[House Report 105-476]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     105-476
_______________________________________________________________________


 
 PROVIDING FOR THE CONSIDERATION OF H.R. 2400, THE BUILDING EFFICIENT 
         SURFACE TRANSPORTATION AND EQUITY ACT OF 1997 (BESTEA)

                                _______
                                

   March 31, 1998.--Referred to the House Calendar and ordered to be 
                                printed

_______________________________________________________________________


    Mr. Dreier, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 405]

    The Committee on Rules, having had under consideration 
House Resolution 405, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

               brief summary of provisions of resolution

    The resolution provides for the consideration of H.R. 2400, 
the ``Building Efficient Surface Transportation and Equity Act 
of 1997 (BESTEA)'' under a modified closed rule. The rule 
provides for two and one half hours of general debate, with 2 
hours divided equally between the chairman and ranking minority 
member of the Committee on Transportation and Infrastructure 
and 30 minutes divided equally between the chairman and ranking 
minority member of the Committee on Ways and Means. The rule 
waives all points of order against consideration of the bill.
    The rule makes in order the amendment in the nature of a 
substitute as recommended by the Committee on Transportation 
and Infrastructure, as modified by the amendment recommended by 
the Committee on Ways and Means now printed in the bill and as 
modified by the amendment printed in part 1 of this report, as 
an original bill for purpose of amendment which shall be 
considered as read. The rule also waives all points of order 
against consideration of the amendment in the nature of a 
substitute, as modified.
    The rule makes in order only those amendments printed in 
part 2 of this report and waives all points of order against 
the amendments.
    The rule also provides that the amendments made in order 
under part 2 of this report shall be considered only in the 
order specified, shall be considered as read, shall be 
debatable for the time specified in the report equally divided 
and controlled by the proponent and an opponent, shall not be 
subject to amendment, and shall not be subject to a demand for 
a division of the question in the House or in the Committee of 
the Whole.
    Further, the rule allows the Chairman of the Committee of 
the Whole to postpone votes during consideration of the bill, 
and to reduce voting time to five minutes on a postponed 
question if the vote follows a fifteen minute vote. Finally, 
the rule provides for one motion to recommit, with or without 
instructions.

 summary of amendments made in order under the rule to h.r. 2400, the 
   building efficient surface transportation and equity act of 1997 
                                (bestea)

                                 PART 1

Amendment Considered as Adopted

    Hayworth/Redmond/Stump: Sense of Congress that offsets to 
spending above the CBO baseline described in section 1001 
should not be taken from veterans' programs.

                                 PART 2

Amendments to be Considered Under the Rule

    Shuster--10 minutes: Manager's amendment.
    Davis (IL)--20 minutes: Amends section 330 to increase 
funding from $42 million to $150 million for transportation 
services to assist welfare recipients to and from jobs and 
activities related to their employment.
    Roukema--60 minutes: Ensures that transportation contracts 
will be awarded to the lowest responsive bidder, without regard 
to race, color, national origin, or sex.
    Graham No. 15--20 minutes: Strikes section 102(8), section 
103(b), section 127, section 332, sections 333--provisions 
authorizing all demonstration projects including highway and 
mass transit (rail and bus), saving approximately $18 billion.
    Spratt No. 30--20 minutes: Amendment in the nature of a 
substitute. Continues the current, temporary extension of 
highway and mass transit programs until July 1, 1998, to remove 
the need to pass BESTEA before the Easter recess.
    Kasich--30 minutes: Amendment in the nature of a 
substitute. The Kasich Transportation Turnback Amendment 
provides a 4 year transition period to: lower the Federal gas 
tax by 11 cents per gallon; eliminate most highway trust fund 
programs; relieve States of myriad Federal restrictions and 
regulations; and remove Federal roadblocks to infrastructure 
privatization. The substitute retains core Federal programs 
consisting of Interstate Maintenance, construction and 
maintenance of roads on Federal Lands, maintenance of National 
Security Highways, Emergency Relief, Highway Safety Programs, 
and General Fund Support for Transit

                                 PART I

    Amendment considered as adopted by the rule:
  At the end of title X (page 511, after line 21), insert the 
following new section:

SEC. 1002. SENSE OF CONGRESS WITH RESPECT TO VETERANS PROGRAMS.

  It is the sense of Congress that provisions referred to in 
section 1001(c) that are to be contained in this Act to offset 
increases described in that section in outlays from the Highway 
Trust Fund should not include any provision making a change in 
programs or benefits administered by the Secretary of Veterans 
Affairs.

                                PART II

      1. An Amendment To Be Offered by Representative Shuster of 
         Pennsylvania, or a Designee, Debatable for 10 Minutes

  In section 109(b)--
          (1) redesignate paragraphs (1) through (4) as 
        paragraphs (2) through (5), respectively; and
          (2) insert before paragraph (2) (as so redesignated) 
        the following:
          (1) by striking ``that was designated as a 
        nonattainment area under section 107(d) of the Clean 
        Air Act (42 U.S.C. 7407(d)) during any part of fiscal 
        year 1994'' and inserting the following: ``that is or 
        was designated as a nonattainment area for ozone, 
        carbon monoxide, or particulate matter under section 
        107(d) of the Clean Air Act (42 U.S.C. 7407(d)) and 
        classified pursuant to section 181(a), 186(a), 188(a), 
        or 188(b) of the Clean Air Act (42 U.S.C. 7511(a), 
        7512(a), 7513(a), or 7513(b)) or is or was designated 
        as a nonattainment area under such section 107(d) after 
        December 31, 1997,'';
  In section 109 of the bill--
          (1) redesignate subsection (c) as subsection (d); and
          (2) insert after subsection (b) the following:
  (c) Public-Private Partnerships.--Section 149 is amended by 
adding at the end the following:
  ``(e) Partnerships With Nongovernmental Entities.--
          ``(1) In general.--Notwithstanding any other 
        provision of this title and in accordance with this 
        subsection, a metropolitan planning organization, State 
        transportation department, or other project sponsor may 
        enter into an agreement with any public, private, or 
        nonprofit entity to cooperatively implement any project 
        carried out under this section.
          ``(2) Forms of participation by entities.--
        Participation by an entity under paragraph (1) may 
        consist of--
                  ``(A) ownership or operation of any land, 
                facility, vehicle, or other physical asset 
                associated with the project;
                  ``(B) cost sharing of any eligible project 
                expense; and
                  ``(C) any other form of participation 
                approved by the Secretary.
          ``(3) Allocation of entities.--A State may allocate 
        funds apportioned under section 104(b)(2) to an entity 
        described in paragraph (1).
          ``(4) Alternative fuel projects.--In the case of a 
        project that will provide for the use of alternative 
        fuels by privately owned vehicles or vehicle fleets, 
        activities eligible for funding under this subsection--
                  ``(A) may include the costs of vehicle 
                refueling infrastructure, including 
                infrastructure that would support the 
                development, production, and use of innovative 
                water-phased hydrocarbon fuel emulsion 
                technologies, and other capital investments 
                associated with the project;
                  ``(B) shall include only the incremental cost 
                of an alternative fueled vehicle compared to a 
                conventionally fueled vehicle that would 
                otherwise be borne by a private party; and
                  ``(C) shall apply other governmental 
                financial purchase contributions in the 
                calculation of net incremental cost.
          ``(5) Prohibition on federal participation with 
        respect to required activities.--A Federal 
        participation payment under this subsection may not be 
        made to an entity to fund an obligation imposed under 
        the Clean Air Act (42 U.S.C. 7401 et seq.) or any other 
        Federal law.
          ``(6) Water-phased hydrocarbon fuel emulsion.--In 
        this subsection, the term `water-phased hydrocarbon 
        fuel emulsion' consists of a hydrocarbon base and water 
        in an amount not less than 20 percent by volume of the 
        total water-phased fuel emulsion.''.
  In the matter proposed to be inserted as section 206(e)(1)(K) 
of title 23, United States Code, by section 114(a) of the bill, 
insert ``of 1969'' after ``National Environmental Policy Act''.
  In the last sentence of section 111(d) of the bill, strike 
``fiscal year 1998, 1999, 2000, 2001, 2002, or 2003, as the 
case may be'' and insert ``the fiscal year beginning after 
September 30, 1997''.
  In section 117(b) of the bill--
          (1) strike ``and'' at the end of paragraph (1);
          (2) redesignate paragraph (2) as paragraph (3); and
          (3) insert after paragraph (1) the following:
          (2) in subsection (d)--
                  (A) by inserting ``Indian Reservation 
                Roads.--'' after ``(d)'';
                  (B) by inserting ``(1) For fiscal years 
                ending before october 1, 1999.--'' before ``On 
                October'';
                  (C) by inserting after ``each fiscal year'' 
                the following: ``ending before October 1, 
                1999'';
                  (D) by adding at the end the following:
          ``(2) Fiscal year 2000 and thereafter.--
                  ``(A) In general.--All funds authorized to be 
                appropriated for Indian reservation roads shall 
                be allocated among Indian tribes for fiscal 
                year 2000 and each subsequent fiscal year in 
                accordance with a formula established by the 
                Secretary of the Interior under a negotiated 
                rulemaking procedure under subchapter III of 
                chapter 5 of title 5.
                  ``(B) Regulations.--Notwithstanding sections 
                563(a) and 565(a) of title 5, the Secretary of 
                the Interior shall issue regulations governing 
                the Indian reservation roads program, and 
                establishing the funding formula for fiscal 
                year 2000 and each subsequent fiscal year under 
                this paragraph, in accordance with a negotiated 
                rulemaking procedure under subchapter III of 
                chapter 5 of title 5. The regulations shall be 
                issued in final form not later than April 1, 
                1999, and shall take effect not later than 
                October 1, 1999.
                  ``(C) Negotiated rulemaking committee.--In 
                establishing a negotiated rulemaking committee 
                to carry out subparagraph (B), the Secretary of 
                the Interior shall--
                          ``(i) apply the procedures under 
                        subchapter III of chapter 5 of title 5 
                        in a manner that reflects the unique 
                        government-to-government relationship 
                        between the Indian tribes and the 
                        United States; and
                          ``(ii) ensure that the membership of 
                        the committee includes only 
                        representatives of the Federal 
                        Government and of geographically 
                        diverse small, medium, and large Indian 
                        tribes.
                  ``(D) Basis for funding formula.--The funding 
                formula established for fiscal year 2000 and 
                each subsequent fiscal year under this 
                paragraph shall be based on factors that 
                reflect--
                          ``(i) the relative needs of the 
                        Indian tribes, and reservation or 
                        tribal communities, for transportation 
                        assistance; and
                          ``(ii) the relative administrative 
                        capacities of, and challenges faced by, 
                        various Indian tribes, including the 
                        cost of road construction in each 
                        Bureau of Indian Affairs area, 
                        geographic isolation and difficulty in 
                        maintaining all-weather access to 
                        employment, commerce, health, safety, 
                        and educational resources.''; and
                  (E) by indenting paragraph (1), as designated 
                by subparagraph (B) of this paragraph, and 
                aligning paragraph (1) with paragraph (2), as 
                added by subparagraph (D) of this paragraph; 
                and
  In section 117(d) of the bill--
          (1) strike ``and'' at the end of paragraph (3);
          (2) strike the period at the end of paragraph (4) and 
        insert ``; and''; and
          (3) add at the end the following:
          (5) by adding at the end the following:
  ``(k) Set-Aside for Administrative Expenses of Indian 
Tribes.--
          ``(1) In general.--Up to 1 percent of the funds made 
        available for Indian reservation roads for each fiscal 
        year shall be set aside by the Secretary of the 
        Interior for transportation-related administrative 
        expenses of Indian tribal governments.
          ``(2) Distribution.--The Secretary of the Interior 
        shall make available to each Indian tribal government 
        with an approved application under paragraph (3) an 
        equal percentage of any sum set aside pursuant to 
        paragraph (1).
          ``(3) Applications.--To receive funds under this 
        paragraph, an Indian tribal government must submit to 
        the Secretary of the Interior for approval an 
        application in accordance with the requirements of the 
        Indian Self-Determination and Education Assistance Act. 
        The Secretary of the Interior shall approve any such 
        application that demonstrates that the applicant has 
        the capability to carry out transportation planning 
        activities or is in the process of establishing such a 
        capability.
  ``(l) Approval of Indian Reservation Road Projects by the 
Secretary.--
          ``(1) Establishment of pilot program.--The Secretary 
        shall establish a pilot program (hereinafter in this 
        subsection referred to as the `program') for the 
        purposes described in paragraph (2) and shall carry out 
        such program in each of fiscal years 1999 through 2003.
          ``(2) Purpose.--The purpose of the program shall be 
        to permit an Indian tribal government to apply directly 
        to the Secretary for authorization to conduct projects 
        on Indian reservation roads using amounts allocated to 
        the Indian tribal government under the Indian 
        reservation roads program.
          ``(3) Treatment as states.--Except as otherwise 
        provided by the Secretary, an Indian tribal government 
        submitting an application to the Secretary under the 
        program shall be subject to the same requirements as a 
        State applying for approval of a Federal-aid highway 
        project.
          ``(4) Selection of participants.--
                  ``(A) Applications.--An Indian tribal 
                government seeking to participate in the 
                program shall submit to the Secretary an 
                application which is in such form and contains 
                such information as the Secretary may require.
                  ``(B) Maximum number of participants.--The 
                Secretary shall select not more than 10 Indian 
                tribal governments to participate in the 
                program.
          ``(5) Technical assistance.--The Secretary, in 
        cooperation with the Secretary of the Interior, shall 
        provide technical assistance to Indian tribal 
        governments participating in the program.
          ``(6) Transitional assistance.--Upon request of the 
        Secretary, the Secretary of the Interior shall provide 
        to the Secretary such assistance as may be necessary 
        for implementation of the program.
          ``(7) Report.--Not later than September 30, 2001, the 
        Secretary shall transmit to Congress a report on the 
        results of the program. In developing such report, the 
        Secretary shall solicit the comments of Indian tribal 
        governments participating in the program.''.
  In section 120 of the bill--
          (1) redesignate subsections (a), (b), and (c), as 
        subsections (b), (c), and (d), respectively; and
          (2) insert before subsection (b) (as so redesignated) 
        the following:
  (a) Increased Federal Share for Certain Safety Projects.--The 
first sentence of section 120(c) is amended by inserting ``and 
transit vehicles'' after ``emergency vehicles''.
  In the matter proposed to be inserted after the second 
sentence of paragraph (1) of section 135(f) of title 23, United 
States Code, by section 125(d)(1) of the bill, strike 
``elected'' each place it appears.
  In section 127(b) of the bill, strike ``Section 104'' and all 
that follows through the first colon and insert the following:
          (1) In general.--Section 104 is amended by 
        redesignating subsection (j) as subsection (k), and by 
        inserting after subsection (i) the following:
  At the end of section 127(b) of the bill, insert the 
following:
          (2) Division or segmentation of projects.--Section 
        145 is amended--
                  (A) by inserting ``(a) Protection of State 
                Sovereignty.--'' before ``The authorization''; 
                and
                  (B) by adding at the end the following:
  ``(b) Division or Segmentation of Projects.--
          ``(1) In general.--A State carrying out a project 
        with funds made available by section 104(j) of this 
        title or section 1103, 1104, 1105, 1106, 1107, or 1108 
        of the Intermodal Surface Transportation Efficiency Act 
        of 1991 or section 149(b) or 149(c) of the Surface 
        Transportation and Uniform Relocation Assistance Act of 
        1987 may divide or segment the project if such division 
        or segmentation meets the standards established by the 
        Secretary for division or segmentation (as the case may 
        be) of projects under the National Environmental Policy 
        Act of 1969.
          ``(2) Authority of states to construct without 
        federal assistance.--Any portion of any project divided 
        or segmented under this section may be constructed 
        without Federal assistance.''.
  In the table contained in section 127(c) of the bill--
          (1) in item 3 strike ``0.750'' and insert ``1.000'';
          (2) in item 5 strike ``2 miles south of Biwabik'' and 
        insert ``CR-535'';
          (3) in item 6 strike ``7.000'' and insert ``6.000'';
          (4) in item 8 after ``$2,000,000'' insert the 
        following: ``for the S. 277th St./UP project in Auburn/
        Kent, $2,000,000 for the S. 180th St. project in 
        Tukwila, $1,000,000 for the 8th St. E/B SNF project in 
        Pierce Co., and $1,500,000 for the Shaw Rd. extension 
        and Puyallup'';
          (5) in item 11 strike ``Construct'' and all that 
        follows through ``Los''and insert ``Upgrade access to 
        Sylmar/San Fernando Metrolink Station and Westfield 
        Village, Los Angeles'';
          (6) in item 19 strike ``15.000'' and insert 
        ``8.150'';
          (7) in item 32--
                  (A) strike ``to establish'' and insert a 
                comma;
                  (B) strike ``and center''; and
                  (C) insert ``Bayonne,'' before ``Elizabeth'';
          (8) in item 43--
                  (A) strike ``Missouri'' and insert ``West 
                Virginia'';
                  (B) strike ``Construct'' and all that follows 
                through ``St. Louis'' and insert ``Construct I-
                73/74 Corridor, including an interchange with 
                US-460, Mercer County''; and
                  (C) strike ``1.200'' and insert ``15.000'';
          (9) in item 74 strike ``1.520'' and insert ``1.920'';
          (10) in item 80 strike ``Bibb'' and insert ``Perry'';
          (11) in item 90 strike ``5.290'' and insert 
        ``3.385'';
          (12) in item 95--
                  (A) strike ``work'' and insert 
                ``construction''; and
                  (B) strike ``I-65'' and insert ``city of 
                Huntsville'';
          (13) in item 104 strike ``5.000'' and insert 
        ``19.200'';
          (14) in item 108 strike ``Design'' and all that 
        follows through ``bypass,'' and insert ``Preliminary 
        engineering and right-of-way acquisition for `Intertown 
        South' route of US 31 bypass, Emmet County;
          (15) in item 129--
                  (A) strike ``209'' and insert ``290''; and
                  (B) strike ``16.000'' and insert ``18.000;
          (16) in item 133 strike ``Kaumualili'' and insert 
        ``Kaumualii'';
          (17) in item 135--
                  (A) strike ``Illinois'' and insert ``West 
                Virginia'';
                  (B) strike ``Construct'' and all that follows 
                through ``Chicago'' and insert ``Construct 
                Shawnee Parkway between junction with I-73/74 
                corridor and I-77''; and
                  (C) strike ``1.000'' and insert ``5.000'';
          (18) in item 142 strike ``to Bowstring River'' and 
        insert ``and Highway 1'';
          (19) in item 143 strike ``0.500'' and insert 
        ``4.500'';
          (20) in item 148 strike ``I-69'' and insert ``I-96'';
          (21) in item 162 strike ``Bro'' and insert 
        ``Brownsville'';
          (22) in item 194 strike ``Construct'' and all that 
        follows through ``replacement)'' and insert 
        ``Replacement and renovation of Carlton Bridge, Bath/
        Woolwich'';
          (23) in item 196 strike ``Tutilla Island'' and insert 
        ``Tutuila/Manua Islands'';
          (24) in item 208--
                  (A) strike ``on'' and insert ``an''; and
                  (B) strike ``1.600'' and insert ``1.200'';
          (25) in item 216 strike ``8.000'' and insert 
        ``14.000'';
          (26) in item 227 strike ``14.000'' and insert 
        ``19.000'';
          (27) in item 237 insert ``on Telegraph Road'' after 
        ``boulevard'';
          (28) strike item 244 and insert the following:
      

 244.  Indiana                       Upgrade 93rd Avenue                
                                      in Merrillville....        5.900  
                                                                        

      
          (29) in item 248 strike ``3.000'' and insert 
        ``4.000'';
          (30) in item 254 strike ``Angelese'' and insert 
        ``Angeles'';
          (31) in item 258 strike ``0.170'' and insert 
        ``0.400'';
          (32) in item 262 insert ``, San Ysidro'' after 
        ``Yard'';
          (33) strike item 286 and insert the following:
      

 286.  Indiana                       Construct Marina                   
                                      Access Road in East               
                                      Chicago............        1.000  
                                                                        

      
          (34) in item 300 strike ``7.000'' and insert 
        ``8.000'';
          (35) in item 303 strike ``13.000'' and insert 
        ``12.000'';
          (36) in item 342--
                  (A) strike ``Construct'' and insert 
                ``Reconstruct'';
                  (B) strike ``to'' and insert ``at''; and
                  (C) strike ``8.000'' and insert ``15.000'';
          (37) in item 381 strike ``Construct'' and all that 
        follows through ``Westfield'' and insert ``Design, 
        engineer, and right-of-way acquisition of the Great 
        River Bridge, Westfield'';
          (38) in item 391 strike ``Kapkowsk'' and insert 
        ``Kapowski'';
          (39) in item 394 strike ``10.310'' and insert 
        ``2.000'';
          (40) in item 415 after ``College'' insert ``, 
        including a new interchange on S.R. 0029'';
          (41) in item 444--
                  (A) after ``Project'' insert ``in Passaic 
                County''; and
                  (B) after ``for the Route'' the last place it 
                appears insert ``46/Union Blvd. Interchange 
                reconstruction project'';
          (42) in item 447 strike ``Destrehan Ave. and Lapalco 
        Blvd.'' and insert ``Barataria Blvd. and US Hwy. 90'';
          (43) in item 474 strike ``9.500'' and insert 
        ``7.500'';
          (44) in item 478 insert ``in Murfreesboro'' after 
        ``River'';
          (45) in item 482 strike ``Kawahihee'' and insert 
        ``Kawaihae'';
          (46) in item 484 strike ``Upgrade'' and insert 
        ``Operational improvements on'';
          (47) in item 497 strike ``40'' and insert ``45'';
          (48) in item 535 strike ``2.000'' and insert 
        ``4.500'';
          (49) in item 544 strike ``3.500'' and insert 
        ``1.900'';
          (50) in item 558 strike ``4.000'' and insert 
        ``5.000'';
          (51) in item 564 strike ``0.250'' and insert 
        ``0.500'';
          (52) in item 596 strike ``1.000'' and insert 
        ``0.500'';
          (53) in item 610 strike ``Upgrade'' and all that 
        follows through ``Hill'' and insert ``Alternative 
        transportation systems'';
          (54) in item 613 strike ``Upgrade'' and insert 
        ``Operational improvements on'';
          (55) in item 615 strike ``Construct'' and all that 
        follows through ``Los Angeles'' and insert ``Upgrade CA 
        Rt. 2 Southern Freeway terminus and transportation 
        efficiency improvements to Glendale Blvd. in Los 
        Angeles'';
          (56) in item 619--
                  (A) strike ``George'' and insert ``Georgia''; 
                and
                  (B) strike ``4.000'' and insert ``5.000'';
          (57) in item 625--
                  (A) strike ``Ohio'' and insert ``West 
                Virginia'';
                  (B) ``Construct'' and all that follows 
                through ``Lorain'' and insert ``Construct I-73/
                74 Corridor including connectors with WV Rt. 44 
                and Co. Rt. 13 (Gilbert Creek), Mingo County''; 
                and
                  (C) strike ``2.400'' and insert ``10.000'';
          (58) in item 636 strike ``2.000'' and insert 
        ``2.197'';
          (59) strike item 662 and insert the following:
      

 662.  Louisiana                     Construct the                      
                                      Zachary Taylor                    
                                      Parkway project....        1.000  
                                                                        

      
          (60) in item 717 strike ``0.750'' and insert 
        ``1.000'';
          (61) in item 735 strike ``the airport'' and insert 
        ``Commerce Blvd.'';
          (62) strike item 738 and insert the following:
      

 738.  North Carolina                Upgrade US-158 in                  
                                      Warren and Halifax                
                                      Counties...........        3.000  
                                                                        

      
          (63) in item 759 strike ``Williamsport'' and insert 
        ``Lycoming County'';
          (64) in item 831 strike ``23.500'' and insert 
        ``1.500'';
          (65) in item 846 strike ``14.750'' and insert 
        ``12.000'';
          (66) in item 847 insert ``Construct'' before 
        ``Ontario'';
          (67) in item 857 strike ``10.000'' and insert 
        ``15.000'';
          (68) in item 884 strike ``I-15'' and insert ``I-10'';
          (69) in item 859 strike ``4.300'' and insert 
        ``2.000'';
          (70) in item 872 strike ``5.000'' and insert 
        ``5.250'';
          (71) in item 887 strike ``Hourma'' and insert 
        ``Houma'';
          (72) in item 913 strike ``Engineering'' and all that 
        follows through ``construction of'' and insert 
        ``Engineer, acquire right-of-way, and construct'';
          (73) in item 926 strike ``Construct'' and insert 
        ``Acquire right-of-way and construct'';
          (74) in item 939 insert after ``FM521'' insert ``and 
        dedicate $630,000 to the acquisition of right-of-way in 
        Brazoria County'';
          (75) in item 961 strike ``County'';
          (76) in item 971 strike ``12.000'' and insert 
        ``7.000''.
          (77) in item 993 strike ``1.500'' and insert 
        ``23.500'';
          (78) in item 1033 strike ``12.000'' and insert 
        ``11.000'';
          (79) in item 1044 after ``Kentucky'' the first place 
        it appears, insert ``and Indiana'';
          (80) strike item 1049 and insert the following:
      

1049.  New York                      Construct CR-3 at                  
                                      Southern State                    
                                      Parkway overpass                  
                                      between Long Island               
                                      Expressway and                    
                                      Colonial Springs...        1.400  
                                                                        

      
          (81) in item 1079 strike ``10.200'' and insert 
        ``12.500'';
          (82) in item 1103 strike ``Evergreen County'' and 
        insert ``the city of Evergreen in Jefferson County'';
          (83) in item 1125 strike ``I-80'' and insert ``I-
        180'';
          (84) in item 1150--
                  (A) strike ``to Adirondack''; and
                  (B) strike ``14.000'' and insert ``14.200'';
          (85) in item 1197 strike ``Conduct'' and all that 
        follows through ``of'' and insert ``Construct'';
          (86) in item 1206 insert after ``Michigan'' the 
        second place it appears the following: ``by extending 
        36th Street, improving 48th Street, and constructing 
        the I-96/Whitneyville Interchange'';
          (87) in item 1213 strike ``4.800'' and insert 
        ``5.410'';
          (88) strike item 1238 and insert the following:
      

1238.  Alabama                       Construct Eastern                  
                                      Black Warrior River               
                                      Bridge and acquire                
                                      right-of-way and                  
                                      construct an                      
                                      extension of the                  
                                      Black Warrior                     
                                      Parkway from US-82                
                                      to US-43 in                       
                                      Tuscaloosa County..       23.000  
                                                                        

      
          (89) in item 1291 strike ``15.000'' and insert 
        ``16.000'';
          (90) in item 1353 strike ``in Hancock'' and insert 
        ``from SR-235 in Hancock County to the Ontario Bypass 
        in Richland County'';
          (91) strike item 1362 and insert the following:
      

1362.  Pennsylvania                  Conduct preliminary                
                                      engineering on the                
                                      relocation of exits               
                                      4 and 5 on I-83 in                
                                      York County........        2.000  
                                                                        

      
          (92) in item 1368 strike ``6.000'' and insert 
        ``5.000'';
          (93) in item 1373 strike ``Reconstruct'' and all that 
        follows through ``Yakima'' and insert the following: 
        ``Reconstruct I-82/SR-24 intersection and add lanes on 
        SR-24 to Keys Road'';
          (94) in item 1379 strike ``US-127'' and insert ``US-
        231'';
          (95) in item 1387 strike ``San Bernardino'' and 
        insert ``Victorville/Apple Valley'';
          (96) in item 1412 insert a slash after ``Office'';
          (97) in item 1423 strike ``4.825'' and insert 
        ``4.740'';
          (98) in item 1443 strike ``Construct'' and all that 
        follows through ``Road'' and insert the following: 
        ``Conduct preliminary engineering, acquire right-of-
        way, and construct I-75/North Down River Road 
        interchange'';
          (99) in item 1444 strike ``CR-96'' and insert ``CR-
        82''; and
          (100) after item 1467 insert the following:
      

1468.  Kansas                        Construct Phase II                 
                                      improvements to US-               
                                      59 from US-56 to                  
                                      Ottawa.............       10.000  
                                                                        


1469.  Pennsylvania                  Rehabilitate Kenmawr               
                                      Bridge, Swissvale..        0.450  
                                                                        


1470.  Pennsylvania                  Construct Steel                    
                                      Heritage Trail                    
                                      between Glenwood                  
                                      Bridge to Clairton                
                                      via McKeesport.....        0.482  
                                                                        


1471.  Illinois                      Construct Technology               
                                      Ave. between US Rt.               
                                      45 East to                        
                                      Willenborg St.,                   
                                      Effingham..........        2.735  
                                                                        


1472.  Pennsylvania                  Conduct preliminary                
                                      engineering and                   
                                      design for US-219                 
                                      bypass of Bradford.        1.000  
                                                                        


1473.  Texas                         Construct relief                   
                                      route around Alice.        0.250  
                                                                        


1474.  Ohio                          Upgrade State Rt. 18               
                                      between I-71 and I-               
                                      77.................        2.400  
                                                                        


1475.  Illinois                      Upgrade St. Marie                  
                                      Township Rd.,                     
                                      Jasper County......        0.036  
                                                                        


1476.  Illinois                      Upgrade US 40 in                   
                                      Martinsville.......        0.094  
                                                                        


1477.  Michigan                      Repair 48th Ave.,                  
                                      Menominee..........        0.270  
                                                                        


1478.  Illinois                      Undertake                          
                                      improvements to                   
                                      Campus                            
                                      Transportation                    
                                      System, Chicago....        2.000  
                                                                        


1479.  Maine                         Construct I-95/                    
                                      Stillwater Avenue                 
                                      interchange........        2.000  
                                                                        


1480.  Maine                         Improve Route 26....        1.500  
                                                                        


1481.  Maine                         Improve Route 23....        0.500  
                                                                        


1482.  Massachusetts                 Construct Minuteman                
                                      Commuter Bikeway--                
                                      Charles River                     
                                      Bikeway connector,                
                                      Cambridge and                     
                                      Watertown..........        0.750  
                                                                        


1483.  Massachusetts                 Construct Cambridge                
                                      Roadways                          
                                      Improvement                       
                                      project, Cambridge.        3.000  
                                                                        


1484.  Massachusetts                 Upgrade Sacramento                 
                                      Street underpass,                 
                                      Somerville.........        0.250  
                                                                        


1485.  Massachusetts                 Reconstruct                        
                                      roadways,                         
                                      Somerville.........        3.000  
                                                                        


1486.  Michigan                      Construct                          
                                      improvements to 23                
                                      Mile Rd. between                  
                                      Mound Rd. and M-53,               
                                      Macomb.............        3.000  
                                                                        


1487.  Minnesota                     Conduct study of                   
                                      potential for                     
                                      diversion of                      
                                      traffic from the I-               
                                      35 corridor to                    
                                      commuter rail,                    
                                      Chisago County                    
                                      north of Forest                   
                                      Lake along I-35                   
                                      corridor to Rush                  
                                      City...............        0.500  
                                                                        


1488.  Minnesota                     Construct Elk River                
                                      bypass from 171st                 
                                      Ave. at Highway 10                
                                      to intersection of                
                                      County Roads 12 and               
                                      13 at Highway 169..        3.200  
                                                                        


1489.  Minnesota                     Construct grade                    
                                      separated                         
                                      interchange at                    
                                      south junction of                 
                                      TH 371/Brainerd                   
                                      bypass.............        1.000  
                                                                        


1490.  New York                      Construct Fordham                  
                                      University regional               
                                      transportation                    
                                      facility...........        3.000  
                                                                        


1491.  New York                      Construct bike paths               
                                      in the Riverdale                  
                                      section of the                    
                                      Bronx..............        0.500  
                                                                        


1492.  New York                      Construct Phase II                 
                                      of the City of                    
                                      Mount Vernon's New                
                                      Haven Railroad                    
                                      Redevelopment......        2.000  
                                                                        


1493. New York                      Construct Bike Paths               
                                      along the Bronx                   
                                      River in Bronx Park        0.500  
                                                                        


1494.  New York                      Rehabilitate                       
                                      transportation                    
                                      facilities in CO-OP               
                                      City...............        1.000  
                                                                        


1495.  New York                      Construct sound                    
                                      barriers on both                  
                                      sides of Grand                    
                                      Central Parkway                   
                                      between 172nd St.                 
                                      to Chevy Chase Rd..        1.940  
                                                                        


1496.  New York                      Construct sound                    
                                      barriers on east                  
                                      side of Clearview                 
                                      Expressway between                
                                      15th Rd. and                      
                                      Willets Point Blvd.        0.400  
                                                                        


1497.  New York                      Construct sound                    
                                      barriers on Grand                 
                                      Central Parkway                   
                                      between 244th St.                 
                                      and Douglaston                    
                                      Parkway............        0.500  
                                                                        


1498.  New York                      Rehabilitate roads,                
                                      Village of Great                  
                                      Neck...............        0.160  
                                                                        


1499.  Tennessee                     Construct pedestrian               
                                      and bicycle pathway               
                                      to connect with the               
                                      Mississippi River                 
                                      Trail, and restore                
                                      adjacent historic                 
                                      cobblestones on                   
                                      riverfront, Memphis        3.000  
                                                                        


1500.  Texas                         Expand Winters                     
                                      Freeway (US83/84)                 
                                      in Abilene between                
                                      Southwest Drive and               
                                      US 277.............       11.200  
                                                                        


1501.  New York                      Reconstruct                        
                                      Springfield Blvd.                 
                                      between the Long                  
                                      Island Rail main                  
                                      line south to                     
                                      Rockaway Blvd.,                   
                                      Queens County......        4.000  
                                                                        


1502.  Pennsylvania                  Construct Frazier                  
                                      Township                          
                                      interchange on SR-                
                                      28 in Allegheny....        3.000  
                                                                        


1503.  Minnesota                     Reconstruct St.                    
                                      Louis CSAH 9                      
                                      (Wallace Avenue) in               
                                      Duluth.............        0.600  
                                                                        


1504.  California                    Reimburse costs                    
                                      associated with the               
                                      relocation and                    
                                      protection work                   
                                      performed relating                
                                      to pipelines,                     
                                      cables, and other                 
                                      facilities impacted               
                                      by the construction               
                                      of the Mid-Trench                 
                                      section of the                    
                                      Alameda Corrido                   
                                      project............        5.350  
                                                                        


1505.  Ohio                          Construct grade                    
                                      separation at Dille               
                                      Road in Euclid.....        5.000  
                                                                        


1506.  Nevada                        Widen I-15 from the                
                                      California State                  
                                      line to Las Vegas..        2.500  
                                                                        


1507.  Nevada                        Improve at-grade                   
                                      railroad crossings                
                                      in Reno............        2.500  
                                                                        

  At the end of section 133 of the bill, add the following:
  (h) Survey of State Practices on Specific Service Signing.--
          (1) Study.--The Secretary shall conduct a study to 
        determine the practices in the States for specific 
        service food signs described in sections 2G-5.7 and 2G-
        5.8 of the Manual on Uniform Traffic Control Devices 
        for Streets and Highways. The study shall, at a 
        minimum, examine--
                  (A) the practices of States for determining 
                businesses eligible for inclusion on such 
                signs;
                  (B) whether States allow businesses to be 
                removed from such signs and the circumstances 
                for such removal;
                  (C) the practices of States for erecting and 
                maintaining such signs, including the time 
                required for erecting such signs;
                  (D) whether States contract out the erection 
                and maintenance of such signs; and
                  (E) a survey of States' practices on the 
                issues identified in subparagraphs (A) through 
                (D).
          (2) Report.--Before the last day of the 1-year period 
        beginning on the date of the enactment of this Act, the 
        Secretary shall transmit to Congress a report on the 
        results of the study, including such recommendations 
        and modifications to the Manual as the Secretary 
        determines appropriate as a result of the study. Such 
        modifications may be made as part of any revision to 
        the Manual.
  In section 136(a)(1) of the bill, redesignate subparagraphs 
(B), (C), (D), (E), and (F) as subparagraphs (C), (D), (E), 
(F), and (G), respectively, and strike subparagraph (A) and 
insert the following:
                  (A) by striking paragraph (5)(B)(iii)(I)(ff) 
                and inserting the following:
                                  ``(ff) South Carolina State 
                                line to the Myrtle Beach Conway 
                                region to Georgetown, South 
                                Carolina, including a 
                                connection to Andrews following 
                                the route 41 corridor and to 
                                Manning following the U.S. 
                                Route 521 corridor; and'';
                  (B) by striking paragraph (5)(B)(iii)(II)(hh) 
                and inserting the following:
                                  ``(hh) South Carolina State 
                                line to the Myrtle Beach Conway 
                                region to Georgetown, South 
                                Carolina.''.
  In the matter proposed to be inserted as paragraph (34) of 
section 1105(c) of the Intermodal Surface Transportation 
Efficiency Act of 1991 by section 136(a)(1)(F) of the bill--
          (1) insert after ``Alameda Corridor East'' the 
        following: ``and Southwest Passage, California. The 
        Alameda Corridor East is''; and
          (2) insert after ``Bernardino.'' the following: ``The 
        Southwest Passage shall follow I-10 from San Bernardino 
        to the Arizona State line and I-8 from San Diego to the 
        Arizona State line.''.
  Strike the closing quotation marks and the final period at 
the end of the matter proposed to be inserted as paragraph (39) 
of section 1105(c) of the Intermodal Surface Transportation 
Efficiency Act of 1991 by section 136(a)(1)(F) of the bill and 
insert the following:
          ``(40) United States Route 277/United States Route 83 
        Corridor between I-44 in Wichita Falls, Texas, and I-20 
        in Abilene, Texas.''.
  In section 140 of the bill--
          (1) insert ``(a) Contracting Procedures.--'' before 
        ``Section 112(b)(2)''; and
          (2) insert at the end the following:
  (b) Selection Process.--Section 112 is further amended by 
adding at the end the following:
  ``(g) Selection Process.--A State may procure, under a single 
contract, the services of a consultant to prepare any 
environmental impact assessments or analyses required, 
including environmental impact statements, as well as 
subsequent engineering and design work on the same project if 
the State has conducted a review that assesses the objectivity 
of any analysis, environmental assessment, or environmental 
impact statement prior to its submission to the Secretary.''.
  After section 143 of the bill, insert the following:

SEC. 144. SUBSTITUTE PROJECT.

  (a) Approval of Project.--Notwithstanding any other provision 
of law, upon the request of the Mayor of the District of 
Columbia, the Secretary may approve substitute highway and 
transit projects under section 103(e)(4) of title 23, United 
States Code, as in effect on the day before the date of the 
enactment of this Act, in lieu of construction of the Barney 
Circle Freeway project in the District of Columbia, as 
identified in the 1991 Interstate Cost Estimate.
  (b) Eligibility for Federal Assistance.--Upon approval of any 
substitute project or projects under subsection (a)--
          (1) the cost of construction of the Barney Circle 
        Freeway Modification project shall not be eligible for 
        funds authorized under section 108(b) of the Federal-
        Aid Highway Act of 1956; and
          (2) substitute projects approved pursuant to this 
        section shall be funded from interstate construction 
        funds apportioned or allocated to the District of 
        Columbia that are not expended and not subject to lapse 
        on the date of the enactment of this Act.
  (c) Federal Share.--The Federal share payable on account of a 
project or activity approved under this section shall be 85 
percent of the cost thereof; except that the exception set 
forth in section 120(b)(2) of title 23, United States Code, 
shall apply.
  (d) Limitation on Eligibility.--Any substitute project 
approved pursuant to subsection (a) (for which the Secretary 
finds that sufficient Federal funds are available)must be under 
contract for construction, or construction must have commenced, before 
the last day of the 4-year period beginning on the date of the 
enactment of this section. If the substitute project is not under 
contract for construction, or construction has not commenced, by such 
last day, the Secretary shall withdraw approval of the substitute 
project.

SEC. 145. USE OF HOV LANES BY ELECTRIC VEHICLES.

  Section 102(a) is amended by adding at the end the following: 
``Notwithstanding the preceding sentence, before September 30, 
2003, a State may permit an electric vehicle with fewer than 2 
occupants to operate in high occupancy vehicle lanes if the 
vehicle is certified and labeled as an Inherently Low Emission 
Vehicle pursuant to section 88.313-93 of title 40, Code of 
Federal Regulations, provided that such permission may be 
revoked by the State should the State determine it 
necessary.''.
  Conform the table of contents of the bill accordingly.
  At the end of section 202 of the bill, add the following:
  (f) Highway Safety Education and Information.--
          (1) In general.--For fiscal years 1999 and 2000, the 
        Secretary shall allow any State to use funds 
        apportioned to it under section 402 of title 23, United 
        States Code to purchase television and radio time for 
        the placement of highway safety public service 
        messages.
          (2) Study.--The Secretary shall conduct a study of 
        the effectiveness of the public service messages and 
        transmit a report on the results of the study together 
        with the transmittal under section 508 of this Act.
  At the end of section 207, add the following:
  (c) Evaluation and Assessment of Alternatives.--
          (1) Evaluation.--The Secretary shall evaluate the 
        implementation of chapter 303 of title 49, United 
        States Code, and the programs under sections 31106 and 
        31309 of such title and identify alternatives to 
        improve the ability of the States to exchange 
        information about unsafe drivers and to identify 
        drivers with multiple licenses.
          (2) Technology assessment.--The Secretary, in 
        conjunction with the American Association of Motor 
        Vehicle Administrators, shall conduct an assessment of 
        available electronic technologies to improve access to 
        and exchange of motor vehicle driving records. The 
        assessment may consider alternative unique motor 
        vehicle driver identifiers that would facilitate 
        accurate matching of drivers and their records.
          (3) Report to congress.--Not later than 2 years after 
        the date of the enactment of this Act, the Secretary 
        shall transmit to Congress a report on the results of 
        the evaluation and technology assessment, together with 
        any recommendations for appropriate administrative and 
        legislative actions.
  In section 306(g) of the bill, strike ``amended--'' and all 
that follows through ``(2) by'' and insert ``amended by''.
  In section 332(a) of the bill--
          (1) in paragraph (43) after ``East-West'' insert 
        ``Intermodal'';
          (2) strike paragraph (58), relating to Oklahoma 
        City--MAPS Link;
          (3) in paragraph (90)--
                  (A) strike ``Commuter Rail'';
                  (B) after ``Northstar'' insert ``Corridor''; 
                and
                  (C) strike the parenthetical phrase and 
                insert the following: ``(Downtown, Minneapolis-
                Anoka County-St. Cloud)'';
          (4) redesignate succeeding paragraphs accordingly; 
        and
          (5) add at the end the following:
          (96) Pittsburgh North Shore-Central Business District 
        Corridor.
          (97) Pittsburgh--Stage II Light Rail.
          (98) Boston--North-South Rail Link.
          (99) Spokane--South Valley Corridor Light Rail.
          (100) Miami--Palmetto Metrorail.
  In section 332(b) of the bill--
          (1) strike paragraph (35), relating to Miami--
        Palmetto Metrorail, and paragraph (57), relating to 
        Pittsburgh--Stage II Light Rail Reconstruction;
          (2) redesignate succeeding paragraphs accordingly; 
        and
          (3) add at the end the following:
          (70) California--North Bay Commuter Rail.
  In the table contained in section 333 of the bill--
          (1) in item 7 strike ``0.000'' and insert ``0.200'';
          (2) in item 41 strike ``0.000'' and insert ``0.500'';
          (3) in item 62 strike ``0.000'' and insert ``0.300'';
          (4) in item 65 strike ``1.625'' each place it appears 
        and insert ``1.250'';
          (5) strike item 66 and insert the following:
      

66.........  New York, NY West 72nd St.                                 
              Intermodal Station..............        1.750             

      
          (6) in item 73--
                  (A) strike ``1.750'' the first place it 
                appears and insert ``2.250''; and
                  (B) strike ``1.750'' the second place it 
                appears and insert ``2.750'';
          (7) strike the line relating to item 77 (Mobile);
          (8) strike the line relating to item 86 (Norwalk);
          (9) in item 103--
                  (A) strike ``1.000'' and insert ``1.250''; 
                and
                  (B) strike ``0.000'' and insert ``1.250'';
          (10) in item 121 strike ``Stapleton, CO'' and insert 
        ``Denver, CO Stapleton'';
          (11) strike the line relating to item 126 (Tucson);
          (12) in item 142 strike ``buses'' and insert ``Bus 
        Facility'';
          (13) after item 149 insert the following:
      

150........  Allegheny County, PA buses.......        0.000        1.500

      
  Redesignate the items in the table contained in section 333 
of the bill accordingly.
  In title III of the bill, insert after section 339 the 
following:

SEC. 340. CLEAN FUEL VEHICLES.

  (a) Study.--The Comptroller General shall conduct a study of 
the various low and zero emission fuel technologies for transit 
vehicles, including compressed natural gas, liquified natural 
gas, biodiesel fuel, battery, alcohol based fuel, hybrid 
electric, fuel cell, and clean diesel to determine the status 
of the development and use of such technologies, the 
environmental benefits of such technologies under the Clean Air 
Act, and the cost of such technologies and any associated 
equipment.
  (b) Report.--Not later than January 1, 2000, the Comptroller 
General shall transmit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Banking, Housing and Urban Affairs of the Senate a 
report on the results of the study, together with 
recommendations for incentives to encourage the use of low and 
zero emission fuel technology for transit vehicles.
  Conform the table of contents of the bill accordingly.
  In title IV of the bill, insert after section 422 the 
following:

SEC. 423. ELECTRONIC DATA STUDY.

  (a) In General.--The Secretary shall contract with an entity 
that is independent of the Department of Transportation to 
conduct a study to identify, examine, and evaluate current and 
future issues and policies related to government access to data 
produced by electronic systems for motor carrier regulatory 
enforcement. The entity shall have demonstrated knowledge about 
the motor carrier industry, motor carrier safety regulations, 
and the electronic information industry.
  (b) Inspector General.--The Office of the Inspector General 
of the Department of Transportation shall approve the statement 
of work of the entity referred to in subsection (a) and approve 
the contract award under subsection (a). In carrying out its 
responsibilities under this subsection, the Office of the 
Inspector General shall perform such overview and validation or 
verification of data as may be necessary to ensure that the 
study to be conducted under subsection (a) meets the 
requirements of subsection (a).
  (c) Deadline.--The study to be conducted under subsection (a) 
shall be completed not later than 2 years after the date of the 
enactment of this Act. A report containing the results of the 
study shall be submitted to the Secretary and Congress.
  (d) Funding.--Of amounts made available under section 
127(a)(3)(H), $100,000 for fiscal year 1998, $200,000 for 
fiscal year 1999, and $200,000 for fiscal year 2000 shall be 
available to carry out this subsection.
  Conform the table of contents of the bill accordingly.
  In section 508 of the bill--
          (1) redesignate paragraphs (4), (5), and (6) as 
        paragraphs (6), (7), and (8), respectively; and
          (2) insert after paragraph (3) the following:
          (4) determine whether to approve a revised formula 
        for the distribution of funds under section 104(b)(2) 
        of title 23, United States Code, for the congestion 
        mitigation and air quality improvement program due to 
        the designation of new nonattainment areas by the 
        Environmental Protection Agency;
  After section 603 of the bill, insert the following:

SEC. 604. NOTICE.

  (a) Notice of Reprogramming.--If any funds authorized for 
carrying out this title or the amendments made by this title 
are subject to a reprogramming action that requires notice to 
be provided to the Appropriations Committees of the House of 
Representatives and the Senate, notice of such action shall 
concurrently be provided to the Committee on Transportation and 
Infrastructure and the Committee on Science of the House of 
Representatives and the Committee on Environment and Public 
Works and the Committee on Commerce, Science, and 
Transportation of the Senate.
  (b) Notice of Reorganization.--The Secretary of 
Transportation shall provide notice to the Committee on 
Transportation and Infrastructure and the Committee on Science 
of the House of Representatives and the Committee on 
Environment and Public Works and the Committee on Commerce, 
Science, and Transportation of the Senate, not later than 15 
days before any major reorganization of any program, project, 
or activity of the Department of Transportation for which funds 
are authorized by this title or the amendments made by this 
title.

SEC. 605. SENSE OF CONGRESS ON THE YEAR 2000 PROBLEM.

  With the year 2000 fast approaching, it is the sense of 
Congress that the Department of Transportation should--
          (1) give high priority to correcting all 2-digit 
        date-related problems in its computer systems to ensure 
        that those systems continue to operate effectively in 
        the year 2000 and beyond;
          (2) assess immediately the extent of the risk to the 
        operations of the Department of Transportation posed by 
        the problems referred to in paragraph (1), and plan and 
        budget for achieving Year 2000 compliance for all of 
        its mission-critical systems; and
          (3) develop contingency plans for those systems that 
        the Department of Transportation is unable to correct 
        in time.
  In section 611(c) of the bill, in the matter proposed to be 
inserted as section 307(b)(4)(A) of title 23, United States 
Code, insert ``, consistent with the plan developed under 
section 5506 of title 49,'' after ``advanced research 
program''.
  In section 611(c) of the bill, in the matter proposed to be 
inserted as section 307(b)(4)(B)(ii) of title 23, United States 
Code, strike ``assessment of failure risks'' and insert ``the 
assessment of risks of failure, including from seismic 
activity, vibration, and weather''.
  In section 611(c) of the bill, in the matter proposed to be 
inserted as section 307(b)(4)(B)(v) of title 23, United States 
Code, strike ``Particulate'' and insert ``Environmental 
research, including particulate''.
  In section 611(c) of the bill, in the matter proposed to be 
inserted as section 307(b)(4)(B)(vii) of title 23, United 
States Code, strike ``Prediction'' and insert ``Human factors, 
including prediction''.
  Strike paragraphs (1) and (2) of section 611(d) of the bill 
and insert the following:
          (1) by amending subparagraph (A) to read as follows:
                  ``(A) Methods, materials, and testing to 
                improve the durability of surface 
                transportation infrastructure facilities and 
                extend the life of bridge structures, including 
                new and innovative technologies to reduce 
                corrosion and tests simulating seismic 
                activity, vibration, and weather.'';
          (2) by striking subparagraph (C);
          (3) by redesignating subparagraph (D) as subparagraph 
        (C); and
          (4) by adding after subparagraph (C), as so 
        redesignated, the following new subparagraphs:
                  ``(D) Research on the use of recycled 
                materials, such as paper and plastic fiber 
                reinforcement systems.
                  ``(E) New innovative technologies to enhance 
                and facilitate field construction and 
                rehabilitation techniques for minimizing 
                disruption during repair and maintenance of 
                structures.
                  ``(F) Expansion of knowledge of implementing 
                life cycle cost assessment, including 
                establishing the appropriate analysis period 
                and discount rates, learning how to value and 
                properly consider user costs, determining 
                tradeoffs between reconstruction and 
                rehabilitation, and establishing methodologies 
                for balancing higher initial costs of new 
                technologies and improved or advanced materials 
                against lower maintenance costs.
                  ``(G) Standardized estimates of useful life 
                under various conditions for advanced materials 
                of use in surface transportation. Such 
                estimates shall be developed in conjunction 
                with the National Institute of Standards and 
                Technology and other appropriate 
                organizations.''.
  In section 611(e) of the bill, strike paragraphs (1) and (2) 
and insert the following:
          (1) by striking subsections (c), (d), and (e) and 
        inserting the following:
  ``(c) Study of Future Strategic Highway Research Program.--
          ``(1) Study.--
                  ``(A) In general.--Not later than 120 days 
                after the date of enactment of the Building 
                Efficient Surface Transportation and Equity Act 
                of 1998, the Secretary shall make a grant to, 
                or enter into a cooperative agreement or 
                contract with, the Transportation Research 
                Board of the National Academy of Sciences 
                (referred to in this subsection as the 
                ``Board'') to conduct a study to determine the 
                goals, purposes, research agenda and projects, 
                administrative structure, and fiscal needs for 
                a new strategic highway research program to 
                replace the program established under section 
                307(d) (as in effect on the day before the date 
                of enactment of the Building Efficient Surface 
                Transportation and Equity Act of 1998), or a 
                similar effort.
                  ``(B) Consultation.--In conducting the study, 
                the Board shall consult with the American 
                Association of State Highway and Transportation 
                Officials and such other entities as the Board 
                determines to be necessary to the conduct of 
                the study.
          ``(2) Report.--Not later than 2 years after making a 
        grant or entering into a cooperative agreement or 
        contract under subsection (a), the Board shall submit a 
        final report on the results of the study to the 
        Secretary, the Committee on Transportation and 
        Infrastructure and the Committee on Science of the 
        House of Representatives, and the Committee on 
        Environment and Public Works of the Senate.''; and
          (2) by redesignating subsections (f), (g), and (h) as 
        subsections (d), (e), and (f).
  In section 611(f) of the bill, strike ``307(c)'' and insert 
``307(d)''.
  In section 611(g) of the bill, strike ``307(e)'' and insert 
``307(f)''.
  In section 611(h) of the bill, in the matter proposed to be 
added at the end of section 307 of title 23, United States 
Code, redesignate subsection (f) as subsection (g).
  At the end of section 611 of the bill, add the following new 
subsection:
  (j) Technological Innovation.--Section 307 is amended by 
adding at the end the following new subsection:
  ``(h) Technological Innovation.--The programs and activities 
carried out under this section shall be consistent with the 
plan developed under section 5506 of title 49.''.
  In section 612 of the bill, at the end of the matter proposed 
to be inserted as section 313 of title 23, United States Code, 
strike the closing quotation marks and the final period and 
insert the following:
  ``(e) Annual Report.--Each State shall report annually to the 
Secretary on the level of its funding for research and 
development activities described in subsection (a)(5). A State 
may provide such information as part of another report that the 
State provides to the Secretary.''.
  In section 623(b) of the bill, redesignate paragraphs (1), 
(2), and (3) as paragraphs (2), (3), and (4), respectively.
  In section 623(b) of the bill, insert before paragraph (2), 
as so redesignated, the following new paragraph:
          (1) in subsection (a), by inserting ``, including 
        information obtained pursuant to section 307(b)(5)(F) 
        and (G)'' after ``modern highway technology'';
  In section 623(b)(3) of the bill, as so redesignated, insert 
``, and in paragraph (1) of that subsection, by inserting 
`concrete,' after `pavement,' '' after ``as subsection (c)''.
  In section 624 of the bill, in the matter proposed to be 
inserted as section 5505(c)(2) of title 49, United States Code, 
insert ``, except as provided in subsection (i),'' after 
``competitive process''.
  In section 624 of the bill, in the matter proposed to be 
inserted as section 5505(g)(2) of title 49, United States Code, 
insert ``and consistent with the plan developed under section 
5506'' after ``least annually''.
  In section 624 of the bill, at the end of the matter proposed 
to be inserted as section 5505 of title 49, United States Code, 
strike the closing quotation marks and the final period and 
insert the following:
          ``(18) University of Maine.
          ``(19) Tennessee Technological University.
          ``(20) Middle Tennessee State University.
          ``(21) The University of Maryland.''.
  After section 632 of the bill, insert the following (and 
conform the table of contents of the bill accordingly):

SEC. 633. TRANSPORTATION RESEARCH AND TECHNOLOGY DEVELOPMENT.

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

``Sec. 5506. Surface transportation research planning

  ``(a) In General.--The Secretary of Transportation shall--
          ``(1) establish a strategic planning process, 
        consistent with section 306 of title 5, United States 
        Code, for the Department of Transportation to determine 
        national transportation research and technology 
        development priorities related to surface 
        transportation;
          ``(2) coordinate Federal surface transportation 
        research and technology development activities;
          ``(3) measure the results of those activities and how 
        they impact the performance of the national surface 
        transportation system; and
          ``(4) ensure that planning and reporting activities 
        carried out under this subchapter are coordinated with 
        all other surface transportation planning and reporting 
        requirements.
  ``(b) Implementation.--The Secretary shall--
          ``(1) provide for the integrated planning, 
        coordination, and consultation among the operating 
        administrations, all other Federal agencies with 
        responsibility for surface transportation research and 
        technology development, State and local governments, 
        institutions of higher education, industry, and other 
        private and public sector organizations engaged in 
        surface transportation-related research and development 
        activities;
          ``(2) ensure that the Department's surface 
        transportation research and technology development 
        programs do not duplicate other Federal, State, or 
        private sector research and development programs; and
          ``(3) provide for independent validation of the 
        scientific and technical assumptions underlying the 
        Department's surface transportation research and 
        technology development plans.
  ``(c) Surface Transportation Research and Technology 
Development Strategic Plan.--
          ``(1) Development.--The Secretary shall develop an 
        integrated surface transportation research and 
        technology development strategic plan.
          ``(2) Contents.--The plan shall include--
                  ``(A) an identification of the general goals 
                and objectives of the Department of 
                Transportation for surface transportation 
                research and development;
                  ``(B) a description of the roles of the 
                Department of Transportation and other Federal 
                agencies in achieving the goals identified 
                undersubparagraph (A), in order to avoid 
unnecessary duplication of effort;
                  ``(C) a description of the Department's 
                overall strategy, and the role of each of the 
                operating administrations in carrying out the 
                plan over the next 5 years including a 
                description of procedures for coordination of 
                its efforts with the operating administrations 
                and with other Federal agencies;
                  ``(D) an assessment of how State and local 
                research and technology development activities 
                are contributing to the achievement of the 
                goals identified under subparagraph (A);
                  ``(E) details of the Department's surface 
                transportation research and technology 
                development programs, including performance 
                goals, resources needed to achieve those goals, 
                and performance indicators as described in 
                section 1115(a) of title 31, United States 
                Code, for the next 5 years for each area of 
                research and technology development;
                  ``(F) significant comments on the plan and 
                its contents obtained from outside sources; and
                  ``(G) responses to significant comments 
                obtained from the National Research Council and 
                other advisory bodies, and a description of any 
                corrective actions taken pursuant thereto.
          ``(3) National research council review.--The 
        Secretary shall enter into an agreement for the review 
        by the National Research Council of the details of 
        each--
                  ``(A) strategic plan or revision required 
                under section 306 of title 5, United States 
                Code;
                  ``(B) performance plan required under section 
                1115 of title 31, United States Code; and
                  ``(C) program performance report required 
                under section 1116 of title 31, United States 
                Code,
        with respect to surface transportation research and 
        technology development.
          ``(4) Performance plans and reports.--In complying 
        with sections 1115 and 1116 of title 31, United States 
        Code, the Secretary shall include--
                  ``(A) a summary of the results for the 
                previous fiscal year of surface transportation 
                research and technology development programs to 
                which the Department of Transportation 
                contributes, along with--
                          ``(i) an analysis of the relationship 
                        between those results and the goals 
                        identified under paragraph (2)(A); and
                          ``(ii) a description of the 
                        methodology used for assessing the 
                        results; and
                  ``(B) a description of significant surface 
                transportation research and technology 
                development initiatives, if any, undertaken 
                during the previous fiscal year which were not 
                in the plan developed under paragraph (1), and 
                any significant changes in the plan from the 
                previous year's plan.
  ``(d) Merit Review and Performance Measurement.--The 
Secretary shall, within one year after the date of the 
enactment of this section, transmit to the Congress a report 
describing competitive merit review procedures for research and 
technology development, and performance measurement procedures 
for surface transportation research and technology development 
and demonstrations.
  ``(e) Procurement Procedures.--The Secretary shall--
          ``(1) develop model procurement procedures that 
        encourage the use of advanced technologies; and
          ``(2) develop model transactions for carrying out and 
        coordinating Federal and State surface transportation 
        research and technology development activities.
  ``(f) Consistency With Government Performance and Results Act 
of 1993.--The plans and reports developed under this section 
shall be consistent with and incorporated as part of the plans 
developed under section 306 of title 5, United States Code, and 
sections 1115 and 1116 of title 31, United States Code.

``Sec. 5507. Surface transportation-environment cooperative research 
                    program

  ``(a) In General.--The Secretary of Transportation shall 
establish and carry out a surface transportation and 
environment cooperative research program.
  ``(b) Contents.--The program to be carried out under this 
section shall include research designed to--
          ``(1) develop more accurate models for evaluating 
        transportation control measures and transportation 
        system designs that are appropriate for use by State 
        and local governments, including metropolitan planning 
        organizations, in designing implementation plans to 
        meet Federal, State, and local environmental 
        requirements;
          ``(2) improve understanding of the factors that 
        contribute to the demand for transportation, including 
        transportation system design, demographic change, land 
        use planning, and communications and other information 
        technologies; and
          ``(3) develop indicators of economic, social, and 
        environmental performance of transportation systems to 
        facilitate analysis of potential alternatives.
  ``(c) Advisory Board.--
          ``(1) Establishment.--In consultation with 
        appropriate Federal agencies, the Secretary shall 
        establish an advisory board to recommend environmental 
        and energy conservation research, technology, and 
        technology transfer activities related to surface 
        transportation.
          ``(2) Membership.--The advisory board shall include--
                  ``(A) representatives of State transportation 
                and environmental agencies;
                  ``(B) transportation and environmental 
                scientists and engineers; and
                  ``(C) representatives of metropolitan 
                planning organizations, transit operating 
                agencies, and environmental organizations.
  ``(d) National Academy of Sciences.--The Secretary may make 
grants to, and enter into cooperative agreements with, the 
National Academy of Sciences to carry out such activities 
relating to the research, technology, and technology transfer 
activities described in subsection (b) as the Secretary 
determines to be appropriate.
  ``(e) Funding.--Funding for carrying out this section shall 
be derived from funds made available under section 127(a)(3)(F) 
of the Building Efficient Surface Transportation and Equity Act 
of 1998.''.
  (b) Conforming Amendment.--The table of sections for chapter 
55 of title 49, United States Code, is amended by inserting 
after the item relating to section 5505 the following:

``5506. Surface transportation research planning.
``5507. Surface transportation-environment cooperative research 
          program.''.
  In section 652(b)(4) of the bill, insert ``, and including 
the handicapped'' after ``and motorcycles''.
  In section 652(b)(7) of the bill, strike ``and'' at the end.
  In section 652(b)(8) of the bill, strike the period and 
insert ``; and''.
  At the end of section 652 of the bill, add the following new 
paragraph:
          (9) the development of a workforce capable of 
        developing, operating, and maintaining intelligent 
        transportation systems.
  In section 654 of the bill, amend subsection (b) to read as 
follows:
  (b) Reporting.--The plan described in subsection (a) shall be 
transmitted and updated as part of the plan developed under 
section 5506 of title 49, United States Code.
  At the end of section 655(c) of the bill, add the following:
Such tests shall be designed for the collection of data to 
permit objective evaluation of the results of the tests and the 
derivation of cost-benefit information that is useful to others 
contemplating the deployment of similar systems.
  In section 655(d) of the bill, strike ``work shall 
incorporate human factors research findings'' and insert 
``work--
          ``(1) shall incorporate human factors research, which 
        may include research in the science of the driving 
        process, to improve the operational efficiency and 
        safety of intelligent transportation systems;
          ``(2) may incorporate research on environmental, 
        weather, and natural conditions that impact intelligent 
        transportation systems, including the effects of cold 
        climates; and
          ``(3) may incorporate materials or magnetics 
        research''.
  Strike section 658 of the bill and redesignate section 659 as 
section 658. Conform the table of contents of the bill 
accordingly.
  After section 802 of the bill, insert the following:

SEC. 803. AMENDMENT OF NATIONAL SEA GRANT COLLEGE PROGRAM ACT.

  Section 203 of the National Sea Grant College Program Act (33 
U.S.C. 1122) is amended--
          (1) by striking paragraph (5);
          (2) by redesignating paragraphs (6) through (17) as 
        paragraphs (5) through (16), respectively;
          (3) by redesignating subparagraphs (C) through (F) of 
        paragraph (7), as so redesignated, as subparagraphs (D) 
        through (G), respectively; and
          (4) by inserting after subparagraph (B) of paragraph 
        (7), as so redesignated, the following:
                  ``(C) Lake Champlain (to the extent that such 
                resources have hydrological, biological, 
                physical, or geological characteristics and 
                problems similar or related to those of the 
                Great Lakes);''.
  Conform the table of contents of the bill accordingly.
                              ----------                              


2. An Amendment To Be Offered by Representative Davis of Illinois, or a 
                   Designee, Debatable for 20 Minutes

    In section 330(j), strike ``$42,000,000'' and insert 
``$150,000,000''.
                              ----------                              


3. An Amendment To Be Offered by Representative Roukema of New Jersey, 
                or a Designee, Debatable for 60 Minutes

  Strike subsection (b) of section 102 and insert the 
following:
  (b) Affirmative Action Encouraged; Discrimination or 
Preferential Treatment Prohibited.--
          (1) Affirmative action encouraged.--It is the policy 
        of the United States--
                  (A) to expand the applicant pool for 
                transportation contracts in order to increase 
                competition;
                  (B) to encourage participation by businesses 
                owned by women and minorities in bidding for 
                transportation contracts;
                  (C) to recruit qualified women and minorities 
                into the applicant pool for transportation 
                contracts; and
                  (D) to encourage transportation contractors--
                          (i) to request businesses owned by 
                        women and minorities to bid for 
                        transportation contracts; and
                          (ii) to include qualified women and 
                        minorities into an applicant pool for 
                        transportation contracts;
        so long as such expansion, encouragement, recruitment, 
        request, or inclusion does not involve granting a 
        preference, based in whole or in part on race, color, 
        national origin, or sex, in selecting any person for 
        the relevant contract.
          (2) Prohibition against discrimination or 
        preferential treatment.--Notwithstanding any other 
        provision of law, no governmental entity shall, in 
        connection with a transportation contract--
                  (A) intentionally discriminate against, or 
                grant a preference to, any person or group 
                based in whole or in part on race, color, 
                national origin, or sex; or
                  (B) require or encourage a contractor or 
                subcontractor to discriminate intentionally 
                against, or grant a preference to, any person 
                or group based in whole or in part on race, 
                color, national origin, or sex.
          (3) Definitions.--As used in this subsection--
                  (A) the term ``transportation contract'' 
                means any contract or subcontract in connection 
                with any project paid for in whole or in part 
                with funds derived from amounts authorized to 
                be appropriated by this Act; and
                  (B) the term ``preference'' means an 
                advantage of any kind, and includes a quota, 
                set-aside, numerical goal, timetable, or other 
                numerical objective.
                              ----------                              


    4. An Amendment To Be Offered by Representative Graham of South 
           Carolina, or a Designee, Debatable for 20 Minutes

    (a) Highway Project Authorization.--
          (1) In section 102(8), strike all after the 
        parenthetical and insert ``$596,000,000 for fiscal year 
        1998, $816,000,000 for fiscal year 1999, $885,000,000 
        for fiscal year 2000, $885,000,000 for fiscal year 
        2001, $885,000,000 for fiscal year 2002 and 
        $885,000,000 for fiscal year 2003.''
          (2) In section 103(b), strike the ``and'' and all 
        that follows after paragraph (7) and insert ``and'' 
        after paragraph (6).
          (3) Strike sections 127(b) and 127(c) and redesignate 
        sections of the bill accordingly.
    (b) Transit Project Authorizations.--
          (1) In section 328(a) in the matter proposed to be 
        inserted as section 5338(b)(1) of title 49, strike all 
        that follows after ``to carry out section 5309'' 
        through the end of such subsection and insert ``(1) 
        $878,000,000 for fiscal year 1998, (2) $964,800,000 for 
        fiscal year 1999, and (3) $1,045,200,000 for fiscal 
        years 2000 through 2003.''
          (2) In section 329(a) strike ``shall not exceed'' 
        through the end of such subsection and insert ``(1) 
        $800,000,000 for fiscal year 1998; (2) $856,000,000 for 
        fiscal year 1999; and (3) $1,045,200,000 for fiscal 
        year 2000-2003.''
          (3) Strike sections 332 and 333 and redesignate 
        sections of the bill accordingly.
                              ----------                              


    5. An Amendment To Be Offered by Representative Spratt of South 
           Carolina, or a Designee, Debatable for 20 Minutes

    Strike all after the enacting clause and insert the 
following:

SECTION 1. TWO-MONTH EXTENSION OF TRANSPORTATION PROGRAMS.

    Notwithstanding any other provision of law, there is 
authorized to be appropriated out of the Highway Trust Fund 
such sums as may be necessary to continue funding for an 
additional two months each of the programs for which an 
extension was provided under the Surface Transportation 
Extension Act of 1997 (111 Stat. 2552 et seq.) at the same 
monthly rate for which funds were provided for each such 
program under such Act.
                              ----------                              


 6. An Amendment To Be Offered by Representative Kasich of Ohio, or a 
                   Designee, Debatable for 30 Minutes

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Transportation Empowerment 
Act''.

SEC. 2. FINDINGS AND PURPOSES.

  (a) Findings.--Congress finds that--
          (1) the objective of the Federal highway program has 
        been to facilitate the construction of a modern freeway 
        system that promotes efficient interstate commerce by 
        connecting all States;
          (2) that objective has been attained and the 
        Interstate System connecting all States is near 
        completion;
          (3) each State has the responsibility of providing an 
        efficient transportation network for the residents of 
        the State;
          (4) each State has the means to build and operate a 
        network of transportation systems, including highways, 
        that best serves the needs of the State;
          (5) each State is best capable of determining the 
        needs of the State and acting on those needs;
          (6) the Federal role in highway transportation has, 
        over time, usurped the role of the States by taxing 
        fuels used in the States and then distributing the 
        proceeds to the States based on the Federal 
        Government's perceptions of what is best for the 
        States;
          (7) the Federal Government has used the Federal 
        gasoline tax revenues to force all States to take 
        actions that are not necessarily appropriate for 
        individual States;
          (8) the Federal distribution, review, and enforcement 
        process wastes billions of dollars on unproductive 
        activities;
          (9) Federal mandates that apply uniformly to all 50 
        States, regardless of the different circumstances of 
        the States, cause the States to waste billions of hard-
        earned tax dollars on projects, programs, and 
        activities that the States would not otherwise 
        undertake; and
          (10) Congress has expressed a strong interest in 
        reducing the role of the Federal Government by allowing 
        each State to manage its own affairs.
  (b) Purposes.-- The purposes of this Act are--
          (1) to return to the individual States maximum 
        discretionary authority and fiscal responsibility for 
        all elements of the national transportation systems 
        that are not within the direct purview of the Federal 
        Government;
          (2) to preserve Federal responsibility for the Dwight 
        D. Eisenhower National System of Interstate and Defense 
        Highways;
          (3) to preserve the responsibility of the Department 
        of Transportation for--
                  (A) design, construction, and preservation of 
                transportation facilities on Federal public 
                lands;
                  (B) national programs of transportation 
                research and development and transportation 
                safety; and
                  (C) emergency assistance to the States in 
                response to natural disasters;
          (4) to eliminate to the maximum extent practicable 
        Federal obstacles to the ability of each State to apply 
        innovative solutions to the financing, design, 
        construction, operation, and preservation of State and 
        Federal transportation facilities; and
          (5) with respect to transportation activities carried 
        out by States, local governments, and the private 
        sector, to encourage--
                  (A) competition among States, local 
                governments, and the private sector; and
                  (B) innovation, energy efficiency, private 
                sector participation, and productivity.

SEC. 3. CONTINUATION OF FUNDING FOR CORE HIGHWAY PROGRAMS.

  (a) In General.--
          (1) Funding.--For the purpose of carrying out title 
        23, United States Code, the following sums are 
        authorized to be appropriated out of the Highway Trust 
        Fund:
                  (A) Interstate maintenance program.--For the 
                Interstate maintenance program under section 
                119 of title 23, United States Code, 
                $5,100,000,000 for fiscal year 1999, 
                $5,300,000,000 for fiscal year 2000, 
                $5,400,000,000 for fiscal year 2001, 
                $5,600,000,000 for fiscal year 2002, and 
                $5,700,000,000 for fiscal year 2003.
                  (B) Interstate and indian reservation bridge 
                program.--For the Interstate and Indian 
                reservation bridge program undersection 144 of 
that title $1,217,000,000 for fiscal year 1999, $1,251,000,000 for 
fiscal year 2000, $1,286,000,000 for fiscal year 2001, $1,321,000,000 
for fiscal year 2002, and $1,360,000,000 for fiscal year 2003.
                  (C) Federal lands highways program.--
                          (i) Indian reservation roads.--For 
                        Indian reservation roads under section 
                        204 of that title $202,000,000 for 
                        fiscal year 1999, $208,000,000 for 
                        fiscal year 2000, $214,000,000 for 
                        fiscal year 2001, $220,000,000 for 
                        fiscal year 2002, and $225,000,000 for 
                        fiscal year 2003.
                          (ii) Public lands highways.--For 
                        public lands highways under section 204 
                        of that title $182,000,000 for fiscal 
                        year 1999, $187,000,000 for fiscal year 
                        2000, $192,000,000 for fiscal year 
                        2001, $197,000,000 for fiscal year 
                        2002, and $201,000,000 for fiscal year 
                        2003.
                          (iii) Parkways and park roads.--For 
                        parkways and park roads under section 
                        204 of that title $89,000,000 for 
                        fiscal year 1999, $91,000,000 for 
                        fiscal year 2000, $94,000,000 for 
                        fiscal year 2001, $97,000,000 for 
                        fiscal year 2002, and $99,000,000 for 
                        fiscal year 2003.
                          (iv) Highway safety programs.--For 
                        highway safety programs under section 
                        402 of that title $171,000,000 for each 
                        of fiscal years 1999 through 2003.
                          (v) Highway safety research and 
                        development.--For highway safety 
                        research and development under section 
                        403 of that title $44,000,000 for each 
                        of fiscal years 1999 through 2003.
          (2) Transferability of funds.--Section 104 of title 
        23, United States Code, is amended by striking 
        subsection (g) and inserting the following:
  ``(g) Transferability of Funds.--
          ``(1) In general.--To the extent that a State 
        determines that funds made available under this title 
        to the State for a purpose are in excess of the needs 
        of the State for that purpose, the State may transfer 
        the excess funds to, and use the excess funds for, any 
        surface transportation (including mass transit and 
        rail) purpose in the State.
          ``(2) Enforcement.--If the Secretary determines that 
        a State has transferred funds under paragraph (1) to a 
        purpose that is not a surface transportation purpose as 
        described in paragraph (1), the amount of the 
        improperly transferred funds shall be deducted from any 
        amount the State would otherwise receive from the 
        Highway Trust Fund for the fiscal year that begins 
        after the date of the determination.''.
          (3) Federal-aid system.--Section 103(a) of title 23, 
        United States Code, is amended by striking ``systems 
        are the Interstate System and the National Highway 
        System'' and inserting ``system is the Interstate 
        System''.
          (4) Interstate maintenance program.--
                  (A) Funding.--Section 104(b)(5) of title 23, 
                United States Code, is amended by striking 
                subparagraph (B) and inserting the following:
                  ``(B) Interstate maintenance.--For each of 
                fiscal years 1999 through 2003, for the 
                Interstate maintenance program under section 
                119, 1 percent to the Virgin Islands, Guam, 
                American Samoa, and the Commonwealth of the 
                Northern Mariana Islands and the remaining 99 
                percent apportioned as follows:
                          ``(i)(I) For each State with an 
                        average population density of 20 
                        persons or fewer per square mile, and 
                        each State with a population of 
                        1,500,000 persons or fewer and with a 
                        land area of 10,000 square miles or 
                        less, the greater of--
                                  ``(aa) a percentage share of 
                                apportionments equal to the 
                                percentage listed for the State 
                                in subclause (II); or
                                  ``(bb) a share determined 
                                under clause (ii).
                          ``(II) The percentage referred to in 
                        subclause (I)(aa) is as follows:
``States:
                                                            Percentage:
        Alabama............................................       2.02 
        Alaska.............................................       1.24 
        Arizona............................................       1.68 
        Arkansas...........................................       1.32 
        California.........................................       9.81 
        Colorado...........................................       1.23 
        Connecticut........................................       1.00 
        Delaware...........................................       0.40 
        District of Columbia...............................       0.13 
        Florida............................................       4.77 
        Georgia............................................       3.60 
        Hawaii.............................................       0.55 
        Idaho..............................................       0.70 
        Illinois...........................................       3.71 
        Indiana............................................       2.63 
        Iowa...............................................       1.13 
        Kansas.............................................       1.10 
        Kentucky...........................................       1.91 
        Louisiana..........................................       1.63 
        Maine..............................................       0.50 
        Maryland...........................................       1.64 
        Massachusetts......................................       1.68 
        Michigan...........................................       3.34 
        Minnesota..........................................       1.56 
        Mississippi........................................       1.23 
        Missouri...........................................       2.45 
        Montana............................................       0.95 
        Nebraska...........................................       0.73 
        Nevada.............................................       0.67 
        New Hampshire......................................       0.48 
        New Jersey.........................................       2.28 
        New Mexico.........................................       1.05 
        New York...........................................       4.27 
        North Carolina.....................................       2.83 
        North Dakota.......................................       0.63 
        Ohio...............................................       3.77 
        Oklahoma...........................................       1.55 
        Oregon.............................................       1.23 
        Pennsylvania.......................................       4.12 
        Puerto Rico........................................       0.50 
        Rhode Island.......................................       0.55 
        South Carolina.....................................       1.63 
        South Dakota.......................................       0.70 
        Tennessee..........................................       2.30 
        Texas..............................................       7.21 
        Utah...............................................       0.71 
        Vermont............................................       0.43 
        Virginia...........................................       2.61 
        Washington.........................................       1.75 
        West Virginia......................................       0.76 
        Wisconsin..........................................       1.91 
        Wyoming............................................       0.66.
                          ``(ii) For each State not described 
                        in clause (i), a share of the 
                        apportionments remaining determined in 
                        accordance with the following formula:
                                  ``(I) \1/9\ in the ratio that 
                                the total rural lane miles in 
                                each State bears to the total 
                                rural lane miles in all States 
                                with an average population 
                                density greater than 20 persons 
                                per square mile and all States 
                                with a population of more than 
                                1,500,000 persons and with a 
                                land area of more than 10,000 
                                square miles.
                                  ``(II) \1/9\ in the ratio 
                                that the total rural vehicle 
                                miles traveled in each State 
                                bears to the total rural 
                                vehicle miles traveled in all 
                                States described in subclause 
                                (I).
                                  ``(III) \2/9\ in the ratio 
                                that the total urban lane miles 
                                in each State bears to the 
                                total urban lane miles in all 
                                States described in subclause 
                                (I).
                                  ``(IV) \2/9\ in the ratio 
                                that the total urban vehicle 
                                miles traveled in each State 
                                bears to the total urban 
                                vehicle miles traveled in all 
                                States described in subclause 
                                (I).
                                  ``(V) \3/9\ in the ratio that 
                                the total diesel fuel used in 
                                each State bears to the total 
                                diesel fuel used in all States 
                                described in subclause (I).''.
                  (B) Conforming amendments.--Section 119(f) of 
                title 23, United States Code, is amended--
                          (i) in paragraph (1), by striking 
                        ``If'' and inserting ``For each of 
                        fiscal years 1991 through 1997, if''; 
                        and
                          (ii) in paragraph (2)(B), by 
                        inserting ``through fiscal year 1997'' 
                        after ``thereafter''.
          (5) Interstate bridge program.--Section 144 of title 
        23, United States Code, is amended--
                  (A) in subsection (d)--
                          (i) by inserting ``on the Federal-aid 
                        system as described in subsection 
                        (c)(3)'' after ``highway bridge'' each 
                        place it appears; and
                          (ii) by inserting ``on the Federal-
                        aid system as described in subsection 
                        (c)(3)'' after ``highway bridges'' each 
                        place it appears;
                  (B) in the second sentence of subsection 
                (e)--
                          (i) in paragraph (1), by adding 
                        ``and'' at the end;
                          (ii) in paragraph (2), by striking 
                        the comma at the end and inserting a 
                        period; and
                          (iii) by striking paragraphs (3) and 
                        (4);
                  (C) in the first sentence of subsection (l), 
                by inserting ``on the Federal-aid system as 
                described in subsection (c)(3)'' after ``any 
                bridge'';
                  (D) in subsection (m), by inserting ``on the 
                Federal-aid system as described in subsection 
                (c)(3)'' after ``any bridge''; and
                  (E) in the first sentence of subsection (n), 
                by inserting ``for each of fiscal years 1991 
                through 1997,'' after ``of law,''.
          (6) National defense highways.--Section 311 of title 
        23, United States Code, is amended--
                  (A) in the first sentence, by striking 
                ``under subsection (a) of section 104 of this 
                title'' and inserting ``to carry out this 
                section''; and
                  (B) by striking the second sentence.
          (7) Termination of minimum allocation.--Section 157 
        of title 23, United States Code, is amended--
                  (A) in subsection (a)(4), by striking 
                ``fiscal year 1992 and each fiscal year 
                thereafter'' and inserting ``each of fiscal 
                years 1992 through 1997''; and
                  (B) in subsection (e), by striking ``the 
                fiscal years ending on or after September 30, 
                1983'' and inserting ``fiscal years 1983 
                through 1997''.
          (8) Motor carrier safety grants.--Section 31104 of 
        title 49, United States Code, is amended--
                  (A) in subsection (a), by adding at the end 
                the following:
          ``(6) not more than $90,000,000 for each of fiscal 
        years 1999 through 2003.''; and
                  (B) in subsection (g)(1)--
                          (i) in subparagraph (B), by striking 
                        ``1993-1997'' and inserting ``1993 
                        through 2003'';
                          (ii) in subparagraph (C), by striking 
                        ``1993-1997'' and inserting ``1993 
                        through 2003''; and
                          (iii) in subparagraph (D), by 
                        striking ``1996, and 1997'' and 
                        inserting ``1996 through 2003''.
  (b) Extension of Highway-Related Taxes and Highway Trust 
Fund.--
          (1) Extension of taxes.--The following provisions of 
        the Internal Revenue Code of 1986 are each amended by 
        striking ``1999'' each place it appears and inserting 
        ``2004'':
                  (A) Section 4041(a)(1)(C)(iii)(I) (relating 
                to rate of tax on certain buses).
                  (B) Section 4041(a)(2)(B) (relating to rate 
                of tax on special motor fuels), as amended by 
                section 907(a)(1) of the Taxpayer Relief Act of 
                1997.
                  (C) Section 4041(m)(1)(A) (relating to 
                certain alcohol fuels), as amended by section 
                907(b) of the Taxpayer Relief Act of 1997.
                  (D) Section 4051(c) (relating to 
                termination).
                  (E) Section 4071(d) (relating to 
                termination).
                  (F) Section 4081(d)(1) (relating to 
                termination).
                  (G) Section 4481(e) (relating to period tax 
                in effect).
                  (H) Section 4482(c)(4) (relating to taxable 
                period).
                  (I) Section 4482(d) (relating to special rule 
                for taxable period in which termination date 
                occurs).
          (2) Other provisions.--
                  (A) Floor stocks refunds.--Section 6412(a)(1) 
                of such Code (relating to floor stocks refunds) 
                is amended--
                          (i) by striking ``1999'' each place 
                        it appears and inserting ``2004'', and
                          (ii) by striking ``2000'' each place 
                        it appears and inserting ``2005''.
                  (B) Installment payments of highway use 
                tax.--Section 6156(e)(2) of such Code (relating 
                to installment payments of highway use tax on 
                use of highway motor vehicles) is amended by 
                striking ``1999'' and inserting ``2004''.
          (3) Extension of certain exemptions.--The following 
        provisions of such Code are each amended by striking 
        ``1999'' and inserting ``2004'':
                  (A) Section 4221(a) (relating to certain tax-
                free sales).
                  (B) Section 4483(g) (relating to termination 
                of exemptions for highway use tax).
          (4) Extension of deposits into, and certain transfers 
        from, trust fund.--
                  (A) In general.--Subsection (b), and 
                paragraphs (2) and (3) of subsection (c), of 
                section 9503 of such Code (relating to the 
                Highway Trust Fund) are each amended--
                          (i) by striking ``1999'' each place 
                        it appears (other than in subsection 
                        (b)(4)) and inserting ``2003'', and
                          (ii) by striking ``2000'' each place 
                        it appears and inserting ``2004''.
                  (B) Motorboat and small-engine fuel tax 
                transfers.--
                          (i) In general.--Paragraphs 
                        (4)(A)(i), (5)(A), and (6)(E) of 
                        section 9503(c) of such Code are each 
                        amended by striking ``1998'' and 
                        inserting ``2003''.
                          (ii) 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 ``1997'' and 
                                inserting ``2003'', and
                                  (II) by striking ``1998'' 
                                each place it appears and 
                                inserting ``2004''.
                  (C) Conforming amendment.--The heading for 
                paragraph (3) of section 9503(c) of such Code 
                is amended to read as follows:
          ``(3) Floor stocks refunds.--''.
          (5) Extension and expansion of expenditures from 
        trust fund.--
                  (A) Extension of expenditure authority.--
                Paragraph (1) of section 9503(c) of such Code 
                is amended by striking ``1998'' and inserting 
                ``2003''.
                  (B) Expansion of purposes.--Paragraph (1) of 
                section 9503(c) of such Code is amended--
                          (i) by striking ``or'' at the end of 
                        subparagraph (C), and
                          (ii) by striking ``1991.'' in 
                        subparagraph (D) and all that follows 
                        through the end of paragraph (1) and 
                        inserting ``1991, or
                  ``(E) authorized to be paid out of the 
                Highway Trust Fund under the Transportation 
                Empowerment Act.
        In determining the authorizations under the Acts 
        referred to in the preceding subparagraphs, such Acts 
        shall be applied as in effect on the date of the 
        enactment of the Transportation Empowerment Act.''.
  (c) Termination of Transfers to Mass Transit Account.--
          (1) In general.--Section 9503(e)(2) of such Code 
        (relating to Mass Transit Account) is amended by 
        striking ``2.85 cents'' and inserting ``2.85 cents 
        (zero, on and after October 1, 1998)''.
          (2) Authorization to expend remaining balances in 
        account.--Section 9503(e)(3) of such Code is amended by 
        striking ``before October 1, 1998''.
  (d) Effective Date.--The amendments made by this section take 
effect on October 1, 1998.

SEC. 4. INFRASTRUCTURE SPECIAL ASSISTANCE FUND.

  (a) In General.--Section 9503 of the Internal Revenue Code of 
1986 is amended by adding at the end the following:
  ``(f) Establishment of Infrastructure Special Assistance 
Fund.--
          ``(1) Creation of fund.--There is established in the 
        Highway Trust Fund a separate fund to be known as the 
        `Infrastructure Special Assistance Fund' consisting of 
        such amounts as may be transferred or credited to the 
        Infrastructure Special Assistance Fund as provided in 
        this subsection or section 9602(b).
          ``(2) Transfers to infrastructure special assistance 
        fund.--On the first day of each fiscal year after 1998 
        and before 2003, the Secretary shall transfer 
        $300,000,000 from the Highway Trust Fund to 
        Infrastructure Special Assistance Fund.
          ``(3) Expenditures from infrastructure special 
        assistance fund.--
                  ``(A) Transitional assistance.--
                          ``(i) In general.--Except as provided 
                        in clause (iv), during fiscal years 
                        1999 through 2002, the amount in the 
                        Infrastructure Special Assistance Fund 
                        shall be available to States for 
                        transportation-related program 
                        expenditures.
                          ``(ii) State share.--
                                  ``(I) In general.--Except as 
                                provided in clause (v), each 
                                State is entitled to a share of 
                                the $1,200,000,000 specified in 
                                paragraph (2) upon enactment of 
                                legislation providing 1 of the 
                                2 funding mechanisms described 
                                in clause (iii).
                                  ``(II) Determination of state 
                                share.--For purposes of 
                                subclause (I), each State's 
                                share shall be determined in 
                                the following manner:
                                          ``(aa) Multiply the 
                                        percentage of the 
                                        amounts appropriated in 
                                        the latest fiscal year 
                                        for which such data are 
                                        available to the 
                                        Highway Trust Fund 
                                        under subsection (b) 
                                        which is attributable 
                                        to taxes paid by 
                                        highway users in the 
                                        State, by the amount 
                                        specified in paragraph 
                                        (2). If the result does 
                                        not exceed $15,000,000, 
                                        the State's share 
                                        equals $15,000,000. If 
                                        the result exceeds 
                                        $15,000,000, the 
                                        State's share is 
                                        determined under item 
                                        (bb).
                                          ``(bb) Multiply the 
                                        percentage determined 
                                        under item (aa), by the 
                                        amount specified in 
                                        clause (i) reduced by 
                                        an amount equal to 
                                        $15,000,000 times the 
                                        number of States the 
                                        share of which is 
                                        determined under item 
                                        (aa).
                          ``(iii) Legislative funding 
                        mechanisms.--A funding mechanism is 
                        described in this clause as follows:
                                  ``(I) A funding mechanism 
                                which results in revenues for 
                                transportation-related projects 
                                in the State for fiscal year 
                                2003 and each succeeding fiscal 
                                year which are equal to the 
                                excess of--
                                          ``(aa) the mean 
                                        annual average of 
                                        distributions from the 
                                        Highway Trust Fund to 
                                        the State for fiscal 
                                        years 1992 through 
                                        1997; over
                                          ``(bb) the 
                                        distributions from the 
                                        Highway Trust Fund to 
                                        the State for such 
                                        fiscal year 
                                        attributable to the 
                                        core programs financing 
                                        rate for such year.
                                  ``(II) A funding mechanism 
                                which results in an increase in 
                                the State rate of tax on motor 
                                fuels equal to the decrease in 
                                the rate of tax on such fuels 
                                under section 4081 for fiscal 
                                year 2003 and any succeeding 
                                fiscal year.
                          ``(iv) Distribution of remaining 
                        amount.--If after September 30, 2002, 
aportion of the amount specified in paragraph (2) remains, the 
Secretary, in consultation with the Secretary of Transportation, shall, 
on October 1, 2002, apportion the portion among the States which 
received a share of such amount under clause (ii) and which are not 
described in clause (v) using the percentages determined under clause 
(ii)(II)(aa) for such States.
                          ``(v) Enforcement of funding 
                        mechanism requirement.--If a State, 
                        which enacted legislation providing for 
                        a funding mechanism described in clause 
                        (iii), terminates such mechanism before 
                        fiscal year 2003, the State's share 
                        determined under clauses (ii) and (iv) 
                        shall be deducted from any amount the 
                        State would otherwise receive from the 
                        Highway Trust Fund for fiscal year 
                        2003.
                  ``(B) Additional expenditures from fund.--
                          ``(i) In general.--Amounts in the 
                        Infrastructure Special Assistance Fund, 
                        in excess of the amount specified in 
                        paragraph (2), shall be available, as 
                        provided by appropriation Acts, to the 
                        States for any surface transportation 
                        (including mass transit and rail) 
                        purpose in such States, and the 
                        Secretary shall apportion such excess 
                        amounts among all States using the 
                        percentages determined under clause 
                        (ii)(II)(aa) for such States.
                          ``(ii) Enforcement.--If the Secretary 
                        determines that a State has used 
                        amounts under clause (i) for a purpose 
                        which is not a surface transportation 
                        purpose as described in clause (i), the 
                        improperly used amounts shall be 
                        deducted from any amount the State 
                        would otherwise receive from the 
                        Highway Trust Fund for the fiscal year 
                        which begins after the date of the 
                        determination.''.
  (b) Effective Date.--The amendment made by this section takes 
effect on October 1, 1998.

SEC. 5. RETURN OF EXCESS TAX RECEIPTS TO STATES.

  (a) In General.--Section 9503 of the Internal Revenue Code of 
1986 is amended by adding at the end the following:
  ``(g) Return of Excess Tax Receipts to States for Surface 
Transportation Purposes.--
          ``(1) In general.--On the first day of each of fiscal 
        years 1999, 2000, 2001, and 2002, the Secretary, in 
        consultation with the Secretary of Transportation, 
        shall determine--
                  ``(A) the excess highway receipts for such 
                year, and
                  ``(B) allocate such excess highway receipts 
                among the States (as defined in section 101 of 
                title 23, United States Code) in proportion to 
                their respective shares of the amount described 
                in paragraph (2)(A) in the latest fiscal year 
                for which such data are available which is 
                attributable to highway users in the State.
        Amounts allocated to a State under this paragraph may 
        be used only for surface transportation (including mass 
        transit and rail) purposes.
          ``(2) Excess highway tax receipts.--For purposes of 
        this subsection, the term `excess highway tax receipts' 
        means, with respect to any fiscal year, the excess of--
                  ``(A) the aggregate amount which would be 
                appropriated to the Highway Trust Fund if each 
                of the rates specified in section 4081(a)(2)(A) 
                were reduced by 4.3 cents, over
                  ``(B) the sum of--
                          ``(i) the aggregate amount which 
                        would be appropriated to the Highway 
                        Trust Fund if each of such rates 
                        equaled the core programs financing 
                        rate for such year, plus
                          ``(ii) the aggregate of the amounts 
                        transferred from the Highway Trust Fund 
                        under paragraphs (4), (5), and (6) of 
                        subsection (c) for such year.
          ``(3) Core programs financing rate.--For purposes of 
        this subsection, the term `core programs financing 
        rate' means--
                  ``(A) after September 30, 1998, and before 
                October 1, 1999, 12 cents per gallon,
                  ``(B) after September 30, 1999, and before 
                October 1, 2000, 7 cents per gallon,
                  ``(C) after September 30, 2000, and before 
                October 1, 2001, 4 cents per gallon, and
                  ``(D) after September 30, 2001, 3 cents per 
                gallon.
          ``(4) Enforcement.--If the Secretary determines that 
        a State has used amounts undersubparagraph (A) for a 
purpose which is not a surface transportation purpose as described in 
paragraph (1), the improperly used amounts shall be deducted from any 
amount the State would otherwise receive from the Highway Trust Fund 
for the fiscal year which begins after the date of the 
determination.''.
  (b) Effective Date.--The amendment made by this section takes 
effect on October 1, 1998.

SEC. 6. INTERSTATE SURFACE TRANSPORTATION COMPACTS.

  (a) Definitions.--In this section:
          (1) Infrastructure bank.--The term ``infrastructure 
        bank'' means a surface transportation infrastructure 
        bank established under an interstate compact under 
        subsection (b)(5) and described in subsection (d).
          (2) Participating states.--The term ``participating 
        States'' means the States that are parties to an 
        interstate compact entered into under subsection (b).
          (3) Surface transportation.--The term ``surface 
        transportation'' includes mass transit and rail.
          (4) Surface transportation project.--The term 
        ``surface transportation project'' means a surface 
        transportation project, program, or activity described 
        in subsection (b).
  (b) Consent of Congress.--In order to increase public 
investment, attract needed private investment, and promote an 
intermodal transportation network, Congress grants consent to 
States to enter into interstate compacts to--
          (1) promote the continuity, quality, and safety of 
        the Interstate System;
          (2) develop programs to promote and fund surface 
        transportation safety initiatives and establish surface 
        transportation safety standards for the participating 
        States;
          (3) conduct long-term planning for surface 
        transportation infrastructure in the participating 
        States;
          (4) develop design and construction standards for 
        infrastructure described in paragraph (3) to be used by 
        the participating States; and
          (5) establish surface transportation infrastructure 
        banks to promote regional or other multistate 
        investment in infrastructure described in paragraph 
        (3).
  (c) Financing.--An interstate compact established by 
participating States under subsection (b) to carry out a 
surface transportation project may provide that, in order to 
carry out the compact, the participating States may--
          (1) accept contributions from a unit of State or 
        local government or a person;
          (2) use any Federal or State funds made available for 
        that type of surface transportation project;
          (3) on such terms and conditions as the participating 
        States consider advisable--
                  (A) borrow money on a short-term basis and 
                issue notes for the borrowing; and
                  (B) issue bonds; and
          (4) obtain financing by other means permitted under 
        Federal or State law, including surface transportation 
        infrastructure banks under subsection (d).
  (d) Infrastructure Banks.--
          (1) In general.--An infrastructure bank may--
                  (A) make loans;
                  (B) under the joint or separate authority of 
                the participating States with respect to the 
                infrastructure bank, issue such debt as the 
                infrastructure bank and the participating 
                States determine appropriate; and
                  (C) provide other assistance to public or 
                private entities constructing, or proposing to 
                construct or initiate, surface transportation 
                projects.
          (2) Forms of assistance.--
                  (A) In general.--An infrastructure bank may 
                make a loan or provide other assistance 
                described in subparagraph (C) to a public or 
                private entity in an amount equal to all or 
                part of the construction cost, capital cost, or 
                initiation cost of a surface transportation 
                project.
                  (B) Subordination of assistance.--The amount 
                of any loan or other assistance described in 
                subparagraph (C) that is received for a surface 
                transportation project under this section may 
                be subordinated to any other debt financing for 
                the surface transportation project.
                  (C) Other assistance.--Other assistance 
                referred to in subparagraphs (A) and (B) 
                includes any use of funds for the purpose of--
                          (i) credit enhancement;
                          (ii) a capital reserve for bond or 
                        debt instrument financing;
                          (iii) bond or debt instrument 
                        financing issuance costs;
                          (iv) bond or debt issuance financing 
                        insurance;
                          (v) subsidization of interest rates;
                          (vi) letters of credit;
                          (vii) any credit instrument;
                          (viii) bond or debt financing 
                        instrument security; and
                          (ix) any other form of debt financing 
                        that relates to the qualifying surface 
                        transportation project.
          (3) No obligation of united states.--
                  (A) In general.--The establishment under this 
                section of an infrastructure bank does not 
                constitute a commitment, guarantee, or 
                obligation on the part of the United States to 
                any third party with respect to any security or 
                debt financing instrument issued by the bank. 
                No third party shall have any right against the 
                United States for payment solely by reason of 
                the establishment.
                  (B) Statement on instrument.--Any security or 
                debt financing instrument issued by an 
                infrastructure bank shall expressly state that 
                the security or instrument does not constitute 
                a commitment, guarantee, or obligation of the 
                United States.
  (e) Effective Date.--This section takes effect on October 1, 
1998.

SEC. 7. FEDERAL-AID FACILITY PRIVATIZATION.

  (a) Definitions.--In this section:
          (1) Executive agency.--The term ``Executive agency'' 
        has the meaning provided in section 105 of title 5, 
        United States Code.
          (2) Privatization.--The term ``privatization'' means 
        the disposition or transfer of a transportation 
        infrastructure asset, whether by sale, lease, or 
        similar arrangement, from a State or local government 
        to a private party.
          (3) State or local government.--The term ``State or 
        local government'' means the government of--
                  (A) any State;
                  (B) the District of Columbia;
                  (C) any commonwealth, territory, or 
                possession of the United States;
                  (D) any county, municipality, city, town, 
                township, local public authority, school 
                district, special district, intrastate 
                district, regional or interstate government 
                entity, council of governments, or agency or 
                instrumentality of a local government; or
                  (E) any federally recognized Indian tribe.
          (4) Transportation infrastructure asset.--
                  (A) In general.--The term ``transportation 
                infrastructure asset'' means any surface-
                transportation-related asset financed in whole 
                or in part by the Federal Government, including 
                a road, tunnel, bridge, or mass-transit-related 
                or rail-related asset.
                  (B) Exclusion.--The term does not include any 
                transportation-related asset on the Interstate 
                System (as defined in section 101 of title 23, 
                United States Code).
  (b) Privatization Initiatives by State and Local 
Governments.--The head of each Executive agency shall--
          (1) assist State and local governments in efforts to 
        privatize the transportation infrastructure assets of 
        the State and local governments; and
          (2) subject to subsection (c), approve requests from 
        State and local governments to privatize transportation 
        infrastructure assets and waive or modify any condition 
        relating to the original Federal program that funded 
        the asset.
  (c) Criteria.--The head of an Executive agency shall approve 
a request described in subsection (b)(2) if--
          (1) the State or local government demonstrates that a 
        market mechanism, legally enforceable agreement, or 
        regulatory mechanism will ensure that the 
        transportation infrastructure asset will continue to be 
        used for the general objectives of the original Federal 
        program that funded the asset (which shall not be 
        considered to include every condition required for the 
        recipient of Federal funds to have obtained the 
        original Federal funds), so long as needed for those 
        objectives; and
          (2) the private party purchasing or leasing the 
        transportation infrastructure asset agrees to comply 
        with all applicable conditions of the original Federal 
        program.
  (d) Lack of Obligation To Repay Federal Funds.--A State or 
local government shall have no obligation to repay to any 
agency of the Federal Government any Federal funds received by 
the State or local government in connection with a 
transportation infrastructure asset that is privatized under 
this section.
  (e) Use of Proceeds.--
          (1) In general.--Subject to paragraph (2), a State or 
        local government may use proceeds from the 
        privatization of a transportation infrastructure asset 
        to the extent permitted under applicable conditions of 
        the original Federal program.
          (2) Recovery of certain costs.--Notwithstanding any 
        other provision of law, the State or local government 
        shall be permitted to recover from the privatization of 
        a transportation infrastructure asset--
                  (A) the capital investment in the 
                transportation infrastructure asset made by the 
                State or local government;
                  (B) an amount equal to the unreimbursed 
                operating expenses in the transportation 
                infrastructure asset paid by the State or local 
                government; and
                  (C) a reasonable rate of return on the 
                investment made under subparagraph (A) and 
                expenses paid under subparagraph (B).

SEC. 8. REDUCTION IN MOTOR FUEL TAXES ON OCTOBER 1, 2002.

  (a) Reduction in Tax Rates.--Section 4081(a)(2)(A) of the 
Internal Revenue Code of 1986 (relating to rates of tax) is 
amended--
          (1) by striking ``18.3 cents'' and inserting ``7.3 
        cents'',
          (2) by striking ``19.3 cents'' and inserting ``8.3 
        cents'', and
          (3) by striking ``24.3 cents'' and inserting ``7.3 
        cents''.
  (b) Conforming Amendments.--
          (1) Clauses (ii) and (iii) of section 4041(a)(2)(B) 
        of such Code are each amended by striking the number of 
        cents specified therein and inserting ``4.3 cents''.
          (2) Section 6427(b)(2)(A) of such Code is amended by 
        striking ``7.4 cents'' and inserting ``0.1 cent''.
  (c) Effective Date.--The amendments made by this section 
shall apply to fuel removed after September 30, 2002.
  (d) Floor Stock Refunds.--
          (1) In general.--If--
                  (A) before October 1, 2002, tax has been 
                imposed under section 4081 of the Internal 
                Revenue Code of 1986 on any liquid; and
                  (B) on such date such liquid is held by a 
                dealer and has not been used and is intended 
                for sale;
        there shall be credited or refunded (without interest) 
        to the person who paid such tax (in this subsection 
        referred to as the ``taxpayer'') an amount equal to the 
        excess of the tax paid by the taxpayer over the amount 
        of such tax which would be imposed on such liquid had 
        the taxable event occurred on such date.
          (2) Time for filing claims.--No credit or refund 
        shall be allowed or made under this subsection unless--
                  (A) claim therefor is filed with the 
                Secretary of the Treasury before April 1, 2003; 
                and
                  (B) in any case where liquid is held by a 
                dealer (other than the taxpayer) on October 1, 
                2002--
                          (i) the dealer submits a request for 
                        refund or credit to the taxpayer before 
                        January 1, 2003; and
                          (ii) the taxpayer has repaid or 
                        agreed to repay the amount so claimed 
                        to such dealer or has obtained the 
                        written consent of such dealer to the 
                        allowance of the credit or the making 
                        of the refund.
          (3) Exception for fuel held in retail stocks.--No 
        credit or refund shall be allowed under this subsection 
        with respect to any liquid in retail stocks held at the 
        place where intended to be sold at retail.
          (4) Definitions.--For purposes of this subsection, 
        the terms ``dealer'' and ``held by a dealer'' have the 
        respective meanings given to such terms by section 6412 
        of such Code; except that the term ``dealer'' includes 
        a producer.
          (5) Certain rules to apply.--Rules similar to the 
        rules of subsections (b) and (c) of section 6412 and 
        sections 6206 and 6675 of such Code shall apply for 
        purposes of this subsection.

SEC. 9. MASS TRANSPORTATION.

  (a) In General.--Section 5338 of title 49, United States 
Code, is amended to read as follows:

``Sec. 5338. Authorizations

  ``There are authorized to be appropriated to the Secretary of 
Transportation to carry out this chapter--
          ``(1) $868,000,000 for fiscal year 1999, of which--
                  ``(A) $304,000,000 shall be used to carry out 
                sections 5307 and 5309;
                  ``(B) $95,000,000 shall be used to carry out 
                section 5311; and
                  ``(C) the amount remaining after allocation 
                under subparagraphs (A) and (B) shall be used 
                at the discretion of the Secretary, including 
                for capital expenditure under this chapter;
          ``(2) $889,000,000 for fiscal year 2000, of which--
                  ``(A) $212,000,000 shall be used to carry out 
                sections 5307 and 5309;
                  ``(B) $97,000,000 shall be used to carry out 
                section 5311; and
                  ``(C) the amount remaining after allocation 
                under subparagraphs (A) and (B) shall be used 
                at the discretion of the Secretary, including 
                for capital expenditure under this chapter;
          ``(3) $916,000,000 for fiscal year 2001, of which--
                  ``(A) $119,000,000 shall be used to carry out 
                sections 5307 and 5309;
                  ``(B) $100,000,000 shall be used to carry out 
                section 5311; and
                  ``(C) the amount remaining after allocation 
                under subparagraphs (A) and (B) shall be used 
                at the discretion of the Secretary, including 
                for capital expenditure under this chapter;
          ``(4) $941,000,000 for fiscal year 2002, of which--
                  ``(A) $27,000,000 shall be used to carry out 
                sections 5307 and 5309;
                  ``(B) $103,000,000 shall be used to carry out 
                section 5311; and
                  ``(C) the amount remaining after allocation 
                under subparagraphs (A) and (B) shall be used 
                at the discretion of the Secretary, including 
                for capital expenditure under this chapter; and
          ``(5) $961,000,000 for fiscal year 2003, of which--
                  ``(A) $0 shall be used to carry out sections 
                5307 and 5309;
                  ``(B) $105,000,000 shall be used to carry out 
                section 5311; and
                  ``(C) the amount remaining after allocation 
                under subparagraphs (A) and (B) shall be used 
                at the discretion of the Secretary, including 
                for capital expenditure under this chapter.''.
  (b) Effective Date.--The amendment made by this section takes 
effect on October 1, 1998.

SEC. 10. REPORT TO CONGRESS.

  Not later than 180 days after the date of enactment of this 
Act, after consultation with the appropriate committees of 
Congress, the Secretary of Transportation shall submit a report 
to Congress describing such technical and conforming amendments 
to titles 23 and 49, United States Code, and such technical and 
conforming amendments to other laws, as are necessary to bring 
those titles and other laws into conformity with the policy 
embodied in this Act and the amendments made by this Act.

SEC. 11. EFFECTIVE DATE CONTINGENT UPON CERTIFICATION OF DEFICIT 
                    NEUTRALITY.

  (a) Purpose.--The purpose of this section is to ensure that--
          (1) this Act will become effective only if the 
        Director of the Office of Management and Budget 
        certifies that this Act is deficit neutral;
          (2) discretionary spending limits are reduced to 
        capture the savings realized in devolving 
        transportation functions to the State level; and
          (3) the tax reduction made by this Act is not scored 
        under pay-as-you-go and thereby inadvertently trigger a 
        sequestration.
  (b) Effective Date Contingency.--Notwithstanding any other 
provision of this Act, this Act and the amendments made by this 
Act shall take effect only if--
          (1) the Director of the Office of Management and 
        Budget (referred to in this section as the 
        ``Director'') submits the report as required in 
        subsection (c); and
          (2) the report contains a certification by the 
        Director that the reduction in discretionary outlays 
        resulting from the enactment of this Act (assuming 
        appropriation amounts described in paragraph (2)(B)) is 
        at least as great as the sum of the net reduction in 
        receipts and direct spending provided in this Act for 
        each fiscal year through 2003.
  (c) OMB Estimates and Report.--
          (1) Requirements.--Not later than 7 calendar days 
        (excluding Saturdays, Sundays, and legal holidays) 
        after the date of enactment of this Act, the Director 
        shall--
                  (A) estimate the net change in receipts and 
                in direct spending resulting from the enactment 
                of this Act for each fiscal year through 2003;
                  (B) estimate the net change in discretionary 
                outlays resulting from the reduction in budget 
                authority under this Act for each fiscal year 
                through 2003;
                  (C) determine, based on those estimates, 
                whether the reduction in discretionary outlays 
                resulting from the enactment of this Act 
                (assuming appropriation amounts described in 
                paragraph (2)(B)) is at least as great as the 
                sum of the net reduction in receipts and direct 
                spending provided in this Act for each fiscal 
                year through 2003; and
                  (D) submit to the Congress a report setting 
                forth the estimates and determination.
          (2) Applicable assumptions and guidelines.--
                  (A) Revenue and direct spending estimates.--
                The revenue and direct spending estimates 
                required under paragraph (1)(A) shall be 
                predicated on the same economic and technical 
                assumptions and scorekeeping guidelines that 
                would be used for estimates made pursuant to 
                section 252(d) of the Balanced Budget and 
                Emergency Deficit Control Act of 1985 (2 U.S.C. 
                902(d)).
                  (B) Outlay estimates.--The outlay estimates 
                required under paragraph (1)(B) shall be 
                determined by comparing the estimated amounts 
                of discretionary outlays that would flow from 
                the new budget authority authorized in this Act 
                on the assumption that subsequent appropriation 
                Acts will provide amounts consistent with this 
                Act (and that obligation limitations set forth 
                in such appropriation Acts, if any, equal the 
                corresponding levels of contract authority 
                provided in this Act) and the corresponding 
                amounts of discretionary outlays assumed in 
                House Concurrent Resolution 84 (105th Congress) 
                and House Report 105-116.
  (d) Conforming Adjustment to Discretionary Spending Limits.--
Upon compliance with the requirements specified in subsection 
(b), the Director shall adjust the adjusted discretionary 
spending limits for each fiscal year under section 251(c) of 
the Balanced Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 901(c)) by the estimated reductions in discretionary 
outlays under subsection (c)(1)(B).
  (e) Paygo Interaction.--Upon compliance with the requirements 
specified in subsection (b), no changes in receipts or direct 
spending estimated to result from the enactment of this Act 
shall be counted for the purposes of section 252(d) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 (2 
U.S.C. 902(d)).

                                
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