------------------------
       PBGC is administered by a director, who is appointed by the 
     President with the advice and consent of the Senate. PBGC's 
     board of directors consists of the Secretary of the Treasury, 
     the Secretary of Labor, and the Secretary of Commerce, with 
     the Secretary of Labor serving as chair. An advisory 
     committee has been established for the purpose of advising 
     the PBGC as to various policies and procedures. ERISA 
     contains general provisions as to the board of directors and 
     advisory committee.


                               House Bill

       No provision.


                            Senate Amendment

       No provision.


                          Conference Agreement

     PBGC governance improvement
       The conference agreement expands the ERISA provisions 
     relating to the PBGC board of directors, advisory committee, 
     director and other PBGC officials.
       With respect to the board of directors, the conference 
     agreement addresses timing and procedures for meetings 
     (including a joint meeting with the advisory committee). It 
     also ensures that the PBGC inspector general has direct 
     access to the board, clarifies the role of the General 
     Counsel, and provides authority to the board to hire its own 
     employees, experts and consultants as may be required to 
     enable the board to perform its duties. The conference 
     agreement includes specific rules on conflicts of interest 
     with respect to the board of directors and the director of 
     PBGC and provides for the PBGC to have a risk management 
     officer. It further clarifies that the PBGC board of 
     directors is ultimately responsible for overseeing PBGC and 
     that the director is directly accountable to the board of 
     directors and can be removed by the board of directors or the 
     president. It also sets the director's term at five years 
     unless removed before the expiration of the

[[Page 10702]]

     term by the President or the board of directors.
       The conference agreement states the sense of Congress that 
     (1) the board of directors should form committees, including 
     an audit committee and an investment committee composed of at 
     least two members, to enhance the overall effectiveness of 
     the board, and (2) the advisory committee should provide the 
     board with policy recommendations regarding changes to the 
     law that would be beneficial to the PBGC or the voluntary 
     private pension system.
       The conference agreement also directs the PBGC, not later 
     than 90 days after enactment, to contract with the National 
     Academy of Public Administration to conduct a study of the 
     PBGC to include (1) a review of governance structures of 
     organizations (governmental and nongovernmental) that are 
     analogous to the PBGC and (2) recommendations with respect to 
     various topics relating to the board of directors, such as 
     composition, procedures, and policies to enhance 
     Congressional oversight. The results of the study are to be 
     reported within a year of initiation of the study to the 
     Committee on Health, Education, Labor, and Pensions and 
     Committee on Finance of the Senate and the Committee on 
     Education and the Workforce and Committee on Ways and Means 
     of the House of Representatives.
     Participant and plan sponsor advocate
       The conference agreement establishes a new Participant and 
     Plan Sponsor Advocate. The Advocate is chosen by the Board of 
     Directors from the candidates nominated by the advisory 
     committee. This individual will act as a liaison between the 
     corporation and participants in terminated pension plans. The 
     Advocate will ensure that participants receive everything 
     they are entitled to under the law. The Advocate will also 
     provide plan sponsors with assistance in resolving disputes 
     with the corporation. Each year, the Advocate will provide a 
     report on their activities to the Committee on Health, 
     Education, Labor, and Pensions and Committee on Finance of 
     the Senate, the Committee on Education and the Workforce of 
     the House of Representatives, and the Committee on Ways and 
     Means of the House of Representatives summarizing the issues 
     raised by participants and plan sponsors and making 
     recommendations for changes to improve the system.
     Quality control procedures for the PBGC
       The conference agreement states that the PBGC will contract 
     with an outside agency (such as the Social Security 
     Administration) to conduct an annual review of the 
     Corporation's Single-Employer and Multiemployer Pension 
     Insurance Modeling Systems (``PIMS''). The first reviews will 
     be initiated no later than 3 months after the enactment of 
     this Act.
       The conference agreement also states that the PBGC will 
     make its own efforts to develop review policies to examine 
     actuarial work, management, and record keeping. Finally, the 
     conference agreement instructs the PBGC to provide a specific 
     report addressing outstanding recommendations made by the 
     Office of the Inspector General (``OIG'') relating to the 
     Policy, Research, and Analysis Department and the Benefits 
     Administration and Payment Department.
     Line of credit repeal
       The conference agreement repeals section 4005(c) of ERISA, 
     which provides authority for the PBGC to issue notes or other 
     obligations in an amount up to $100,000,000.
     Natural resource provisions
       Secure rural schools
       The conference report includes Senate language that extends 
     by one year, through fiscal year 2012, the Secure Rural 
     Schools program. The program funds county outlays for public 
     schools, road improvement and maintenance projects, and 
     forest restoration and improvement projects in and around 
     National Forests. The conference report clarifies that funds 
     for eligible Title III projects under the program must be 
     obligated by the end of the following fiscal year but not 
     necessarily initiated.
       Payment-in-lieu of taxes
       The conference report also includes Senate language to 
     extend by one year, through fiscal year 2013, full funding 
     for the Payment in Lieu of Taxes program. The program 
     provides federal payments to local governments to help offset 
     losses in property taxes due to nontaxable federal land 
     within their boundaries.
       Gulf coast restoration
       The conference report modifies a Senate provision related 
     to Gulf Coast restoration known as the Resources and 
     Ecosystems Sustainability, Tourism Opportunities and Revived 
     Economies of the Gulf Coast States Act of 2012 (RESTORE Act). 
     The provision establishes the Gulf Coast Restoration Trust 
     Fund and places in the Trust Fund 80% of all civil penalties 
     paid by responsible parties in connection with the Deepwater 
     Horizon oil spill. Funding may be used to invest in projects 
     and activities to restore the long-term health of the coastal 
     ecosystem and local economies in the Gulf Coast Region, which 
     includes the states of Mississippi, Louisiana, Alabama, 
     Florida, and Texas. A portion of the funds will be allocated 
     directly and equally to the five Gulf Coast states for 
     ecological and economic recovery along the coast. A portion 
     will be provided to the Gulf Coast Ecosystem Restoration 
     Council established by the bill to develop and fund a 
     comprehensive plan for the restoration of Gulf Coast 
     ecosystems. A portion will be allocated among the states 
     using an impact-based formula to implement state plans that 
     have been approved by the Council. Finally, a portion of the 
     fines will be allocated to a Gulf Coast ecosystem 
     restoration, science, observation, monitoring and technology 
     program and for grants to nongovernmental entities for the 
     establishment of Gulf Coast centers of excellence.
       Phased retirement


                              Present Law

       Under current law, Federal agencies may offer part-time 
     employment to retirement-eligible workers, but the employee 
     may not begin receiving accrued pension benefits. Currently, 
     Federal employees face one of three choices upon reaching 
     retirement age: (1) voluntarily retire and collect an annuity 
     based on the pension computation formula, (2) continue to 
     work full time, in most cases increasing the number of 
     service years used in calculating their pension, or (3) 
     voluntarily retire and return to Federal employment as a 
     reemployed annuitant. As a result, most experienced Federal 
     employees elect to retire.
       Under Internal Revenue Code section 72(t), certain 
     distributions from a qualified retirement plan prior to age 
     59\1/2\ are subject to an additional tax of 10 percent of the 
     taxable amount of the distribution.


                               House Bill

       No provision.


                            Senate Amendment

       The Senate amendment provides the Office of Personnel 
     Management the authority to establish a phased retirement 
     program for qualified Federal employees. The amendment allows 
     Federal employees to retire from a portion of their full time 
     employment and receive a prorated pension for that service. 
     During phased retirement, Federal employees may work 20 to 80 
     percent of their full-time schedule and continue to receive a 
     prorated salary and pension credit for the time worked. At 
     least 20 percent of the time worked must be used to mentor 
     new employees. When the phased retiree fully retires, their 
     annuity would be adjusted, increasing the employee's lifetime 
     retirement income. The Senate amendment excludes from 
     eligibility law enforcement officers, firefighters, nuclear 
     materials couriers, air traffic controllers, customs and 
     border protection officers, or members of the Capital Police 
     or Supreme Court Police.


                           Conference Report

       The conference report follows the Senate amendment with 
     three changes. First, Postal Service employees are exempted 
     from the requirement to spend 20 percent of their time 
     mentoring. Second, the provision provides that certain law 
     enforcement officers such as Customs and Border Protection 
     Officers hired before 2008 (when they were granted law-
     enforcement type status which makes them ineligible for 
     phased retirement under the Senate Amendment because they are 
     subject to mandatory retirement) are eligible for phased 
     retirement. Finally, the conference agreement provides an 
     exception to the additional tax under section 72(t) of the 
     Internal Revenue Code for distributions from federal 
     retirement plans to qualified phased retirees.
       Effective Date--The provision is effective on the date the 
     implementing regulations are issued by the Director of the 
     Office of Personnel Management.
       Technical correction to the disaster recovery FMAP 
           provision
       The ACA included a provision known as the `disaster-
     recovery FMAP' designed to help states adjust to drastic 
     changes in FMAP following a statewide disaster. Once 
     triggered, the policy would provide assistance for as many as 
     seven years following the disaster, as long as the state 
     continued to experience an FMAP drop of more than three 
     percentage points. The Middle Class Tax Relief and Job 
     Creation Act of 2012 corrected the formula. This policy moves 
     the effective date to October 1, 2012 and adjusts the formula 
     for fiscal year 2013.
       Ocean freight differential
       The United States provides humanitarian food aid to 
     developing countries. This assistance is subject to an 
     additional cargo preference, which requires 75% of food 
     assistance be shipped from U.S. flagged vessels. The Maritime 
     Administration at the Department of Transportation is 
     required to reimburse the U.S. agencies that sponsor food aid 
     shipments for the increased costs associated with the U.S. 
     flag shipping requirement. This proposal would reduce to 50% 
     the incremental ocean freight differential, which would 
     reduce the amount of quarterly payments made by Maritime 
     Administration at the Department of Transportation.
       Abandoned mine land
       This proposal would cap abandoned mine land (AML) 
     reclamation payments to states that have completed all high-
     priority abandoned coal mine reclamation projects. Under

[[Page 10703]]

     this proposal, payments to those states (certified states) 
     would be capped at $15 million annually.
     Pursuant to the order of the House on April 25, 2012, the 
     Speaker appointed the following conferees from the Committee 
     on Transportation and Infrastructure for consideration of the 
     House bill (except section 141) and the Senate amendment 
     (except secs. 1801, 40102, 40201, 40202, 40204, 40205, 40305, 
     40307, 40309, 40312, 100112, 100114, and 100116), and 
     modifications committed to conference:
     John Mica,
     Don Young,
     John Duncan,
     Bill Shuster,
     Shelley Moore Capito,
     Rick Crawford,
     Jaime Herrera Beutler,
     Larry Bucshon,
     Richard Hanna,
     Steve Southerland,
     James Lankford,
     Reid Ribble,
     Nick Rahall,
     Peter DeFazio,
     Jerry Costello,
     Eleanor Holmes Norton,
     Jerrold Nadler,
     Corrine Brown,
     Elijah Cummings,
     Leonard Boswell,
     Tim Bishop,
     As additional conferees from the Committee on Commerce, for 
     consideration of sec. 142 and titles II and V of the House 
     bill, and secs. 1113, 1201, 1202, subtitles B, C, D, and E of 
     title I of Division C, secs. 32701, 32705, 32710, 32713, 
     40101, and 40301 of the Senate amendment, and modifications 
     committed to conference:
     Fred Upton,
     Ed Whitfield,
     Henry Waxman,
     As additional conferees from the Committee on Natural 
     Resources, for consideration of secs. 123, 142, 204, and 
     titles III and VI of the House bill, and sec. 1116, subtitles 
     C, F, and G of title I of Division A, sec. 33009, titles VI 
     and VII of Division C, sec. 40101, subtitles A and B of title 
     I of Division F, and sec. 100301 of the Senate amendment, and 
     modifications committed to conference:
     Doc Hastings,
     Rob Bishop,
     Ed Markey,
     As additional conferees from the Committee on Science, Space, 
     and Technology for consideration of secs. 121, 123, 136, and 
     137 of the House bill, and sec. 1534, subtitle F of title I 
     of Division A, secs. 20013, 20014, 20029, 31101, 31103, 
     31111, 31204, 31504, 32705, 33009, 34008, and Division E of 
     the Senate amendment, and modifications committed to 
     conference:
     Ralph Hall,
     Chip Cravaack,
     Eddie Bernice Johnson,
     As additional conferees from the Committee on Ways and Means, 
     for consideration of secs. 141 and 142 of the House bill, and 
     secs. 1801, 40101, 40102, 40201, 40202, 40204, 40205, 40301, 
     40307, 40309, 40314, 100112, 100114, and 100116 of the Senate 
     amendment, and modifications committed to conference:
     Dave Camp,
     Pat Tiberi,
     Earl Blumenauer,
                                Managers on the Part of the House.

     Barbara Boxer,
     Max Baucus,
     John Rockefeller,
     Dick Durbin,
     Tim Johnson,
     Chuck Schumer,
     Bill Nelson,
     Robert Menendez,
     James Inhofe,
     David Vitter,
     Orrin Hatch,
     Richard Shelby,
     Kay Bailey Hutchison,
     John Hoeven,
                               Managers on the Part of the Senate.
     From the Committee on Transportation and Infrastructure, for 
     consideration of the House bill (except section 141) and the 
     Senate amendment (except secs. 1801, 40102, 40201, 40202, 
     40204, 40205, 40305, 40307, 40309-40312, 100112-100114, and 
     100116), and modifications committed to conference:
     John L. Mica,
     Don Young,
     John J. Duncan, Jr.
     Bill Shuster,
     Shelley Moore Capito,
     Eric A. ``Rick'' Crawford,
     Jaime Herrera Beutler,
     Larry Bucshon,
     Richard L. Hanna,
     Steve Southerland II,
     James Lankford,
     Reid J. Ribble,
     From the Committee on Energy and Commerce, for consideration 
     of sec. 142 and titles II and V of the House bill, and secs. 
     1113, 1201, 1202, subtitles B, C, D, and E of title I of 
     Division C, secs. 32701-32705, 32710, 32713, 40101, and 40301 
     of the Senate amendment, and modifications committed to the 
     conference:
     Fred Upton,
     Ed Whitfield,
     Henry A. Waxman,
     From the Committee on Natural Resources, for consideration of 
     secs. 123, 142, 204, and titles III and VI of the House bill, 
     and sec. 1116, subtitles C, F, and G of title I of Division 
     A, sec. 33009, titles VI and VII of Division C, sec. 40101, 
     subtitles A and B of title I of Division F, and sec. 100301 
     of the Senate amendment, and modifications committed to 
     conference:
     Doc Hastings,
     Rob Bishop,
     From the Committee on Science, Space, and Technology for 
     consideration of secs. 121, 123, 136, and 137 of the House 
     bill, and sec. 1534, subtitle F of title I of Division A, 
     secs. 20013, 20014, 20029, 31101, 31103, 31111, 31204, 31504, 
     32705, 33009, 34008, and Division E of the Senate amendment, 
     and modifications committed to conference:
     Ralph M. Hall,
     Chip Cravaack,
     From the Committee on Ways and Means, for consideration of 
     secs. 141 and 142 of the House bill, and secs. 1801, 40101, 
     40102, 40201, 40202, 40204, 40205, 40301-40307, 40309-40314, 
     100112-100114, and 100116 of the Senate amendment, and 
     modifications committed to conference:
     Dave Camp,
     Patrick J. Tiberi,
                                Managers on the Part of the House.

     Barbara Boxer,
     Max Baucus,
     John D. Rockefeller, IV,
     Richard J. Durbin,
     Tim Johnson,
     Charles E. Schumer,
     Bill Nelson,
     Robert Menendez,
     James M. Inhofe,
     David Vitter,
     Richard C. Shelby,
     Kay Bailey Hutchison,
     Managers on the Part of the Senate.

                          ____________________